Conference Presentation, Panel, Fireside Chat
MI Summit 2013 - London: Access to Global Capital: Investing in Growth
Milken InstituteMindy Silverstein, Tony Blair, Strive Masiyiwa, Seth Merrin, Jane Rowe, Michael Milken
- The Access to Global Capital Initiative plans to accelerate capital flow into emerging and developing nations through three pilot countries, with a primary focus on Rwanda to foster job growth and strategic industry development by linking multinational firms and global investors with governments committed to economic-enabling policies.
- The initiative expects to accelerate growth in job creation, GDP, and per capita income in target countries by incentivizing good governance and foreign direct investment, utilizing partnerships with entities like the Africa Governance Initiative to align governance expertise with capital access.
- Ontario Teachers' Pension Plan intends to increase its emerging market asset allocation from the current 15% to 20% immediately, with a potential rise to 25% within the next five to six years, driven by the expectation that significant opportunities lie outside Canada due to intense domestic competition.
- The pension plan targets specific regions including Africa, Mexico, Latin America, South Asia, and Korea, with investment deployment contingent on board comfort regarding regulatory frameworks, rule of law, and management issues, requiring extensive education on regional risks and opportunities before capital is committed.
- Investment operations will rigorously assess risks such as potential tariff changes or regulatory shifts, with deployment occurring only when the board is satisfied that rules are stable and fiduciary returns are secure, despite the fund receiving hundreds of opportunities weekly with only a fraction being deployed.
- The Africa Governance Initiative expects to expand its presence to approximately 10 African countries and 10 non-African countries by the end of the current year, aiming to facilitate effective government "one-stop shops" for investors and support the continent's projected 50% share of global population growth and doubled middle class within five years.
- Long-term economic projections anticipate that bioscience and medical research will drive over 50% of global economic growth, while Africa's education spending of 20% of GDP and potential economic integration could dramatically alter its share of the world economy, with expectations that 54 of the fastest-growing economies could be African within a decade.
- Foreign direct investment in Africa is expected to continue exceeding aid flows, having tripled over the last decade, with a strategic shift toward viewing investment as a platform for interaction rather than aid, potentially leading to future scenarios where countries like India become aid donors to the UK within 40 years.
- LiquidNet operates in 42 countries covering 70% of the world's publicly traded companies to improve cross-border capital efficiency, supporting the broader goal of enabling efficient capital flow to markets where small and medium businesses historically generated nearly 62 million jobs between 1970 and 2000.
- The initiative expects to entice investment into Rwanda and other pilot nations, offering a preview of countries with strong governance and corporate investment potential, while future plans involve creating economic imperatives for the African continent and fostering integration similar to a potential African Union.