amando m tetangco, jr : nurturing world - class finance leaders speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( the central bank of the philippines ), at the 14th inter - collegiate finance competition, manila, 22 october 2012. * * * good afternoon everyone! on behalf of the bangko sentral ng pilipinas, i congratulate all the students and the schools that participated in this 14th inter - collegiate finance competition of the financial executives, inc. and its partner jp morgan chase. i have personally witnessed a number of previous years ’ final rounds and i can tell you this competition is tough and definitely not for the faint - hearted. participants only have a few minutes to solve difficult questions ; these are questions patterned after the notoriously challenging chartered financial analyst examination for experienced finance practitioners. let us therefore give a well - deserved round of applause to all the students, their mentors, and supporters from about 90 schools who entered the competition. i am happy to note that the finalists come from 20 schools scattered in luzon, visayas and mindanao, proving once again that academic excellence is present across the philippines. let us also thank the delegates from the assumption university of thailand, the university of guam, and the national university of singapore for joining this event and giving it a regional scope. finex president ramon opulencia explains that this competition aims to expose students and schools to world - class finance education standards, as well as to promote exchange of ideas, cooperation, networking and friendship among the participants. we at the philippine central bank support finex in this program for a number of reasons. ladies and gentlemen, you and i know the value of keeping our financial system healthy on an institutional, national, regional, and global level. for better or for worse, financial systems affect economies and the lives of millions even billions of people. it is important to ensure therefore that the people responsible for running the finances of our institutions in particular and our financial system in general meet the high standards required by their job. finex deserves our recognition therefore in engaging students and schools to raise the bar of excellence in financial education year after year. let us thank the hardworking members of finex for their undiminished commitment to this program with a round of applause. in this connection, i am looking forward to seeing finex work with our schools to make sure that ethical practices and social responsibility complete the education of our students. it would

many of them cannot be highly paid. this ties in with the product market reform agenda : if the wages in new jobs can ’ t be that high, we need to achieve downward pressure on prices so that the possible wages command decent buying power. it also speaks to the links between wages and employment. as bheki ntshalintshali of cosatu 11 recently reminded us, there is the real risk of excessive wage demands producing higher unemployment. 12 we know that the agricultural sector shed hundreds of thousands of workers after the imposition of a minimum wage at an excessive level. 13 we know that this economy lost a disproportionate number of jobs during the global financial crisis relative to the decline in congress of south african trade unions. ‘ cosatu urges members to balance pay with job security in wage talks, business day, 4 july 2016 ( http : / / www. bdlive. co. za / national / labour / 2016 / 07 / 04 / cosatu - urges - members - to - balance - pay - with - job - securityin - wage - talks ). see haroon bhorat, ravi kanbur and benjamin stanwix, ‘ estimating the impact of minimum wages on employment, wages, and non - wage benefits : the case of agriculture in south africa ’, american journal of agricultural economics, first published online on 27 june 2014. bis central bankers ’ speeches economic output, in large part because of high wages and rigidities during periods of normal business operations. 14 based on historical trends, we forecast persistent wage growth despite rising unemployment and minimal growth. if we try to play a game in which fewer and fewer people get higher and higher wages while more and more people wind up unemployed, we can only lose. we have to get more people into work. to tackle this problem, one of the things we should do is reconsider the institutions we use to negotiate wage pricing. there is an important argument in academic literature, specifically by lars calmfors and john driffill, connecting unemployment to the kinds of collective bargaining rules used in a country. 15 the basic idea is that a country can achieve better employment outcomes when collective bargaining is done either at a low level, such as one union per firm or plant, or at a very high level, such as the whole economy. the worst outcome is to be in the middle, between the two options. this is because company or plantspecific