and well - educated population are some of the more obvious advantages. a highly educated labour force is able to attract high technology businesses to finland. however, well - educated finns may also be tempted to seek jobs outside finland. the logic underlying the development of a welfare state is changing. we can no longer presume that we first define the service goals and then adjust taxation accordingly to meet the resulting expenses. it is becoming increasingly clear that the logic is leading us in the opposite direction. the boundaries within which the services of a welfare state have to be accommodated are progressively more determined in two ways : externally on the basis of international competition among companies, and internally on the basis of employment, and through it, the financial base for public sector services. within these constantly narrowing boundaries the expenses caused by population ageing account for an ever - increasing share. finland must be able to compensate for the adverse impact of ageing on the labour force by making more efficient use of labour reserves. according to forecasts, finland ’ s employment rate seems to be settling at 68 % for a prolonged period. this is far from adequate. if employment remains at such a low rate, the entire financial base for the welfare state is certain to disintegrate. it is essential that the employment rate be raised significantly, and 75 % can only be regarded as the minimum objective. on the other hand, we need to take active measures to safeguard finland ’ s position in the competition over the location of companies. delayed action in this matter is but a waste of both time and opportunities. we need to respond to the threats affecting the competitive situation of companies before these threats cause permanent damage to our economy. a number of measures have been put forward to achieve these goals, including reforms in taxation, labour markets, social security, education and entrepreneurship. but, above all, what we also need is consensus on the implementation of these measures. maybe, over time, that too can be found.

fostering banking system stability and will continue to exercise its supervisory mandate in a fair and even - handed manner. importantly, we have seized the opportunity occasioned by these events and ushered in “ the new normal ” in the banking sector, underpinned by the following : • greater transparency, which is supported by accurate data. • stronger governance, with clear demarcation of responsibilities, greater accountability, fair market conduct, and stronger supervision. • effective business models, aimed at strengthening the resilience of banks, reducing costs, and supporting innovation. in closing, i wish to express our gratitude to the various institutions that have assisted kenya achieve the significant growth and deepening of financial markets. specifically, i wish to recognize ; the world bank, which has supported us through a range of projects, the ifc, the imf, and local stakeholders who have contributed useful ideas for developing the domestic debt market. i look forward to hearing of the experiences from other countries, and learning from your insights on how to resolve the issues raised. thank you. bis central bankers ’ speeches