Conclusion

Abstract

The former British Prime Minister, Winston Churchill, once said that ‘Democracy is the worst form of government except all the others that have been tried.’¹ Similarly, the failure of the centrally-planned economic model in the 20th century was proof-positive that perhaps ‘Capitalism is the worst form of economic governance except all the others that have been tried’. Today, the drive for strong institutions, a market-based economic model (characterised by individual initiative, property rights and the profit motive), and adherence to the rule of law are key aspirations of less-developed economies migrating towards a better future. In this pursuit, few institutions are as pivotal to long-term economic success as the central bank.