To illustrate that, Chart 10 plots the distribution of levels of productivity across countries over a set of sample periods, where productivity is measured relative to a frontier country (the United States) indexed to one. Comparing the distributions in the 1950s and 1970s, there is a clear rightward shift. Cross-country productivity convergence or catch-up was underway, as the Classical growth model would suggest. In recent decades, however, that pattern has changed. Comparing the 1970s with the 1990s, there is a small leftward shift in the probability mass. And in the period since the global financial crisis, there has been a further leftward shift in the distribution and a widening of its range. Today, non-frontier countries are about as far from the technological frontier as they were in the 1950s. Another way of illustrating the same point is by looking at differences in productivity between frontier and periphery countries over time (Chart 11). In the decades immediately following the Second World War, the Classical growth model was operating effectively, with catch-up in productivity underway and at faster rates among emerging market countries with furthest to travel to the frontier. 37 38  Gordon (2014). Barro and Sala-i-Martin (1992) and Rodrik (2011). 9  All speeches are available online at www.bankofengland.co.uk/speeches  9  Since the 1980s, however, that convergence process appears to have stalled, perhaps even to have gone into reverse, in both advanced and emerging economies. The gap to the frontier has failed to close and, in particular for emerging market countries, has widened.

Last year, saw the introduction of three strategic initiatives that aspire to drive and support the transformation of our talent development infrastructure in an impactful manner. The criticality of these initiatives is obvious given that the financial services industry employs close to 150,000 people and requires approximately 73,000 new hires over the next 10 years. Let me elaborate a bit on these initiatives. First, is the establishment of the Financial Services Talent Council. In July 2014, Bank Negara Malaysia established the Council with the aim of setting the strategic direction of the financial sector talent development. This initiative is one of the proposals envisaged under the Financial Sector Blueprint 2011–2020 which brings together individuals with expertise and experience across the financial services industry and academia. The Council is tasked with the responsibility to work closely with the industry, training providers and relevant stakeholders, to formulate strategies to further develop, attract, retain and deploy domestic and international talents to meet the demand of the financial services industry. Second, is our commitment to bring the industry to greater heights of professionalism and ethics. And with the support of the Securities Commission and industry, the Financial Services Professional Board was established. This industry-led entity, comprising prominent individuals with diverse global experience is responsible to spearhead strategic undertakings to develop professional standards and ethical behaviour within the financial services industry. In this respect, the Board aspires to set new benchmarks in professionalism and ethical behaviour via advocacy.