Financing of these deficits has accelerated money growth and stimulated high real interest rates. The most recent developments are a reflection of the fact that Turkey has dedicated itself to solve the above-mentioned problems. Turkey is fully aware of the fact that this chronic high inflation prevents the whole economy from settling on a sustainable high-growth path and from integrating with the global economy. BIS Review 79/2000  4  The ambitious disinflation program rests on three pillars: (i)  up-front fiscal adjustment;  (ii)  a firm exchange rate commitment supported by consistent income policies; and  (iii)  structural reforms. This program has been supported by the structural reforms in four fundamental areas, namely banking sector, social security and agriculture and public finance. With the awareness of the fact that the soundness of the banking system is of vital importance in an environment where banks are major players in the financial system and are involved in international banking activities, Turkey is continuing to take measures to improve both the quality and the effectiveness of banking surveillance system on basis of the EU directives and BIS principles. The most radical change towards strengthening the supervision and financial structures of banks was the establishment of Banking Regulation and Supervision Agency (BRSA). Additionally, Central Bank of Turkey has pursued the most independent monetary policy possible. More recently, the first priority of the Central Bank has shifted from maintaining financial stability towards achieving price stability.

For several emerging economies, such conditions are reflective of the growing phenomenon of the urban poor, with significant implications for social stability and balanced growth. To address this, inclusive growth strategies have gained prominence in recent years among the policymakers in the region. This needs to be further reinforced by strategies targeted at preparing individuals at an early stage to be well equipped to adjust to the new economic, financial and social realities that confront them. This is where financial education has a fundamental role. A key concern in this environment is to strengthen the capability of financial consumers, in particular household and small businesses, so as to avoid being marginalised by market forces and by the disproportionate impact of the changing financial and social landscape. Related to this is the need to reinforce socially responsible finance, and to address the new and growing risks of financial exclusion. Sophisticated risk-profiling methods employed by financial institutions can make it more difficult for deserving individuals and businesses to  BIS central bankers’ speeches  1  qualify for financial services. Among those that qualify, aggressive marketing practices and more complex financial products can also lead to poor financial decisions at a time when economic and financial reforms are also shifting greater responsibility to individuals to plan and provide for retirement and unexpected developments. Marketing practices that target select groups of consumers often further deprive the broader segments of society from new products that can better meet their financial needs.