We need effective frameworks to ensure financial globalisation contributes to risk diversification, consumption smoothing and efficient intermediation of productive capital across international borders. The global community should decisively address the risks posed by large and volatile short-term capital flows. Not enough is being done at the global level to manage the negative spill-overs to recipient countries. Here, the IMF can play its role as the trusted policy advisor. The Fund can do more to ensure that global financial aspirations consider diverse circumstances and national objectives. Efforts to encourage a more inclusive process in setting global financial standards and initiatives are positive steps in the right direction. Perhaps the most important development of late is the unravelling of a ‘one-size-fits-all’ approach to managing international financial flows. Again and again, previous experiences in crisis management strongly suggest that each crisis at any given time requires a tailor-made solution, given the specificity of each economy’s social, economic and political landscape. The world is changing so rapidly that many countries are forced to retool their nations to embrace new opportunities and unlock this growth potential. Previous successful solutions and policies do not guarantee success and relevance. Throughout episodes of crises, a key lesson policymakers learnt was to have flexibility and courage to explore and implement all available policy tools in preserving macroeconomic and financial stability. At one time, unorthodox and unprecedented policies were considered heresy. Now, they are considered necessary. I thus welcome the recognition within the IMF for a more progressive view on macroprudential and capital flows measures.

As technology continues to reshape our world, we must balance improvements in efficiency and customer experience with the concomitant risks. Today, the trade-offs are still not well understood because while some use technology maliciously, many more use it for a good cause. Only by embracing this advancement, and by working together with tech-players, can we synergise and fully reap the benefits for the economy. In response to these technological shifts, ‘RegTech’ developments ought to be a high priority for global financial regulators. An end goal is to balance the risks and opportunities within the technological sphere. Equally important here are the complementary roles of governments and industries in sharing information, so that we can holistically mitigate various aspects of security threats. The catalytic role of behavioural analytics and big data further provides us with tools to address threats channelled through the financial system. In order to adapt to the borderless nature of globalisation, international cooperation is vitally important. Beyond the financial sector, we must prepare our human capital for the future. Close collaboration between public and private sectors is critical to ensure that displaced workers are adequately retrained and equipped with new skills. Those dislocated should not feel sidelined. We can address labour displacement by investing in education, skills re-training and increasing women’s participation in the workforce. We need to take a hard look at the current landscape of social safety nets, and draw best practices – both those tried and tested, and practices that can best respond to new challenges and needs of society.