market orientation and liberalisation resulting in greater integration with the global financial system. central banks in many emerging economies are also tasked with promoting financial inclusion. greater financial inclusion is a key component for an economy towards achieving a more balanced growth and thereby increasing the prospect for a more sustainable growth. what are the factors that have allowed central banks in the emerging economies to perform these roles? honed by international benchmarks, best practices and the scrutiny of a global audience, central banks are institutions that over the years, have built a strong reputation for intellectual rigour, credibility and independence. given this, central banks are often called upon to be the institution that drives important and often challenging financial reforms in an economy. additionally, in most emerging economies, the largest concentration of talent resides in the central bank, providing it with the resources and intellectual capacity to undertake multifaceted developmental roles that extend beyond our core mandates. the fact that central banks are often a highly - regarded public institution in a country also lends it to having greater legitimacy in addressing challenging domestic issues. in managing this role effectively, three elements are key : clarity of the outcomes to be achieved, a governance process which gives clarity on the decision making process and accountability, and finally, ensuring the integrity and the independence of the central bank is not undermined. another recent important element of central banking in the emerging economies that contributes to the effectiveness of the central banks in policy making is the close collaboration amongst central banks in the emerging economies – in particular in the asian region. the formation of formal regional platforms for collaborative initiative facilitates the sharing of information, experience and knowledge which are crucial in driving the national, regional and even international agenda. it also has involved cooperation in not only the areas of surveillance and harmonisation of rules and regulations, but also the assessment of risks to the region and the building of regional financial safety nets. finally, allow me to say something about the current environment. while asia has not been immune from the effects of the turbulence and upheavals taking place in the different parts of the world, the region has been able to demonstrate time and again the ability to manage a swift rebound. factors that have contributed to this resilience is not so much what we have done in response to the development but it is what we have done previously that prepared us to manage these developments. we have been better able to absorb and intermediate the financial turmoil and turbulence, while the series of financial reforms we have implemented have also increased our flexibility and produced better price

zeti akhtar aziz : building institutions to support economic development special lecture by dr zeti akhtar aziz, governor of the central bank of malaysia ( bank negara malaysia ), at the seacen conference on central bank cooperation and mandates “ building institutions to support economic development ”, sasana kijang, kuala lumpur, 14 march 2016. * * * introduction it is my great pleasure and honour to speak at this conference in honour of dr. puey ungphakorn on the subject of “ building institutions to support economic development ”. the topic is highly relevant in the current environment which places greater demands on institutions given the significant structural shifts that are taking place in the global landscape and the changing character of the economic cycles that has brought with it a great many new challenges that need to be managed. given that building institutions is about creating a positive environment for the economy to function, one that will shape the incentive structure that will drive economic activity and encourage the efficient use of resources, the new evolving environment would place a further urgency for institutional building. there is thus a great motivation for building effective institutions to serve this purpose. in particular, the urgency is for strong institutions that will transcend the passage of time and will ensure the path towards sustainable economic growth and development. experience has shown us that institutions are pivotal to any economic success. however, institutional building is in itself an arduous task. and building institutions that are relevant for the future is even more challenging. but it is something that needs to be done now if we are to prepare the ground for our future generations. it is from the legendary dr. puey whom we can draw significant inspiration. dr. puey had long recognised the importance of institutions to economic development and dedicated a major part of his life to this endeavour. he was a true leader, whose contribution to his country ’ s economic progress extended beyond the central banking sphere to several other areas of public service, to education, and to beyond the national borders of thailand. we are now the beneficiaries of dr. puey ’ s efforts which laid the foundation for the greater central bank cooperation that we see in the region today. dr. puey was a true visionary. he had consistently demonstrated his vision, dedication and foresight and in the process, created highly regarded institutions not only in thailand but also for the region. the subject of institutional building has generally referred to institutions that support the functioning of markets. it is maintained that markets allow for the more