These include, among others, a more flexible labor market; increased competition in several sectors of the economy; a fall in the prices of some widely used key inputs; higher private investment in areas such as telecommunications, gas and electricity generation; widespread participation of private firms in oil field auctions; and a more important role of the financial system, through both private and public intermediaries, in supporting economic growth.
Moreover, with our concern about shortfalls of the current regime focused on the complex, large, internationally active banks--and the desirability, on grounds of safety and soundness and macroeconomic stability, to see the best practice risk-management techniques applied to these entities--the decision to deploy only the most sophisticated version of Basel II also seemed obvious to us.