it stood at 4. 9 percent of gdp. the formal manufacturing sector ’ s failure to generate much faster growth over the last decade is a major cause for concern, because in developing economies this sector plays a crucial role in driving productivity growth and the structural transformation of the economy. average real growth of formal sector manufacturing over the last 13 years was a respectable 6. 9 percent, but that is still far lower than the growth rates of the sector which are needed to propel structural transformation. the failure of the manufacturing sector to become the engine of growth of our economy can be attributed, i believe, to both weaknesses which are internal to many businesses in uganda and to constraints in the business environment. i will briefly elaborate on these problems. bis central bankers ’ speeches let me start with the way in which businesses are managed, because it is in this area that we can learn so much from the career of james mulwana. his businesses were successful over the long term because he understood and put into practice the fundamental principles of managing a successful commercial business in a competitive market economy. a successful business must first and foremost, have sustainable profitability as its priority objective. it must also re - invest the bulk of its profits in improving efficiency ; if it does not it will lose out to more efficient competitors. no business will remain viable if profits are instead taken out to fund the conspicuous consumption of its owners. most businesses need to borrow money from banks or other lenders, but borrowing should be prudent and should only be used to fund expenditures which benefit the business and can be repaid from the cash flow of the business without disrupting its operations. no business will be successful in a competitive market unless it employs modern professional management, with the requisite qualifications and experience. a business which is used to provide employment for the relatives of the owners will lack the necessary expertise to survive. finally, the sustainable success of a business requires building a reputation among its customers for high quality and reliable products. these principles are important for businesses in all sectors of the economy, but they are particularly important for those in the manufacturing sector. this is because manufacturing products are tradeable across borders, so markets for these products are very competitive. in competitive markets, firms cannot afford to stand still. to thrive they must continuously improve their efficiency which is only possible if they generate profits and then re - invest these profits in the business. unfortunately these principles of modern business management are not universally applied in the private sector in uganda, which is

mario draghi : interview with der spiegel interview with mr mario draghi, president of the european central bank, and der spiegel, published on 30 december 2013. * * * spiegel : mr draghi, do you know andrea nahles? draghi : i have heard the name before but i don ’ t know her personally. spiegel : ms nahles is the new german labour minister and boss of jorg asmussen, your former colleague in the executive board of the ecb. that he gives up this prestigious job has caused great surprise in germany. did you chase him out? draghi : jorg and i had an excellent personal and professional relationship. i consider it as a great loss for us that he is returning to the government. of course we did not agree on every occasion. spiegel : asmussen is the third german central banker to give up his job prematurely, after bundesbank boss axel weber and the former ecb executive board member jurgen stark. why aren ’ t the germans happy at the ecb? draghi : you can ’ t compare these cases. jorg has made it clear that it was only family reasons which prompted him to go back to berlin. i have no reason to doubt that. spiegel : in any case, weber and stark resigned because of your policy, which led to your famous remark in london a year and a half ago about doing “ everything necessary ” to save the euro. that means, in an emergency, buying up the government bonds of the crisis - ridden countries and taking on risks amounting to billions for which in the end german taxpayers above all would be liable. can you understand that many german citizens are at odds with this? draghi : weber and stark resigned before my arrival at the ecb. but the truth is that conditions in the euro area have improved considerably since then. consider the latest developments : crisis - ridden countries such as ireland and portugal are exiting the bailout programme, the risk premia for loans to crisis - hit countries in southern europe are declining, and investors from all over the world are once again investing in europe. in other words, most of the financial - economic data are turning in the right direction. spiegel : are you saying the euro crisis is over? draghi : no, but the fears felt by some sectors of the public in germany have not been confirmed. what haven ’ t we been accused of? when we offered european banks