, because even if rules were not naturally limited in this way, every individual has to acknowledge and live by values – they are not something that can be forced. so, if we accept that rules alone are not enough to anchor values in business or the banking sector, how can we embed these standards? i would argue in favour of a code of values. 6 conclusion it makes sense for values to have a place in business. values can prevent unethical behaviour, averting future scandals and crises. in other words, it is not pure idealism which speaks in their favour ; values can in fact cut costs. banking supervision does what it can within its remit. salary regulation shows that by imposing rules we can at least give the business world a push in the right direction, helping to embed these values. and the task force on behavior and culture is another useful addition to the banking supervision toolkit. but we should be under no illusions. it cannot be the primary task of banking supervision to establish or monitor values in business or, more specifically, the individual. so, how can we establish values in business if an operational framework does not suffice? i am convinced that the solution is to be found, as is so often the case, somewhere in the middle. we need rules to provide us with a sound operational framework and we also need a code of values to guide us when we encounter an ethical vacuum. a code of values can help us to make decisions in situations where rules leave open some leeway and where the decision maker is not the homo oeconomicus but a person like you or me. a code of values will hopefully make ethical decisions easier for us. values can only be generated through a combination of reflection, dialogue and information. a code of values that we all voluntarily stick to will only endure if we can clearly see that it makes sense. this, in turn, throws up a whole series of questions. who should the code of values apply too? do we need a general code of values, or ones which are branch - specific? which values should be written into our code? do we want enterprises to be accountable? should we follow the example set by hospitals and expect all major decisions to be brought before an ethics committee? these are not questions which i can ( or wish to ) answer alone. every individual must choose for themselves to be guided by the same code of values. in the same way, the decision as to what that code of values should look

of asia and more recently a number of countries on the continent. it is imperative that the question of growth is addressed satisfactorily if we wish to tackle the triple challenges of unemployment, poverty and inequality in a cohesive and sustainable manner. this will require deep and courageous structural reform. the monetary policy committee is mindful of these challenges and at the previous mpc meeting decided to keep interest rates unchanged. our primary mandate is to keep inflation within the target band. the forecast for inflation at the previous mpc meeting was for targeted inflation to return to the target band in the 4th quarter, following a temporary breach in the third quarter of 2013. if, however, inflation remains sticky and evidence emerge of second round effects, the bank would take appropriate measures in keeping with our mandate. at present, we are however confident that inflation expectations remain anchored, albeit at the upper end of the inflation target range, thus allowing for a continuation of accommodative monetary policy at this time. structural reform returning to the topic of structural reform, i shall attempt to summarise the key debates around which structural reforms are most pressing for south africa and i shall be drawing on a theoretical framework provided by dani rodrik in a recent paper entitled “ the past, present and future of economic growth ”. rodrik argues that for countries to raise incomes and living standards, they need to do two broad things, namely to build fundamental capabilities and to undertake structural transformation. fundamental capabilities cover a range of issues such as macroeconomic stability, the credibility of economic and other institutions, the rule of law, quality of education, sound infrastructure and a competent bureaucracy. investing in these fundamental capabilities often have long lags in impacting on economic growth, for example improving the quality of the education system takes a long time to feed into the performance of the economy. structural transformation refers to the process of change in the pattern of what an economy produces, and in particular, what it exports. in order for a country to progress, it has to move up the value chain and consistently increase the complexity of its products. for example, an economy producing just apples is likely to grow by a limited amount unless there is diversification into producing processed foods from those apples. bis central bankers ’ speeches the process of structural transformation is more complex. it requires investment in capital to move up the value chain ; research and development ; functional financial markets ; and a state capable of playing a coordinating role to address market failures to assist the progress of an