output gap would allow boosting growth in a stable manner from just less than 2 % in recent years to a 2. 5 % to 3 % range. as i mentioned before, this is grounded on a better external scenario, the fading of some sectoral factors that have slowed down the pace of growth, a more expansionary monetary policy, and the lack of macroeconomic growth constraints. this requires more dynamic exports, domestic demand and investment. 22. a more significant increase in investment that brings it closer to its historical rates, coupled by increased factor mobility, would boost growth to a sustainable rate of around 3. 5 %. this would require revitalizing mining investment, better investor expectations in the rest of the economy, favorable financial conditions, and the elimination of bottlenecks that hinder the reallocation of resources toward more competitive areas. a smooth operation of both the labor market and the capital market is essential for this. 23. regarding productivity growth in the other sectors, the possibility of further improvements relies mainly on : ( 1 ) increasing human capital accumulation through increased labor participation, raising working skills above the already projected levels or the migration of workers with the competences required by the chilean system ; and making productivity improvements via enhancing companies ’ efficiency, lowering production and trading costs, and changing output composition toward more competitive and productive sectors, while advancing in terms of innovation and technological development. 24. as chile ’ s concern for growth has intensified, many ideas about public policies have emerged that could help enhance productivity, with proposals coming from the government, private agents and the national productivity commission. in particular, policies have been developed that have permitted to diversify the energy matrix, increase supply reliability and reduce costs. there have been other factors, however, that pose a risk to productivity, including initiatives that may overburden corporate costs, generate new trading costs or reduce savings. 25. finally, any discussion about productivity must necessarily cover technological development. this is a key driver of economies ’ productivity and competitiveness around the world. it is obvious in my opinion that the new technologies, knowledge and innovation capacity are input into the productive system through new ventures, investments and restructurings.

, can provide only partial information on the level of financial inclusion in an economy. measures of financial exclusion whatever measure one may use for india, it is apparent that the financially excluded constitute a significant share of the population especially amongst the low income groups. based on the aidis 2002 survey, rc showed that 111. 5 million households had no access to formal credit. it also showed that 17 million households were indebted to moneylenders. the recent arjun sengupta report on financing enterprises in the unorganized sector has pointed out that only 2. 4 million out of 58 million units in this sector ( with investment of less than rs 25000 ) have got credit from commercial banks. the aidis 2002 also showed that lower the asset class or income, higher the degree of exclusion. these findings are corroborated by invest india incomes and savings survey ( 2007 ). the survey showed that 32. 8 % of households had borrowed from institutional sources and 67. 2 % had borrowed from non institutional sources. the survey also found that 70 per cent of earners in the annual income bracket of more than rs. 400, 000 borrowed from institutional sources as compared with only 27. 5 per cent in the case of earners in the income bracket of less than rs. 50, 000. causes of increased indebtedness from non institutional sources a very interesting analysis by the rcf shows that the major reason for increase in the overall household debt and the increase in the share of households indebted to noninstitutional sources between 1991 and 2002 was a significant increase in current farm expenditure and household expenditure, especially in rural areas. the “ household expenditure ” includes expenditure incurred on purchase of residential plot ; purchase, construction, addition / alteration of building for residential purposes ; purchase of durable households assets, clothes, among others and expenditure on medical treatment, education, marriages, and ceremonies. thus, the “ household expenditure ” includes many items for which households may find it difficult to obtain loans from institutional sources. the iims survey also suggests that a large portion of loan is taken by the households for meeting financial emergency, medical emergency and social obligations. these three purposes accounted for about 53 per cent of the loans availed of by indebted earners. furthermore, more than 60 per cent earners, indebted to non - institutional sources, took loans for the aforesaid three purposes. in the case of emergencies, people may find it convenient to approach non - institutional sources