from this crisis period. and thirdly what we have seen is that the so called developing economies in a curious twist of their economy fate, actually became the biggest creditors in the world and the so called rich countries, the developed countries, were actually the biggest debtors. so you ’ ve turned the world upside down topsy - turvy and today we are seeing india along with other big emerging markets who are effectively lending money to the united states of america by buying their treasuries and funding their development. so these three stands i think have to be taken into account because they are really new elements of the international financial architecture which have a bearing on how the global economy is going to perform. so what do we see today in the global economy that is different apart from what i just mentioned. first of all you have a liquidity trap. keynes ’ s classic liquidity trap is alive and kicking around us. whatever you do with interest rates it doesn ’ t care at all for production or for consumption because we have too much liquidity, the 8 trillion that i talked about. in that context how do governments stimulate their economies given that monetary policy has done the heavy lifting, it created this excess liquidity but now going forward there is a need for a new element, the xfactor, which has to then propel the growth forward. you have very influential commentators like larry summers of united states who is calling for another round of quantitative easing in the us because he feels that the long term growth path of the united states economy is still not well embedded and the reason for that is partly due to the demographics. you have ageing populations in japan, europe and united states, which bis central bankers ’ speeches means that this baby boom generation, the people who were born just after the second world war were now starting to retire are consuming less and saving more and as a consequence you probably don ’ t have that space for a consumption led economic impetus that developing countries such as ourselves dependent on for the last 30 or 40 years to grow our economies through an export - led strategy. so my first question is ; is that export - led strategy relevant any more given these demographic changes that we see in the advanced economies? and secondly given the fact that the advanced economies are in debt – what happened in the great recession was they nationalized private bad debts in their housing sectors, nationalized it, bought it into the government ’ s balance sheet and as a consequence that the western economies are effectively net

the newspapers saying that such and such banks, finance companies and leasing companies are regulated by the central bank. do you know that immediately after our advertisements, we get many calls? the callers say, “ we have deposited our money in such and such institution. but, we don ’ t see its name in your list. is that institute regulated? ” when we say that such organization is not regulated, many get frightened. so you see, people take regulation seriously. people believe that if something is regulated, then there is some element of order that is brought into that system. we are well aware of this and therefore we take a lot of pains to fulfil the regulating task. we have a deputy governor in - charge who looks into all these aspects. we have the department of supervision of non - bank financial institutions that supervises finance companies. they take their jobs seriously. that is why they are organizing a seminar of this nature. today, the business world is continuously looking at risk and trying to figure out how to manage risk and hedge against risk. sometimes, unfortunately, some directors of finance companies think that they are immune from this risk. some of them say : “ we have a highly respected chairman ; we have a super ceo. we have entrusted the entire management to those wonderful persons ; they are very good ; they are well known ; they know their subject ; so therefore we can take it easy and relax. ” that appears to be their philosophy. if you think so, you may do that. but remember, you would be doing that at your own risk! you must realize that you are also fully responsible. it is the collective board that will be held accountable. recently, you may have recently seen some advertisements that were placed by the failed finance companies commission, summoning all the directors, in the course of their inquiry. they have not said, “ we will summon only the chairmen and ceos of the failed finance companies ”. no. they have summoned all. that is perfectly correct because every director is responsible. so, each one of you too, will be responsible in the future with regard to your company. that is why we have invited eminent professionals to come and explain to you, your duties and responsibilities. sometimes, directors may not really appreciate their responsibilities and they may be quite comfortable about leaving key decisions to their colleagues, whom they trust implicitly. maybe, you may comfortably place your trust in them, and indeed you may think you are entitled to do