countries. these international regulatory bis central bankers ’ speeches standards have no direct international enforcement power. before the global crisis, the governance is based on discipline which came from the market discipline, but now market discipline has diminished. also the influence and discipline from the imf program or fsap may have been somewhat countered by growing importance of regional financial assistance mechanism with their own governance. each country or region would be more likely to adopt these new standards if they buy - in to the rationale of the reform. inclusiveness and coordination are therefore keys for commitment, and the pillars of the new governance for bodies such as the basel committee and financial stability board ; this is perhaps the new bretton woods. turning to longer - term challenges and strategy, asia ’ s increased economic importance will rise as a consequence of its development efforts in liberalizing the economy and the financial system, allowing market forces to enhance efficiency and productivity. these forces will accelerate with increased integration of the asean economic community, asean plus 3, and plus 6. for intra - asia ’ s financial flows, asia is not “ homogenous ” – the “ north asia ” and financial center economies are developed, and some are mature economies facing their own challenges. the rest of asia is emerging economies, some facing middle income trap, and some facing the transition challenges from centrally planned to market economy. “ north asia ” will tend to have savings surplus, and need growth potential and to export of fdi. “ south asia ” will need savings to finance investments. there is a natural synergy in resource allocation, industrial and logistic linkage. thus, regional financing and growing role of regional - centric financial services would naturally follow. the most critical challenge emerging asia faces is to build economic and financial infrastructure fast enough to properly harness the growth energy and put these capital into productive use. without adequate financial infrastructure, namely market and legal infrastructure, and financial literacy, there is potential risk that emerging asia cannot absorb such flows. this could result in misallocation of resources, including asset bubbles and instability. in parallel, public investment in infrastructure projects, as well as social investments in education and healthcare, are keys for increased productivity and economic upgrade. the challenge lies in getting the right balance between growth and stability, in managing large and long - term financing, increasing public investment, while keeping financial discipline. these are complex issues on how to ensure efficient resource allocation. a key strategy is to enhance the role of the market mechanism of the financial sector in asia

stability in the broadest sense, i. e. macroeconomic, financial and institutional stability. this requires knowledge and commitment. stability ensures the necessary predictability of the business environment and increases investment and consumer confidence, which are the prerequisites for investment growth and job creation. this further implies a ripple effect on an increase in government revenues, 1 / 4 bis - central bankers'speeches greater opportunities to implement social and development functions, and the creation of buffers to serve as a safeguard in the times of crisis. there should be no shortcuts on that path since an abrupt jump often means a rapid and free fall. where does serbia stand in all this? here are just a few indicators. cumulative real growth of the serbian economy of around 12 % in the past four years, recorded despite the reduction in external demand, is a confirmation of sound policies and good condition of the economy which were in place when the current global crisis struck. high fdi inflows which reached record high levels of eur 4. 4 and 4. 5 bn in the past two years attest to a favourable business environment and growth in investment confidence, owing to the responsible economic policy pursued by the government and the national bank of serbia. unemployment in serbia was reduced from over 20 % to a single - digit level, along with robust and broad - based employment and wage growth. our economy is recording sharp profitability growth, whereas until a decade ago it operated at a loss. for all this, the achieved relative exchange rate stability preserved for longer than a decade and a record level of foreign currency reserves of eur 25 bn, were and will remain one of the major preconditions for both big and small transitions. in addition, our citizens and corporates have access to the most up - to - date payment services, and they are making the most of this. why is each of these pillars of stability, growth and development important? because the result of every successful and responsible economic policy is and must be greater satisfaction with life. the ebrd report presented today states the results of the analysis of the world happiness report, which says that a number of countries from ebrd regions that are in the group of 50 happiest countries rose from only three in 2016 to twelve in 2022. according to this report, serbia secured its place in this group, and measured by the happiness indicator it also made the third greatest step forward in the previous decade. this is yet another confirmation that serbia '