global authorities themselves did with their control and surveillance systems. the approach now should not be for the markets to be stopped in their progress, but rather for the authorities to catch up. private sector financial market operators, including multinational banking institutions, hedge funds and institutional fund managers, must in their own interest reconsider and review their modus operandi in the markets. in particular, risk management models must provide for the volatile global financial environment in which they now operate. many encouraging signs emerged from the discussion in washington d. c. to indicate that progress is now being made at all three levels, and that greater stability is gradually returning to the world financial system. south africa, like many other countries in a similar situation, is watching these signs of hope with great interest.

a challenge given that the vast majority of south africans experienced a history of inferior quality education. the efforts of this university bears testimony to efforts to broaden access to quality education. notwithstanding the progress, greater efforts are needed to address the legacy of our past. even though our economy has improved significantly from twenty years ago, the recent period has been difficult. the world is in its sixth year of economic crisis. while most countries are out of recession, the crisis itself has not ended. measures taken to address the unfolding crisis had unintended consequences resulting in a constant mutation – for instance from a sub - prime crisis in the us affecting home owners and lenders to a systemic banking crisis ; from a systemic banking crisis to a fiscal deficit and sovereign debt crisis in many countries in europe ; from a wave of significant capital inflows and appreciating currencies in emerging economies to where more recently emerging markets have had to deal with a reversal of these flows and depreciating currencies, at a time when many of them are also facing rising inflation and slowing growth. what is consistent through this period is that growth is slower than historical averages, unemployment is higher and in particular youth unemployment, globally, is a major challenge standing at over 50 percent in a number of countries, including our own. the international bis central bankers ’ speeches labour organisation projects that unemployment levels are only likely to reach pre - crisis levels by 2017, a full ten years from the start of the crisis. ten years is a long time in the life of any person. the effects in terms of human suffering, reduced household savings, long term unemployment, skills atrophy and lost investment are likely to endure for an even longer period. the us economic recovery is still fragile and risks remain. the recovery in the us, still the largest economy in the world, is a positive factor for the rest of the world. however, partly as a consequence of higher growth, the reduction in their quantitative easing programme, whereby the fed is reducing its asset purchasing programme by us $ 10bn per month, is having detrimental effects on many emerging markets and an unsettling effect on financial markets globally. growth rates have slowed in major emerging markets such as china, india and brazil. many developing countries, from turkey to venezuela, are battling both domestic economic challenges and capital outflows. however, africa remains a bright spot in the world economy with sub - saharan african growth at over 5 per cent a year, providing significant opportunities