To attract investment on a large scale, however, it is necessary to have a reasonably effective judiciary, an adequately skilled labour force and other facilities; these are by no means always available and here it is the developing countries that need to act. It is on account of problems such as these that investment from the industrialised countries still goes in the first place to so-called emerging markets and to only a minor extent to the poorest countries. The situation also calls for structural adjustments in the industrialised countries, a process that leads in turn to new job opportunities; these countries have to focus on new activities of a different kind that can carry higher wage costs, for example. This is the same in principle as what happened earlier in Sweden, for instance. We have moved from a state more than a century ago when nearly everyone worked in agriculture to one where first manufacturing and now service industries have taken over as the dominant source of employment. This is the process that has doubled our material prosperity many times over. But it has not been painless. While many people became better off, the need for adjustment excluded others from production. Countries like Sweden can now afford extensive social safety-nets but in developing countries these are often absent. And although barriers to international trade have been greatly reduced in recent decades, there are still a good many obstacles in both industrialised and developing countries.
The implementation of structural reforms in euro area countries needs to be substantially stepped up to increase resilience, reduce structural unemployment and boost euro area productivity and growth potential. Regarding fiscal policies, the broad-based expansion calls for rebuilding fiscal buffers. This is particularly important in countries where government debt is high and for which full adherence to the Stability and Growth Pact is critical for safeguarding sound fiscal positions. Likewise, the transparent and consistent implementation of the EU’s fiscal and economic governance framework over time and across countries remains essential to bolster the resilience of the euro area economy. Improving the functioning of Economic and Monetary Union remains a priority. The Governing Council urges specific and decisive steps to complete the banking union and the capital markets union. We are now at your disposal for questions. 2/2  BIS central bankers' speeches