In Europe, only Germany and Switzerland were able to keep inflation more or less at bay. In Norway, the welfare state and support schemes were rapidly expanded partly based on expectations of large future oil revenues. Economic policy was oriented towards building a bridge over what was expected to be a temporary downturn in the world economy. This led to a tug of war for real resources between the business sector and the public sector - between the exposed and sheltered sector. Chart 6  BIS Review 14/2000  4  The cost level in manufacturing industry was driven upwards. At the same time, the slowdown in growth proved to be permanent. The sheltered sector continued to expand, while industries exposed to international competition experienced deteriorating profitability and a relative decline. The recession at the end of the 1980s was followed by a period of low wage growth and gains in competitiveness. This may help to explain why the decline in manufacturing employment came to a halt in the 1990s. However, wage costs increased again in the late 1990s. The relative wage level in manufacturing industry compared with trading partners is now back at the level in the 1970s. Two forces were behind economic developments from the beginning of the 1970s. First, the deterioration in competitiveness was caused by the expansion of the Norwegian welfare state and a transfer of real resources from the exposed sector to the sheltered sector. Second, inflation expectations took root as a result of low administered interest rates and competitive devaluations.
These are the Top Islamic Bank and Top Development Financial Institution awards to recognize these two categories of institutions for their contribution towards the overall business growth of CGC and the SME sector. These new categories illustrate our sincere acknowledgment of the financial institutions that have made significant contribution to SME development. We believe 2008 is an important year for CGC. Foremost is that it marks the 36th year of the Corporation's involvement in SME development. It is also the year which will see the implementation of the third phase of our three-year business transformation plan and the successful completion of the three-year strategy. The necessary preparatory work under the transformation plan has largely being completed and we hope to take the first step towards achieving financial sustainability. Another significant milestone in 2008 is the establishment of the SME Credit Bureau, a watershed event in CGC's evolution. The Bureau is a source of credible and reliable credit information that serves the needs of both the SMEs and the potential financiers. This reflects the natural progression for the CGC in its continuous efforts to enhance access to financing by SMEs. The establishment of a SME Credit Bureau, by CGC in strategic collaboration with Dun & Bradstreet, would no doubt complement the other initiatives of the Government and the financial sector in promoting growth and development of SMEs. We have seen how CCRIS, where real-time and comprehensive information on consumers' credit exposures and history is readily available.