In recent decades, however, growth in Norway and many other countries has slowed. 3/9  BIS central bankers' speeches  Chart: Norwegian productivity growth Since 1980, average productivity growth in Norway, as measured by growth in GDP per hour worked, has been only around one-third of what it was in the first decades after the war. One explanation is that we have invested less. Increased use of machinery and other real capital per worker long helped make labour more efficient, but since 1980 the contribution from capital has been smaller. With low investment in the business sector over several years, there is the prospect of a further decline in the contribution from capital. There is probably also less to be gained from raising education standards. If we go back a few decades, the potential was considerable. In 1950, seven in ten Norwegians had only seven years of compulsory schooling. Today, a similar proportion has at least completed upper secondary education, and around one-third have a university education. Those entering the labour force continue to be better educated than those retiring from it. This may provide a boost to productivity. But we cannot expect the same return on higher education standards as in previous periods. Productivity growth that cannot be explained by increases in real capital or education standards is what we economists call total factor productivity, or TFP. Technological progress, better organisation of work and gains from labour mobility across industries are key factors behind TFP growth.

Among the conclusions of the reviews are that students that graduate need to have a greater understanding of globalisation so that they are able to have a global perspective. It should also extend to having an appreciation of the external environment of businesses that includes not only international developments but also trends to legal, social, political and environmental developments so that students do not graduate with rigid mindsets and are able to contextualise their circumstances. Given the highly diverse developments and perspectives that exist, thinking skills will require the ability for integrated thinking. This involves being able to effectively frame the issues that require solutions or decisions. Very often it involves the need to take into consideration multiple perspectives, some of which may be conflicting so that the judgements and conclusions need to balance these considerations. For emerging economies such as Malaysia, generating the right talent is urgently needed for our current and future environment. While investment in education reform and investment in people through the education process is vital, this will require time before they will generate results. How then can graduates be prepared in the transition? How can the existing work force be strengthened to meet the new demands of businesses in the changed current and future environment? This will involve continuous capacity building for every part of the career life-cycle, from the entry point to senior management and leadership. The highly dynamic environment requires this priority to be accorded and the necessary resources to be committed for this agenda.