policy, with potential second round effects on financial stability. if central banks in the short run shift their focus from the primary objective to supporting economic growth at any cost, it would indirectly create premises for long rung economic imbalances. the current polices pursued by both monetary and fiscal authorities should not be considered as a new normality. while the global economy is adjusting toward a new equilibrium, solid macro - prudential long run policies should replace current stimulating efforts. therefore the challenge for our economies in the long run is to address current problems and the inherited ones based on a new model of growth, based on : ( i ) higher savings and investments, aiming toward a contained consumption matched by domestic production ; ( ii ) persistent fdi inflows oriented toward tradable sectors ; ( iii ) regional cooperation. let me briefly share with you some of my thoughts on the importance of this last remark, namely regional cooperation. following arguments illustrate the benefits of cooperation, at several levels : • from a development point of view, increased cooperation and integration on a regional level creates a greater scope for economies of scale. this would increase incentives for local and foreign investors to undertake big investment project that would not be profitable otherwise. a related advantage would be increased specialization of our economies, leading to a higher economic performance. • on a policy level, coordinated macroeconomic policies, legal and prudential frameworks, would tend to improve the allocation of resources and to prevent beggar - thy - neighbor policies. this race to the bottom type of philosophy would not benefit the region as a whole. • from a strategic point of view, our region is in competition with several emerging regions on a global scale. it ’ s not sufficient any more to be the best guy in the village ; especially when there are an increasing number of villages on a global scale, with an ever increasing number of clever guys. • from a convergence point of view, the sharing of experiences would avoid costly errors, while coordinated policies and steps would make a stronger case for a faster eu integration. we should demonstrate that the region is fit to enter the club, by firstly adopting the rules of the club among ourselves. in a more technical and concrete approach, the efforts of the public authorities in our region to achieve a real and meaningful cooperation should consider the followings : first, the mentality of the societies in our region should change. it is noted that this region has a history full of conflicts and many other disputes. it is now up

to strengthen relations with the imf. in her efforts to enhance regional cooperation, the cbrt laid the foundations of the dialogue among central banks that paved the way for the establishment of the central banks governors ’ club of central asia, the black sea region and the balkan countries. the relations and cooperation of the cbrt in the international scene go well beyond our bilateral dialogue with your esteemed bank and cover also the financial level ( swap agreements signed with certain countries ), as well as the educational level ( the establishment of an international central banking research facility and regional training centre, the istanbul school of central banking ). bis central bankers ’ speeches i would like to thank the bundesbank for opening a representative office in istanbul, for signing the mou agreement and for all the support and assistance you have provided us in diverse fields and at various platforms. closing my remarks, i would like to welcome my friend and colleague, dr. andreas dombret, a member of the executive board of the deutsche bundesbank, and thank him for his tremendous efforts in bringing this project to life. now let us celebrate our achievements. thank you for your attention. bis central bankers ’ speeches