, gtz / sida, for their assistance in the process of formulating the 5year financial markets development plan, as well as the consultants who facilitated the process. the major goals that the plan will seek to achieve are ; harmonisation of regulatory frameworks in the financial sector, infrastructure development, increase in investor base, deepening the financial market, capacity building, supporting regional integration, promotion of cost effective financial intermediation and promoting market information dissemination. the specific areas of emphasis will include ; to bring the unregulated market participants into the regulatory ambit. this will involve reforms in legal and regulatory frameworks as well as liberalisation of the pension sector, to foster competitive, long term financing. another challenging area that the plan is expected to address is extending financial infrastructure beyond the urban areas, so that the rural areas can also enjoy the benefits that financial markets offer. extending financial outreach will be enhanced by the introduction of new institutions, products, services and payment systems in the rural areas, to ensure that the rural population is enabled to save and to participate in investments in the financial markets. the bank of uganda is already contributing to this effort by licensing new banks, in order to introduce greater competition, with the hope that this will encourage the banks to extend their presence to the unbanked rural areas. i expect many other non - banking financial institutions such as insurance companies, microfinance institutions, securities exchange, etc. to follow suit. government will also be encouraged to divest its interests in the remaining parastatals in which it maintains ownership through public offerings in the stock exchange in order to widen the ownership of these institutions to the majority of ugandans. the other crucial aspect which the 5 - year financial markets development plan is expected to address, is financial literacy. it will be difficult to see through the various initiatives proposed in this plan, if the population remains financially illiterate. the fmdc, through its sub - committees, is expected to educate and sensitise the public about the various financial markets programmes, in order to make the ugandan financial market vibrant, so that ugandans can benefit from regional and global integration. in order to realise the objective of transforming and modernising the ugandan financial markets, i urge the fmdc and its subcommittees to rededicate and commit themselves to the achievement of the objectives enshrined in this plan. i realise that what lies ahead of us is no mean task, however, since we have already taken

to shift part of their activities outside the regulatory realm. it is therefore decisive that we continue our work to improve our capacity to identify and assess the potential risks stemming from the shadow banking system. this includes regulatory reform of money market funds, securitisation and the interaction with the banking sector. the second challenge is how to keep pace with financial innovation. improving the otc and commodity derivatives markets is a key part of this agenda, it is a complex matter and one in which alignment of details is essential to avoid regulatory arbitrage. bis central bankers ’ speeches the third challenge is to enhance transparency across the board : with regards to markets, institutions, and products. insufficient information contributes to mispricing of risks, mistrust among market participants, which can result into downturns and crises. at our october meeting of g20 finance ministers and central banks governors we will be discussing iosco “ recommendations to promote markets ’ integrity and efficiency to mitigate the risks posed to the financial system by the latest technological developments ”. 2. improving policy discipline globally aside from a more resilient global financial system, we need to have more disciplined macro policies as the lack of discipline in macroeconomic policies in several countries led to the build - up of unsustainable external imbalances before the financial crisis. there is still a gap between the degree of economic integration and the willingness of policy makers to take into account interdependence and spillovers. keeping one ’ s house in order is no longer sufficient in an integrated world. spillovers from the rest of the world can influence economies considerably. multilateral surveillance is now being enhanced along two tracks. the informal g20 track and the formal imf track. the g20 framework for strong, sustainable and balanced growth, incorporates a first systematic multilateral assessment of global imbalances. it comes at an appropriate time because four years after the crisis, global imbalances remain unsustainably high. the sum of the current account balance ( in absolute terms ) of the major economies are projected to remain close to 2. 5 % of world gdp in the next few years. this is less than their pre - crisis peak ( over 3 % of world gdp ), but still twice as high as in the early 1990s, before the acceleration in financial and real globalization. it is now of foremost importance to implement the framework effectively, and to fully live up to the expectations that the g20 process raised internationally. the g20 cannes summit