Norfolk Island: The Lost Banking and Technology Opportunity
Norfolk Island had all the ingredients to become a world class banking, business, and technology hub:
- A corporate tax rate of 0%.
- Trust from the international community, since it’s an Australian territory.
- An independent government open to anything that would benefit the island. Including the cultivation of medical marijuana and hosting of online gambling sites.
With the right planning and effort, Norfolk Island could’ve been the next Seychelles or Cayman Islands.
What Could Have Been
A savvy marketer could have developed Norfolk Island into a global banking and business metropolis. The legal framework was already in place. All they needed to do was craft the brand — a difficult, but doable, task.
Author Colleen McCullough — allegedly the islands most famous resident — even encouraged the government to aim for offshore banking.
For a real world example, look at Belize. It’s also a self-governing territory from a respected country.
In 2008 this Caribbean paradise transformed its economic policies and started pushing legislation to boost the financial sector. Belize basically said:
“Hey, lets drop our corporate tax rate and make doing business easy -that should bring in some serious cash”.
Today it’s a “Premier offshore banking center”.
The Window Of Opportunity Has Closed
From 1 July 2016, Norfolk Island will have its autonomy stripped. In exchange, the Australian government will absorb the islands ever increasing debts.
It’s similar to a teenager having car privileges revoked because he can’t afford petrol; instead, his father chauffeurs him around. The teenager is unhappy, and the parents take on the costs.
The Lesson Here
Take on the big challenge; it might not be here tomorrow.
This is one for the history books of lost opportunities. And my personal collection of regrets (next to not buying 100 bitcoins for $12 each in January 2012).
