Inauguration of the Duisenberg School of Finance
Speech by the Minister of Economic Affairs, Ms M.J.A. van der Hoeven, Inauguration of the Duisenberg School of Finance,
Amsterdam, 15 September 2008.
Ladies and gentlemen,
We live in turbulent times. Last week, the US government intervened at Fannie Mae and Freddie Mac, two important pillars of the country's mortgage industry. The American government felt its intervention was absolutely necessary to save its own economy and protect the international financial markets. It shows us the degree of intertwinement of global financial markets. And it illustrates the relation between financial markets and the wider economy.
Against this background I am very happy with the foundation of the Duisenberg School of Finance. The finance industry plays a major role in our economy. Not only because of its importance from an international point of view. But also since a substantial number of excellent financial institutions are of Dutch origin. You might know that in the 17th century the Dutch were the first to have a stock market, which offered financial products that were innovative at the time. Ever since, we have played a substantial role in global finance. Today, the Dutch financial sector is a winner, with the potential to grow even bigger and stronger.
Ladies and Gentlemen,
Innovation in the world of finance is unlike innovation in the physical realm. As exemplified by the Large Hadron Collider, the huge particle accelerator in Geneva, which was switched on last week. What is common to both, however, is the fact that we enter and explore new terrain. The results of research and innovation cannot be predicted and often surprise us. The well-known American economist Harry Markowitz, for instance, never dreamt that his famous Portfolio Theory would still be used in academia today. Underestimated at first, he was eventually awarded the Nobel Prize for his theory.
What contributed to this success? I think that it was personality traits like courage, ambition, knowledge, intelligence and the ability to translate knowledge into new theories and products. These characteristics helped Markowitz to excel.
And excellence is exactly what will strengthen the Dutch financial industry. Excellence in the sense of outperforming our competitors. Excellence in the sense of doing research that is better than research in other countries. Excellence in efficiency. Excellence in practicality. Both in the way we generate new knowledge and how we transform this knowledge into new products and services.
The Dutch have many talents. We are practical. We know how to organise processes. We are famous for our ability to engage others in inclusive and constructive co-operation. Let's use these talents to become more innovative. Let's use these talents to create new and innovative products. Let's use all these things to strengthen the Dutch economy. And to create an excellent climate for research, education and innovation.
The Duisenberg School of Finance and other initiatives, such as the Holland Financial Centre, can play an important role in creating such a climate. In creating a culture and mentality that encourages people, companies and institutions to excel. Both on the individual level and on the level of the entire financial sector.
Ladies and Gentlemen,
It has been done before. Look at the London Business School, which helped London to become a global finance powerhouse. Look at universities like Yale, Harvard, and MIT, which are the world's finest in several fields. These are institutes that accommodate and encourage education, research and the development of new products. Institutes that attract talent - brains from abroad - that every country needs to improve its investment climate.
What will it take for the Duisenberg School of Finance to become such a leading institution, to become - if you like - the equivalent of the London Business School? Or perhaps we need to ask a much bolder question: what do we need to surpass the London Business School?
To me, the answer is contained within the question: AMBITION! In order to excel, we need ambition. Ambition is the key to excellence. Ambition is the key to innovation. Ambition is the key to co-operation between academia and the private sector. Ambition is needed to be the best.
Ladies and Gentlemen,
It is this very ambition that some say has dwindled since the seventeenth century. These people say our country is not only flat in the geographical sense of the word, but also as far as our national character is concerned. I, however, do not agree with such appraisals. The Dutch do not suffer from a natural inclination to eliminate differences, nor do we shun the limelight.
Look at our strong economic sectors, such as food, health and nutrition; nano technology; water; energy. And, last but not least, FINANCE. Sectors that are successful and that we are elevating to higher levels, transforming them into even stronger players on a global scale. No longer are we aiming at strengthening weaker economic sectors and regions in society. Instead, we have adopted a new mindset and new policies. We have acknowledged the need to excel instead of focusing on the lowest common denominator. We have acknowledged the need to create excellent research and education.
The Duisenberg School of Finance is the result of this new mindset. We can be proud of this. But the sheer existence of this new institute is not enough. The Duisenberg School of Finance has to be ambitious, proud, courageous and selective. Selective in the fields in which you want to specialise. One cannot excel in every field. Perhaps risk management, in which you are growing very fast, is a sector worth specialising in. Especially since risk management is so relevant to today's financial problems. But of course it is up to you to take such strategic decisions.
Ladies and Gentlemen,
A few words about the name of this new institute. To me Wim Duisenberg symbolises what this school should stand for. He followed his own course, even when others doubted his decisions and beliefs.
He showed us there was no need to despair about the value, strength and future of the Euro during the turbulent times of the past. I think the courage to follow ones dreams is an important dimension of excellence and ambition. The 'Duisenberg School for Finance' is truly a worthy name.
Ladies and Gentlemen,
Now it is your turn to prove that this school deserves this name. I again appeal to you - students, professors, researchers and associated companies - to show the courage and ambition that are needed to turn this school into an institute of research and education even more famous than the London Business School. A school that will deliver excellent financial graduates, excellent financial products, excellent financial services.
Since I know you have the potential to get us there, I have decided to hand you a cheque of 2 million 485 thousand euros. For I believe in excellence and I believe in encouraging excellence. I wish you all the luck and wisdom you need to become the global financial institute.
Thank you very much.