important, a more active monitoring from the people we serve will also reduce the risk of complacency creeping in. in fact, being ‘ trusted by the public ’ is one of the five indicators we track to assess whether or not our current strategy is making a positive difference to the wellbeing of our citizens. 24 specifically, we have decided that achieving a ‘ 75 per cent trust score ’ is one of the key indicators for measuring the impact of our strategic plan. conclusion let me conclude. the central bank ’ s founding legislation states that our constant and predominant aim shall be the welfare of the people as a whole. we and other central banks need trust to succeed. trust is stronger where social capital is strong, central banks can help to build social capital through their actions. for my part, my vision is that of an engaged, open and connected central bank. we need to communicate continuously and transparently with active and increasingly - involved citizens. we have a role to contribute to the building of social capital and also perhaps, as minouche shafik has argued, the creation of a new social contract which strengthens the architecture of opportunity in our community. 25 it will require, i suggest, for those of us working in the world of central banking and also teaching in the world of economics to invest in more integrated, more multi - disciplinary and more longer - term thinking. in short it will require us to give our macroeconomic frameworks a greater intergenerational focus and as a result strengthen and grow our economic capital. acknowledgments : i would like to thank giuseppe corbisiero and reamonn lyndon for their assistance with this speech. [ 1 ] see makhlouf ( march, 2018 ) “ natural capital and the living standards framework ” for my views on natural capital and why it matters for wellbeing. [ 2 ] for more on “ climate change and the strategy review ”, see the ecb strategy review webpage. [ 3 ] see biden - harris administration ( january, 2023 ) “ national strategy to develop statistics for environmental economic decisions ”. [ 4 ] makhlouf, gabriel. “ social capital and the living standards framework ”. address to university of auckland ( 27 march 2018 ). [ 5 ] the world bank assigns social capital concepts to three broad groups. ‘ horizontal associations ’ refers to social networks, organisations or groups in society that facilitate coordination and cooperation. ‘ vertical associations ’ are ties that link

urjit r patel : agricultural debt waiver - efficacy and limitations opening remarks by dr urjit r patel, governor of the reserve bank of india, at the seminar on " agricultural debt waiver - efficacy and limitations ", mumbai, 31 august 2017. * * * ladies and gentlemen, on behalf of the reserve bank of india, i warmly welcome you and thank you for accepting our invitation to join us today in this seminar. 1. in the recent period, farm loan waivers have engaged intense attention among the farming community, policy makers, academics, analysts and researchers. on the one hand, there is a gamut of issues that have intensified the anguish of our farmers. in this context, farm loan waivers have brought forward the urgency of designing lasting solutions to the structural malaise that affects indian agriculture. on the other, there are concerns about the macroeconomic and financial implications, how long they will persist in impacting the economy, the possible distortions that they could confront public policies with, and the ultimate incidence of the financial burden. 2. let me, in a modest way, try to eclectically address both sides of the debate. india's agrarian economy is the source of around 15 percent of gdp, 11 per cent of our exports and provides livelihood to about half of india's population. the importance of the sector from a macroeconomic perspective is also reflected in a significant flow of bank credit to finance agricultural and allied activities relative to other sectors of the economy. outstanding bank advances to agriculture and allied activities have risen from about 13 per cent of gdp originating in agriculture and allied activities in 2000 - 01 to around 53 per cent in 2016 - 17 ( chart 1 ). in real terms ( adjusted for inflation measured by the gdp deflator ), the growth of bank credit to agriculture and allied activities accelerated from 2. 6 per cent in the 1990s to 15. 4 per cent during 2000 - 01 to 2016 - 17. 3. much of this credit flow has been propelled by the policy thrust on expanding credit to agriculture, especially through priority sector lending ( psl ) stipulations. public sector banks and private banks are required to lend 18 per cent of annual net bank credit ( anbc ) or credit 1 / 4 bis central bankers'speeches equivalent amounts of off - balance sheet exposures, whichever is higher, to agriculture. under this carve - out, 8 per cent is prescribed for small and marginal farmers. even foreign banks with 20 branches and above have to achieve