complex in the case of global firms that manage liquidity centrally. such firms have liquidity needs in multiple currencies and locations. they may find it costly to hold enough liquid assets in every market in which they operate, and hence potentially face a mismatch between the location of their liquidity needs and that of their liquid assets. in response to this several central banks, notably those in switzerland, sweden, the uk, and the united states, have taken steps to allow the cross - border use of collateral in some or all of their routine lending activities. others have taken the alternative route of attempting to reduce collateral costs for banks, and hence relax potential constraints, by accepting a range of less liquid and nonmarketable assets, while still controlling the credit quality of the assets involved. for example, the eurosystem accepts a wide range of non - sovereign debt securities, including corporate bonds and asset - backed securities. the european central bank ’ s proposed ‘ single list ’ will also include certain bank loans ; indeed these are already eligible in some member countries. similarly, the fed has broadened the range of collateral accepted at the discount window. a working group commissioned by the basel - based cpss ( committee on payment and settlement systems ) in 2004 has examined whether existing arrangements would prove adequate in an emergency. it would appear that some of the infrastructure required to facilitate more extensive crossborder use of collateral is already in place : links between securities settlement systems, for example. nevertheless, central banks may need to put in place more cooperative and coordinated policies, such as the establishment of a framework for information - sharing. when risks do crystallise it is imperative that central banks, along with regulators and ministries of finance, are well prepared so that they are able to respond in an effective manner. the cpss working group looked at preparations that are needed in order to be able to make effective use of existing infrastructure in a crisis. but it is equally important that central banks and regulators be in a position to make the decisions necessary for resolution of a crisis, both individually and, when needed, collectively. this entails gathering data and intelligence on firms and markets, sharing it appropriately amongst all relevant public authorities, understanding the systemic conjuncture, and setting up national and international frameworks for coordination of decision making. i could give an entire speech about questions in these areas, and current and potential initiatives to address them1. however, today i would like to return instead to the subject of liquidity

a second fixed - line telephone operator, for example, seems set to increase competition and reduce communications costs. de - mothballing of power generating plants and the upgrading of power distribution networks, water - supply infrastructure, railway lines and rolling stock are all to be welcomed. while our main airports currently seem to cope well, projected further increases in passenger numbers and freight volumes necessitate further expansion. the cluster of industries linked to infrastructure is evidently going to experience buoyant times in the coming years. the accompanying imports of machinery and equipment might, of course, initially widen the deficit on the current account of our balance of payments. however, foreign finance usually accompanies such imports, and later on the improved infrastructure is likely to boost exports as the supply side of our economy is streamlined. a particularly sensitive area is that of land reform. patterns of land ownership which have evolved over time are not sustainable, and need to change. however, great care needs to be taken in this process. what south africa cannot afford is the kind of reform where agricultural land which is being used productively is purchased with taxpayers'money, transferred, and ends up being used far less productively than before, subtracting from the country's output 3 / 5 and destroying job opportunities. farming is a modern business requiring specialised skills as well as financial capital. adequate attention has to be paid to the training of newly empowered farmers, advisory services, and financial support for a limited period. success in improving growth and creating jobs hinges critically on appropriate skills development. this does not require throwing money at the problem, but aligning the system of education and training to the requirements of a modern economy. agriculture's share in total value added in the economy has dwindled from 7, 7 per cent in 1975 to 3, 4 per cent last year, and that of mining from 11, 1 per cent to 7, 1 per cent over the same period. construction's share fell from 5, 1 per cent in 1975 to 2, 4 per cent in 2004 ( but this should, of course, rise as infrastructure spending gets underway ). at the other extreme, the share of the finance, real - estate and business services sector in the economy grew from 12, 5 per cent in 1975 to 20, 1 per cent last year, and that of community, social and personal services from 16, 1 per cent to 21, 0 per cent over the same period. product lines and production processes within the various sub -