Only then will globalization not change the existing traditional social values. Ladies and Gentleman The last item I would like to touch upon today is another related issue befitting today’s theme of Changing Value of Thai Society, and that is the measure of economic development and prosperity. Today’s measure focuses almost exclusively on GDP growth figures. Actually, there are MANY measurement of economic development, such as employment, per capita income, and income distribution, but it appears that the government focuses almost exclusively on GDP growth figures. Quantitative-oriented national leaders focus on this measure - so much so that any activities that will help boost GDP growth are given priority over all other concerns. Importance and priority are also  BIS Review 43/2006  3  being placed on large economic and investment projects, overlooking social development and preservation. Their scope becomes myopic, focusing on short-term investments with immediate results and effect on GDP growth figures in the next quarter, rather than on longer-term projects which foster education and preservation of cultural heritage. It is an undisputable fact that in the case of Thailand, we have focused our energy in promoting growth in industrial production to achieve economic growth and development. One effect has been a rapid depletion of our natural resources. Deforestation resulting from logging and other industries for shortterm economic gain is a stark example (on this may I add that we are lucky that some visionaries in previous governments realized these dangers and declared a forest closed-door policy which helped stop deforestation).

Because they are so closely linked to monetary policy, they had shown signs of almost full integration right after the introduction of the euro. But with the crisis, a degree of re-segmentation took place again along national borders; and the Eurosystem had to step in to take on the intermediation role that these markets play in normal times. Another set of issues relate to banking. Banks expanded both across borders and financial sectors, often combing commercial banking, investment banking and insurance business in one and the same group. The two groups whose CEOs are in the panel are clear examples of this evolution. But cross-border integration of rules and prudentials, including the institutional framework, has not proceeded with the same speed and there continue to be clear differences according to the activity type. Banking consolidation also raises sensitive moral hazard and crisis management questions, as painfully illustrated by the crisis. The securities markets showed strong growth in the years before the crisis and clear signs of integration, though not to the same extent as observed in the euro money markets. With the crisis, bond price indictors showed signs of more dispersion across countries in Europe, but the question is whether this points to more segmented markets or rather increased risk awareness on the part of investors. Very topical in this respect is also the CDS market and its interaction with the underlying (sovereign) bond market. Finally, the integration of a securities market depends to a large extent on the integration of the supporting market infrastructure.