Publication:
Sri Lanka Development Forum : The Economy, Regional Disparities, and Global Opportunities

Loading...
Thumbnail Image
Files in English
English PDF (3.49 MB)
459 downloads
English Text (109.98 KB)
82 downloads
Date
2007-01
ISSN
Published
2007-01
Author(s)
Editor(s)
Abstract
This report is intended to inform the discussions of the Sri Lanka Development Forum. Specifically, section One reviews recent economic performance, the status of macroeconomic management and the strategic directions outlined in Mahinda Chintana. It notes that the recent acceleration in Sri Lanka's growth can be partly attributed to large aid flows for tsunami reconstruction and to rapid growth in domestic demand. While Sri Lanka can sustain higher growth given its level of human development and integration with global markets, this will require addressing structural constraints and managing the downside risks associated with rising inflation and the escalating conflict. Section Two of the report addresses the regional disparities in growth and poverty reduction in Sri Lanka. Noting that differences in education levels and access to infrastructure cannot fully explain the sharp gaps in regional growth, it suggests that the limited scope of market reforms in key sectors, such as agriculture, has played a more significant role. In particular, policy reforms in agriculture have been elusive, partly due to misperceptions that they will hurt the poor. Progress in reducing regional disparities will require politically-sensitive reforms that address these misperceptions, through inter alia public consultations. Finally, section Three takes up the question of how Sri Lanka can accelerate growth further by taking advantage of its high levels of educational attainment and tapping global opportunities in the information technology (IT) and knowledge sectors. The recent increase in foreign direct investment in telecommunications, IT, and business process off-shoring (BPO) in banking suggest that there is potential for such growth. This potential can be enhanced by moving further on the policy agenda that removes the obstacles facing a knowledge economy
Link to Data Set
Citation
World Bank. 2007. Sri Lanka Development Forum : The Economy, Regional Disparities, and Global Opportunities. © World Bank. http://hdl.handle.net/10986/8041 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Bangladesh : Development Forum Economic Update
    (Washington, DC, 2004-05-26) World Bank
    The report reviews recent economic developments, showing economic growth continues to its path, and, aided by global economic recovery, export growth remains strong. The forex market has been stable since the national currency (taka) was floated in by the end-May 2003. The fiscal stance for FY04 remains expansionary, but within prudent limits, and without straining fiscal sustainability, whereas the monetary policy stance - tightened considerably last summer to facilitate exchange rate liberalization - is becoming increasingly adaptable, in recognition of the favorable macro-financial conditions, seemingly on a prudent course. Higher growth in the 1990s also translated into sharper declines in income poverty. Notwithstanding the impressive gains thus far, the magnitude of remaining development challenges is enormous. In June 2003, the Government adopted its first ever medium-term macroeconomic framework, which underpins its poverty reduction strategy, and should contribute to high growth, and fast-paced poverty reduction. The path of the fiscal policy in the medium-term framework, is consistent with Bangladesh's reform needs, and public debt sustainability. And, despite recent deterioration, the public debt stock appears sustainable. However, Bangladesh remains vulnerable to the scheduled phase out of the Multi-Fiber Arrangement (MFA) quotas from January 2005. The report estimates GDP growth rates would be needed if the stated poverty reduction objectives are to be achieved, and, analytical work suggests that higher growth is likely to come mainly from productivity increases. Regarding the agenda for human development it is indicated that with good foundations already built, Bangladesh should now move swiftly with the second generation reforms needed to further improve human development. These entail complementing increased social spending with significant improvements in the institutional framework for service delivery, as specified in the Interim Poverty Reduction Strategy Paper, with increased efforts to promote decentralization.
  • Publication
    Nepal : 2000 Economic Update
    (Washington, DC, 2000-03-27) World Bank
    The report is one of the documents in support of discussions for an upcoming Nepal Development Forum meeting, and, updates the macroeconomic development, and performance of related key areas of the economy, specifically, the period following the last economic update of November 1997, focusing on the provision of an overall framework for the reform agenda. The study reviews the economic growth of the country, which, despite certain growth, enabled by a series of reforms in the late eighties, has slowed down in recent years, largely due to political instability. Consequently, economic performance has been unsatisfactory, with almost no progress in reducing poverty, nor in addressing structural reforms. Forceful actions to accelerate economic development are recommended, namely, to improve public resource management, by changing the role of the public sector, towards the improvement of public expenditures, and revenue reforms. Furthermore, it is necessary to provide a level playing field for the private sector vis-e-vis public enterprises, enhancing competitiveness, and, most importantly, to establish the rule of law, in support of private sector activities. Conclusions address critical issues, such as financial sector reforms, institutional capacity building, decentralization, and the promotion of ownership, and participation.
