risk boards are close to them on both sides of the atlantic. in other words, you trust ben bernanke will not risk a heavy depreciation of the dollar? on exchange rates i will say that excess volatility and disorderly movements in exchange rates always have adverse implications for economic and financial stability. and i consider it very important that the us authorities also recently confirmed their long - standing position that a strong dollar vis - a - vis the other major floating currencies is in the interests of the united states. but cooperation in the g20 is at a very low point. the united states will perhaps create even more liquidity ; china refuses a substantial appreciation of the yuan. between the selfish policies of the two great powers of today, europe risks the euro becoming too strong. i responded already on the united states. on the emerging economy currencies, i would say that at the toronto summit emerging economies agreed to undertake reforms to enhance exchange rate flexibility. it is the case for all of them, including for china, which has confirmed the will to engage in such reforms, as it signalled last june.

countries are assumed to be primarily due to changes in the rates of human capital accumulation. the empirical literature on testing the importance of human capital for economic growth has produced very mixed results. on the one hand, some influential studies find no relationship between human capital and growth when the lucas approach is tested for broad samples of countries. on the other hand, some studies are able to reconcile microeconometric estimates of the rate of return to years of schooling with macroeconometric estimates of the impact of changes in educational attainment on growth after accounting for measurement error. some economists emphasize the importance of accounting for labour force quality. they find a strong link between direct quality measures ( i. e. cognitive skills ) and economic growth. the empirical research undertaken by some economists provide support for the lucas approach that growth is driven by the accumulation of human capital. let me now conceptualise my thought process : conventionally three factors of production viz., land, labour and capital have been recognized as the sources of economic growth. the pace of economic growth differs primarily on account of capital accumulation. nevertheless, the differences in the growth performance and living standards across countries can be attributed not only to the pace of growth of physical capital but also the investment in human capital, which in turn, determines the quality of labour force and productivity. in fact, human resources in the growth process are as important as physical capital, technology and financial resources. despite a great deal of discussion on critical role of human resource development, actual attention paid has been inadequate. this is partly because the process of developing human resource is extended over a long period of time. secondly, the return from accumulation of human capital has a long gestation lag. thirdly, the resource requirement for developing human resources is enormous. however, it may be argued that on account of the long lead - time involved, human resource development cannot be postponed and should be addressed with a coherent human resource policy. recognising this, in the recent times, the focus of attention in the government as well as in the private sector has been the efficient and effective use of human resources. a critical element in this process is the quality of governance, as it is increasingly been recognized to be one of the prime factors behind the most remarkable development successes of human history. evidence suggests that good governance can help secure human well - being and sustained development. similarly, poor governance would erode the individual capabilities as well as institutional and community capacities to meet even the basic needs of susten