However, by and large, despite ample liquidity the financial system has made only a limited contribution to regional development through a reduction in the cost or an increase in the availability of financing for business investment. If the private sector is to play the pivotal role earmarked for it, regional private financial institutions need to adopt more innovative and more supportive financing strategies.
One cannot over-emphasize the need for appropriate mechanisms to finance small and medium sized firms that are the likely candidates for niche manufacturing. We will also need to expand the availability of alternative financing options such as leasing and venture capital.