The Small Countries Financial Management Programme

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1 Big Challenges, Real Solutions The Isle of Man, The University of Oxford, the World Bank, and the Small States Network for Economic Development, have come together to offer a unique opportunity. The Small Countries Financial Management Programme

2 Welcome Allan Bell MHK, Treasury Minister, Isle of Man Government I m delighted to be able to introduce the Small Countries Financial Management Programme. Recent events in the financial markets have reinforced the need for all countries to have well run banking and financial sectors, to embrace sound regulation and, generally, to strengthen their economic management capabilities; this programme is designed to help them to do just that. Small countries face special challenges. Studies have shown that they can be disproportionately challenged when it comes to the effective management of their financial sector, and in their ability to engage and negotiate with both larger countries and international institutions. These factors prompted the establishment of The Small States Network for Economic Development, which works to promote the sustainable development of small state economies, and their more effective integration into the rapidly evolving global economy. It also has an increasingly powerful voice in ensuring that the concerns and interests of small countries are more adequately reflected in the policies and programs of the international community. Nevertheless, until now, there has been little in the way of customised support in the area of people development in the financial sector that would address the unique challenges and, therefore the needs, of small countries. One of the ways the network achieves its objectives is by undertaking peer to peer initiatives sharing knowledge and best practice between those countries which face similar problems and challenges the Small Countries Financial Management Programme is a groundbreaking example of such an initiative in action. The Isle of Man was honoured to become the first Associate Member of the Small States Network for Economic Development, and we are proud to be the primary sponsor of this programme. For almost a decade, the Isle of Man has been at the leading edge in developing forms of collaboration between both small and large countries in the global economic community. As a centre of financial excellence, we are only too happy to share our expertise and resources by supporting this innovative education programme, which has been designed by Oxford University in collaboration with the World Bank, and the Small States Network for Economic Development. I do hope that you, or an official you designate, will apply to join programme. I know it will deliver unique insights and practical solutions.

3 For almost a decade, the Isle of Man has been at the leading edge in developing forms of collaboration between both small and large countries in the global economic community. The Isle of Man The Isle of Man (in the Manx language, Ellan Vannin) is an island in the British Isles, located in the Irish Sea between Great Britain and Ireland. The country is an internally self-governing dependent territory of the British Crown; it is not part of the United Kingdom. Tynwald, the Island s 1,000 year old Parliament, makes its own laws and oversees all internal administration, fiscal and social policies. The Island has its own Income Tax and Customs and Excise services, and is an established low tax area enjoying total independence from the UK on matters of direct taxation. The Island is established as a flourishing, well regulated and internationally respected offshore business centre

4 Saïd Business School, University of Oxford The University of Oxford has been educating leaders for 800 years. Its historic colleges dominate Oxford s skyline and provide a fascinating insight into the cultural and intellectually heritage of the city. Oxford University s Saïd Business School, established in 1996, is one of Europe s youngest and most entrepreneurial business schools. However, in the area of customised Executive Development, the University has been delivering highly acclaimed programmes for the past 40 years. The faculty are all at the forefront of their fields and provide intellectual leadership for institutions such as the European Commission, the European Corporate Governance Institute, and the World Bank. The Small Countries Financial Management Programme This programme is unique. It recognises that, currently, there is a lack of directly relevant and appropriate training specifically aimed at addressing the problems faced by small developing countries. It, therefore, has been designed to deliver benefits that are not generally available from other programmes. It will employ a number of teaching methods aimed at enabling participants to reframe existing problems and challenges in ways that allow new insights and, in the process, possible new solutions to these challenges. Participants will be asked to bring with them a current significant problem they are working on and, using insights from the programme, develop some new and hopefully more effective ways of 2 tackling it. In that sense it goes beyond the usual technical training approach employed by many programmes. The programme is being provided by the Small Countries Financial Management Centre and is designed and directed by Oxford University s Saïd Business school, in collaboration with the International Business School at the University centre in the Isle of Man. The first part of the programme will be held in the Isle of Man, with the final three days taking place in Oxford. The programme will be delivered by leading academics in relevant disciplines from around the world. The Faculty, which will be overseen by an experienced programme director from the Saïd Business School, will include professors from Oxford University, the Kennedy School of Government at Harvard University, and other major universities and business schools. It is intended that there will be guest speakers from the World Bank, IMF, and other multilateral agencies. In addition, there will be experienced practitioners and experts from financial institutions and other small countries which have best practice to share. Up to 30 participants will be selected from senior officials of ministries of finance, financial regulatory bodies, and the central banks of small countries. Attendance is free, and all travel and accommodation costs will be covered by the sponsors.

