potential in this sector is to be harnessed. for us at the bank of namibia, our efforts have been geared towards providing policy advice to relevant stakeholders in this regard. in a recent research paper by the bank, the issue of private equity and the contributions they could make to the growth of smmes received our attention. among others the paper concluded that private equity as a source of alternative finance for smmes in namibia could go a long way in removing the constraints posed especially by start up capital for smmes. the paper accordingly recommended, among others, that venture capital should be encouraged as one of the sources to finance smmes in namibia. in addition to providing finance, venture capital also assists with the provision of expertise necessary for the success of these businesses at the initial stages. specifically, the paper recommended that private - public partnership be encouraged particularly for investments in start - up businesses. this initiative will stimulate the growth of the smme sector, reduce the backlog of unemployment and thus promote the attainment of the goals of poverty and income inequality reduction in the economy. ladies and gentlemen, let me conclude by restating the fact that smmes will continue to play a very important role in the economy especially in developing countries where the twin problems of unemployment and poverty constitute major development challenges. well targeted government intervention in this sector remains indispensable provided such interventions do not displace the private sector. these are serious challenges. however, given the quality of papers that will be discussed in the course of this conference, i am convinced that useful policy recommendations will emerge at the end of the different sessions. i thank your for listening.

##ing of inflation has supported the view that price stability fosters economic efficiency and higher productivity. indeed, price stability is now a formal objective included in the charters of nearly all central banks. a firm long - run focus on price stability does not mean that the central bank cannot have other economic goals, although central bankers disagree on this somewhat, at least in emphasis and priority. many nations or economic regions, including the united kingdom and the euro area, have adopted price stability as their primary objective. but in our case, we often summarize the multiple statutory goals of the federal reserve in terms of the " dual objectives " of price stability and sustainable economic growth. we see these twin objectives as fully compatible in the long run. our experience in the united states has been that multiple objectives for policy do not undermine policy performance when the public is convinced that the central bank is committed to price stability over the long run. indeed, the commitment to long - run price stability can afford the central bank some flexibility in employing its tools to address shorter - run economic issues. certainly such has been the case for the united states in recent years. since i joined the federal reserve in 1997, the u. s. economy has weathered a remarkable series of economic shocks - both positive and negative - and the federal open market committee ( fomc ) has adjusted the stance of monetary policy over a wide range in response to those shocks. and yet, through it all, long - term inflation expectations have remained very stable and at very low levels. partly as a result, long - term nominal interest rates, which contain a premium reflecting long - term inflation expectations, are as low as they have been in fifty years. although central bankers have focused much of their attention on combating and containing inflation pressures over recent decades, the very low levels of inflation and recent sluggish economic growth in the united states have prompted worries in some quarters about the potential for deflation in this country. the case of japan in recent years serves as a cautionary tale about the dangers of deflation, especially when a central bank has pushed its traditional policy tool - the short - term interest rate - to zero. however, i believe that the risks of a general deflation in the united states are minimal. first, further aggressive monetary and, in all probability, fiscal stimulus would be brought to bear in the unlikely event that deflation were to become a threat. furthermore, unlike the situation in japan, the balance sheets of financial firms in this country