involving a range of institutions, with the fund in the forefront, has now been crafted. surveillance core to the very existence of the imf is its surveillance role – monitoring global, regional and national economies to assess whether countries'policies are consistent not only with their own interest but also with the interest of the international community. the on - going crisis has highlighted the relevance and importance of strengthening and appropriately focusing fund ’ s surveillance. i reiterate the need for greater focus on systemically important countries – the more systemically important the country the greater should be the rigour of surveillance. in parallel, the gap between multilateral and bilateral surveillance should be bridged. the imf ’ s surveillance should not add to the obligations of developing countries. while the fund ’ s traditional emphasis has been on exchange rates, the crisis has pushed macro - financial sector issues onto centre - stage in imf surveillance. a key aspect is the integration of macroeconomic and financial sector surveillance. the financial sector assessment programme ( fsap ) should be made more focused and forward - looking so that it could be integrated more effectively into bilateral surveillance. national authorities are closer to the terrain realities of their financial sectors and self - assessment of regulatory frameworks based on internationally agreed methodologies should be a priority. as we have learnt, prescription of standards for the financial sector in itself cannot prevent crises. there is a need for on - going review of the standards by international bodies and greater national commitment for implementation. national authorities should also commit to assist each other in enhancing their capacity to strengthen regulatory frameworks and the imf has a crucial role to play in this coordination. the imf has recently stepped up its collaboration with the expanded financial stability board on developing a framework on early warnings for identifying and mitigating systemic risks and vulnerabilities. we welcome this collaboration and while recognizing the potential utility of the exercise, we look forward to more details, particularly on the methodology. strengthening information availability is a key pre - requisite. the effectiveness of this collaboration should be regularly reviewed by the imfc. lending role of the fund the fund as a financing institution should have the lending instruments and the financing capacity to address potential borrowing needs. we welcome the proactive and prompt measures taken by the fund to reform its lending instruments and policies. the introduction of the flexible credit line ( fcl ) and the high access precautionary stand - by arrangements ( hapas ) are timely, positive steps. the streamlining of modali

. real gdp growth in 2007 / 08 was 21. 4 per cent reflecting the doubling of hydro power generation capacity with the coming on stream of the tala hydro project. gdp growth rate is expected to return to a trend level of 5. 6 per cent in 2008 - 09. regional integration through enhanced trade relationships with neighbouring countries, especially india and bangladesh are helping growth and diversification. on the external sector, while reserves of convertible currency are comfortable, rupee reserves require careful management to meet the needs for imports. concluding remarks the crisis has put to test the collective leadership of the world and the competence and relevance of multilateral institutions. we are grappling with a crisis that has afflicted the entire world whether at the core or in the periphery. much depends on a quick and internationally coordinated approach to a daunting, but not an insurmountable, challenge. the imf is central to this endeavour and all of us have a stake in the role of the fund in orchestrating the road to recovery. the fund ’ s capacity to deliver is ultimately connected to how much and how soon we empower it with resources, better governance, greater accountability and a redefined mandate that keeps pace with the requirements of the changing world. within the imf too, a radical shift in approach, culture and strategy is urgently warranted so that it divests itself of its past and much of the fallibility that goes with it. the world we will emerge into after the crisis will in all likelihood not be the same again, and the challenge is to refashion the imf so that it becomes more relevant, useful and effective in the future.