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Wednesday, December 21, 2005

Racing to develop

Over at Lanka Libertarian there is a bit of discussion about the social vs economic development. Sometime ago while discussing Sri Lanka with a family friend who was involved in and led a development organization for most of his life expressed the view that the problems were caused by the social development of the country outpacing economic development. I made a mental note though I wasn’t convinced of this as the causal factor.

The more plausible argument seems to be that the problems faced by Sri Lanka are multi-causal and economic development (the lack of it) was one of the causes. Particularly amongst the educated and meritorious youth who were frustrated by the lack of opportunities for advancement.

Anyway, while googling for a book on SL the new big-brother suggested a link to this paper titled Economic Roots of Political Conflict: The Case of Sri Lanka (pdf) by Sirimal Abeyratne. The Abstract reads,
The escalation of political conflicts in many developing countries and their impact on economic development have been topical issues in recent development literature. The overwhelming emphasis on 'ethnic conflicts' in the literature has, however, precluded analysts from looking at political conflicts beyond their ethnic dimension, in the wider context of the development process. In particular, because of the preoccupation with ethnic roots as the prime source of these conflicts, reverse causation, running from economic policy to political conflict, has been virtually ignored in the debate. The purpose of this paper is to fill this gap through an in-depth case study of the 'twin political conflict' in Sri Lanka - the Tamil separatist war in the North and the Sinhala youth uprising in the South - with emphasis on its economic roots. The findings suggest that fundamental contradictions in the national development policy in the restrictive trade regime of Sri Lanka were at the heart of the country's twin political conflict.[paper (pdf)]
For an academic paper in economics its a surprisingly easy read. I recommend reading it, better yet print it out and keep it under the pillow and read a page or two each night before falling a sleep. More south-asian economics info at ASARC.

12 Comments:

  • At 2:00 pm AEDT, Blogger sittingnut said…

    thanks for the link.
    interesting paper. nothing much new in it imo, though the fact that we are living through a demographic bulge in the population and both conflicts generated from that generation is insightful.

    wish you happy holidays, christmas and a new year!
    :-)

    ashanthi:
    :-)
    sittingnut ... is strongly opposed to my ideas & I have to confess I'm very surprised about this- surprised? bc i have been open about my views from my very first post.

    Money & more of it will not create a fair & just society - maybe(though i can cite countless examples that went far in that direction), but a society trapped in poverty bc of socialism never will.

    government intervention has never made any change in poverty anywhere for a sustainable long time.

    private enterprise would never take on the responsibility of reaching out to Sri Lanka's youth - sure , that is not their job, what they should do is make profits for their owners, but in doing so they will make the country more productive and prosperous.

    i think we should agree to disagree on this one my friend.

     
  • At 1:57 am AEDT, Blogger ivap said…

    Ashanthi - before I start let me say "compliments of the season" and "happy holidays".

    My views are not that dissimilar to sittingnut's. I suspect we only differ in a matter of degrees.

    private enterprise would never take on the responsibility of reaching out to Sri Lanka's youth

    It's not meant take on the responsibility for social development. Each enterprise has its own motives. It just provides opportunities for an individual's advancement, material progress and communication based on mutually fulfilling the needs of the other.

    We need government intervention to redress them imbalance that our disrupted society has inflicted on the hearts & minds of young people.

    Please read this paper. This is what got the country into a whole mess in the first place. So your argument is to concentrate economic and political power in the hands of a few bureaucrats, politicians and their chosen cronies allowing corruption, inefficiency and discrimination to flourish? So one group or another feels hard done and can resort to some sort of justifiable struggle?

    IMHO, i think we should strive for less interference in our lives by governments.

    I think you are under-estimating the potential of markets, property rights, liberty and the rule of law to provide opportunities and the ability of markets to fulfil individual desires/aspirations, within reason.

    I am his friend & therefore respectful of his beliefs

    one doesn't need to be friends to "simply agree to disagree" with people having differing opinions. by disagreeing in a civilised manner you are recognising their individuality and respecting their dignity. time will judge who is right and who is wrong.

    self-serving politicians

    politicians are by nature self-serving, but then so are we all in one way or another. Anyway, politicians who ignore their constituents usually don't get elected at the next election.

    Politicians will only respond when they realise that they are about to loose or have lost votes. In an immature democracy like SL it takes time to create a new (and relevant) history of democratic accountability and responsibility. Each election brings us new lessons in how not to loose.

    Money & more of it will not create a fair & just society.

