likely to be the most effective governance mechanism at public sector institutions. these observations have substantive relevance for understanding how one might tighten governance in practice, for instance, in lending outcomes ( underwriting or screening, monitoring and recovering post default ) at public sector banks, a setting that is beset with many of the features highlighted above. that is for another day. for now, let us turn to how vigilance is organised at the reserve bank of india, the central role that preventive vigilance takes at the bank, and the measures that we have adopted to date in this regard. page 7 of 11 vigilance functions at the reserve bank of india ( rbi ) the overall responsibility for vigilance work at the reserve bank vests with the central vigilance cell ( c. v. cell or just cell ), which exercises its jurisdiction over all employees of the bank and co - ordinates the activities of the 49 branch vigilance units. the cell maintains liaison with the central vigilance commission ( cvc ) and the central bureau of investigation ( cbi ). the focus of the cell is to have a comprehensive preventive vigilance setup supported by an audit framework so that vigilance issues are minimised and to sensitise our employees to various aspects of vigilance administration. the guidelines on vigilance, issued by the cvc, are aimed at greater transparency, promoting a culture of honesty and probity in public life, and improving the overall vigilance administration in the organisations within its purview. the central vigilance cell at the reserve bank, led by the cvo, follows the guidelines issued by the cvc ( the commission ) from time to time. the chief vigilance officers ( cvos ), who are the extended arms of the commission in their respective organisations, decide upon the possibility of a vigilance angle in individual cases in an organisation. not only the financial propriety of transactions, but certain non - financial aspects arising inter alia from conflicts of interest, nepotism and considerations of postretirement employment as a quid pro quo, are also required to be examined from a vigilance angle. as mentioned earlier, the bank ’ s vigilance administration focuses on preventive vigilance functions by inculcating a sense of honesty and integrity among its employees and ensuring that sound internal systems and controls are laid down, which act as a defense against intended mala fide

mark carney : the virtue of productivity in a wicked world remarks by mr mark carney, governor of the bank of canada, to the ottawa economics association, ottawa, ontario, 24 march 2010. * * * it is either brave or foolhardy of the ottawa economics association to organize another conference around canada ’ s perennial challenges of demographics, productivity, and potential growth. the cognoscenti wearily deride these shortcomings even while they acknowledge their importance. 1 after all, who really wants to talk about getting old? similarly, the subject of productivity is described as too dull, or worse, too threatening for canadians. it is said to imply working harder, not smarter, or to promote job losses rather than income gains. these debates are thus thought best confined to the policy wonks, in order that our diagnoses and prescriptions can occur in a parallel, forgotten universe. however, one wonders, who would not want to be productive in their work? is there a child whom we do not want to reach his or her full potential? could what canadians expect of their economy be so very different from what they expect of themselves? our ambitions for the canadian economy should be bold. we are a country of immense strengths and, as demonstrated during the recent crisis, considerable resilience. yet canada does underperform. we are not as productive as we could be. our potential growth is slowing. moreover, this is occurring as the very nature of the global economy, in which we previously thrived, is under threat. this debate can no longer be avoided. what, then, must be done? there are two imperatives – one domestic, one international – to secure strong, sustainable, and balanced economic growth for canada. both recall aesop ’ s fable of the ant and the grasshopper, the moral of which can be best summed up as “ idleness brings want. ” in short, in a wicked world, canada needs productive virtue. canada ’ s slowing potential this conference has already benefited from comprehensive reviews of productivity and potential growth, so i would like to briefly summarize the bank ’ s views ( which are largely in accord with the emerging consensus ). we have a problem : demographic drag will increase in coming years. as the boomer generation ages, labour force participation rates will decline and hours worked will fall. the question is merely one of degree. for some age groups, there is a possibility that participation rates will be higher than currently