China, India and other emerging economies will continue to grow strongly and to account for an increasing share of the world economy. The international competition in the product and labour markets and the international financial integration process will thus continue to increase during the foreseeable future. The deregulation of several markets during the 1990s has probably largely already made its impact on productivity. I interpret the SNS report published at the beginning of the year to say that the most likely development is that this factor will contribute less to the rate of increase in productivity during coming years. 7 At the same time, there is still relatively large scope for continued reforms in this field. A survey indicates that around 32 per cent of consumption was exposed to competition at the turn of the millennium. This figure for Sweden can be compared with the figure for the EU of around 45 per cent. 8 A similar picture is shown in a report by the Swedish Competition Authority. 9 This states that around half of the higher prices compared with the OECD arise from a lack of competition in Sweden. IT will probably fuel productivity for a long time. It takes time for companies to adjust to the new circumstances. This can be illustrated by means of a historical comparison. IT is just like electricity a technique for general use. The advent of electricity had no noticeable effect on productivity until companies literally rebuilt their factories.
In alphabetical order, the magnificent seven are: Bank of China (Hong Kong), DBS Bank (Hong Kong), Bank of East Asia, Hang Seng Bank, The Hongkong and Shanghai Banking Corporation, Standard Chartered Bank, and Wing Lung Bank. I thank them sincerely for their participation as Retail Exchange Fund Notes Distributors. BIS Review 31/2005  1  Access for retail investors to the primary market of debt, not necessarily restricted to Exchange Fund Notes, is, of course, only part of our continuing efforts. To increase and sustain retail investor interest in bond products in general, we need also to provide convenient access to the secondary market at low transaction costs and reliable market information. But this is a subject for another occasion, after ideas, just recently discussed and endorsed by the new Financial Infrastructure Sub-Committee of the Exchange Fund Advisory Committee, mature and arrangements put in place, in collaboration with the industry. Allow me to conclude with a commercial targeted at retail investors. The Exchange Fund Notes are a very safe investment – you are putting your money with the Exchange Fund, which is managed by the HKMA. The Exchange Fund Notes provide you with a steady stream of fixed-interest income that is higher than interest on bank deposits. The Exchange Fund Notes are highly liquid – you can sell them any time you want. There are 26 market-makers appointed by the HKMA to make a market in Exchange Fund paper.