leading to a further expansion of production and income – would make more progress as we move forward. concluding remarks in conclusion, let me touch on the economy of miyagi prefecture. the regional economy is recovering moderately, with the decline in demand affected by the consumption tax hike waning gradually. somewhat weak developments in production will continue. reflecting the demand resulting from rebuilding and reconstructing, public investment has been increasing and housing investment has remained at a high level, particularly for building public housing for people affected by the disaster. business fixed investment has also continued to be on an increasing trend and private consumption has remained resilient on the back of an improvement in the employment and income situation. looking at reconstruction in the disaster - stricken areas, i have recognized that while reconstruction has been steadily progressing, rebuilding day - to - day life and rehabilitation of livelihood are still half - way through. the pace of reconstruction differs between the regions and the difference between the regions seems to have been widening. at the root, there seems to be also a challenge that is common nationwide, namely, the declining population and aging. in addition, a labor shortage and prices of materials rising or remaining at high levels have been affecting not a little the progress in reconstruction in the disaster - stricken areas. how that will develop going forward also warrants due attention, in my view. i have heard that big events are scheduled for this year in miyagi prefecture. sendai city will host next month the united nations world conference on disaster risk reduction, the cumulative number of participants of which is expected to be more than 40, 000, and has announced itself as a candidate for the 2016 summit meeting. the city has disclosed its plans to develop in the future as an international convention city as well as has aggressively been trying to tap inbound demand. an improvement and reinforcement of transportation infrastructure will be promoted. the jr ishinomaki and sengoku lines that have been cut off by the disaster are scheduled to be reopened throughout, the tozai subway line is expected to open in sendai city, and the privatization of the sendai airport is being pursued. i expect that, triggered by those events and creating and tapping new demand, a stream of bis central bankers ’ speeches reconstruction will further accelerate and vitalization of the local economy will gain momentum. the bank conducts an operation that provides long - term funds at a low interest rate to financial institutions that have business offices in the disaster - stricken areas in order to support their efforts to meet

, by government and the private sector, to renew the growth of tourism. as befits the country ’ s leading foreign exchange earner, there is a wealth of institutional arrangements for collaboration in the sector, and government agencies and tourism providers should seek ways to make this cooperation more fruitful. among other strategies for tourism, we should continue to enrich the menu of choices open to the visitor. central bank is proud of the restoration of the masonic lodge, and the museum of commerce, education and freemasonry that is being commissioned will enrich the bridgetown heritage experience. we should invest in the uniqueness of the bajan experience, including our other world heritage properties. in the international business and financial services sector, the challenge is to broaden barbados ’ market appeal. we have an impressive network of double taxation treaties, and we are seeking ways of using them all, to diversify the sources of international business income. we should make a big push to bring alternative energy to the take - off, via a mix of photovoltaics, wind, waste - to - energy, and possibly ethanol production. these are all by now well established technologies, and teething problems will have been ironed out. i believe households and firms should focus especially on generating their own power using bis central bankers ’ speeches photovoltaics. barbados is among the sunniest countries in the caribbean and the world. photovoltaic systems are now eminently affordable, about half the price of the typical family car, and government offers generous incentives for installation. there is the potential for employment generation in retailing systems, installation, servicing and maintenance. there is scope for innovation in adapting systems to optimise performance for local conditions, and developing intelligent control systems. financial institutions are allowing what should be a profitable avenue for growing business to go abegging. i have to say to all of you in the private sector that, with a few conspicuous exceptions – and i must single out williams evergreen – you are not covering yourselves with glory on this one. the rum industry is our major success in agriculture and manufacturing. its strength has been the shift towards premium aged rums, blended, bottled, packaged and branded in barbados for export. economies of scale are against us, and we cannot hope to be competitive in price with any agricultural or manufacturing product from countries that do large scale production. our agriculturalists and manufacturers need to follow the example of the rum producers : move up the value chain, produce a distinctive