By ALISTAIR DARLING and WIN BISCHOFF From today's Wall Street Journal Europe.

For centuries, Britain has been a leader in finance and banking. Today we are setting out how we can remain world leaders. Not at the expense of others, but in partnership with them. And not by returning to business as usual, but by reforming, renewing and championing our financial sector so that it is ready and able to seize future opportunities.

Over the past ten months, the treasury's "Group on Financial Services Competitiveness" has been looking at the global trends that will determine the future prospects for the sector, and its recommendations are published today. Across the world, we are seeing the most disruptive financial crisis in generations, which has completely shaken up the global financial services industry. Our goal is to maintain a competitive and vibrant sector in Britain.

At the core of our analysis is the realization that maintaining Britain's position as a world center for financial services must not come at the expense of other countries -- but by working with them. Partnership may not be one of the key words associated with competitiveness, especially in the financial services industry. But global partnership is precisely the approach that the U.K. needs in order to keep its competitive edge in this dynamic sector.

Over the next 10 to 15 years, as the world economy expands and globalization deepens, financial services have a crucial role to play.

This will be particularly the case for emerging and developing economies, which face a host of challenges over the next few decades. Britain needs to work with these countries. By offering the expertise of our people, the liquidity of our markets, and the financing power, we can support development across the world.

In India, the U.K. industry has been exchanging best practice on financial inclusion. In Africa, we are helping develop microfinance and health insurance.

We have also been working with China to help them develop their capital markets, in particular the market for corporate bonds. The U.K. government will take this forward when Chinese Vice Premier Wang Qishan visits London on Monday as part of the wider U.K.-China Economic and Financial Dialogue.

Partnership is also about government and industry working together, to resolve the big issues arising from the global crisis. Regulation and supervision are a crucial part of retaining competitiveness in the financial services sector. There are important lessons to be learned, by regulators, governments and by the banks themselves. But we believe the U.K. can play a key role in setting a new global standard.

No one wants regulation that stifles innovation or prevents wealth creation. But at the same time, no one wants to see banks taking excessive risks that can bring the whole system down.

This is not an easy balance to strike but it is one we need to get right. And the government will shortly publish proposals on how to reform financial regulation, building on the G-20 agreements, and following on the review by Financial Services Authority Chairman Lord Turner.

The partnership between Government and industry must also be about making the sector more effective. Creating a promotional body to avoid duplication will be of considerable value. We must also promote the many professions that support the sector: law, accountancy, consultancy and shipping to name a few. And we must also invest in skills, so that the financial services industry can stay innovative, and meet global societies' new needs for finance: in healthcare insurance and climate change risk, for example.

The partnership with other financial centers across the world will be based on a diverse and widespread financial services sector in the U.K.

It is a popular misconception that the City of London is where the vast majority of the industry is based. In fact, nearly half of the profits generated in financial services in the U.K. come from outside London. And of the over one million people employed in the industry, more than half are based outside the South East.

The financial services industry has much more to offer than just investment banking. Other activities such as insurance, pensions, fund management and private equity continue to do well -- employing many people in the sector.

Over the past year, prospects for some of our banking centers may have looked difficult. But we are confident recovery will come. This is because our industry retains a capacity to innovate, safeguard investments and improve business models. And also because our industry is about more than just banking -- Edinburg is a world center for asset management while the North West is a center for insurance, for example.

This way, the expectation of world-class regulation, products and skills, can be used to form those all-important global partnerships. Britain will see new global opportunities opening up. Today we face huge challenges. But here and across the world, people will always need high-quality financial services. Economic growth, and our future global prosperity, depend on them.

About the Authors:

Mr. Darling is British chancellor of the exchequer and Mr. Bischoff is former chairman of Citigroup Europe.