  • Publication
    South Africa Economic Update
    (Washington, DC, 2011) World Bank
    The firming of the economic recovery is putting the policy spotlight back on the longer term challenge of faster, more inclusive Gross Domestic Product (GDP) growth. Modest investment rates despite attractive returns and low savings rates despite favorable demographics are important impediments. A virtuous cycle of faster capital accumulation, job creation (especially for the youth), and technological advancement needs to be stimulated. There are no quick fixes that can produce the desired stimulus. The quest for inclusive growth calls for a different, bolder approach. Integration of the advanced and less-developed economies and more effective integration with the global economy, using factory Southern Africa as a platform, hold considerable potential. South Africa's medium-term growth prospects point to a strengthening recovery. GDP growth is projected to be 3.5 percent in 2011, 4.1 percent in 2012 and 4.4 percent in 2013. The long term potential growth rate under the current policy environment is estimated at 3.5 percent. In light of South Africa's low national savings, the reemergence of high current account deficits, financed mostly through volatile portfolio flows, will reemerge as the biggest cause for macroeconomic concern over the medium term. With considerable strengthening of the economic recovery and GDP projected to reach its potential by 2014, the focus shifts back to the longer term challenge of raising GDP growth to 6-7 percent and making it much more inclusive to tackle the extremely high unemployment. This first issue is anchored in the national aspirations of faster and more inclusive growth, with special emphasis on the issues of savings and investment.
  • Publication
    Dominican Republic : Social and Structural Policy Review, Volume 2
    (Washington, DC, 2000-03-23) World Bank
    The report outlines the macroeconomic stability in the Dominican Republic during the 1990s, suggesting its strong economic growth, and poverty reduction, will contribute to the gradual transformation the country is undergoing towards policy reform. It analyzes poverty, especially severe in rural areas, where misdirected agriculture policies, and insufficient public investments, such as education, limit opportunities. But, the advancing trade liberalization, is expected to reduce export taxes, and although displaced industrial, and agricultural activities will be subjected to adjustment costs, there will nonetheless be improvements in consumers' welfare, and real wages. However, public resources for education remain very low, particularly for secondary education, and this should be considered as key element of the government's poverty reduction strategy, in addition to the establishment of safety nets to curtail malnutrition, and expand health, and sanitation programs, to tackle the extreme poverty. Recommendations suggest, first, to reduce macroeconomic vulnerabilities, through tight fiscal, and monetary policies, and, second, implement reforms, to prod a business environment, and, a strengthened banking sector, through market, and regulatory mechanisms.
  • Publication
    Battles Half Won
    (World Bank, Washington, DC, 2008) Ahmed, Sadiq; Varshney, Ashutosh
    Rapid growth since 1980 has transformed India from the world's 50th ranked economy in nominal U.S. dollars to the 10th largest in 2005. The growth of per capita income has helped reduce poverty. At the same time, evidence suggests that income inequality is rising and that the gap in average per capita income between the rich and poor states is growing. This paper reviews India's long term growth experience with a view to understanding the determinants of growth and the underlying political economy. The paper looks specifically at the political economy of India's growth transformation from a low-growth environment (pre-1980s) to a rapid-growth environment (post 1980s) and asks how sustainable is this transformation in view of concerns about regional disparity and income inequality. The paper concludes that the pledge that India's post-independence leadership had undertaken to abolish mass poverty remains only partially redeemed. Half the battle still lies ahead. Many more would like the fruits of the economic boom to come to them. The greatest challenge for India's policy makers today is to balance the growth momentum with inclusionary policies.

Users also downloaded

Showing related downloaded files

  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • Publication
    Global Economic Prospects, June 2024
    (Washington, DC: World Bank, 2024-06-11) World Bank
    After several years of negative shocks, global growth is expected to hold steady in 2024 and then edge up in the next couple of years, in part aided by cautious monetary policy easing as inflation gradually declines. However, economic prospects are envisaged to remain tepid, especially in the most vulnerable countries. Risks to the outlook, while more balanced, are still tilted to the downside, including the possibility of escalating geopolitical tensions, further trade fragmentation, and higher-for-longer interest rates. Natural disasters related to climate change could also hinder activity. Subdued growth prospects across many emerging market and developing economies and continued risks underscore the need for decisive policy action at the global and national levels. Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing economies, on a semiannual basis (in January and June). Each edition includes analytical pieces on topical policy challenges faced by these economies.
