 Thank you. Good afternoon. So we've been given ten minutes to present our observations from the conference to comment on wider's work in general and also to share our views on the opportunities for wider's work and where it could add value in the future. And I've been assigned the task of speaking specifically about the enterprise and private dimension aspect of development so I'll see what I can pack into my ten minutes. So in the last several days I have picked up what I think are four recurring themes certainly in the sessions that I attended. The first theme on the issue of enterprise and private sector development is the theme that industrialization alone is not the answer. So we saw in a session at the beginning of this conference Richard Newfarmer, John Page and Finn Tarp presented the results and conclusions from their book which is nicely titled industries without smoke stacks. And the point of departure of that book is that manufacturing is not leading growth or transformation in Africa. In fact we're seeing deindustrialization which means that a lot of the countries that they're studying are not following the Asian example of manufacturing led growth. Now they argue that that's not a bad thing even though historically manufacturing created more jobs at better wages and it increased participation in the global economy did all things that were good. They argue that in fact there are new important opportunities being created in these so-called industries without smoke stacks. And in particular they spoke about horticulture, agro-processing, tourism, transport services, technology. So example of Kenya pioneering mobile money. In Tanzania tourism accounts for 14% of GDP. So their theme was that Africa is on the verge of a new growth miracle but it's going to be very different from the one followed by East Asia. And it will depend on promoting productivity very broadly across different sectors including agriculture and services. So those of you who missed that talk but who made it to Professor Stiglitz's talk, you might have thought I was talking about Professor Stiglitz's address today because his keynote was strikingly similar. He argued that the world is deindustrializing. That's partly because a lot of new technology is labor-saving. So companies like Foxconn, the largest employer in China are replacing people with robots. And that means that manufacturing will no longer be the source of more jobs and better jobs. So he argued for a multifaceted approach that would focus on sectors that are characterized by job creation, positive externalities, sectors with learning and sectors with acclimatization economies. So in this new world that he's outlining, the old lessons of industrial policy which applied primarily to manufacturing will be applied to what he called the LIT sectors. Sectors that would include services, natural resources, manufacturing and agriculture. So that was the first theme. The second theme is the importance of increasing enterprise productivity. This theme came up in a number of sessions in the last several days. Louis Kasekende made this point when he was talking about what it means to engage in successful structural transformation. He pointed out that that's the critical challenge, moving firms from low productivity informal activities into higher productivity formal activities. And this is an enormous challenge, clearly. So the example he gave was in a country like Ghana where he said that 97% of the labor force is in informal smaller enterprises. So even more worrying, as we saw in today's session on African lions, there appears to be in some countries a systematic movement of the labor force out of more productive sectors like manufacturing into less productive sectors like services, which means that the scope for productivity growth in long term GDP growth is limited. Lemma Senbet, who was the discussant in that session, pointed out that the key challenge is going to be how do you create a more modern service sector? A sector where, in fact, productivity is rising and firms are getting bigger. A related issue that was raised by Lawrence Edwards working on South Africa is that it's the case that the most productive firms both import and export, which means that in order to create more productive enterprises, we have to not only push firms to move into export markets, but those firms need to have continued access to imports constantly. When John Page and I discussed this theme, by the way, I said to him, so we've known this John for a long time. In fact, John was my first employer at the World Bank something like 35 years ago. And John says, yes, we've known it for a long time, but we're re-remembering these key messages. So that's important. The third theme was the theme of employment creation and good jobs. So this is tough because in manufacturing, which was traditionally the source of rising productivity, better wages, better jobs, actually, that's no longer going to be a source of employment creation because productivity gains are going to come at the expense of more jobs. So I thought a very interesting point was made by Professor Stiglitz and Basu, who argued that the problem is not high wage versus low wage countries. And I've argued and shown this actually in my own research for US firms. The issue is not so much that our high wage workers are being replaced by low wage workers, but that all sets of workers are actually being replaced by labor-saving technical change. And you can see this in US firm data, by the way. What's really driving the reduction in manufacturing employment in the United States is essentially the falling price of computers, which by the prices falling, firms are then induced to shift into labor-saving technological change. And it has very little to do with the price of off-shored