With New York crashed, London waning and Frankfurt not strong enough a new financial world capital is set to emerge out of the ashes of the recession that we have witnessed. We all know that empires cannot last forever and New York’s financial empire has collapsed. It was generally assumed that London would carry the flame but LDN too has lost its punch. Frankfurt and Paris have also lost influence and stature and will remain powerful only because of the EU. So now we are set to see which new world city will dictate the world’s financial terms. With China emerging as the world’s newest superpower after its Olympics it is presumed that the financial capital will go eastwards to Asia. The USA may be in turmoil but communist China is rolling around in cash (I guess we were wrong thinking that communist isn’t profitable). Shanghai, China’s financial capital looks set to become the new world capital of finance and will prove this by 2010 and wants to be the main financial centre in the world by 2010. But as with every empire’s heart, there are always smaller rivals. Even from inside China we see Shanghai being contested by Hong Kong, which has for many decades now been a financial hub in Asia, alongside Singapore and Tokyo who are also perfect applicants for the seat of financial capital. According to the Washington Post: Tokyo has lifted some regulations on banks and insurance groups and has begun to do something it resisted for a long time: print securities documents in English. The Singapore government… through its massive sovereign wealth funds has increased its private equity and other financial holdings in recent years and is said to be looking to invest in more distressed assets in the United States. 
And there is a newcomer on the stage. Ten years ago Dubai was merely a port in the desert, now it looks like it will take on urban monoliths like Tokyo and New York. Dubai succeeding New York? It’s a travesty – but then again many things in finance can be. It certainly has become the Islamic New York and has stated that it wants to develop the same world-wide stature as the Big Apple. Researchers looked at infrastructure, foreign direct investment, cost of living and the presence and a fair business environment. The four frontrunners are: Dubai, Singapore, Shanghai and Mumbai. All new cities in rising economies. Cities like Tokyo and Hong Kong are not perceived to be as powerful – despite not collapsing the way NYC did. And although Moscow has the most billionaires in the world (I believe with over 38) it will gain influence in the future – although it won’t replace New York as the world financial centre… yet. But I believe it will become the most powerful European financial hub after Frankfurt and certainly the main one in Eastern and Central Europe and Central Asia.
Who would you choose? Personally I’d choose Paris; but the West’s heyday is over. It will inevitably have to be an Eastern city. I feel China has earned it – but China seems to be taking over everything nowadays – plus a communist country managing the world’s finances? Doesn’t that strike you as odd? Hong Kong perhaps? But like Tokyo it has lost its influence. Talking of Tokyo – its sushi definitely puts it into second place, for me anyway. I wish it could be Sao Paolo which is Latin America’s Wall Street – who wouldn’t like a little Samba with stocks? But it is too early yet for Brazil. Moscow would be my first choice, but Russia is not financially powerful just yet. So I guess my choice would be Mumbai. It’s different, it’s friendly! It’s India! And you gotta love those Bollywood movies!
(Plus they have just banned smoking – read below – and are in my good books).
Pics top to bottom: New York, Tokyo, Mumbai.
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