this is reflected by, or indeed because of, weak traction of export - led industrialisation strategy with a shrinking tradable sector and, in general, narrow economic base, high unemployment rates, as well as relatively high levels of poverty and income inequality, even as levels of incomes and prosperity are increasing somewhat. clearly, this situation requires urgent attention if the aspirations espoused in vision 2036 and the desire to transit to high - income status are to be realised. second, is the need for structural reforms and transformation to improve productivity, ease of doing business, policy transmission and impact, institutional performance and leadership accountability, as well as the economic benefit of spending on infrastructure development and social services. third, is the imperative to improve on implementation of reforms and initiatives through timely evaluation of the impact and outcomes of the reforms as well as performance of responsible entities. fourth, it is critical to maintain macroeconomic balance, some aspects of which fall within the bank ’ s statutory mandate and, therefore, covered in the monetary policy statement. these relate to stability with respect to prices ( inflation ), the exchange rate and the financial sector. the other element of macroeconomic stability is fiscal sustainability, which was eloquently covered by the honourable minister in his maiden budget speech. it would be remiss for me, however, if i do not mention that, while botswana is ranked 91 out of 141 by the world economic forum 2019 global competitiveness report, it is ranked number 1, with 32 other countries, on the macroeconomic stability pillar. honourable minister and distinguished guests, the reason for this background is to highlight the fact that the bank is alive to the development aspirations of the country and related challenges. furthermore, within the confines of its role and mandate, the bank contributes to efforts to address the constraints to diversification and inclusive economic growth. in essence, by focusing and consistently delivering on its specific roles, the bank contributes to maintenance of a conducive macroeconomic environment for structural reforms and transformation initiatives to gain traction, potentially leading to higher rates of growth needed to elevate the economy to high income status. policy track record honourable minister, as we come to the end of the second decade of the third millennium, it is important to reflect on the bank ’ s contribution, thus far, to macroeconomic stability. after all, a key role for a central bank, by which it is ultimately judged, is the extent to which it succeeds in preservation of the value and integrity of the national

of all key players in the economy, including government, parastatals and the private sector. the other point to conclude with is that, given that monetary and fiscal policies are expansionary for longer, immediate and effective implementation of transformation initiatives and structural reforms ( so - called policy rotation ) would raise prospects for faster growth and economic diversification, needed to attain high - income status within the vision 2036 period. honourable minsters, distinguished guests, it is worth reminding us all, that, in as much as prices matter, ultimately, total factor productivity, global competitiveness of domestically produced goods and services as well as innovation and environmentally sound policies are critical for greater prosperity and social welfare. furthermore, nothing that i have said today suggest, in any way, that, aggregate demand management is easy, however one is well informed. on the contrary, central banks across the globe are subject to intense and often critical scrutiny, especially at periods such as now of “ low inflation and for long ” with the likely danger of build - up of global financial vulnerabilities. all i have tried to do, today, is to share with you the likely considerations that would guide monetary policy decisions in 2020, putting these in the wider context of challenges facing not just the domestic but also the global economy. the speaker of the national assembly, honourable ministers, honourable members of parliament, distinguished guests, ladies and gentlemen, i thank you for your kind attention.