to meet the severe tests ahead? what kind of growth should we seek? should it not be more inclusive? and more equitable? we are trying hard to move into niche markets but is this enough? what else must we do to escape the middle - income trap, to be amongst the best small economies, not just in africa, but in the wider world where our main competitors are to be found? we have seen the likes of malta, singapore, hong kong, ireland and others raising the bar to achieve gdp per capita, adjusted for purchasing power, more than twice the levels we have achieved despite our continued economic growth. can we make the breakthrough? are we prepared to do what it takes to do so? i believe it is absolutely vital for the future of mauritius that not only government but business as well give greater weight to innovation, quality, inclusiveness and equity. we could perhaps borrow a leaf from the book of bhutan. how does bhutan come in the picture, some of you may well ask? this small himalayan kingdom leads the world in the index of gross national happiness. and, while we are about it, we must also introduce a fresh dimension in our assessment of progress : the protection of our environmental capital must be included in the equation for measuring development, and not zero - valued as in the past. this is essential to ensure that any fresh spurt of economic growth is channeled into a sustainable path and does not end in further land and human degradation. otherwise, we shall hand over to our children a country whose famed natural beauty has been sadly overwhelmed by infrastructure and blighted by urbanisation. do we hear the silent cries of those lovely “ flamboyant trees ” – planted by our forefathers, now coming into full flaming bloom, and adding to the season ’ s festive cheer – as they are brought down by bis central bankers ’ speeches chain - saws to make way for road - widening schemes? or do we really wish to become like malta, developed most certainly, but to our mind, featureless, waterless, soulless and nothing but concrete from shore to shore? we shall never tire of saying that our people is our greatest asset. we must nurture an entrepreneurial culture. we have not fully capitalized on skills enhancement in our human resource. and we have failed to encourage r & d to turn it into a platform for creativity and innovation. we largely bring home what is fashion overseas. in sum, we are missing some of

mauritius. the history of troubled financial institutions is littered with eventful episodes of “ men biting watchdogs ”. “ watchdogs biting watchdogs ” is however an uncommon happening. i guess you must be familiar with the story of the man who discontentedly wailed, “ we were so poor in our childhood, we could not afford a dog ; we ourselves had to do the barking. ” certain recent remarks against the regulator of the banking industry gave an incorrect perspective of the role of regulators. some smart – pretentiously smart - but not necessarily persons of enviable integrity and probity have attempted to advertise colossal untruths. i refer to them as smart persons, for they are fully conversant with the laws that bind the bank of mauritius with regard to its duty of confidentiality of banking transactions. they are equally aware that the bank of mauritius has certainly no interest in street fighting with “ respected ” delinquent borrowers however provocative the unpleasant and unfair remarks. any form of public retaliation against certain “ law - abiding ” delinquent borrowers is obviously not the business of any regulator. the bank of mauritius wisely chose to take the aspersions leveled against it cool headedly – with an elevated sense of respect to the laws governing the banking industry. they have talked the talk. we have walked the walk. in the last six years the bank of mauritius has been involved in clearing the banking system, through thick and thin, of outdated practices. we are today at the tail end of the clearing process. and we have had a rich experience in tackling problematic banks and ‘ gentlemen ’ delinquents – i mean habitual delinquent borrowers making a good, open and public show of piety of monks in monasteries. it is generally wondered why the bank of mauritius does not aggressively resolve problems that afflict certain financial institutions, whether at the board of directors level or the managerial levels. ailing financial institutions can never be brought back on rail by simply applying mechanical procedures to complex operational problems. it ’ s like a man undergoing several medical procedures simultaneously. one physician is in charge of the head injury, someone else is setting the broken leg, another physician is working on the displaced shoulder and still another one is getting rid of the gallstone. each operation is perfect and is indeed a success. but to the dismay of the physicians the patient dies - dies of shock. it is certainly not in the interest of