On demographics, our population is aging less quickly than virtually any other developed country, thanks to our high level of immigration. But even though we are better off than others, we should not delude ourselves into thinking that we do not have some big challenges facing us brought about by an aging population, a subject to which I will return.
Second, if we compare ourselves with the countries of Asia, we have three clear advantages: •  we have a better legal and regulatory infrastructure;  •  we have a less-polluted physical environment; and  •  a higher proportion of our labour force is skilled. Against this, we have less flexibility in the labour market and a more expensive social welfare system.