In addition to problems in achieving the right pricing and quantity, there are also other aspects that must be considered in the event that the state-issued means of payment disappears from the payment market in the future. Social welfare maximisation is a broader goal than private actors’ interest in maximising their profits. For example, it is important for central government to achieve a good balance between socio-economic risks and costs. Central government also takes account of factors connected with ensuring accessibility for all groups in society, resilience to shocks, preparedness and equal conditions regardless of where in the country users may live, for example. What I want to say is that it would probably require increased state governance and quite extensive resources to ensure that the private market delivered on all these points. What would be required is something that needs to be analysed further in parallel with the analysis of the e-krona. The alternative to regulation is for the Riksbank to continue to supply a means of payment that sets the standard for the country’s means of payment and that also exposes the private sector to a certain amount of competitive pressure, just as we have done for 350 years. Several measures are needed for resilience on the payment market The Riksbank also carries out other work than the analysis of the e-krona to safeguard the resilience of the payment market.
Caleb M Fundanga: Zambia’s economic outlook - what have we learnt in the last 40 years and where do we go from here? Paper presented by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the CIMA Zambia annual business discussion on the theme “Zambia’s economic outlook - what have we learnt in the last 40 years and where do we go from here?”, Lusaka, 7 January 2005. * • • • •  *  *  Mr Chairman The President of CIMA Zambia, Mr Cleaver Mulundu Distinguished Invited Guests Ladies and Gentlemen  I wish to thank the President of the Chartered Institute of Management Accountants (CIMA) Zambia Chapter, Mr. Mulundu and his Executive for inviting me to present a paper to this distinguished gathering on the theme “Zambia’s Economic Outlook: What Have We Learnt in the Last 40 Years and Where Do We Go from Here.” The topic is timely, as it is very important to take stock of our past economic development efforts, including the mistakes and good policies of the past and assess the current economic conditions in order to put up a future strategy. In this respect, I will discuss what I consider to be the key lessons of macroeconomic management and present an outlook for the period ahead. In so doing, I will also highlight the challenges that lie ahead in our quest to develop our economy. Mr Chairman May I start by reviewing our economic performance during the last 40 years.