may suffer disadvantages from new technologies such as automated credit examination, for instance. in this regard, we have raised the issue of aging and financial inclusion at the g20 under japan's presidency this year. we will discuss whether the development and diffusion of digital technologies might impede the access to financial services by the elderly, and how to provide convenient and accessible financial services for all. second, we need to secure economic, financial, and social stability. if unemployment increases and investment declines due to an economic recession or financial instability, it would become harder to address a variety of economic and social issues by introducing new sahay, r., m. cihak, p. n'diaye, a. barajas, s. mitra, a. kyobe, y. n. mooi, and s. r. yousefi " financial inclusion : can it meet multiple macroeconomic goals? " imf staff discussion note 15 / 17, international monetary fund, 2015. for a report to the g20 on " the future of work, " see http : / / www. oecd. org / g20 / g20 _ menu _ of _ policy _ options _ for _ the _ future _ of _ work _ fwg - executive _ su mmary. pdf technologies. if the abuse of new technologies leads to social disruption and widespread suspicion of technology, the deployment of new technologies would become more difficult. regarding technological innovations in the financial sector, the g20 has especially focused on crypto - assets and their underlying technology, and has discussed how to contain the various types of risks while harnessing their potential benefits. third, international cooperation is important. as various issues have become globalized, it is essential for financial authorities to cooperate across regions. for instance, regarding environmental issues, the financial stability board ( fsb ), comprising central banks and financial authorities from many countries, established an industry - led task force on disclosures of companies'climate - related financial risks and strategies. the task force has made recommendations for consistent company disclosures. 6 the g20 has also introduced various multinational initiatives related to environmental issues, including the promotion of infrastructure investment highlighting environmental, social, and governance ( esg ) factors. concluding remarks today i have talked about how new technologies can contribute to tackling global challenges such as environmental protection and financial inclusion, and what role the public sector can play. as stressed by schumpeter about 100 years ago, innovation is driven by

markets to greater competition leads to lower prices and higher - quality products, which translates into higher real incomes for most people. globalization has also changed the very structure of production both within multinational firms and between firms. it has become quite common for high - value u. s. components to be shipped to foreign destinations for assembly into finished products, many of which are shipped back to the united states. 21 this so - called round - tripping enables firms to take advantage of economies of scale at each stage of the production process as well as different wage and skill mixes in different locations. these changes in the production process are likely to be particularly pronounced within multinational firms. indeed, recent research shows that multinationals have made a disproportionate contribution to the acceleration of u. s. productivity since the mid - 1990s. 22 so if globalization has helped to increase competition and variety while lowering costs, why do so many oppose it? one answer is that competition and progress invariably produce winners and losers. even if all consumers gain, a few producers may gain a lot and few others may lose a lot. another answer is that, for the advanced economies, opening up markets to products from low - wage countries may disproportionately benefit those with the highest incomes, while greater immigration may hold down blue - collar wages, thereby creating greater inequality of incomes. economists who have studied rising income inequality in america generally conclude that, although international trade and migration have contributed slightly, the main factor by far has been progress in information technology, which has boosted the demand for educated workers relative to those with low skills. 23 yet another potential implication of globalization is that the distribution of incomes across countries will shift. professors edward leamer of ucla and peter schott of yale have recently suggested that the significant gains in chinese and indian per capita income over the past twenty years may have come at the expense of income growth in the so - called " middle income " developing countries such as argentina and brazil. per capita incomes in many middle - income countries have stagnated while per capita incomes in the industrial countries have continued to grow. leamer and schott argue that few chinese or indian products compete with products made in the industrial countries, whereas many chinese and indian products do compete with products made in the middle - income countries. 24 this is an interesting and provocative hypothesis, but as yet it has not been subjected to careful testing. in the realm of finance, globalization, on the whole, promotes diversification and