2002 : 4 - 5 ) suggested the following principles : • design them to complement what exists - in terms of other supporting institutions, human capabilities, and available technologies. • innovate to design institutions that work - and drop those initiatives that do not. even in countries with similar incomes and capacities, innovation can create stronger institutions because of differences in local conditions - differences ranging from social norms to geography. experimentation, which has some costs that must be recognized, can nevertheless help identify new and more effective structures. • connect communities of market players through open information flows and open trade. • promote competition among jurisdictions, firms, and individuals. greater competition modifies the effectiveness of existing institutions, changes people ’ s incentives and behavior, and creates demand for new institutions. developing country actors may face too little competition, often because of current institutional structures. changing this will improve the quality of other institutions. competition among jurisdictions - for example, among different states within a country or between countries - highlights successful institutions and promotes demand for them. competition among firms and individuals does the same. in this section, we have made the case that the legal – institutional framework is the key to economic transformation. we know also that it can be adapted or created to fit the peculiar circumstances of a society. so, where do we go from here? iv towards an effective legal and institutional framework for nigeria ’ s economic transformation : selected illustrations it is almost impossible to win any game without having an enforceable set of rules to guide it. so also is the game of economic transformation. institutions as rules of the game need to be clear and enforceable. of course, like life itself, institutions are dynamic and will continue to evolve or lead the continuously changing economic circumstances. institutional development is an interminable process. so far, we have made progress in building and strengthening some key institutions. we also know that there is still a long way to go. for nigeria to make rapid progress in the quest to join the first world economy, it has to run at extraordinary speed in the creation, adaptation and enforcement of relevant institutions. to start with, it needs to re - examine and possibly reconstruct the basic institutions of the state ( political - legal and administrative arrangements as embodied in the constitution ) to enhance allocative and operational efficiency of the state. second, institutions for ensuring the security of lives and property, secure property rights and enforcement of contracts need strengthening. third, we need institutions that enlarge the domain of the private sector and

participation. in view of this, it has become vital for african countries to promote investors ’ confidence in their respective economies. this requires promoting transparent and favourable macroeconomic environment which is crucial for private sector participation. steps would have to be taken by african central banks to reposition themselves as reputable and transparent institutions. 12. ladies and gentlemen, the final session dealt with establishing the role of central banks in financing infrastructure for industrial development. african countries are plagued by gross infrastructure deficit, and most interventions are largely dependent on annual government budget which can hardly bridge the infrastructure deficit gap. it has been said that infrastructure is a precursor for industrial development. african central banks need to develop strategic agenda for complementing fiscal policy, to bridge the wide infrastructure financing gap in the continent. this is an area that we can contribute in by finding creative financing model to help bridge this gap. 13. ladies and gentlemen, i am aware that experienced resource persons have been assembled to lead discussions on these complex issues enumerated above. on this note, i implore all participants to take full advantage of this meeting by contributing effectively to the discussions. it is my hope that your deliberations would reveal series of policy options to effectively and efficiently promote industrialization for inclusive and transformative development in africa. 14. distinguished colleagues, ladies and gentlemen, i wish you all a successful and fruitful deliberation. 15. thank you for listening. bis central bankers ’ speeches