The Right Honourable Lord Mayor of London addresses MBA students
As part of the London Talks series, Alderman Michael Bear addressed the class of MBA2013 on the ‘Formula for Success – Leading the World’s Global Financial Centre’. Providing students with the opportunity to learn about the city’s history and challenges while also gaining a better understanding about the role of the Lord Mayor; the talk was introduced and moderated by Helene Rey, Professor of Economics.
In the historic surroundings of the Honourable Artillery Company, a British institution which dates back to 1537 and is now home to the oldest regiment of the British army, the Lord Mayor ofLondonwas announced in a traditional ceremony by the Company of Pikemen and Musketeers, their principal duty being to escort the Lord Mayor at civic duties.
Unlike many of his predecessors, Alderman Bear arrived from South Africain 1979 and trained as a civil engineer, rising to managing director of Balfour Beatty Property Ltd and then transitioning to government work following success with the Spitalfields Development Group. A Cranfield MBA graduate, Alderman Bear commented that it “gave him the skills to widen my horizons” and that without it “I would not be where I am today”.
The 683rd Lord Mayor of the City of London said he looked to Dick Whittington for inspiration, having made his fortune trading coal and leaving a substantial legacy for the city. Since that time, London has cemented itself as a trading centre but only really came into its own after liberalising restrictive trade practices in the late 1980s.
Today, the focus is to promote the City’s role in the national and international economic recovery. Touring 22 countries in 92 days, the Lord Mayor demonstrated the global reach and impact that the city has across many sectors. When asked which financial centres posed the biggest risk, the Lord Mayor said we should be “mindful of competition but not threatened by it” but commented that the key locations to watch are Shanghai, Hong Kong and Brazil.
The Lord Mayor referred to London as the “engine of the UK economy” and was asked about how he saw the future of UK banking in London. The Lord Mayor acknowledged the poor reputation at present and stressed the need to build confidence in areas that will service the public’s needs such as retail and investment. To succeed it would prove vital to ring fence risk within the banking sector with a commitment to reassess the current model until 2019. The Lord Mayor identified the SME sector as a key target for support and growth as they currently provide 60% of employment. Looking to the future, the world economy is set to double in the next 10 years; to take advantage of this global growth would require “commodities, surplus cash and creativity”.
In closing, the Lord Mayor outlined the five criteria which he believes gives London its competitive edge:
- With a population made up of 30% non-British passports and over 300 languages, the city attracts and maintains a highly skilled labour pool;
- The unique time zone ensures a business-friendly environment combined with clarity and transparency in the tax and legal systems to inform the way we do business;
- 24/7 communication channels from accessibility; to our ports and airports, through to ongoing and regular information sharing;
- A strong infrastructure which is a powerful “generator of political and economic growth”, providing a strong backdrop for the cultural scene;
- Finally, Alderman Bear said that “the UK is the collector of best practice. We collect best practice across a variety of sectors around the world”. With 250 foreign banks and 20% of cross border lending, London has a cluster of world class organisations in every discipline.