faced with, the support in implementing structural reforms is of a vital importance. structural reforms should not stall as they are crucial for paving a way for long - term sustainable growth and higher living standards, which is one of the main missions of the world bank. financial and technical assistance by the world bank will play a key role in this process. rising unemployment and growth in poverty asks for more “ aggressive ” role when it comes to social issues. but, also supporting reforms aimed at improving competitiveness, as well as addressing the issue of “ climate change ” should be priority on the agenda. given the diversity of eca region, assistance tailored to the specifics of the different groups within the region, remains important. it is my personal opinion that the world bank should increase its contribution to the accomplishment of global financial stability. it is rare to find another institution with such an experience. preservation of global financial stability proved to be an issue of utmost importance to both the growth and the fight against poverty. basel ii has been definitively transforming into basel iii. there is a lot of work to be done to promote the micro - prudent and the macro - prudent frameworks. world bank ’ s contribution through its participation in fsb and other international bodies and its cooperation with countries which use its financial and technical assistance is indispensable. i will finish my address with quoting the leaders of the group of twenty from the meeting in london, 2009 : “ we start from the belief that prosperity is indivisible ; that growth to be sustained, has to be shared ; and that our global plan for recovery must have at its heart the needs and jobs of hard - working families, not just in developed countries but in emerging markets and the poorest countries of the world, too ; and must reflect the interest not just of today ’ s population, but of future generations, too. ” thank you for your attention and i wish you a fruitful discussion and a pleasant stay in skopje.

##hronisation between hong kong and the us being higher than that between hong kong and the mainland, the different stages of economic development between hong kong and the mainland, and the fact that the renminbi is not freely convertible. third, on inflation and the linked exchange rate system : it is true that the weakness of the us dollar and the strength of the renminbi may increase inflationary pressures in hong kong, but rapid growth in productivity in hong kong and diversification of sources of imports can in part mitigate the inflationary pressure. hkma research showed that a 10 % appreciation in the renminbi would increase hong kong ’ s inflation rate, as measured by the ccpi, by roughly 0. 4 percentage points. furthermore, only about 9 - 17 % of imports retained in hong kong come from the mainland. fourth, on asset bubbles and the linked exchange rate system : the monetary policy objective of hong kong is exchange rate stability, rather than to target asset prices or inflation. asset bubbles are not unique to economies with fixed exchange rates. economies with floating exchange rates experience similar problems. in any case, it is difficult to tell ex ante whether there is an asset bubble. on the other hand, most research studies find that monetary policy is too imprecise and blunt to be used as a tool for targeting asset prices. fifth, on the hong kong dollar being undervalued : there is no evidence. recent empirical research by the hkma and the imf show that there is no evidence of currency misalignment for the hong kong dollar at present. given the flexible and adaptive nature of the hong kong economy, wages, prices and other economic variables would adjust so that any misalignment in the real effective exchange rate would be corrected. even a flexible exchange rate is not immune to sustained currency misalignment. exchange rate movements are affected not only by economic fundamentals but also by market dynamics. a flexible exchange rate is arguably more prone to currency misalignment, particularly for small and open economies which are more vulnerable to changes in capital flows. sixth, on widening the exchange rate band : the simple answer is no. it would only serve to undermine the credibility of the linked exchange rate system and invite speculation on the likelihood of further band - widening. it would probably not relieve pressures for currency appreciation, rising inflation and buoyant asset prices. seventh, on the so - called reverse double play : the scope is limited. the reverse double play