– step by step. since our last conference, the international community has made progress on the reform agenda. the fund has greatly increased its capacity to provide financial support to members and adapted its lending tools. it has modernised its surveillance activity, for example by introducing new tools to track spillovers. furthermore, it has reopened the discussion on the management of capital flows, although admittedly this has been controversial. under the french presidency, the g20 has been at least as active as the fund. of particular relevance is the steady implementation of the mutual assessment process, a new instrument for multilateral cooperation and oversight aimed at promoting economic adjustments worldwide. we will have the privilege of hearing from minister lagarde about this important endeavour later during lunch. in today ’ s conference, we would like to advance from diagnosis to treatment. last year, the main focus was on the sources of instability and the inadequate asymmetric adjustment mechanisms of the current system. this year, the aim is to progress towards a common bis central bankers ’ speeches understanding of the role of the fund and to discuss concrete reform proposals. in doing this, it is important that we stay focused and realistic. the two main tasks of the imf are crisis prevention and crisis resolution. the main fund policies for achieving these tasks are surveillance and financial support. before leaving the floor to our panellists, allow me to reflect very briefly on these two topics. the imf is mandated to oversee the international monetary system and monitor the economic and financial policies of its member countries. in this way, it helps to ensure the effective operation of the international monetary system, thereby promoting and sustaining sound economic growth. in recent years, much has been done to make surveillance more focused and effective. attempts to better integrate financial sector issues and spillover effects are all steps in the right direction. however, for surveillance to be relevant and gain traction, it is equally important that the imf is sufficiently independent in its conduct of surveillance. to deliver credible messages, the fund ’ s technical expertise has to be beyond any suspicion of political manipulation. surveillance, in other words, has to be an exercise in objectivity. only then can it also be an exercise in collaboration and contribute to a sounder and more resilient international monetary system. this being said, imf surveillance and collaboration does not release national policy makers from their responsibilities. keeping one ’ s own house in order is a prerequisite for an orderly global village. this is particularly true, though not exclusively

jean - pierre roth : prospects and limitations of switzerland as a business location summary of a speech by mr jean - pierre roth, chairman of the governing board of the swiss national bank and chairman of the board of directors of the bank for international settlements, at the annual general meeting of the swiss marketing association, zurich, 24 october 2006. the complete speech can be found in german on the swiss national banka€™s website ( www. snb. ch ). * * * in the economy and in politics, there is optimism in the air again. in addition to the favourable economic conditions, the performance of swiss companies on the global markets has also been a driving force. working from their swiss business base, companies have taken advantage of the opportunities afforded by globalisation and are expanding all over the world. ensuring price stability is the most important contribution a central bank can make to a business location and thus to the growth potential of a country. significant progress has been made globally in this area in recent years. a number of factors suggest that increased competition has had an impact on this development in that it has changed the political environment for central banks. competition has become stiffer in recent years, also in switzerland. not only market forces, but also economic policy reforms have played a role. there continues to be a need for action here, however. if we can succeed in implementing the reforms that are still outstanding, there is a chance that economic growth can be propelled to a level beyond the current economic upswing.