However, unemployment is still too high - the increase in production of almost 15% since the end of the 1980s has not been sufficient to bring the labour market into balance. The employment ratio has increased, however, from 72 to 74% during the past year and employment is expected to increase greatly during the coming years. It is expected that open employment will fall to 3.7% in 2002. However, the beginning of this decade looks very promising. Almost the entire 1990s were marked by the problems in the wake of the high inflation economy of the 1980s and the overheating that ended that decade. Loan-financed consumption, excess investment, among other things, in properties, which took place in tandem with the increasing asset and property prices, had led to large financial and real imbalances being built up. When the bubble burst and the krona fell, there was a great need among households, businesses and banks to review their balance sheets and reduce their debt. As we know, this led to a great reduction in demand and increasing unemployment, which in turn caused major problems in public finances. The costs of the bank crisis aggravated the central government budget problem at the same time. Monetary policy, focused on stable prices, has played an important role for creating balance in the Swedish economy. This favourable development would not have been possible, however, without a responsible fiscal policy.
Although we are still in the infant stages of development, we have accumulated some experience, which I would like to share with you today. First, since it is now such a hot topic to talk about change, I trust that you will agree with me that Islamic finance, at least for jurisdictions like Hong Kong, means change – a change in perception, a change in skills, a change in structures and techniques, in contracts, standards, and so on. Change, in all its many forms, is happening within the global Islamic finance arena, even as we speak. In the past year or so, we have seen the inception of several standardisation initiatives for Islamic financial documentation, spearheaded by international institutions like the Islamic Financial Services Board (IFSB) and the International Islamic Financial Market (IIFM). This form of change is significant towards facilitating harmonious practices, providing greater clarity for the Islamic financial services industry and thus acting as a boost to the development of global Islamic financial markets. There have also been many exciting developments in the new markets for Islamic finance in Asia, where there is a growing tendency for sukuk issuance, such as the sovereign issues from Indonesia and Singapore to support the development of Islamic finance. At the same time, we have also seen enhanced co-operation and increased linkages, both internally within the region and externally with other Islamic financial centres in the Middle East.