management function in the bou including the manner in which risk management issues in the bou should be reported to the board of directors of the bou. i would like to appreciate in a special way the bank of england and the deutsche bundesbank for providing resource persons for this workshop. ms. sue milton from the centre for central bank studies ( ccbs ) of the bank of england and mr. nobert rothe from the centre for technical central bank cooperation of the german ( ctcbs ) bundesbank are here because of the good relationship that exists between the bank of uganda and these two central banks. i am glad to report that this is not the first time that the two central banks have supported the bank of uganda. in february 2007, for example, ccbs and ctcbs facilitated a regional workshop on business continuity and risk management for senior managers, which were hosted by bank of uganda. participants who attended that workshop were from the central banks of kenya, tanzania and malawi. also some staff from the bou have attended seminars, workshops and other training arrangements organised by both these two central banks. therefore, i very much welcome sue milton and nobert rothe, and hope that they will find time during their visit to sample a few tourist attractions in entebbe, as well as kampala and its environs. it is my hope and belief that the outcome of the workshop will be an invaluable contribution to the ongoing efforts to establish sound programmes for the management of risks and business continuity. i also hope that this workshop will provide an opportunity for the board to assess better and to evaluate better the bank's performance in the areas of business continuity and risk management going forward. i wish you all fruitful deliberations.

that market incentives had been reduced and that we were losing the dividend of efficient uses of resources that such incentives provide. even those observers who derided the more unbridled forms of capitalism became increasingly aware that attempts to tame the market could be costly in terms of economic growth and the average living standards of a nation. over the past thirty years, as many countries have struggled to liberalize their economies and improve the quality of their policies, global per capita income has steadily risen. i recognize that poverty rates are notoriously hard to quantify, but according to a recent study, the share of the world's population living on less than $ 1 per day, a commonly used poverty threshold, has fallen dramatically over the past three decades - - from 17 percent in 1970 to 7 percent in 1998, representing a decline of 200 million people. in addition since 1970, the infant mortality rate has declined by more than half, school enrollment rates have risen steadily over the past thirty years, and literacy rates are up. smith ( 1776 ), vol ii, book iv, chapter v, p 43. world bank ( 2002 ) - - gdp per capita ( constant 1995 dollars ). sala - i - martin ( 2002 ). the $ 1 per day threshold is measured in 1985 dollars on a purchasing power parity basis. world bank ( 2002 ). while, from a global perspective, wealth and the overall quality of life have risen, that success has not been evenly distributed across regions or countries. the economies of east asia are often - repeated success stories. some, including china, malaysia, south korea, and thailand, stand out not only as growing very strongly, but also as having seen the greatest declines in poverty rates. overall, over the past three decades, asia's $ 1 per day poverty rate fell by one measure from 22 percent in 1970 to just 2 percent in 1998. moreover, asia was not alone. per capita incomes in latin america also expanded during the period, and poverty rates fell, although progress was somewhat slower. but, sadly, the story in africa has been quite different. levels of per capita income in that continent have actually fallen. the poverty rate, which in 1970 matched the rate in asia at the time, is estimated to have doubled to 40 percent by 1998. while africa's performance has clearly been subpar, some african countries have had some success. for example, botswana, lesotho, and more recently uganda have made some progress in raising per capita income