For euro area economies, the main area where that can be achieved is through addressing regulatory barriers – for example, planning laws that limit retail expansion or transport regulations that hinder cross-border projects. A recent report by a consultancy found that 45% of fixed investment in Europe was concentrated in sectors where governments have significant regulatory influence, implying that structural reforms in these areas could provide a significant boost to investment.7 And as many investment projects benefit from returns over decades, they could be made viable with regulatory changes even in a relatively weak economy. Second, given weak demographic trends in Europe, raising trend labour supply is only really possible through further reform measures. We know that these can work. The increase in labour participation during the crisis has been largely driven by previous reforms to increase  6  Standard & Poor’s, “Transition Study: Less Than 1.5% Of European Structured Finance Has Defaulted Since Mid-2007”, 11 June 2013. See also Moody’s Investors Service, “Structured Finance Rating Transitions: 1983–2013”, 7 June 2013, as well as Fitch Ratings, “The Credit Crisis Four Years On … Structured Finance Research Compendium”, June 2012, and “EMEA Structured Finance Losses”, August 2011. 7  Investing in Growth: Europe’s Next Challenge, McKinsey Global Institute, December 2012. 4  BIS central bankers’ speeches  female participation rates, as well as reforms related to early retirement and pensions that have raised the participation of older workers.
Joseph Yam: The ADB challenge to help Asia return to stable and sustainable growth Statement by Mr Joseph Yam, Alternate Governor of the Hong Kong Monetary Authority, at the 35th Asian Development Bank Annual Meeting, Shanghai, 10-12 May 2002. *  *  *  Mr President, I would like to first congratulate you on your re-election as the President of the Bank. I would also like to thank the Government and the people of the People’s Republic of China for their hospitality in hosting this year’s Annual Meeting in this magnificent city of Shanghai, itself a powerful symbol of tradition and modernisation. I also express my sincere appreciation to the Bank’s management and staff for the excellent arrangements made for this meeting. I join others in adding our special welcome to our new member of the Bank – Portugal. Poverty is reduced more extensively at times of fast economic growth but less so when growth slows. The past year has been a difficult one for the poor. Amid the synchronised slowdown of major industrial economies, economic growth has been slow and uneven in Asia. The terrorist attacks on the US on 11 September shocked the world. The Enron debacle and the Argentine economic crisis cast long shadows on the equity and financial markets worldwide. Against this background, the task of poverty reduction is made more daunting and pressing. However, I must commend the Bank for meeting the challenges of last year by mapping out and implementing the Long-term Strategic Framework.