In fact during the period 1960-87 the total factor productivity growth of East Asia was 1.9 per cent per productivity and efficiency. Contrary to the general impression, the natural resources of our country are not large. From the point of view of long-range sustainability, the need for greater efficiency in the management of natural resources of land, water, minerals, etc. has become urgent.
In a capital-scarce economy like ours, there can be no excuse for under-utilisation of capacity. Macro-policy framework and micro-management practices must be such as to bring about the desired increase in productivity. While the policy framework must be supportive, industrial structure must be such as to compel firms to continually innovate and to cut costs.