in remote areas need to have access to quality services essential to improving their welfare, such as education and banking services. it is therefore crucial that basic infrastructures are put in place starting, for instance, with national - wide internet broadband access points and the promptpay electronic fund transfer system. moreover, these infrastructures must be interoperable and open to all, which would definitely require collaboration of the whole industry, not just an effort of any one firm. our promptpay infrastructure was the result of close collaboration between the bank of thailand and the thai bankers ’ association. it has spurred healthy competition amongst banks, catalyzing enhancement in the e - payment landscape such that it provides increased opportunities for many small merchants and consumers. another important factor for inclusivity is digital literacy. it is imperative to equip people with necessary skills to survive and thrive in this digital era. this is an enduring task and one that requires active participation at every level. this effort can begin with individual staff in one ’ s own organization — working from tech - savvy juniors to technologically - challenged peers. ladies and gentlemen, i believe the three key imperatives of productivity, immunity, and inclusivity will help thailand navigate through this digital disruption and continue on the path for sustainable economic growth. before i end my remark this morning, i would like to emphasize once again that while this new digital ecosystem is still evolving and the future remains uncertain, we cannot afford to hold back. we must strategically adapt and adopt technologies now to remain relevant and competitive and provide support for sustainable improvement in the standard of living of the thai people. in closing, i would like to congratulate the iod once again for fittingly organizing this call for action conference. actions taken at the firm level can determine the direction of our country and whether we can efficiently catch up with rapid technological changes. these changes will also inevitably affect the whole ecosystem of thailand. therefore, i urge you all to think on a bigger picture on how your firms can help make thailand ’ s digital transformation successful and fruitful. so, think big, stay informed, and act wisely. only then we can be certain that together we could truly rise above disruptions. thank you for your attention. * * * * * * * * *

prasarn trairatvorakul : monetary policy in an interconnected global economy opening remarks by dr prasarn trairatvorakul, governor of the bank of thailand, at a conference co - hosted by the bank of thailand and the international monetary fund, bangkok, 1 november 2013. * * * distinguished participants, ladies and gentlemen, i am delighted to welcome you to this conference on “ monetary policy in an interconnected global economy, ” co - hosted by the bank of thailand and the international monetary fund. i would like to especially thank our international guests who have travelled a long way to be with us today. this conference will focus on several issues pertaining to cross - country linkages, international shock transmission, and how monetary policy should be conducted in response to global spillovers. one of the most important trends over the past decades is the rapid integration of international trade and finance. trade in goods and services, as a share of world gdp, increased from around 15 percent in the early 1980s to around 25 percent before the start of the crisis in 2007. these developments reflect, in part, the increasing internationalization of production through vertical trade linkages. we have also seen a significant increase in financial integration. while the annual growth in world trade over the past 40 years has exceeded the growth in world gdp by around 2. 6 percent on average, growth in international external positions outpaced growth in world gdp by almost double that – around 4. 8 percent. what are the implications of these tighter trade and financial linkages? most prominently, global interconnectedness implies large and swift transmission of shocks across countries. a seemingly localized supply shock, such as the tsunami in japan or the floods in thailand two years ago, created ripple effects in various parts of the world by disrupting the global supply chain of production. from the perspective of most asian economies, the abrupt economic contraction in the us and the euro area during the financial crisis were examples of external demand shocks. while such “ real spillovers ” generated by supply or demand shocks can be quite damaging, the avenues for dealing with them are apparent and relatively uncontroversial. fiscal automatic stabilizers should be allowed to work fully and monetary policy could be eased to cushion the impact so long as medium - term inflation expectations are contained. calibrating the policy response to these shocks may not be straightforward, but they do not, in of themselves, pose challenges to the underlying framework of policy. on the contrary, “ financial