and manage the financial system in a country. why is it important to build financial infrastructure? a sound and robust financial system is a key contributing factor to financial stability in a country. although a definite causal link exists between real economic stability and financial stability, sound and robust financial systems play an important role in reducing the risk that distortions in the real economy will develop into a financial crisis and could even minimise the adverse effects of such a crisis in the event of it occurring. a sound and robust financial system is essential for mobilising capital that is necessary for sustainable economic growth. the major objectives of macroeconomic policy in a country are the level of employment, price stability, gdp - growth as a measure of economic growth and equilibrium on the balance of payments, especially in open economies such as those in the sadc region. domestic financial system weaknesses have potential repercussions on exchange rate stability and the balance of payments. an unsound domestic banking system will be less capable of providing an efficient foreign exchange market and will complicate monetary policy decision making by distorting the link between interest rates, economic activity and inflation. this will by implication make monetary targeting more vulnerable to policy errors. underdeveloped or developing economies are dependant on investment and uncertainty about the soundness of the national payment system in a country may trigger capital flight or deter foreign investors, thereby putting pressure on the balance of payments and deepening economic recessions. this is likely to, in turn, have an adverse knock - on effect on the level of employment and the general inflation level. furthermore, a country that does not conform to international standards and best practices with regard to its financial system, risks isolation from the international economic community. globalisation is a global trend toward the freer flow of trade and investment across borders, resulting in the integration of the international economy. in a globalised world, no country can afford being isolated, as there is no room in a globalised world for an economy isolated from world trade and foreign investment. globalisation also brings many benefits such as access to foreign capital, global export markets and advanced technology much needed in underdeveloped and developing countries. these benefits have positive social and economic consequences such as faster economic growth, which, in turn, alleviates poverty, leads to higher labour and environmental standards and facilitate democratisation. countries that resist globalisation, risk being marginalized. in order to become a role player in regional and international trade, countries have to ensure that

performance. we should at all cost avoid this. this course on financial programming is designed to take care of this problem by addressing inter - linkages between sectors and trade - offs associated with different policy mixes. the main challenge of making sound policy choices however still remains with principal officers in our institutions. the financial programming framework makes for more informed policy decisions and is not in itself a substitute for all important policy making process. ladies and gentlemen the programme for this course is quite comprehensive and covers theoretical issues, practical linkages and applications. the course also covers an analysis of the key macroeconomic accounts in an economy ( the general government, non financial corporations, financial corporations, households and non profit institutions serving households ). we hope that resource persons will demonstrate how an appropriate set of policy measures can be developed and coordinated to promote growth and achieve macroeconomic adjustment. the course will of course also cover forecasting techniques. at the end of the course, it is our expectation that the tools and techniques imparted to participants will help them achieve the following : – sharpen their understanding of the essential sectoral linkages and their impact on policy design ; – improve capacity in forecasting and projection skills and applications to policy formulation ; – improve appreciation of policy trade - offs and consistency ; – enhance appreciation of the sequencing issues in policy design and implementation and the importance of commitment to see policy measures run their course. this should enable participants tackle the following : formulate in a fairly precise way the nature of interrelationships among sectors of the economy ; establish outcomes of various policy options and ; recommend desirable policy packages and possible sequencing of measures. ladies and gentlemen, i appreciate that this is a fairly heavy agenda for the two week period, but i would like to believe that you will be up to the challenge. mefmi capacity building events fortunately are not designed as holiday packages! note however, that as in any learning process, the ultimate success of this programme will hinge upon the extent to which each and every participant exerts himself or herself. needless to say there is great potential for you to learn from each other as you come from diverse backgrounds and experiences, and there are unique contributions that each one of you can bring to the table. it is therefore my hope that after this course, you will go out fully motivated to make a difference at your places of work by implementing what you have learnt. share the fruits of this course with colleagues in your respective institutions. this is the very essence of the me