Lagarde: Harness the power of fintech

NUR SULTAN, KAZAKHSTAN: The International Monetary Fund’s (IMF) managing director and chairman Christine Lagarde has called on Central Asian countries to harness the power of fintech to ensure inclusive and sustainable growth in the region.

She said just 45 per cent of adults in the Caucasus and Central Asia had a banking account — almost 20 per cent lower than the average in other emerging markets.

Furthermore, only three per cent of citizens had mobile money accounts.

These numbers reveal an incredible untapped resource for the region, she said.

“If Central Asia can harness the power of fintech, as emerging economies in the other regions have done, the potential gains for the poor, women and young people are significant,” she said at the opening ceremony of the XII Astana Economic Forum 2019 themed, “Inspiring growth: People, cities, economies,” here, yesterday.

She also outlined three other principles crucial for inclusive growth.

On fiscal policy, Lagarde said it should balance debt concerns with critical initiatives in health, education, and infrastructure.

“Here, the IMF will continue to support the region through technical assistance and capacity development programmes,” she added.

She also emphasised the need to address corruption in the region and 2019 was an opportune moment to provide increased transparency and foster more trust between citizens and the government.

“Women and other underrepresented groups can be empowered by continuing to eliminate legal and economic barriers,” she said.

Lagarde added that in Kazakhstan, through the hard work of the government and private companies, the participation of the female labour force was now at 65 per cent, the highest in the region and a benchmark for every country in Central Asia.

“Each of these principles is part of the toolkit the region needs to reach a higher plain of inclusive growth,” she added.

The two-day AEF 2019, which started yesterday, has 5,492 registered delegates from 74 countries, and includes experts, politicians, business people and scientists. — Bernama

If Central Asia can harness the power of fintech, as emerging economies in the other regions have done, the potential gains for the poor, women and young people are significant. Christine Lagarde