Generally speaking, unemployment in these countries remained low in the 1990s and employment is high. Many countries with decentralised wage determination and a low level of employment protection have also experienced high employment and low unemployment. Wages are determined on the basis of each company’s profitability and the supply of labour. This system can be found in countries like the US, Canada, the UK and Switzerland. By contrast, a decentralised wage formation system that is combined with a strong bargaining position at the local level and extensive employment protection can produce unfavourable results. Countries with this type of structure include France, Italy and Spain. In these countries unemployment is high, with substantial flows out of the labour market into various pension and social security schemes. Nor have countries such as Germany, Belgium and Finland, where employment protection is relatively extensive and wage determination only partly decentralised, achieved particularly favourable results even though the results are somewhat more mixed. Extensive employment protection and a tightly knit social safety net reinforce the perception that the risk of an income loss is limited. Employees can take advantage of the bargaining power these rights afford to obtain high wages without taking into account the effects on overall employment. For their part, employers may have incentives to promote exclusion through government-financed social security schemes. Those who are not employed will be interested in finding employment, even at a lower wage level. However, it is not the unemployed who negotiate local wage agreements.
Be assured that I am committed to supporting the implementation of the National Strategy on Financial Education through such campaigns. Ladies and Gentlemen The World Savings Day celebrations would not be successful without recognising individual and organizational contributions towards improving financial literacy in Zambia. In this regard, awards will be presented under nine categories namely: 1. Exceptional individual contribution to financial education, 2. Outstanding theme interpretation; 3. Exceptional leadership in financial literacy; 4. Champions award; 5. Most innovative financial education programme; 6. Outstanding financial literacy footprint; 7. Exceptional financial literacy media outreach; 8. Outstanding initiative by an educator; and 9. Best savings product of the year. I am delighted to grace this year's World Savings Day award presentation and wish the nominated participants all the best. In conclusion, I would like to thank the organisers and stakeholders under our partnership arrangement, in particular, the Bankers Association of Zambia, Securities and Exchange Commission, Pensions and Insurance Authority, Rural Finance Expansion Programme and DSIK for their continued support to the World Savings Day celebrations every year. THANK YOU  3/4  BIS - Central bankers' speeches  4/4  BIS - Central bankers' speeches