5 Meeting a Real Need Currently, many factors are combining to put pressure on small countries. These include the erosion of preferential regimes for exported goods, and the expanded role of the World Trade Organisation (and other international bodies) in framing the international trade and regulatory environments. In addition, there is a growing consensus that small countries must shift their attention to implementing export-based development strategies, and seek comparative advantage in the service sectors. More worryingly, there is widespread international concern that some small countries especially those that have developed an offshore financial services sector are vulnerable to flows of illicit funds. In response, small countries need help to establish and nurture their financial services sectors, and to strengthen the skills of their officials so as to foster a well-governed and regulated financial sector; one which is conducive to the effective use of public funds, private sector investment, good governance, and the provision of quality services to citizens. The Small Countries Financial Management Programme is designed to provide just such help. This programme is unique. It recognises that, currently, there is a lack of directly relevant and appropriate training specifically aimed at addressing the problems faced by small developing countries. 3

6 This will allow participants from countries that have financial centres to focus on topics that have specific relevance to those areas, whilst others will be able to choose topics that are relevant to their needs. The Programme in Outline There will be a core curriculum within which there will be some elective options. This will allow participants from countries that have financial centres to focus on topics that have specific relevance to those areas, whilst others will be able to choose topics that relevant to their needs. All of the topics covered will take account of possible impacts from the current financial crisis that the world faces and, typically, will include: New approaches to Risk Management New perspectives and insights into Regulatory Practices Tax Policy and the post G20 perspectives on transparency Debt Management Cash Management and alternative investment strategies. Awareness of the benefits which may be able to be acquired from accessing carbon trading markets Medium Term Expenditure Frameworks Budgeting The scope for regulatory collaboration among small countries The challenges involved in implementing change in government Building proactive and effective partnerships with international bodies Anti-money laundering/ countering the financing of terrorism and the STAR (Stolen Assets Recovery programme) Initiative, of the World Bank. Negotiation skills However, equally important will be the connecting of these topics to the personal challenges that each of the participants will be working on, culminating in three days of developing negotiation skills aimed at improving the effectiveness of any solutions developed during the two weeks, again, linked to delivering any outputs from the programme. The primary challenge for the programme is that any outputs should be operationally useful. 4

7 The Small Countries Financial Management Centre The Small Countries Financial Management Centre was established in 2009, with the financial support of the Isle of Man Government, The Commonwealth Secretariat, The World Bank, and other donors. The Centre s primary purpose is to conduct capacity-building programmes for officials of the government financial sector of small countries and post-conflict fragile states. It will also commission research and disseminate knowledge products on small countries financial management and regulatory issues. The centre is located at the Isle of Man University centre, which houses the Isle of Man International Business School. The latter is a unique higher education institution specialising in offshore business, banking and insurance training, and is working with thesaïd Business School to facilitate the implementation of The Small Countries Financial Management Programme. The University centre is situated just outside Douglas, the Island s capital, and its peaceful surroundings are ideally suited to higher learning and training. Executive Director: Tim Cullen tim.cullen@scfmc.im 5

