Both trade expansion and innovation are by their nature disruptive for firms and individuals. They spur growth by enabling more advanced and efficient activities and encouraging producers to expand, displacing less efficient activities and producers. This is an integral part of the whole process.
Development of such index to capture more SSA countries is crucial in monitoring progress in the development of the sector – Develop financial sector strategies to accommodate innovative policy designs and financial innovations  •  Partnership – AfDB, IMF and WB have done well so far – They have both short-term rescue packages and enhanced development assistance  •  Mobilization of adequate resources to finance growth – Put in place innovative avenues for investment and saving with adequate financial sector development – Boost development budgets to sustain infrastructure development  BIS Review 159/2009  5  •  Stay the path of reforms – do not sacrifice long-run growth – But remain within attainable targets – credibility of reforms  •  Regulation of the financial sector – An emergence of regulatory arbitrage – Domestic regulators should talk to each other – But we should be careful not to call for “more” regulation rather than “better” regulation – “Better” regulation: A regime that can readily identify emerging vulnerabilities; that can properly price risks; and that strengthens incentives for prudent behaviour (Andrew Crockett, FD Supplement September 2009)  •  Foreign reserves have served countries in Africa well: – In theory, in a floating exchange rate regime, there is no need to hold foreign exchange reserves or to use them – But developing and emerging economies accumulated foreign exchange reserves to very high levels – it served them well in the crisis – The future of dollar denominated reserves requires close observation  6  BIS Review 159/2009