the primary responsibility to ( a ) provide security – internal and external to its citizens ( b ) maintain law and order ( c ) dispense quick and fair justice and enforce contracts ( d ) build physical infrastructure ( e ) provide basic social services such as education, health and water supply ( f ) implement good governance ( g ) maintain macro economic stability, ( h ) regulate the markets where there are monopolies, externalities, economies of scale ( i ) build social safety nets for the poorest and vulnerable segments of the population. markets need government and government needs markets. the state is not a substitute for the market but a critical complement and that government action is essential to ensure that development process is inclusive and the benefits of growth are not pre - empted by a small class of elite in the country. private sector, on the other hand, has the capacity and ability to produce, distribute and trade goods and services in the economy efficiently and at least cost. there is hardly any justification for the government or the bureaucrats to be running businesses. the record of public sector enterprises and nationalized commercial banks in pakistan for the last 30 years speaks volume of the damage that has been inflicted on our economy. to just give you one example, if 50 percent of the allocation of rs. 100 billion which was made last year to bear the losses of the public sector corporations and enterprises was diverted to education, health and other social services, imagine how much it would have helped the common man in this country. profit making is not dirty provided it is made through competition, hard work, entrepreneurship, in an environment where there is a level playing field for all economic sectors, where the rules of game are applicable to every one, where implementation of policies and regulations take place across board, where taxes and other government dues are paid on time and loans are repaid without any write off. under such circumstances private enterprises generate production, employment, opportunities and create income in the economy. this will only happen when they make profits and invest those profits in expansion of their existing businesses or creating new businesses. economic growth takes place through this investment, incomes rise and the countries get prosperous. those of you who still believe in old socialistic ways of thinking in which profits were condemned as socially exploitative should shed this thinking as this is flawed and empirically incorrect. privatization, deregulation and liberalization are the key instruments through which private sector can flourish and thrive. those of you who believe that governments should create jobs

zeti akhtar aziz : vision of asia speech by dr zeti akhtar aziz, governor of the central bank of malaysia, at the official monetary and financial institutions forum ( omfif ) – “ vision of asia award acceptance speech ”, london, 30 june 2010. * * * it is my great honour to be here today to receive this vision of asia award from the official monetary and financial institutions forum ( omfif ). i would like to thank lord desai, for his generous introduction and the advisory board of omfif for this recognition. as a policy maker from an emerging economy in asia – for almost three decades – it has been both exhilarating and most rewarding. while being challenged to the limit, in particular, during the asian financial crisis, the asian economies have now emerged stronger and more resilient. this decade has seen a dramatic change in the nature of the globalisation process. as this process intensifies, asian economies have demonstrated their flexibility to adjust and respond to the opportunities and challenges that have emerged. the initial wave of globalisation was in the form of trade. this was followed by the globalisation of corporations and more recently by the globalisation of financial flows. the recent global financial and economic crisis has called for the globalisation of policy given the limits for policy at the national level and the need to address cross border developments that have implications on the domestic financial system and hence the domestic economy. the global economy and the international financial system have entered a new era. a fundamental transformation of the global landscape is taking place. arising from the growing disparity in growth performance between the developed and emerging world, increasingly the economic power in the global economy is becoming more dispersed. the organisation for economic cooperation and development ( oecd ) estimates the emerging economies ’ share of global economic output will exceed that of the developed world by 2011. by 2030, the emerging economies are expected to account for 60 % of total world output. the benefits of globalisation are thus becoming more balanced. in 2000, the emerging economies accounted for 80 % of the world population but only generated 40 % of global income. by 2030, it is estimated that 85 % of the world population from the emerging economies will generate 60 % of the income. this is reinforced by increased trade between emerging economies. while world trade has quadrupled between 1990 to 2008, trade flows between emerging economies increased ten - fold. asia is very much part of this global shift