Titles of the boxes are shown on the slide. I strongly recommend that you read these boxes, which will be published on our web-site shortly. Now, I would like to convey the main messages of the report. Firstly, I will touch upon the global economy and then move on to the monetary policy. The last quarter of 2012 was marked by an improvement in the risk appetite (Chart 1). Concrete steps taken towards the resolution of the Euro area problems as well as the favorable news regarding the US and Chinese economies were the leading developments that fed into the risk sentiment. On the other hand, quantitative easing policies were sustained amid the persisting sluggish growth outlook in advanced economies. Continued monetary easing at a global scale accompanied by increased risk appetite led to an acceleration in portfolio flows towards emerging economies (Chart 2). We are of the opinion that all these developments once again highlighted the importance of a flexible monetary policy framework. Chart 1. Global Risk Appetite  Chart 2. Portfolio Flows to Emerging Economies (Billion USD)  Source: Credit Suisse, Bloomberg. Source: CBRT. BIS central bankers’ speeches  1  1. Monetary policy and monetary conditions  In this period of extraordinary global circumstances, the policy framework designed by the CBRT plays a great role in confining the adverse impacts of global shocks in Turkey. Particularly the year 2012 was marked by the fruitful implementation of our policy mix.
Thus, complaints are heard that some measures ignore the sociocultural context in which the institutional changes are to be effected, thereby constituting an illegitimate transplantation of institutions into developing countries. Issue is made of the use  6  BIS Review 109/2007  of governance indicators as conditionality for assistance, and the onset of selectivity, rather than an attempt at providing more meaningful support for relevant institutional development. Countries that accept the governance framework programme proposed by the donor community receive funding and support, while those more sceptical are more or less left out in the cold. Thus arises the questionable extent of linkage between governance, development and poverty alleviation. The fact that most African countries are so aid dependent compels acceptance of the governance conditionalities. Thus they are forced into a situation, which divests them of control of their economies, adopting policies that may not conduce to their long-term development, and making them easy prey for the interests of global capitalisation. Yet the need for governance reforms in most African countries cannot be denied. Inadequacies in the institutional set-up undoubtedly need attention and correction to bring about efficiency and competence in the management of the state, and hence the ability to provide citizens with the services they require for their well being. The plight of the developing countries compels resort to external assistance. Some economists, prominent among them Jeffrey Sachs, have proposed the need for a “big push” to help alleviate their problems.