|
|
 |
 |
 |
| Tuesday, 29 June 2004 |
 |
|
 |
Business | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
Need for more credible reform agenda stressed The responsibility of economists and citizens in South Asia is to search for a more credible reform agenda which is committed to serve those in need. Such a process must move beyond democratising the political system for those who are unjustly excluded. Addressing the Annual Sessions of the Sri Lanka Economic Association (SLEA), the chief guest, Prof. Rehman Sobhan said any credible agenda to eradicate poverty in South Asia must correct injustices which perpetuate poverty. "The main areas of structural injustice may be addressed in relation to productive assets, markets, human development and governance. These themes of globalisation need to be addressed as an issue in its own right. In south Asia, where a substantial proportion of the population live in poverty the poor have insufficient access to land, water and water bodies. Such an inequitable access to productive assets in the rural economy also tends to be inefficient because the small farmers of South Asia have proven to be more productive as well as likely to spend most of their income derived from their meagre assets, in stimulating secondary activity in the rural economy," he said. The fast growing sectors of economic activity tend to be located within the urban economy, where the principal agents of production tend to be the urban elite, who own the corporate assets which underwrite the faster growing sectors of the economy. "The principal inequity in the education sector is manifested in the growing divide between a better educated elite with access to private as well as foreign education. The dominant problem in South Asian countries, including Sri Lanka is not the complete absence of healthcare but the incapacity of the public healthcare systems to deliver quality healthcare or for the market to meet needs of the financially deprived. The issue of policy interventions which may be initiated in the South Asian countries challenge the injustice of poverty. The proposed policy interventions are expanding the ownership and control of the poor over productive assets, enhancing access to a knowledge based society, strengthening the capacity of the poor to compete in the market place, and restructuring monetary policy to empower the poor. SLEA President Prof. A. D. V. de S. Indraratna in his presidential addresses on Human Development and Poverty Alleviation said Human development can be achieved by investment in human capital "Investment in human capital must have a return as in the case of investment in material capital. This can happen if such investment leads to greater productivity or greater employability of a people. The Human Development Index (HDI) prepared by the UNDP takes into account the achievements in only three basic dimensions of human development namely a healthy life, knowledge and a decent standard of living," he said. The HDI has been continuously increasing from 0.48 in 1960 to 0.73 by 2002. However there has not been a corresponding decrease in poverty levels. More than a quarter of its population or more than one million households live below the poverty line at present and 23 per cent are malnourished. Sri Lanka spends only around 3 per cent of its GDP on education compared with other countries. Of the total education budget less than 1/6 or 0.5 per cent of GDP goes into tertiary education of which only 1/5 to technical education and vocational training, the balance 4/5 being absorbed by university education. Agriculture contributes less than 20 per cent of the GDP of the country, but nearly 35 per cent of the total employed are in agriculture, indicating thereby the relatively very low productivity in this sector. The new government should develop the rural economy. In this context having a separate ministry for rural economy is commendable. These problems have been so far addressed by the Government and also NGOs only to a limited extent. The government also has to pay increasing attention to promote SMEs in rural areas. (IR) |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
