##ze firms are in a much more difficult position than large firms that have deeper pockets and larger buffers. trade tension might be comparatively short - lived when compared to other structural changes like demographic shift and technological disruptions, but these short - term factors could result in a long - term impact to medium - size firms and the structure of the economy through channels such as changes in competition landscape, market dominance power, and investment and employment patterns. of course, the big question now is what roles could policymakers play to support this transition. i see smes capacity building as one key area where the government needs to be actively involved. this includes proactive consultation and coaching, providing incentives for productivity - enhancing investments, prohibiting abuse of market dominance power by large firms, promoting digital adoption, as well as eliminating outdated laws and regulations hindering sme ’ s competitiveness. although enhancing sme competitiveness might not be a direct mandate of a central bank, the bank of thailand has stepped up our policy focus on smes and worked with the banks on a number of initiatives. new digital payment platforms have been developed to lower costs of payment services, enhance payment efficiency, and provide a foundation for information - based lending and supply chain financing. a new database on system - wide sme loans by contract was set up to improve understanding of sme financing behavior and analysis of sme credit risks. we have also expanded the range of foreign exchange hedging products for smes and, recently, taken steps to encourage preemptive rescheduling and restructuring of sme loans to help facilitate their transition during this challenging period. dealing with financial spillovers the second issue for emerging nations in this new global environment is the size and volatility of financial spillovers that result from unconventional monetary policy after the gfc. capital flows, especially portfolio flows, now account for a much larger portion of crossborder flows than current account flows, and have a much larger effect on the exchange rates for ems. these capital flows — a significant portion of which are non - resident activities — are more sensitive to global financial conditions which have been dictated largely by monetary policy stance of aes and global investors ’ sentiment rather than textbook - determinants like macroeconomic conditions in ems and interest rate differentials. moreover, due to the large foreign - exchange activities by non - residents relative to the size of domestic foreign exchange markets and increases in derivatives and algorithmic foreign exchange trading activities, exchange rate could at times act as an amplifier

. km. of water, leading to a decline in water table to the extent of 0. 33 metres per annum. water quality issues have increasingly come to the fore. we receive very good rains, yet our inadequate storage and distribution facilities make water a scarce resource in india. climate change poses fresh challenges with its effect on the hydrologic cycle that might exacerbate impacts of floods and droughts. estimates suggest that about half of the demand for water will be unmet by 2030. given these challenges, it is important that we improve efficiency in water usage. initiatives aimed at recycling and reuse of water, better flood management and ground water management is important. transforming the mahatma gandhi national rural employment guarantee act ( mgnrega ) into a watershed restoration and groundwater recharge programme, as envisaged in the 12th plan, seems desirable. it could serve the dual purpose of preserving water resources while simultaneously creating employment. also, appropriate pricing of both water and electricity, will help recharge the depleting aquifers. sustainable industrial / business practice 21. industry being the catalyst of development, it needs to patronise the concept of sustainability in its various processes. sustainability is, now, seen as a key challenge as well as an opportunity in business. in future, only companies that make sustainability a goal will achieve competitive advantage. early movers today can reap the benefits. that means rethinking business models as well as products, technologies, and processes ( prahalad et al, 2009 ). recognizing this, some of the large multinational corporations like unilever, cocacola and walmart have committed, though consumer goods forum, to eliminate deforestation from their supply chains. microsoft has promised to go carbon - neutral by bis central bankers ’ speeches 2012 – 13. markets have also started rewarding sustainable business5 that further adds to the reputation of a company. sustainable businesses require innovation in technology, organisation and management ( usually all three together ). many of the sustainability gains would require more fundamental organisational shifts, and need to be led by the top - level management. 22. some of the common characteristics of green companies include : using natural gas for boiler fuel, recycling biodegradable waste, minimum use of plastic material, using recyclable packaging materials, using biomass and solar radiation as sources of renewable energy, generating electricity from hydroelectric plants and reducing toxic emissions. besides, there are some simple ways to make an office environment - friendly and reducing