in the us economy which is manifest in the declining value of the us dollar and the uncertainty regarding the price of crude oil are also developments which coincide with the credit market problems. these relationships deserve exploration and for that reason we have put together a distinguished team of speakers to examine them for us. i would particularly like to welcome geoffrey belle who has spoken at each of our five capital market seminars to date. a warm and special welcome to geoffrey. a special welcome too to all of our overseas speakers. in the light of the current global concerns, this is why we are starting off with two overview sessions, which deal with the international environment and weakness in the financial and economic system which can contribute to crises. during times of uncertainty the importance of sound financial regulation is brought sharply into focus. in financial circles the prevailing wisdom is that during crises there is a flight to quality. quality here can be defined both in terms of institutions and instruments and this is when regulatory oversight really counts. accordingly there is a session this morning which is entitled “ financial market integrity and compliance ”. in this environment the portfolios of regional investors in these markets has become a matter deserving close attention. since regional investors desire diversification, this has prompted them to seek to invest in foreign markets. however the fluctuating and recently falling value of these portfolios have implications for maintenance of value and for returns. the other question is can these developments affect returns on regional equity or fixed income securities issued and traded in these markets. the first panel discussion will therefore examine the impact of volatility in capital and credit markets in developed countries on our investment portfolio decisions in the caribbean. in addressing this topic we are seeking to determine the transmission mechanisms between the two regions and how vulnerable regional markets are to financial contagion from abroad. it would also be interesting to hear their views not only on asset portfolio diversification but on currency diversification – a trend we have observed – certainly among some central banks world - wide. the two sessions immediately after lunch speak to issues and policies which are currently occupying the attention of local policymakers. as some of you are aware, the government of barbados is committed to the removal of capital controls on transactions with members of the caricom single market and economy from december 31, 2007. we are hopeful that this process will facilitate capital market development and the first paper after the lunch break will address some of the issues relating to financial liberalization and the implications for capital market development. we are mindful here that the

and what role can economic research play in fostering such growth. transformational growth is a long - run phenomenon, which involves at its core the structural transformation of the economy, the basic premise being the repositioning and reallocation of economic activity across the broad sectors of the domestic economy. for the majority of caribbean countries, these sectors are services, primarily tourism and financial services, and to a lesser extent manufacturing, mining and agriculture. in the case of barbados, the government has articulated a national digitisation strategy to transform the economy. the aim is to build a new economy that is knowledge - intensive, technologically driven, and that promotes innovation, creativity and inclusiveness. indeed, technological advancements are fuelling the pace of digitisation of the global economy, 1 / 2 bis central bankers'speeches which represents the greatest potential to drive transformational growth through changes in the economic structure of production. we at the bank recognise that changes in technology are transforming the way financial institutions are interacting with their customers. in particular, the impact of technological advancements on financial regulation and supervision should be an area of research focus, as central banks must adapt to these changes and engage with key stakeholders to ensure the appropriate safeguards are in place to manage the inevitable risks that the new developments present. we must also conduct more micro - based studies to develop a deeper understanding of the behaviours our societies. the initiative to reduce the use of cash is a prime example of how such research can help us better understand the payments landscape in our economies. the goal of structural transformation and ultimately the realisation of transformative growth must be inclusive. this means that everyone benefits from or shares in the income and wealth generation when the economy expands. from an economic perspective, research on the strategies that increase total factor productivity, competitiveness and economic diversification within and across economic sectors are essential. finally, our research must examine how we can reduce the unsustainable use of natural resources to ensure that natural disasters and climate change do not put the prospects for transformational growth at risk. the seminar programme reveals an interesting mix of research papers, the launch of the 2019 financial stability report and a barbados economics society discussion forum on the effectiveness of the bert programme. on behalf of the central bank of barbados, welcome once again and i wish you fruitful, stimulating and enjoyable seminar over these three days, and may we all be inspired to conduct more research that transforms our economies. thank you. 2 / 2 bis central bankers'speeches