industry, full of administrative experience and proficient in operation of financial enterprises. strengthening and improving training arrangement and rules of procedure for members of the board of directors, shall be the focus of the next stage of reform and the gist of the principle of separation of the functions of enterprises from those of government. we shall grant the managerial power to investors and their representatives in the real sense. only by doing so can we have the micro basis for operation of the market economy. when china is running short of financial talents, we could as well hire talents abroad or from all walks of life, thus accelerating growth of china ’ s financial talents. ( iii ) we shall improve the system of labor safety and set up the personnel system in which one can be transferred to other jobs or be given a higher or a lower position as required. handling well the relationship between the board and top management and between the board and employees, represents one very important component of corporate governance structure of financial enterprises. the above calls for establishment of the adequate system of safeguarding labor rights and interests. concretely speaking, it entails the employment system and social safety net. in terms of the reform of china ’ s state - owned enterprises and banks, the success is hinged on instituting the personnel system in which one can be transferred to other jobs or be given a higher or a lower position as required. the sense of security, ownership and enthusiasm of employees of financial enterprises come from the adequate law of labor safety and social security net. guanzi once said, he who has immovable property will have immovable perseverance. when enterprises have clearly established ownership and when employees have the sense of physical safety, the reform shall proceed smoothly. the labor law prescribes that establishment of employment calls for employment contracts. the contract is the fundamental basis for safeguarding legal interests of employees during employment. employment contracts shall be entered into in conformity with the principle of equality, voluntary participation, consultation and consensus, which represents complete contractual freedom enjoyed by employees. employees of financial enterprises may participate in the management of the enterprise in a democratic manner and discuss on equal footing with the employer about protection of legal interests of labor through the general meeting of employees, trade unions or other means. career development program, training program, compensation scheme and employee stock ownership plan ( esop ) can create the sense of honor and ownership among employees, arouse their definite expectation about the future and thus can mobilize their working enthusiasm. the survey conducted by mercer

##rrencies of all major economies, and the gdp may also be included as a weight. the allocation of the sdr can be shifted from a purely calculation - based system to a system backed by real assets, such as a reserve pool, to further boost market confidence in its value. iv. entrusting part of the member countries ’ reserve to the centralized management of the imf will not only enhance the international community ’ s ability to address the crisis and maintain the stability of the international monetary and financial system, but also significantly strengthen the role of the sdr. 1. compared with separate management of reserves by individual countries, the centralized management of part of the global reserve by a trustworthy international institution with a reasonable return to encourage participation will be more effective in deterring speculation and stabilizing financial markets. the participating countries can also save some reserve for domestic development and economic growth. with its universal membership, its unique mandate of maintaining monetary and financial stability, and as an international “ supervisor ” on the macroeconomic policies of its member countries, the imf, equipped with its expertise, is endowed with a natural advantage to act as the manager of its member countries ’ reserves. 2. the centralized management of its member countries ’ reserves by the fund will be an effective measure to promote a greater role of the sdr as a reserve currency. to achieve this, the imf can set up an open - ended sdr - denominated fund based on the market practice, allowing subscription and redemption in the existing reserve currencies by various investors as desired. this arrangement will not only promote the development of sdr - denominated assets, but will also partially allow management of the liquidity in the form of the existing reserve currencies. it can even lay a foundation for increasing sdr allocation to gradually replace existing reserve currencies with the sdr.