Ndulu says East African central banks can moderate globalisation

The Governor of the Bank of Tanzania (BoT), Professor Benno Ndulu has said central banks in the East African region are better placed to tone down undesirable effects due to globalisation, as long as they resolve to enter into smart partnerships.

Globalisation, he said, has made the contexts within which central banks operate to become more competitive and complex such that a single bank could not successfully undertake initiatives in advancing national economic and financial development.

So many new complex operations have been brought by globalisation such that it becomes extremely difficult for a single bank to meet the challenges alone.

He made these remarks on Monday at the opening of a four weeks course for central bankers from five East African countries of Kenya, Tanzania, Uganda, Rwanda and Burundi in Dar es Salaam.

``I am underscoring the importance of economic co-operation which is currently being fostered by the five partner States which should be viewed as our first line of defence,`` he said

Professor Ndulu, however noted that while in some ways globalisation had brought in a number of benefits, it is also a fact that on the other it had made the contexts within which central banks operate to be trickier.

His speech which was read on his behalf by his Deputy, Juma Reli, further said, the international economic and financial environment in which central banks were operating now was becoming more and more complex and dynamic, partly as a result of globalisation.

He said it was partly due to that factor that central banks in the E.A. Region were conducting courses with a view to improving proficiency and efficiency to help raise standards of living of the people in the region.

``It is my expectation that this course will provide you with the required skills that will enable you to examine and recommend strategies that are appropriate for managing the economies in the region,`` said.

The course is being attended by 46 central bank officials from the five banks with Rwanda and Burundi taking part for the first time since such courses were launched in 1984 as they are new entrants to the East African Community.

The event can be traced back to 1968 when Kenya, Uganda, and Tanzania were then only members of the East Africa Community, but ceased naturally after the collapse of the EAC in 1977.

The courses were later resumed in 1984 to-date.

One of the aims of the course was to create a forum for middle level officers so as to raise further their awareness on monetary and fiscal policies, enable them examine appropriate development economies management, familiarisation on central banks and financial sectors roles in economic development, polish and strengthen their perception on the role of information in central banking operations.

* SOURCE: Guardian