the rapid growth of emerging nations, according to the head of one of the United Kingdom's largest companies.

Mr. Mich Newmarch, the group CEO of the Prudential Corporation, believes that developing areas like the Indian sub-continent "could well become economic epicentres'' over the next decade or two.

"People in the emerging nations see what other countries have and want the same,'' he told The Royal Gazette .

Mr. Newmarch, who also yesterday gave a speech to Bermuda Chamber of Commerce on the "Invisible Fist of Competition'', is currently in Bermuda on the latest of many business trips to the Island over the last 10 years.

"They want to create wealth and be able to purchase luxury goods and the only way they can do that is to provide these goods from within,'' he said.

"Developed countries face enormous, almost insuperable competition from the developing nations.'' Mr. Newmarch said the UK had become so preoccupied with moves to unite Europe politically and economically that the country had become sidetracked.

"I'm a supporter of a single European marketplace but the risk of all that type of introspection is that you may overlook what's going on in the rest of the world,'' he said.

"What's going on in the rest of the world is that OECD (Organisation for the Economic Co-operation and Development) countries may be moving much less rapidly than everyone else.'' Western countries were facing a crisis over how they can pay for their comprehensive welfare systems, particularly when faced with aging populations and increased competition from emerging areas.

"If you look at the demographics of OECD countries, there is the potential that their obligations to their tax payers cannot be met,'' he said. "I see that wherever I travel in the Western world.

"America's health programmes are insupportable by the tax payer.'' As Europe sorts out its collective mess, the Prudential was looking more to expand its dealings with emerging countries, he said.

But this was tempered with caution.

"The Pru used to have relatively big businesses in India and Pakistan until, in 1952, it was taken away from us (by the state) without compensation,'' he said.

The Prudential Corporation is a medium to long-term savings entity, controlling pensions and non-pension long-term savings of approximately 65 billion ($97.5 billion) around the world.

A little under $100 million is invested in two money funds under administration with the Bank of Bermuda, which have dual jurisdiction in Bermuda and Guernsey.

The company has extensive insurance operations, including the world's largest life insurance company, and is currently valued at 6.8 billion ($10.2 billion) on the London Stock Exchange.

The Prudential is a huge insurer of property and this year has begun reinsuring portions of its risks with Bermuda's new property catastrophe reinsurers, said Mr. Newmarch, who is a friend of Mid Ocean Re's boss, Mr.

Michael Butt.

"Insofar as I've talked to people who are aware of everything that's been happening in Bermuda, they have always regarded Bermuda as a good place to do business,'' said Mr. Newmarch.

"The overwhelming interest in Bermuda has generally been from America, rather than Britain. It is a jurisdiction of which we are familiar and are quite happy to deal with.'' MR. MICH NEWMARCH -- `People in emerging nations see what other countries have and want the same.'