can be more effectively channeled into investment and households can have improved access to credit. for some, the development of social safety nets would be helpful, so citizens don't feel the need to hold excessive precautionary savings. and for a few, more stimulative fiscal policy would be helpful. i'll have more to say about these policies in a few minutes, since they are also critical for the good performance of the global economy in the long run. but first, i want to discuss the second type of imbalance that i mentioned at the beginning : the challenges that will be posed by evolving economic and demographic realities. as i see it, if countries do not have the appropriate structural policies in place, there is a risk of a prolonged deficiency in global demand in the future. let me now expand on this risk by highlighting two trends that will be important over the next decade or two. first, we can expect that asia's share of the world economy will continue to grow. for various reasons, asian nations have traditionally had a higher rate of savings than other economies. and so, all other things being equal, we can expect that global desired savings will rise. but all other things are not equal. the second trend that we can expect is higher desired savings in most oecd economies as the baby - boom generation prepares for retirement. taken together, these two trends can certainly be expected to lead to a higher level of global desired savings. so it is critical for policy - makers to act now, so there can be an increase in demand and investment to compensate for the increase in desired savings. how policy - makers handle the events of the next 10 to 20 years will be critical in preparing the global economy for the period from roughly 2020 on, when the proportion of the working - age population will start to decline in many countries. canada will likely be in this position within 15 years. while demographic trends in the united states will likely be less challenging, in many oecd countries, the old - age dependency ratio is poised to rise sharply. according to a study by the european commission, by 2025 the european union will go from a ratio of roughly four working - age persons for every senior citizen to a ratio of 3 to 1. indeed, without radical changes in fertility rates, life expectancies, or migration patterns, populations in many parts of the world will start declining, even as the world's total population continues to climb. according to the united

remarks by lawrence schembri deputy governor national aboriginal capital corporations association may 5, 2022 gatineau, quebec economic reconciliation : supporting a return to indigenous prosperity i would like to begin by acknowledging that the land on which we gather is the unceded, traditional territory of the algonquin anishinaabe. i would also like to recognize that today is the national day of awareness and action for missing and murdered indigenous women, girls and gender diverse people. it is an immense honour and privilege for me to have the opportunity to speak with you today. i greatly admire the national aboriginal capital corporations association and your dedication to supporting indigenous prosperity and improving living standards for first nations, metis and inuit across canada. the successful expansion of your lending to the indigenous economy is a source of inspiration to many, me included. in fact, over the past three decades, you have issued 46, 000 loans worth a total of $ 2. 8 billion. 1 these numbers are impressive, and these loans have made a huge contribution to the prosperity of the indigenous economy. but we all know much more needs to be done. the bank of canada is committed to supporting you in these efforts. fostering indigenous inclusion falls squarely within the bank ’ s mandate to promote the economic and financial well - being of our country and all the peoples within it. taking concrete steps toward economic reconciliation is therefore our responsibility too. as a national public institution, we must show leadership. 1 nacca, annual report 2018 – 19 / 2019 – 20 : toward indigenous prosperity ( 2021 ). that is what i ’ d like to talk about this morning. over the next two years, the bank will reach out and listen to a wide range of indigenous groups to define what economic reconciliation means for us and for our work. we will look to our existing partners — and, hopefully, many new ones — to guide us toward a common understanding of what our role should be. by embracing this process — and taking the time to do it right — we hope that the bank can take a meaningful step toward building trust and strengthening our relationship with indigenous peoples. in recent years, my colleagues and i listened to our indigenous partners. we have learned a great deal about the history of the indigenous economy, its potential and the challenges and opportunities it currently faces. we have also begun to support the indigenous economy through various means, but we need to become more deliberate in our approach. if we are going to advance economic reconciliation with indigenous peoples, we need a