another important trend in recent years has been the deregulation of the international capital markets and the new information technology enabling savings capital to move in a second between different parts of the world, at almost zero cost. capital is not really different from any other type of good. some people need capital, and are willing to pay to borrow it. others have savings and can sell the opportunity to use these for a period of time. deregulation has meant that savings can to an increasing extent be channelled to where they will be most useful. the medium income countries today finance their growing industries and their infrastructure with the aid of the savings capital from us in the rich part of the world. at the same time, those who save money - not least all those saving for pensions can benefit from the growth potential that exists outside of their own country ’ s borders. free capital movements have also made it possible to diversify savings capital and thus reduce risks. this gives greater financial security both among those who invest and those who use borrowed capital. globalisation brings many benefits that are not only economic. contacts with the surrounding world have increased and developments in it make it increasingly difficult to isolate a country. openness is increasing in all areas, facilitating the exchange of knowledge and information and receives further nourishment from growing economic prosperity. in addition, since it has become less costly to travel and easier to undergo education in other countries, more and more people have had personal experience of everyday life in other countries. criticism of globalisation nevertheless - despite the very positive development in many respects - there are many that regard globalisation as a threat rather than an opportunity. there are a lot of organisations with many different views in this area. however, they seem to share some of the concerns about trends in the world economy. this may concern the following : • trade and new technology increase competition and the requirement to change. the changeover to new types of production makes demands for great, and often swift, adaptation. some companies become unprofitable and employees both in industrialised countries and developing countries are forced to leave their jobs and look for new. • although the situation of more and more people is improving, the gap between the poor and the rich is increasing. countries, which due to deficient infrastructure and incapable political leadership, etc. are not equipped to take advantage of the benefits of globalisation, risk falling further and further behind. • the global environmental problems are aggravated. • free capital movements make countries more vulnerable

pablo hernandez de cos : close of the 2019 / 20 academic year speech by mr pablo hernandez de cos, governor of the bank of spain and chair of the basel committee on banking supervision, at the centro de estudios monetarios y financieros ( cemfi ), madrid, 10 july 2020. * * * good afternoon class of 2020. good afternoon dear colleagues, friends and families. it is a pleasure for me to participate in this virtual graduation ceremony together with mari luz moran, rector of universidad internacional menendez pelayo, susanna esteban, director of the master program, and rafael repullo, director of cemfi. i would especially like to thank the rector for being here today. the partnership with universidad internacional menendez pelayo dating back to 2006 has been instrumental in improving our ability to attract excellent students and the quality of our graduate program, and i am very grateful for this. before i begin, let me acknowledge everyone whose hard work has made this online celebration possible, especially the cemfi administrative and it staff. the world into which this class of 2020 is graduating is a fundamentally different one from what we expected just a few months back. the coronavirus pandemic has caused the loss of many lives and affected the livelihood of millions of people worldwide. our economies and our societies have suffered heavily – indeed, on all available forecasts, this year will see the biggest declines in gdp recorded in peacetime – and we will have to endure a period of painful reconstruction for which sound knowledge and also good judgment will be essential. 1 / 1 bis central bankers'speeches