Monday, April 14, 2014

Sri Lanka's economic growth, temporal growth for a natural disaster prone state?


Sri Lanka’s economic development, has a natural disaster contributed to investment and stability? Food for thought. As we’ve been discussing the background of Sri Lanka, its turbulent civil conflict, and its vulnerability to natural disasters, the question of institutions and economic development arises. In an article from the world bank, Sri Lanka’s economy has grown “7.2 percent over the past financial year, making the island one of Asia’s fast growing markets after China.” At the end of civil conflict in Sri Lanka, when a peaceful agreement was met, the Sri Lankan economy grew by 8 percent. Although the institution played a part in Sri Lanka’s stability, what played an even bigger role was private and public investment. “Public investment contributed through large infrastructure investment, including post war reconstruction efforts in the North and Eastern provinces.” After civil conflict ended in Sri Lanka, it also became a recipient of global aid. Other nations states have invested heavily in reconstruction and recovery efforts for Sri Lanka. The country has been able to outperform other south Asian countries in meeting its Millennium Development goals, including reducing poverty, accessible education, and has meet goals for clean drinking water and risk reduction plans. Why has Sri Lanka been on the fast track to meeting many of its MDG goals, while other countries have remained more stagnant? In part, global aid and intervention has given Sri Lanka a stepping stone that puts itself ahead of other south Asian countries. But as climate change continues, and Sri Lanka is predicted to experience more natural disasters, can it maintain and grow its economy from internal resources? Or has Sri Lanka become dependent on state intervention and global aid for its ability to revive its economic development? I’m curious to hear what the group has to say, and I thought this train of thought would help us prepare for the final exam essay question as well.

You can find the World Bank's overview here: http://www.worldbank.org/en/country/srilanka/overview
And another news article from the London Times covering the same situation here:
http://www.lankaweb.com/news/items/2014/04/09/economy-grew-at-7-2-in-sri-lanka/

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