have been in the absence of population aging. the large improvement in the estimated living standards of future generations arises because of the extra capital bequeathed to them by virtue of the current generation ’ s assumed higher rate of saving. these numbers shouldn ’ t be taken literally but the basic lesson is surely right - that the decisions that we make over the next few decades will matter greatly for the living standards of our children and grandchildren. if we don ’ t begin soon to provide for the coming demographic transition, the relative burden on future generations may be significantly greater than it otherwise could have been. 2 at the heart of the choices our elected representatives will have to make regarding the distribution of these costs across generations will be an issue of fairness : what responsibility do we, who are alive today, have to future generations? what will constitute ethical and fair treatment of those generations, see sheiner, sichel, and slifman ( 2006 ) and elmendorf and sheiner ( 2000 ) for discussions of the basic approach. another approach for gauging the potential impact of demographic change on future generations is the generational accounting framework developed by auerbach, gokhale, and kotlikoff ( 1992 ). this framework begins with the assumption that, for people living today, tax rates will not be increased and benefits will not be cut. on that assumption, one can calculate the taxes ( net of transfers received ) that future generations will have to pay to achieve long - term balance in the government budget. according to recent estimates using this approach, to achieve long - term budget balance the net tax rate on future generations will have to be about double the tax rate on current taxpayers ( gokhale and kotlikoff, 2001 ). this approach looks at the intergenerational issue through the prism of fiscal policy rather than taking the broader economic perspective i have emphasized today, and its underlying assumptions are somewhat different. however, the basic message - that failure by the current generation to address the economic implications of aging will impose significant costs on future generations - is the same. who are not present today to speak for themselves? if current trends continue, the typical u. s. worker will be considerably more productive several decades from now. thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account. on the other hand, i suspect that many people would agree that a fair outcome should involve the current

, society and environment at large. moving forward, ‘ change of mindset ’ is eminent. while considering profit, financial institutions should not forgo the element of being socially and environmentally responsible. i believe setting the ‘ tone from the top ’ is key in this process. the organisation of today ’ s roundtable forum is indeed very apt. it serves as a networking effort while creating opportunities to exchange views, explore mutually beneficial opportunities, and most importantly, implement positive changes in the financial systems. it is not too far - fetched to envisage the generation of breakthrough thinking for future collaboration that is solution - driven ; practical ; and innovative. collective effort is also key to success and the industry should aim to work closely with other key stakeholders. these include government agencies, civil societies and the public to increase awareness and encourage more active participation in supporting further development and offerings of sustainable financial solutions in the market. strong technical know - how in dealing with the changing dynamics of the financial landscape and the arising risks is also essential for industry players to navigate itself in this journey. to end, i wish to reiterate that “ sustainability is indeed a journey, and one that is best navigated collectively ”. sustainable development can be best served by re - connecting finance and element of value creation that is reinforced by bringing benefit to society, environment and prosperity. on that note, i wish all of you a beneficial and productive session today. 1 around 30 least developed and other vulnerable countries are exposed to debt distress – limiting their ability to invest in the sustainable development goals ( sdgs ). 2 countries home to most people in the world and global growth in real wages is only 1. 8 % – the lowest since 2008 ( source : united nation ( 2019 ). financing for sustainable development report 2019 ) 3 air pollution was a cause of almost 5 million deaths worldwide in 2017 while 62 million people were affected by natural hazards in 2018, with 2 million needing to move elsewhere due to climate events ( source : ngfs ( 2019 ). a call for action : climate change as a source of financial risk ). 4 imam al - ghazali, al - mustasfa fi ` ilm al - usul, page 174. 5 islamic banking assets has grown to 31. 4 % ( rm916. 7 billion ) of total banking assets ( as at end 2018, compared to only 14. 1 % in 2008 ) 6 a blockchain is a digital ledger that holds any kind of information ( e