Financial inclusion - universal access to financial services in a fair, predictable and transparent manner at affordable costs - is a key building block for more equitable growth. Many countries looked to better financial education to improve consumer financial literacy and prepare people to make the important big and even daily financial decisions that shape their economic futures. The International Network for Financial Education is pooling the experience of some 100+ countries to share practices to make financial education programmes more effective. The recent introduction of a financial literacy component in PISA, the OECD’s worldwide study of 15-year-old school pupils' school performance, will identify the main factors associated with financial literacy and help define policy measures to improve it.
But education is not enough. In 2011 the G20 sponsored rapid development of high level principles on financial consumer protection and many countries in OECD and G20 are now working to implement them. More fundamentally many people are subject to severe disadvantages because they are not at all connected to organised financial systems. This is a problem not just in developing countries, but also in segments of the population even in the most advanced societies.
Six years into the crisis, can we be confident that the banking system is now safer, and taxpayers protected from being asked to come to the rescue again? Has the crisis meant that enough has been done? Should we be reassured now that the economy is picking up and business confidence is returning?
- Promoting Financial Inclusion through Financial Education: OECD/INFE Evidence, Policies and Practice
Atkinson, A. and F. Messy (2013), OECD Working Papers on Finance, Insurance and Private Pensions, No. 34, OECD Publishing
- Financial Literacy Framework
OECD (2013), in OECD, PISA 2012 Assessment and Analytical Framework: Mathematics, Reading, Science, Problem Solving and Financial Literacy, OECD Publishing
- National Strategies for Financial Education
- Financial education and women
- Financial Education for Youth
- Financial education
- OECD work on finance
- ORF Issue Brief # 66, January 2014, The Global Financial System: A post-GFC Report Card
Observer Research Foundation
- Faisal Islam, Economics Editor, Channel 4
- Bjarni Benediktsson, Minister of Finance and Economic Affairs, Iceland
- John Hope Bryant, Founder, Chairman and CEO, Operation HOPE
- Diane Coyle, Professor of Economics, University of Manchester; Director, Enlightenment Economics
- Guillermo de la Dehesa, Chairman, Centre for Economic Policy Research (CEPR)
- Dennis Snower, President, Kiel Institute for the World Economy