8 An important element of the programme will be the acquisition of negotiation skills based on the world renowned Oxford Programme on Negotiation. A Challenging Programme New Perspectives on Problem Solving: Many problems remain unresolved not because of a lack of appropriate knowledge or skills of the officials tasked with resolving them, but because often the problems are inappropriately defined. The programme will specifically address this issue, and will equip participants with skills to enable them to reframe issues, and by doing so, gain new insights into more productive ways of tackling problems generally. This will also involve examining processes for effective management of change in political environments, and for tackling challenges in more productive ways. In order to get the most out of the programme and, in particular, to work effectively on their individual problems and challenges, participants will be exposed to: Highly interactive classroom sessions: The programme will employ highly interactive and user-friendly teaching methods, with detailed discussions of Case Studies and simulations in which participants assume roles. The Toronto Centre will run one of its banking crisis management simulations on one day of the programme. Syndicate/break-out groups: The programme is designed to be highly collaborative, drawing on shared experiences and collective understanding in mentored syndicate and breakout groups. Participants will work on their challenges in smaller groups to ensure everyone gets the benefit of inputs from other participants. One-to-One Exchanges Between Participants: As a further development of the interactive possibilities in this two week event, there will also be formal and structured one-on-one exchanges where each participant will get the opportunity of co-mentoring with other participants. This will be in addition to the general opportunity to exchange ideas throughout the two weeks. Access to Hands-On Experience/Case Studies: Participants will be able to have direct contact with small countries practitioners, who will illustrate using real life examples where best practice has been developed. By doing so, participants will gain valuable insights into actual problems faced by small countries and be able to evaluate the solutions generated, together with the officials involved. This information will be captured by rapporteurs and developed into printed and electronic materials, which, along with other insights from the programme, can be shared more broadly. Development of Key Negotiation Skills: An important element of the programme will be the acquisition of negotiation skills based on the world renowned Oxford Programme on Negotiation which offers participants the opportunity to acquire advanced negotiation and mediation techniques. Negotiation skills will be placed in relevant context for negotiations within government and with bilateral and multilateral bodies, through the appropriate choice of simulations and role-plays. As the final part of the programme, this will give the participants an active delivery plan for whatever they have developed in terms of new approaches to their challenges. 6

9 The Programme The two week programme will start on a Sunday evening at the Isle of Man International Business School. At the end of a full intensive week on Sunday there will be cultural and tourist outings in the Isle of Man On Wednesday morning of the second week, the participants will fly to the UK and travel to Oxford University. From Wednesday noon through to Friday afternoon, a customised version of the Oxford Programme on Negotiation will be taught at the Saïd Business School. During this portion of the programme held at Oxford University, there will be dinners at Oxford colleges. Participants will receive their certificates signifying successful completion of the course at the final dinner on the Friday evening. Benefits The overarching philosophy of the programme is that it will be operationally useful. Participants will, therefore, leave the programme equipped with: A wide range of skills and powerful techniques designed to help them directly in their day-to-day roles. New insights into the broader workings of the global economy, its major state players, and the role of multilateral agencies. A deeper understanding of the common challenges faced by small states and the resources available to solve them. A broader perspective of what is involved in effecting change in political environments. Insights, recommendations, and specific measures to address a particular challenge that their government s financial sector faces. Strong bonds with fellow delegates. The scope, duration, and intensity of the programme should provide participants with a useful network of peers in other countries which will enable them to forge powerful networks of information and influence, now and in the future. 7

10 Who should attend? The programme is open to officials who are nationals of small countries, employed in finance ministries, central banks, financial regulatory bodies or those with a focus on strengthening financial management and seeking to develop productive partnerships with international organisations, global regulators and other countries. Applicants should be senior officials in their administrations, tasked with implementing significant initiatives. How to apply Candidates need to complete the enclosed application form. Up to three applications will be considered from any one country. From the applications received, up to 25 participants will be selected. The final decision will be made by the programme management in order to ensure an appropriate mix of participants to achieve as rich a crosssection of experiences as possible. In addition, it is intended to allocate up to five additional places to officials from fragile post-conflict countries which, although much bigger than the small countries in terms of population, have extremely small and poorly developed financial sectors. This will bring the total number of participants each year to 30. Again, all tuition fees, travel, and accommodation costs, will be met by the programme sponsors. Given the calibre of the proposed programme, it is envisaged that there will be more applications than places, and we welcome early receipt of application forms from candidates. 8

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12 SMALL STATES NETWORK FOR ECONOMIC DEVELOPMENT THE WORLD BANK Marina Corkhill Small Countries Financial Management Centre The Isle of Man University Centre Old Castletown Road Douglas Isle of Man IM2 1QB T: +44 (0) F: +44 (0) Produced by Isle of Man Government in association with Mainstream Financial Media & PR. +44 (0) Photography by Greg Smolonski ( and Tim Cullen