senior management of the possibilities for improving their operations through more effective technology and systems management. an example would be those old, inefficient legacy systems we just had to rework. i would not expect to see them proliferate again, once they disappear. among the millions of smaller businesses and not - for - profit organizations, there is a new awareness and appreciation for what computers can do and a new sense of confidence in their ability to capture these improvements. this new sensitivity should lead to a far more rapid assimilation of the information technology revolution than has been the case in similar technical breakthroughs in the past. for example, the development of steam power, and later the wide availability of electrical power, took many decades to work through into comprehensive utilization by the economies of their day. computers, of course, were invented a half - century ago, but it is only quite recently that they have evolved into broadly useful tools. it is even more recently that they have begun to have a major impact on the everyday operation of our economy. at the end of the 1950s, there were about 2, 000 computers up and running in the world. forty years later, there are approximately 200 million, and they are, of course, vastly more powerful and far less expensive. this should now expand much more quickly as a result of the rapid and wide exposure information technology achieved through the run - up to the y2k event. there has been a great deal of concern in our society over the past several years about an emerging “ digital divide ” between the more and the less advantaged elements of our society. computer literacy, some fear, will further widen the already broad gulf between the earning power of rich and poor. i would hope that y2k ’ s wide public awareness and involvement could provide us an opportunity to shrink that gap rather than see it open even more. certainly, everyone now knows there is a strong demand for computer skills in the workplace today and that it will only enlarge. therein lies a huge employment opportunity, offering good wages and working conditions, for qualified applicants. to be sure, as is the case in so many other opportunities for societal improvement, an improvement in the education system will be required for us to seize this chance to move a step closer to greater income parity. but computers are now very much on the minds of leaders in education reform. on the other hand, y2k, by exposing the vast differences in computer sophistication among nations,

2009. the external payments position is expected to remain a source of strength for the economy over the near term. dollar inflows from remittances and foreign investments are expected to remain robust. this should enable us to further build up our cushion of international reserves. on the external sector, our policies will be geared toward : ( 1 ) ensuring sustainability of the country ’ s external debt ; ( 2 ) maintaining a market - determined exchange rate with scope for occasional official action in cases of extreme movements in the peso ; ( 3 ) maintaining a comfortable level of reserves ; and ( 4 ) improving the foreign exchange environment further through forex deregulation. reforms in the financial sector will be geared toward maintaining a strong banking system and a vibrant capital market. the bsp remains committed to strengthening the banking system through structural reforms and speedier disposition of non - performing assets. at the same time, continuing asset clean - up of banks should help spur credit and investments, thereby generating support for more sustainable economic activity in the medium term. other regulatory reforms will be aimed at the further strengthening of corporate governance, risk management, and capitalization through a more effective and efficient enforcement of standards and codes. in particular, prudential regulations shall continue to be aligned with international standards and best practices. to further develop the domestic capital market, the bsp will continue to work actively with other government agencies and the private sector to complete critical market infrastructure that will enhance system integrity and overall market confidence. we will continue to push for the passage of key legislations intended to accelerate the development of the domestic capital market. in particular, we shall push for the implementation of a centralized credit information bureau to improve the quality of financial information to investors, expand private sector access to credit, minimize risks exposure of financial intermediaries, and lower borrowing costs. ladies and gentlemen. on the basis of these policy directions, the outlook for the monetary, external, and banking sectors continues to be favorable. i am now ready to discuss the issues of particular interest to you. thank you.