synergies to upscale pilot projects and good practices to reach more regions, especially remote areas and multi - stakeholder approach where governments, private sector and civil society need to jointly engage, scale up and harmonized efforts to enable all least developed regions to achieve their mdgs. lastly she believes that climate change mitigation and adaptation are far more than technology and infrastructure. it is about people ’ s resilience and building partnerships for everybody ’ s informed participation in climate change mitigation and adaptation together with efforts to achieve other mdgs. ladies and gentlemen, we have taken another step forward in shaping a common position for mitigating the global climate change impact toward a better life of human beings. following the bali roadmap on december 2007, and again through this seminar, the issues concerning the action of adaptation and mitigation of climate change will be discussed more comprehensively in searching for an effective and efficient global resolution. having done all these and more, i do believe that we have not only completed some part of our preparations for the world actions in mitigating negative global climate change impact, but also advanced our broad inspirations for the building of macroeconomic and financial stability, for the long lasting prosperity of human being. considering the multitude of points of view and the speakers and participants arguments, some of them conflicting with each other, on the various global climate changes impact that we have addressed, it is remarkable that we have accomplished as much as we discussed. i can only attribute this productiveness to your diligence and dedication and, above all, your will to accommodate and compromise in order to arrive at a common ground. for we all know that the stakes are exceedingly high, that the quality of life of future generations depends on the efficacy of our present efforts. we know that human welfare is indivisible and that has given us a strong sense of common purpose which is the unmistakable evidence that in all of us the spirit of bali is vibrantly alive. indeed, we have not merely paid lip service to history. through our exertions during yesterday, through what we have accomplished in this seminar, we have endeavored to pay proper homage to the first generation of world leaders who met in this island last year. my dear colleagues, distinguished participants, in this meeting you have all generously contributed your valuable thoughts and your power of articulation you have also given much of yourselves, many of you working until the small hours of the morning in order to fulfill this

to say that none of them yet seems to provide a completely convincing explanation. and although different mpc members place different weights on the possible explanations, we all agree that there is considerable uncertainty as to how productivity will evolve as the recovery proceeds. unemployment is certainly not a perfect guide to slack in the labour market. for instance, the recent increase in the number of workers wanting to work more hours suggests it understates the absolute level of slack1. but it is not unreasonable to expect this margin of “ potential hours worked ” to move in line with unemployment. and, unlike in the 1980s, we have not seen a substantial movement in the labour force participation rate, which suggests that the number of discouraged workers has not risen markedly. so overall, changes in the unemployment rate are, we think, likely to provide a reasonable guide to the evolution of labour market slack. now consider what will happen if the weak productivity performance of recent years is simply a consequence of the weak state of demand and so reverses as the recovery proceeds. in that case, businesses will be able to supply the extra demand without greatly expanding their workforces and unemployment will be slow to fall. in these circumstances, it is indeed appropriate to keep monetary policy loose as potential output is well above actual output. conversely, suppose that the financial crisis and subsequent recession has wrought lasting damage to productivity. in that case, unemployment is likely to fall faster as demand grows, meaning that unemployment will reach the 7 % threshold sooner. then it will be appropriate to tighten policy sooner in this case, as potential output will be lower. the only case where the linkage of policy to unemployment is potentially problematic is where there is scope for productivity to increase as demand recovers, but for some reason firms take on extra labour before the increase in productivity takes place. but this seems rather unlikely to me. in any case, it is important to realise that the 7 % threshold does not constitute a trigger for the mpc to raise bank rate. rather it represents a prompt for the committee to undertake a see bell, d n f and blanchflower, d g ( 2013 ) ‘ underemployment in the uk revisited ’, national institute economic review, no. 224. bis central bankers ’ speeches broad assessment of the prospects for demand, supply and inflation. if it appears that there is still a substantial degree of slack in the economy which can be absorbed without threatening the achievement of the 2 % inflation target in the medium term, then there will be