By Saman Kelegama
This publication examines quite a few impediments confronted within the improvement approach and implementation of reforms in Sri Lanka, quite after financial liberalization in 1977. the writer continues that it's a case of improvement less than rigidity the place the result has been some distance less than the country's capability. The ebook describes key good points of the Sri Lankan socio-political and economy that avoided the rustic from attaining better degrees of monetary development. It explains why it might probably now not fit the commercial achievements of South Korea and Malaysia-countries that had comparable in keeping with capita source of revenue degrees to that of Sri Lanka within the Nineteen Fifties. The booklet is split into 5 components. 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 appears to be like at macroeconomic administration in the course of tricky occasions; the fourth appears to be like at sectoral concerns on the subject of and agriculture; and the ultimate half examines employment and poverty.
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Additional info for Development Under Stress
What went wrong? Why was Sri Lanka not able to achieve greater heights in economic growth and prosperity? Was it due to complacency on the part of politicans and thus, postponement of reforming the system or was it an outcome of policy errors and mismanagement, or was it simply a case of missed opportunities, or was it a combination of all these? This chapter makes a modest attempt to answer this question by looking at the initial conditions, economic policy patterns and opportunities lost in the country over the last 50 years.
A survey of the 1977–97 period highlights the major weaknesses in the economic system during that period followed by some concluding remarks. ECONOMIC DEVELOPMENT DURING THE 50 YEARS OF INDEPENDENCE 39 The Story from 1948–77: A Review What happened during this period has been extensively discussed in the existing literature. The observations made in these studies would be useful in making an assessment on the economic policy framework of this period. If we divide the above period to 1948–60 and 1961–77, it becomes easier to shed light on the most important aspects in economic policy of these periods.
Instead, consumption claimed most of these flows while investment generally remained below 10 per cent of GNP until 1956, even then advancing only to 13 per cent by 1960. Major increases were achieved in paddy production (which doubled between 1947–49 and 1959–61) but progress in refurbishing existing export industries or diversifying into new areas in either agriculture or industry was far more modest. So, the structure of production changed little as population grew and, after 1955, the foreign exchange problem worsened rapidly (Snodgrass, 1974: 120).
Development Under Stress by Saman Kelegama