and Author D., Levy F., Murnane R. “The Skill Content of Recent Technological Change: An Empirical Exploration”, Quarterly Journal of Economics, 2003. 20  The literature, which shows these problems is very extensive, for example: Hanson G., Mataloni R., Slaughter M. “Expansion Abroad and the Domestic Operations of U.S. Multinational Firms”, mimeo, 2003; Landefeld, Mataloni (2004) op. cit. ; Desai M., Foley F., Hines J. “Foreign Direct Investment and Domestic Economic Activity”, NBER Working Paper 11717; Mankiw N.G., Swagel P. “The Politics and Economics of Offshore Outsourcing”, mimeo, November 2005. 21  For example, Blinder A. “The Fear of Offshoring”, Princeton University, mimeo, October 2005. 10  BIS Review 64/2006  -  Does the Polish educational system provide continuing training, and in particular, are we able to offer quick and smooth re-qualification of workforce that is prone to loose jobs in companies or industries which cannot stand the global competition? -  Are there sound relations between businesses and universities in Poland, which would deliver a large number of innovations? -  Is the public administration in Poland stimulating the innovation process (e.g. through the use of modern communication channels, giving up paperwork for the Internet, etc.)? -  Do we create and support organizations for Poles emigrating abroad, to help them maintain their relation with the country and facilitate their return to set up their own companies? -  Do we conduct an active policy of developing business contacts and personal connections on the fast growing markets?

In this respect, we should learn from the unsatisfactory outcomes that have emerged in some of the more developed markets where product disclosures can run into 60-page documents, which no one can reasonably expect an average consumer to read, let alone understand. Ultimately, the purpose of disclosures must be to help consumers understand the risks associated with different product options. In this context, more information is not necessarily better. The quality of information and financial capability of consumers must be enhanced in tandem with improved disclosures. Of course, increasing product innovations also need to be matched by strong risk and portfolio management capabilities critical to ensure the long-term sustainability and viability of the products offered in the market as well as the financial soundness of insurance companies. The operating landscape in which we operate has also changed significantly. Convergence in financial services has blurred the boundaries between insurance, banking and capital market activities. In this environment, financial sector regulation and supervision has become significantly more challenging. The increasing linkages between insurance and the banking systems as well as capital markets have increased the importance of achieving a harmonised regulatory approach and standard across sectors to minimise possibilities of regulatory arbitrage between different types of institutions. Under such environment, the approach towards regulatory and supervisory framework also has to evolve in tandem with the change in the environment. Recognising these dynamic changes, Bank Negara Malaysia took efforts to strengthen our regulatory and supervisory capabilities as well as sharpen our focus.