And it is supported by a very strong tradition of technical training and education through the various financial institutes, a tradition which I hope may soon be bolstered by the development of a coherent set of professional qualifications across the different financial market sectors. But how far we remain successful will depend importantly, too, on how far we are able to maintain what I have described as the ethos of the competitive market place in a rapidly changing environment and that will represent a considerable challenge to public policy. Given market self-discipline, I have every confidence, Mr Chairman, that the various competent authorities will remain constructive and impartial in their approach to defining and applying the rules of the game, and open to innovation and wide participation, so that the City retains its position as an attractive location for the provision of financial and business services. So, Mr Chairman, I look to the future of the City with very considerable confidence. On recent form it has little to fear and great opportunities to look forward to. But I don’t say that it will be easy. BIS Review 134/1999  4
Related to this is the question of whether Asian governments have the political will to devolve monetary policy to a single central monetary authority. Asia is more disparate than Europe in its political systems, and it has often been noted that there is less of a tradition of cross-border institutionbuilding here than there is in other regions. It is quite striking, for example, that the approach to free trade agreements so far has been rather piecemeal, where in Europe they have grown and developed from a strong and centralised common market. Indeed, one serious political obstacle that has often been pointed out is the lack of embryonic supranational bodies within Asia from which to launch Asian monetary union efforts. These disadvantages must, of course, be recognised. But, on the other hand, it should be remembered that European monetary union has been a unifying force - a common interest that has brought countries together. All of these "special considerations" point to the conclusion that Asia is not yet ready to implement monetary union. In the process of discussing them, it may well turn out that Asian monetary union is a non-starter. But that does not mean that we are not yet ready to talk about monetary union. After all, it took Europe about half a century to move from the idea of monetary union to the reality.