Development Under Stress by Saman Kelegama

By Saman Kelegama

This publication examines numerous impediments confronted within the improvement method and implementation of reforms in Sri Lanka, quite after fiscal liberalization in 1977. the writer keeps that it's a case of improvement less than tension the place the result has been some distance less than the country's strength. The e-book describes key positive aspects of the Sri Lankan socio-political and economy that avoided the rustic from attaining greater degrees of monetary development. It explains why it might no longer fit the commercial achievements of South Korea and Malaysia-countries that had related in keeping with capita source of revenue degrees to that of Sri Lanka within the Fifties. The publication is split into 5 elements. the 1st half examines 50 years of monetary improvement and the demanding situations forward; the second one discusses the industrial liberalization debate; the 3rd half seems to be at macroeconomic administration in the course of tough occasions; the fourth appears to be like at sectoral concerns near to and agriculture; and the ultimate half examines employment and poverty.

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This changed in the course of time when politicians themselves became more polarised on ideological issues and the UNP was seen as a party committed to the capitalist mode of development, via the private sector, while the SLFP and its coalition members were seen to be more committed to the socialist pattern of development involving public enterprises. This polarisation did not give coherence and cohesion to the development policy. Consequently, although there were advances in economic development, the country lost because of the lack of a single-minded pursuit of an agreed course of action.

In this section a brief overview of the post-2003 economic policy environment is provided. In order to comprehend the post-2003 economic regimes a revisit to the economic regime during the 2002–03 period is essential. 2002–03 Period By the end of 2001, the economy was characterised by an average 5 per cent growth rate but there were a number of concerns with regard to the kind of economic changes that had taken place by then. Poverty had declined only marginally by 2002 compared to the early 1990s—the percentage of population below the poverty line was 23 per cent in 2002 compared to 26 per cent in 1990–91.

Uncertainties in the Key Economic Sector The plantation economy was the centrepiece—the goose that laid the golden eggs (Jennings, 1950: 186)—of the Sri Lankan economy at the time of Independence. It was one of the best-run commercial enterprises in the Third World (Forrest, 1968). Although nationalisation of plantations was mooted before Independence, it was not taken up until 1958, when a memorandum on ‘A Scheme for Nationalization of Foreign-Owned Tea and Rubber Plantations’ was submitted to the government as a plan for agriculture (Gunawardana, 1958).

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