2 billion ) in 2016, collectively benefitting more than a million micro enterprises. despite significant strides taken since the 1970s to develop more inclusive financial systems, including in the countries represented here today, our work in microfinance is far from complete. the full potential of microfinance is not realised until we observe direct linkages to welfare improvements in the micro segment and ultimately, sustainable growth. at the same time, microfinance is also evolving in an era of unprecedented technological change. adaptability is key for microfinance to thrive and further propel itself forward. the focus of this symposium – on insights, inclusion and innovation – underpins this adaptability. insights – identifying with microentreprenurs as effective policymakers and practitioners, we need to have deep insights of our clients on - theground : the microentrepreneurs. this obligation begins with the awareness that the needs, tradeoffs and circumstances of microentrepreneurs are unique. they face very different financial constraints and in turn, very different choice sets. hence, effective microfinance design that appeals to microentrepreneurs ’ needs will not only require a rooted understanding of whether they have been good paymasters, who their other financiers are and how they conduct business ; 1 / 3 bis central bankers'speeches but also their specific background, problems and values. as we speak, predictive credit analytics are being developed using alternative data, such as psychometric assessments and other non - financial information. this may be particularly useful in the microsegment, where traditional data on creditworthiness are usually scarce. these insights can also be leveraged to design products that are tailored towards the distinct needs of microentrepreneurs. improving user experience and confidence is equally important. application procedures, user interfaces and operational processes should be simple and seamless. most importantly, they should be appropriate to the circumstances of microborrowers for whom a loan may well be the first experience with a formal financial institution. how they perceive this experience can have longer term effects on the level of trust they place in financial institutions, and reinforce behaviours that will either encourage them to use financial services, or further distance them from the formal financial system. inclusion – expanding the reach of microfinance one of the key challenges for microfinance has been providing access to financial services where it is unavailable, but needed the most. expanding the reach of financial services, and finding new ways to do

the end of 1996 the general government debt rose from around 56 to above 73 % of gdp for the european union as a whole. this development, together with the worry that it might not yet have run its course, are not likely - to say the least - to lead to a fall in real interest rates. nor do they create the climate of confidence necessary for consumers and investors to modify their current prudent behaviour. on the other hand, the certainty that governments are tackling the underlying causes of the public deficits which are responsible for the constant increase in the debt burden could well bring about such a change in behaviour. “ faceless ” markets are not the only ones looking beyond the immediate present to the future - our fellow citizens are, too. the prospect of self - perpetuating, ever - increasing deficits will not encourage them to spend more. 4. stronger growth would certainly have a beneficial effect on employment. but it would not eliminate the largest component of unemployment - the structural component. this can be done by means of measures which remedy labour market rigidities and reduce the burden of non - wage labour costs. it is this latter channel that links efforts to create jobs with the task of bringing public expenditure under control. i observe, too, that in those countries where unemployment has fallen substantially, jobs have been created not by existing enterprises - and especially not by large enterprises - but by the setting - up of a large number of new enterprises, which have necessarily been small to begin with. to conclude - allow me, if you will, to be quite blunt. yes, once inflation has been brought properly under control, monetary policy can and must contribute to supporting balanced growth, but balanced growth will not depend on monetary policy alone. both the acceleration and the viability of growth will rely on the contribution to be made by other policies. first, on that of a fiscal policy which does not crowd out private investment but, rather, fosters a climate of confidence by implementing a credible process of reforms. second, on that of a policy which creates a favourable fiscal, financial and regulatory environment for the proliferation of new enterprises. and, so that the growth fostered in this way can create many jobs, structural policies will have to assume the principal role, while the role of monetary policy will then dwindle and fade away - alas - to nothing.