Developing the rural economy

There is a perception that economic growth is driven by cities. True, in the case of Sri Lanka the Western Province has the highest economic growth and there is a considerable gap between it and the second most developed province. But does that mean that the rural areas, the remote provinces can be forgotten and left out of the economic equation?

The clear answer is no. This was one of the salient points of President Mahinda Rajapaksa’s address to Consuls General representing Sri Lanka abroad. As President Rajapaksa pointed out, in an increasingly globalising world, it is important for developing countries like ours to be mindful to focus on the village so that we ensure the rural economy does not suffer and is not left behind. At the same time, village concepts and habits that have served our societies well, in the past can be revived and mainstreamed in our transition to a “global village”.

Sri Lanka is primarily an agricultural nation. Nearly 75 per cent of the population lives in rural areas. It would thus be economic suicide to neglect this vital component of the economy. A strong rural economy is the foundation of an agricultural country’s growth.

The village community should be the starting point for economic revival. The authorities should give priority to community based rural development for the empowerment of the poor while developing infrastructure facilities.

It is very important to let the rural masses feel that they are making a significant contribution to national development.

This is why it is essential to create employment and other opportunities for the rural people to help develop the rural economy. It is no secret that rural youth are abandoning agriculture in search of white collar jobs in the cities.

This process of migration from village to town is not a healthy trend. As the President has suggested, an attempt should be made to increase the gross productivity of the village and link it with the rest of the world.

Agriculture must be made more attractive to the younger generation through modernisation. The private sector and foreign investors must be granted incentives to launch projects in rural areas.

More development programmes should be started in the rural areas. Granting better hospitals, schools and transport facilities would be another incentive to live in rural areas. Such steps would minimise, if not altogether prevent, migration to cities.

In the case of the North and the East, another reason for migration was the conflict. Now with the conflict coming to an end, these regions can once again be integrated to the overall economic machinery.

With the total liberation of the North at hand, the Government faces the huge challenge of developing the region and restoring democracy there. The North and the East were two provinces which made a very positive contribution to national development in the decades gone by, until the conflict intervened. Today, thanks to brutal LTTE terrorism, they remain the poorest provinces.

The East is now witnessing resurgence after its total liberation by the Security Forces. New local bodies and the provincial council have given Easterners an opportunity to decide by themselves the immediate development needs for the province. The Eastern youth have received an opportunity to participate fully in this process of resurgence.

The Northern residents are now about to gain the same benefits. Once the Security Forces regain the remaining few areas still dominated by the LTTE, the Government is likely to initiate the same process witnessed in the East to develop and rehabilitate the region.

The North faces more challenges than the East as the infrastructure has almost been totally wiped out even in the main cities. But this in itself can be turned into an opportunity to boost the region’s economy.

A prime example is the A9 road itself, the opening of which after repairs will benefit the Northern farmer with a direct route to the rest of the country. The Northern ports can also be used to spur the economy.

The ultimate aim of all these endeavours should be narrowing the gap between the Western Province and other provinces in the country. Equitable development of all provinces is essential. The rural hinterland is the heart of the Nation. If it remains healthy, the rest of the country will also be dynamic.