labor. So that's a big issue. Professor Basu further warned, and you talked about this, about the decline in labor share globally. I think it really tells us a lot about where macro and micro is going, that we're both talking about the same stylized facts and talking about enterprises in the macro situation. So Professor Basu pointed out that it's not just because firms are using less labor and more capital, okay? But it's also because the return to capital, R, is rising. And what we're seeing is we're seeing an increase in the rents that capital is accruing. Partly we're seeing that through the rise of the mega firm, which is extracting excess rents. And that's leading to a call, at least in the United States, for reform of antitrust laws and increasing competition. Workers are losing these rents. One of the things that was most striking to me in the last six months is that the Kansas City Fed, which has this big conference in Jackson Hole, that I was finally invited to a year ago. Their conference this August was actually on the rise of the mega firm, on the fact that these firms are so large. We're talking about the Googles and the Facebooks and the Walmarts, that they're shifting rents away from workers towards themselves. And I mean, we've all known this, but the fact that in Kansas City, the world's central bankers would actually be focusing on something that people at wider, probably known forever, is to me a really interesting development. Professor Basu also pointed to the need for some type of redistribution. And this issue of how do you create good jobs or create good mechanisms to protect workers is a theme that permeated the conference. We had a very nice paper by Nina Torm using Vietnamese data, where she actually argued that unions have played a very important role in protecting workers. And that protection in Vietnam has taken the form of better social protection for workers and a union wage premium that ranges from 9 to 22%. So as we all know, there are lots of different approaches towards the role of unions and there are lots of different answers. So in South Africa, for example, we saw evidence in the African lion's session suggesting a different story, very polarized and not very dynamic labor force, where there are big differentials depending on union status. And I think trying to parse out how unions can play a positive and productive roles and the important role for social protection in a way that enhances labor's outcome without imposing a cost in terms of growth, I think would be an important consideration for wider to play. And one issue that a lot of people are not willing to touch. There was some ambiguity on the discussions on the role of small and medium firms, so some of the presenters suggested that we should be promoting small and medium firms. But others pointed out that these small and medium firms, they're generally less productive. They generally pay lower wages and they don't always grow. They're not growing into larger firms. My own work on India suggests that when India eliminated its small scale industry laws, in fact, there's been tremendous employment growth in those sectors, wages have actually increased, there's been more investment. So it's very much of a win-win story in eliminating the very laws that were designed to promote small and medium enterprises. The last theme that I took from the conference and is let's not turn our back on globalization. So we saw some very interesting evidence in the sessions that regional trade has been growing in Africa. Again, we saw that firms that engage in both import and exporting in South Africa are the most productive firms. Professor Stiglitz made the point, as did Emiko, Foucaisé and Lawrence Edwards, that countries really need access to global markets. She also made the point that escalation of tariff preferences really discourages enterprises from moving from raw material production to engaging in higher value-added processed goods. To me, one of the greatest statements in this conference was when Professor Stiglitz told us that he still believes in the WTO. That was a great moment. So to summarize, what did we learn? We need a multi-pronged approach that leads firms to grow in size, that leads firms to become more productive, at the same time drawing in more workers who get better pay and doing all this while participating in global markets. So as I see it, we know what we want to do, but how does one do this? Not so easy, right? So I think wider's task could be in helping us move in the direction of that path, and I think I may have run out of time. So I'll just mention some issues that were brought up, but I want to elaborate on them. There was a conversation about sensible industrial policy. It's no longer industrial policy because remember it's a multi-pronged approach that's trying to increase productivity across all sectors, not just industry. There was a discussion about regionalism, but that's a very difficult discussion. We want regionalism to be a building block to greater trade, not a stumbling block. How do we promote transitions towards more productive firms? How do we increase productivity in services? Lemma Senbet actually focused on the financial sector. He said that he thinks that increasing competition and entry in the financial sector in Africa would greatly lower the cost of capital for firms and allow them to borrow and grow. In general, I'm a big believer in competition, and then World Bank's new chief economist, Penny Goldberg, a fellow trade economist, I understand is going to be really focused on the importance of competition, not just global competition, local competition. I haven't talked at all about sustainability and equity. Those are clearly important issues, also important in the context of enterprise development. Thank you.