requires an indomitable spirit aimed at nurturing entrepreneurship. in india, there is a dearth of skilled people in micro small enterprises, which demands entrepreneurship development programmes throughout the country for the growth of indian economy. at present, there are various organizations at the national and state levels offering support to entrepreneurs in various ways. the government of india and various state governments have been implementing a number of schemes and programmes over the years. a continuous effort from the society is also needed, where citizens are encouraged to bis central bankers ’ speeches come up with their entrepreneurial initiatives. going forward, we must develop an attitude that views innovation positively. lessons from emerging countries we should learn from the experience of korea which has now become a leader of many globally important brands. however, barely forty years ago, korea had no industry at all. the japanese, who ruled korea for decades, did not allow any. they also did not allow any higher education, so there were practically no educated people in korea. by the end of the korean war, south korea had been destroyed. today korea is world - class in two dozen industries and the world ’ s largest in ship building and other areas. not far behind korea is taiwan, which like korea was preindustrial in 1950. today, taiwan is a world leader in a number of high - tech areas, including microchips. entrepreneurship and innovation are the key drivers of success in these two counties and turned them into world class manufacturers and industry leaders. the koreans have set up small groups of their brightest people to systematically apply the discipline of innovation to identify and develop new businesses. innovation requires us to systematically identify changes that have already occurred in the business – in demographics, in values, in technology or science – and then look at them as opportunities. four pitfalls to avoid many new businesses start out with high promise but suddenly run into trouble after a year or two. there are four typical mistakes entrepreneurs make and all four are foreseeable and avoidable. here, i draw extensively from what peter f. drucker has very rightly pointed in one of his books. he said that there are four typical mistakes entrepreneurs make. firstly, majority of successful new inventions or products do not succeed in the market for which they were originally designed. to illustrate the point, i would like to tell you of a man by the name of john wesley hyatt who invented the roller bearing for the axles of railroad freight cars. the railroads, however, were not ready

of emdcs as a group. the initial staff proposals fall well short of expectations. we are disappointed that the ambition displayed in proposals for expanding the mandate of the fund and its resources are not matched by the ambition in the proposals for realigning quota shares. 23. the improved, but still flawed quota formula does not adequately reflect global economic realities. the shortcomings of the formula, including the relative weights and definitions of the variables are well known, and in april 2008 the board of governors of the fund decided that the issue requires to be revisited before the formula is used again. the approach so far relies too much on the existing formula, rather than “ working from it ” and hence cannot be seen as enhancing the legitimacy of the fund. ideally, a rework of the formula is called for ; with a substantial increase in weight for ppp - gdp in order to better reflect current economic realities. 24. to preserve credibility, the deadline of january, 2011 has to be adhered to. we are open to taking up the formula revision task on a parallel track with a longer time frame. in the meantime, the quota allocation in the present round can be completed on the basis of an alternative mechanism which operates on a uniform and transparent basis without complex and opaque adjustments. this approach should remedy real under - representation and automatically identify dynamic emdcs. 25. we are committed to protecting the vote share of the poorest countries. this is best done through an allocation of quotas rather than through an increase in basic votes which would require further amendments to the articles and could delay the whole process. 26. the most crucial area of governance reform is a significant and meaningful quota and voice reform. all other aspects of governance reform should follow and flow from this reform. enhanced political engagement of ministers in imf related issues is certainly welcome. at this juncture, such engagement is best achieved through improvements in the functioning of the imfc. we value the imfc as a consensus based body and believe enhancement of the legitimacy of the fund will enhance the effectiveness of the imfc as well. 27. redistributing the chairs in the executive board on a more equitable basis amongst the regions of the world is also a priority. an appropriate balance needs to be struck between representativeness and effectiveness. this could involve changes to the size of the board, including a possible reduction, without affecting the representation of emerging market economies and developing countries. the special majority threshold of 85 per cent brings decisions closer