and the means to achieve the desired results. the fundamental objectives of economic development in our country remain the same : growth and social justice. instrumentalities to achieve these will have to change in tune with our experience and according to the demands of the time and the responses of the society. in bringing about faster growth we need to address many issues. perhaps one that is most relevant in the context of work that is going on at iima is the issue of productivity. in ensuring a higher growth rate, there is no doubt that we must bring about an increase in the saving rate and, consequently, the investment rate. but at the same time one cannot over - emphasise the need for improving the productivity and efficiency of input use. economists in fact talk about total factor productivity, which identifies the contribution to the increase in output of influences other than increase in factor inputs. the total factor productivity growth thus encompasses the effect not only of technological progress but also of better utilisation of capacities, improved skills of labour, etc. in fact during the period 1960 - 87 the total factor productivity growth of east asia was 1. 9 per cent per productivity and efficiency. contrary to the general impression, the natural resources of our country are not large. from the point of view of long - range sustainability, the need for greater efficiency in the management of natural resources of land, water, minerals, etc. has become urgent. in a capital - scarce economy like ours, there can be no excuse for under - utilisation of capacity. macro - policy framework and micro - management practices must be such as to bring about the desired increase in productivity. while the policy framework must be supportive, industrial structure must be such as to compel firms to continually innovate and to cut costs. the policy environment, the organisational structure and the attitude to work and technology : all these have to be right. needless to say, institutes of management have an important role to play in bringing about this improvement in productivity by sharpening the skills and the vision of managers. - 2the recent development experience has clearly shown that countries which have grown fast are those which have made very heavy investment in education. even as we aim at creating a broad - based educational system, including compulsory education at the primary and secondary levels, we also need institutions of excellence. living as we are in a complex and globally competitive world, institutions of excellence in all disciplines are required to meet the challenges of competition, which in effect is the competition in skills

- border activity. the fifth progress report on implementation of the otc derivatives market reform, published by the financial stability board ( fsb ) in april 2013, has reported that, eu, japan and the usa, which account for the largest volumes of otc derivatives activity, are among the most advanced in implementing legislative and regulatory reforms, with several key regulatory measures either already enforced or likely to be in force by mid - 2013. the recent guidelines issued regarding reforms in the otc derivatives segment by the eu include the markets in financial instruments directive ( mifid - ii ), markets bis central bankers ’ speeches in financial instruments regulation ( mifir ) and european market infrastructure regulation ( emir ). a number of other jurisdictions have reported that they expect regulatory measures related to trade reporting to come into force over the course of this year, and a few jurisdictions expect clearing requirements to come into force in 2013 – 2014. many jurisdictions have adopted rules to implement the basel iii capital framework for banks, including higher capital requirements for non - centrally cleared transactions. 9. the new regulatory requirements may have a substantial impact on the work flow for the market participants including the end users. these regulations also have exceptions for some category of participants and products. the end users must determine what is necessary to comply with the regulations from which they are not exempted. they must meet certain criteria in order to qualify for available exemptions and will need to be aware of the activities that could prevent them from qualifying for the exceptions in the future. depending on the extent to which the end users engage in otc derivatives, the costs associated with preparing for the above could be significant. some of these initiatives have also raised concerns about the possibilities of extra territorial regulatory jurisdiction leading to regulatory clashes and disruptions for market participants. further, as annat admati & martin hellwig point out ( “ the bankers new clothes ” - 2013 ) and i quote, “ these proposals presume that concerns about depositors and the payment systems are, or, should be, the major reason for governmental interventions to banking..... this approach has two weaknesses. first, protection of depositors and the payment system is not the only reason that might induce governments to bail out banks. second, commercial banking activities can also be a source of risks that cause banks to fail unless they are bailed out ” ( unquote ) 10. in summary, the common theme of all the proposals in the pipeline is one of putting sand in the wheels