SOUTH PACIFIC CENTRAL BANKING RESEARCH CONFERENCE Being Small Economies Should not be an Excuse for not Conducting Good Research: Ali
Being small should not be an excuse for not conducting good research. This was a key message by the Reserve Bank of Fiji Governor, Ariff Ali during the inaugural South Pacific Central Banking Research Conference at the Holiday Inn Suva yesterday.
The conference was opened by the Deputy Australian High Commissioner Amy Crago.
The two day conference is being co-hosted by Griffith University (Australia), the Reserve Bank of Fiji (RBF), Bank of Papua New Guinea (BPNG), Central Bank of Solomon Islands (CBSI) and the Reserve Bank of Vanuatu (RBV). “We cannot, therefore, make the excuse of being small central banks, as a limiting factor to our research capabilities, because the responsibility and accountability we play in our small economies are immense,” Mr Ali said. “Our business is about bringing value and benefits to our citizens as policy making institutions and while research allows us as policymakers to do our job better, good research lends credibility and improves the quality of our policy.” He said more collaboration with academic institutions and research institutes such as the one they now have with Griffith could help address this.
“Going forward, we have to establish a system of measuring the quantity and quality of our research outcomes.
“Credibility and quality of research is crucial and good evidence through a policy proposal supported by good research is highly likely to be considered for decision making. “Research must also be forward looking in nature to be relevant when the issues it addresses are faced by policy makers. “Third, there must be a productive and rich research environment for good research to be possible. “One way to ensure this is making our central banks open to external research from academia, the fruits of which we are witnessing today through our collaboration with Griffith University.
“There is room therefore for more collaboration.”
Ms Crago in her opening address stated that she was pleased as a representative of the Australian Government to see how the Australian Awards Fellowship Programme has allowed a number of South Pacific central bank officials undertake short courses at Griffith University under the Griffith-South Pacific Central Banks partnership.
She highlighted that policy responses
relating to research in the fields of labour market, debt and Small and Medium Entreprises (SMEs) are critical to the growth and development of Pacific Island countries.
The conference is the outcome of some years of research collaboration between Griffith University and South Pacific central banks through funding by the Australian Department of Foreign Affairs & Trade. Mr Ali said:“We should extend our research beyond the current collaborations with Griffith University. “Our role as central banks has never been more important than it is today.
“We have the core responsibility to promote macroeconomic and financial stability.
“But our mandate has also expanded to include financial sector development, consumer protection and financial literacy.
“This is a significant undertaking that calls for close collaboration with public sector agencies, private sector organisations, academic institutions and regional organisations.
“I would therefore strongly recommend that we consider extending the collaboration that we have now started with Griffith University to other institutions and agencies in our countries and in the region.
“These include Pacific Financial Technical Assistance Centre (PFTAC), Regional ADB, World
Centres of research
He said central banks should rightfully be Centres of Research in the Developing Economies. “My final message to my central bank colleagues is that central banks should rightfully be the centre of research in our developing economies.
“I had stated earlier the reference made to central banks as high impact organisations.
“In an environment of greater transparency and enhanced communication, expectations are high on the delivery of our results. “As central banks, we have to be knowledge intensive institutions and derive our influence mainly from the quality of our arguments, which requires a strong research function. Central bank continuity provides institutional memory. “A central bank accumulates knowledge both from research and experience. Governments change, but central banks stay.
“We are one of the most important reservoirs of knowledge that rightfully places us as the centre of research in our small economies. “While we acknowledge that we do not have access to quality, timely and reliable data in most instances.
“It should not stop us from using simple-excel based analysis and developing policy solutions based on
Attendees
Around 100 central bank researchers, academics, business leaders and policymakers are attending the two-day event to share current research on various economic and financial issues affecting the region.
It is an opportunity to explore vital links between research and policy issues related to central banking and the private sector.
A number of international agencies and central banks from outside the South Pacific region are also participating in the conference as speakers, moderators and panellists. These include the Asian Development Bank, World Bank, International Monetary Fund, Reserve Bank of Australia and the Reserve Bank of New Zealand. Around 25 research papers, mostly co-authored by Griffith University and the hosting central banks under the Griffith-South Pacific Central Banks (SPCBs) partnership will be presented during the conference.
It covers themes such as the macro-economy, financial sector, private sector development and wealth creation.
Since 2014, one joint-paper from this collaboration has been published in an international journal called the ‘Review of Pacific Basin Financial Markets and Policies’ and another has been accepted for publication in the “Journal of the Asia Pacific Economy”.