gentlemen : ifc became a shareholder of dtb in 1983 and has continued to support the bank throughout the thirty years. this is a testament of faith in the institution. ifc has availed over usd 75 million in funded and unfunded facilities and other forms of technical assistance to the bank aimed at supporting the bank ’ s expansion plans and fund lending to small and medium enterprises. dtb in return has created a strong presence and market niche in kenya and the eac. ladies and gentlemen : for us in cbk, financial inclusion is entrenched in government of kenya ’ s development blueprint, vision 2030 and lies at the core of the cbk ’ s strategic actions towards implementing this vision. i believe that banks and other financial institutions in the country will continue to play a key role as partners, agents, promoters and advisers to firms and households to enhance financial sector development and financial inclusion. we are glad that dtb is among the partners. bis central bankers ’ speeches ladies and gentlemen : the central bank has also introduced initiatives to foster growth of the sme sector. these include creating instruments of financial inclusion appropriate for each market segment. also among the initiatives are licensing of deposit taking microfinance institutions which currently stand at six, two credit reference bureaus ( crbs ) ; introduction of shariah compliant banking products, the hugely successful mobile phone money transfer services and the agency banking which boasts of more than 13, 000 agents countrywide. these are financial smes. the initiatives have culminated into increased number of deposit accounts from 2. 55 million in 2005 to 16. 7 million in august 2012, with micro accounts growing from 2. 14 million in 2005 to 15. 8 million accounts at end of august 2012. with these few remarks, ladies and gentlemen, i wish to thank the ifc for its continued support as we celebrate this long collaboration between ifc and dtb, which has a positive impact on our economic growth. thank you bis central bankers ’ speeches

is “ geography ” that determines the rise and fall of civilizations. this “ geography is destiny ” theory which ruled for much of our recorded history is now seriously challenged by the latest sweep of it - enabled globalization. received wisdom today is that geography is irrelevant. no longer is a country ’ s destiny tied down to its geographical location or its physical resources. in the era of knowledge - propelled globalization, it is possible for countries to overcome handicaps of geography by exploiting their comparative advantage in human resources. that blue - collar jobs shift across geographic boundaries in pursuit of cheap hands has long been part of conventional wisdom. but what is new is that increasingly white - collar jobs, once considered safe from foreign competition, are now being offshored. hence, the new catch phrases such as “ death of distance ” and “ conquest of location ”. the shifting comparative advantage is most visible in the services sector. no longer is it just low - end services such as data processing and call centres that are outsourced, but high end, skill - intensive services. thus it is that financial analysts in chennai provide tax consultancy to clients in chicago ; engineers in buenos aires design roads and bridges for berlin ; and radiologists in manila provide medical diagnostics for patients in manchester. on the other hand, it is low - end services such as laundry, janitor services and taxi driving that remain location tied. this trend, running counter to the compulsions of geography, could have significant implications for globalization. the theory has been, and still is, is that mature economies will outsource low end jobs to emerging and developing economies, and will themselves move up the value chain to more productive jobs. the outsourcing of high end jobs implies that this story is not running according to script. the number of jobs actually outsourced may be small, but the mere possibility that they could be outsourced has upset an unwritten social contract. this is because the very possibility of outsourcing erodes the bargaining power of workers and forces them to keep their wage demands subdued. for example, in the us, over the last decade, the share of bis central bankers ’ speeches wages in national income has steadily gone down while the share of corporate profits has increased, evidencing the declining bargaining power of workers. if this trend is not corrected, workers could get restive and demand protectionist measures. what this means is that free trade has the potential to raise global welfare, but its progress could be impeded