  • Publication
    Europe and Central Asia Economic Update, Fall 2024: Better Education for Stronger Growth
    (Washington, DC: World Bank, 2024-10-17) Izvorski, Ivailo; Kasyanenko, Sergiy; Lokshin, Michael M.; Torre, Iván
    Economic growth in Europe and Central Asia (ECA) is likely to moderate from 3.5 percent in 2023 to 3.3 percent this year. This is significantly weaker than the 4.1 percent average growth in 2000-19. Growth this year is driven by expansionary fiscal policies and strong private consumption. External demand is less favorable because of weak economic expansion in major trading partners, like the European Union. Growth is likely to slow further in 2025, mostly because of the easing of expansion in the Russian Federation and Turkiye. This Europe and Central Asia Economic Update calls for a major overhaul of education systems across the region, particularly higher education, to unleash the talent needed to reinvigorate growth and boost convergence with high-income countries. Universities in the region suffer from poor management, outdated curricula, and inadequate funding and infrastructure. A mismatch between graduates' skills and the skills employers are seeking leads to wasted potential and contributes to the region's brain drain. Reversing the decline in the quality of education will require prioritizing improvements in teacher training, updated curricula, and investment in educational infrastructure. In higher education, reforms are needed to consolidate university systems, integrate them with research centers, and provide reskilling opportunities for adult workers.
  • Publication
    Guide to the Debt Management Performance Assessment Tool
    (Washington, DC, 2008-02-05) World Bank
    The purpose of this document is to provide guidance and supplemental information to assist with country assessments of debt management performance, using the Debt Management Performance Assessment (DeMPA) tool. The DeMPA is a methodology used for assessing public debt management performance through a comprehensive set of 15 performance indicators spanning the full range of government Debt Management (DeM) functions. It is based on the principles set out in the International Monetary Fund (IMF) and World Bank guidelines for public debt management, initially published in 2001 and updated in 2003. It is modeled after the Public Expenditure and Financial Accountability (PEFA) framework for performance measurement of public financial management. The DeMPA has been designed to be a user-friendly tool to undertake an assessment of the strengths and weaknesses in government DeM practices. This guide provides additional background and supporting information so that a no specialist in the area of debt management may undertake a country assessment effectively. The guide can be used by assessors in preparing for and undertaking an assessment. It is particularly useful for understanding the rationale for the inclusion of the indicators, the scoring methodology, and the list of supporting documents or evidence required, and the questions that could be asked for the assessment.
  • Publication
    The Mexican Social Protection System in Health
    (World Bank, Washington DC, 2013-01) Bonilla-Chacín, M.E.; Aguilera, Nelly
    With a population of 113 million and a per-capita Gross Domestic Product, or GDP of US$10,064 (current U.S. dollars), Mexico is one of the largest and highest-income countries in Latin America and the Caribbean (LAC). The country has benefited from sustained economic growth during the last decade, which was temporarily interrupted by the financial and economic crisis. Real GDP is projected to grow 3.8 percent and 3.6 percent in 2012 and 2013, respectively (International Monetary Fund, or IMF 2012). Despite this growth, poverty in the country remains high; with half of the population living below the national poverty line. The country is also highly heterogeneous, with large socioeconomic differences across states and across urban and rural areas. In 2010, while the extreme poverty ratio in the Federal District and the states of Colima and Nuevo Leon was below 3 percent, in Chiapas, Guerrero, and Oaxaca it was 25 percent or higher. These large regional differences are also found in other indicators of well-being, such as years of schooling, housing conditions, and access to social services. This case study assesses key features and achievements of the Social Protection System in Health (Sistema de Proteccion Social en Salud) in Mexico, and particularly of its main pillar, Popular Health Insurance (Seguro Popular, PHI). It analyzes the contribution of this policy to the establishment and implementation of universal health coverage in Mexico. In 2003, with the reform of the General Health Law, the PHI was institutionalized as a subsidized health insurance scheme open to the population not covered by the social security schemes. Today, the PHI covers all of its intended affiliates, about 52 million people