If Bermuda gets a bad reputation in the new world of business technology, it will affect every person on the Island, according to an industry guru.

Bermuda resident and prolific e-commerce writer Dr. James Martin also warned Bermuda's leaders that they need to keep up with the changes in the fast moving world of computer technology and not be swept away in the flow.

Dr. Martin, told a hall packed with guests of the Chamber of Commerce for their annual general meeting that the Island had to be seen as a `winner' and not as a `loser' by the world to be at the forefront of the new global economy.

He said: "Bermuda's leaders need to understand these changes and not be swept away by them.'' Dr. Martin added: "If Bermuda gets a bad reputation it will have an effect on every person in Bermuda.'' Bermuda's leaders, however, were not present at the high-level meeting of business executives. While the shadow cabinet were out in force, the Island's Government ministers were notably absent from the important AGM.

Telecommunications and E-commerce Minister, Renee Webb sent two people from her office, but there were no other Government representatives.

Speaking to more than a hundred business leaders, Dr. Martin took the audience through the new world economy at break-neck speed.

He described the new e-commerce sweeping through the world, creating huge wealth and devastating old infrastructure.

"This is a huge tsunami crashing of a magnitude we have not seen before,'' he said to a silent audience.

Dr. Martin told the business leaders that the way these new companies worked, they could locate anywhere in the world. And he added that Bermuda was perfectly poised to take advantage of the growth because of being an offshore jurisdiction.

"What it will come down to is low tax versus high tax,'' on where the new companies would locate.

He said in his opening: "This subject is much more immense than the local politics going on at the moment.'' Dr. Martin told the audience that the basic mechanics of business were currently being radically and fundamentally changed.

So far we had seen business to customer, then business to business and a new business to government field would also be opening up, with open competition for huge contracts such as the United States Government open to the global market.

He spoke also of `herd' movement, where business trends moved across the world, depending on whether the place was seen as a winner or loser and these global electronic herds moved with lightning speeds.

Bermuda, according to Dr. Martin, held a huge advantage as a place to locate because the United States was unattractive because of the heavy burden of taxes.

He also predicted that many corporations would go out of business as they were wiped out by electronic competition that could react to a change in fashion at the touch of a button.

Dr. Martin also explained that instead of the law of diminishing returns, there was a new economic law, the law of increasing returns. He explained that in this new economic theory, those companies that did well, would continue to do better, and those that did poorly would be worse off.

He said that Bermuda was competing for business in a global economy and added: "If you have a reputation for being anti-business, from something you see on a web site, you will keep your business away.

"That which has a bad reputation gets worse. In this world, winner takes most.'' And he added: "It is about the fast beating the slow.'' He said he firmly believes that the new businesses should be setting up in Bermuda, but warned that the reputation of the Island was of paramount importance to attracting business to Bermuda.

President of the Chamber of Commerce, Cris Valdes Dapena, said at the end of the speech in her thanks to the speaker: "Clearly everyone was gripped and terrified by what you have said.'' CLUB CLB