In this brief keynote address, I would like to put forward some thoughts on the broad principles that guide our thinking on financial sector development and which have shaped our contributions to the “emerging market perspective” that I referred to earlier. On previous occasions, I have articulated four basic principles: efficiency, stability, transparency and inclusion.
An effective strategy would need to balance the objectives implicit in the four principles by, first, exploiting the complementarities between them and second, recognizing the tradeoffs and, wherever they arise, prioritizing between objectives. Let me elaborate on the “opportunities” and “challenges” provided by each set of objectives.