“ dutch disease ” will be avoided. the time is too short to go into a full analysis of the “ dutch disease ” phenomena. we at the central bank will do our best to ensure that the exchange rate is not pricing the traditional exports of papua new guinea uncompetitive in the international commodity markets. it is of paramount importance to commence the planning of the shift in the priorities now, to ensure that the 2011 budget reflects them. i am convinced that by proper planning and thoughtful utilization of our implementation capacities, we will avoid the overstretching of the nation ’ s productive resources and capacities. this way we will avoid unwarranted domestic price increases and the import of competing machinery, equipment and labour that, will depart the day the construction of the lng project is completed. such a scenario will result in the loss of all the knowhow that could be accumulated for the future use and benefit of the nation ’ s development. the three to four years of the construction stage of the lng project will be hard to manage. i am however confident that with close cooperation and coordination with the government specifically the departments of treasury, finance and national planning and monitoring the bank of papua new guinea can achieve the objective of price stability as i defined it. we are also pursuing vigorously some other objectives such as a modern payments systems that will provide a safer, efficient and cost - effective payment and settlement system in the future. financial inclusion of the rural majority through financial literacy, micro banking, technological innovation through the use of mobile phone banking. all of it without compromising the objective of a stable prudently managed financial system that is customer and service oriented and will withstand future shocks as it did in 2008. if the government can continue its focus on developing and improving infrastructures and basic social service in the rural areas, people can take advantage of these new financial and payments innovations to improve their livelihood and living conditions. they can also realize the benefits from the lng project and the improved macroeconomic developments in the economy. if this is sustained into the future, the objectives of the government ’ s vision 2050 can be realized. to do justice to all the roles that are placed under the bank of papua new guinea ’ s mandate, we will continue to protect the contributor ’ s savings in the long term savings schemes in the superannuation and life insurance industries. i wish to thank the organizers for inviting me to address the forum and i look forward to the day ’ s presentations. thank you.

manuel sanchez : productivity, growth, and the law remarks by mr manuel sanchez, deputy governor of the bank of mexico, at the annual bank conference on development economics, organized jointly by the world bank and the bank of mexico, mexico city, 16 june 2015. * * * it is an honor to have the opportunity to deliver the closing remarks at this international conference, organized jointly by the world bank and the bank of mexico, on the relationship between productivity, growth, and the law. on behalf of the bank of mexico, i would like to extend my gratitude to all the participants for their valuable contributions. the discussions here have been highly enlightening, and the wide variety of papers presented has helped us deepen our understanding of the vital role of productivity in any economy. identification of the sources and effects of productivity is critical to explaining why income levels differ so much among nations, and more importantly, may give us a guide as to how to foster higher living standards. i would like to begin my remarks by reflecting on a few salient issues in the literature on productivity and the rule of law. then, i will briefly explore some struggles that policy makers face in the aim of promoting efficiency and economic expansion. finally, i would like to address challenges to higher long - term economic growth in mexico. as usual, my remarks are entirely my own and do not necessarily reflect those of the bank of mexico or its governing board. a few salient productivity issues two basic observations arise from international data on economic development. the first is the persistent divergence of income per capita across countries over a sufficiently long period of time. this well - known tendency is striking, as developing economies typically exhibit unexploited business opportunities that would otherwise allow them to grow faster than industrial nations, thereby catching up with the leaders. we know that, as a general trend, absolute convergence has not occurred. a second observation is that a large part of economic growth can be attributed to the efficiency with which production inputs are applied, in addition to the intensity of their use. economists refer to the first as total factor productivity ( tfp ), estimated on the basis of measures of output and inputs, as well as certain production function assumptions. the success of a few countries which have managed to multiply their income levels quite rapidly has largely resulted from booming tfp. furthermore, productivity differences at the firm level within an industry is a puzzle that prevails even in advanced countries. firm survival is frequently linked to higher levels of