Productivity is thus not only a function of physical technology, but of talent development, including leadership development, given the increasing dynamic and complex environment. In the area of regional collaboration and cooperation, the Asian region is well ahead in the areas of surveillance arrangements, financial safety nets and crisis management. These frameworks and arrangements were established in the period of relative stability since the Asian financial crisis. The establishment of regional arrangements and platforms, including the building of regional financial infrastructures and markets, is not only aimed at facilitating the efficient intermediation of financial resources in the region, but also at safeguarding financial stability in the region. This trend paves the way for coordinated policy actions to manage and mitigate the risks and vulnerabilities to the region. Given our diversities, there is also tremendous opportunity for the private sector, in particular in ASEAN, to integrate further in the areas of trade, investment and finance, and to leverage on the respective comparative advantage that exists in the region. Conclusion While we could best prepare for the future using all the knowledge that we currently have, the transition towards the new landscape will continue to be paved with uncertainty and new challenges. Further, there will be increasing complexity in the functioning of the global economy and the international financial system. In this environment, perhaps the best compass for policy-makers and businesses is one that is centred on principles; in particular, on ethics and integrity. Recent experiences in the advanced economies have put this into question.

Norges Bank considers it important, therefore, that payment services are organised in a way that enables the market to find efficient solutions for production and use of such services. In this presentation, I will focus on retail payment systems. BIS Review 66/2002  1  Criteria for assessing efficiency We place emphasis on four elements when assessing the efficiency of the retail payment system. 2. Efficiency in retail payments depends on • Access to appropriate payment instruments • Direct pricing of all payment services • Exploitation of economies of scale and network externalities  • Competition in the supply of payment services  It is important that both corporate and retail customers have access to payment instruments that cover their needs in all payment situations. Customers must feel confident that payments reach the correct payee at the correct time. This in turn requires a high level of operating reliability in the electronic payment systems and correct processing of paper-based payment instruments. The security experienced by customers in connection with different payment instruments has an impact on the use of the instruments and thus also on the public’s perception of whether the service range is acceptable. Prices tell customers something about the value of the product or service and the costs associated with procuring the product. This affects customer preferences. Prices which reflect the relative costs of producing different payments services provide important incentives for selecting the services that satisfy their needs at the lowest possible cost.