    No it wont but it will provide more opportunities

    - to satisfy peoples needs and wants,
    - to satisfy subjective wellbeing
    - for social mobility

    Also, the wealthier a society as a whole is, the more money it has to put towards implementing social policies.

    Finally to argue for social progress without economic progress is. in my view, quite naive.

     
  • At 2:10 am AEDT, Blogger ivap said…

    sittingnut - Thank you. Wishing all the best and compliments of the season to you too.

    demographic bulge - yeah, I think this somewhat well known now. SL is a good example of the effects of this phenomena. This has also been identified as a problem in the arab world today due to a sudden growth in population. It probably sheds some light on the current political conflicts in the middle east.

    If I'm not mistaken, one of the reasons the government occationally goes on a mass hiring of uni graduates in SL is to avoid/absorb the unemployed, but educated, youth into the system so as to avoid the side-affects of this bulge.

     
  • At 2:19 am AEDT, Blogger ivap said…

    sittingnut :

    government intervention has never made any change in poverty anywhere for a sustainable long time

    Actually it has. Most western countries do not have "absolute poverty" anymore. It's now mostly about "relative poverty". However they have not been sustainable because they seem to have gone too far in providing welfare. Many who recieve welfare are capable of earning a living but were caught in Things are changing as goverments try and get more people off wlfare and into jobs.

     
  • At 2:28 am AEDT, Blogger ivap said…

    If you take a family unit

    Indeed this is one of the problems for "extreme individualist" thinking. Another anormaly is standards, though these are mainly decided by the market but they require coorperation between entities.

    Look at Enron...

    A few bad apples do not make a bad harvest. For each enron there are probably 20 more successes. Just think of the taxes that might make you feel better (s/nut - not a word please :) )

    Enjoy.

     
  • At 9:34 am AEDT, Blogger ivap said…

    oops - s/nut, the comment was meant to read

    Many who recieve welfare are capable of earning a living but were caught in the welfare trap

     
  • At 3:34 pm AEDT, Blogger ivap said…

    Do you celebrate Christmas?

    I personally do not celebrate it in the religious sense. However I take part in the festivities with family, extended family and friends.

     
  • At 10:31 pm AEDT, Blogger ivap said…

    blind corruption using an ideology that was poorly implemented & interpreted got us & continues to get us into trouble

    I must disagree here. In my view corruption is inevitable when there is a disproportiante number of have's and havenot's AND the "rule of law" is not applied equally. After all some will be more equal than others :)

    One cannot "properly implement" an ideology without a secret police. We have seen this throughout history. However if you mean that the "rule of law" and "equality before the law" have not been applied then I agree with you.

    Do not belittle .... I am not belittling. My argument is that the problem should/may never have risen if power (social and economic) wasn't concentrated amonst a few elites. As you would know this is not unique to SL.

    ....UNP included - again that's not what I'm saying...please, no more strawmen. The UNP were just as much into large government as every other party. "Conservatives" (social) love big governments too. Premadasa was possibly more of an exception to the rule.

    Ultimately you and I agree with the ends but not the means.

     
  • At 8:56 am AEDT, Blogger ivap said…

    This comment has been removed by a blog administrator.

     
  • At 1:58 pm AEDT, Blogger ivap said…

    Been away from the blog

    What I cannot understand is what is it that makes us disagree so strongly that we end up killing each other

    IMHO, as an immature democracy Sri Lanka doesn't have a tradition or history of civilised, liberal political norms thus everyone is interested in pushing boundaries until there is a blowback. All of this will eventually be written in the history books fo future politicians. It seems to be getting better over the years but not good enough.

    However, right now the immediate problem is with the tigers. Totalitarians are not known for their politics of compromise.

    BTW hope you read the latest UTHR(J) report. It's provides a good insight into the current issues.

     
  • At 12:32 am AEDT, Blogger sittingnut said…

    hmmm. was too lazy in the past week to respond to anything and now i have completely lost the thread here.

    ashathi why don't you use italics or '' marks or any other mark (>, * ) when quoting. sorry, about presuming to give you instructions :-)

     
  • At 1:41 pm AEDT, Blogger ivap said…

    sittingnut - know the feeling. Been a bit lazy on this front too.

    Ashanthi - as per s/nuts arrogant behaviour here are a few sugggestions if you are not familiar with HTML

    Simplest suggestion is to use double quotes around what you are "quoting".

    You can use some HTML tags to enclose text, such as

    <b> and </b> for bold effect

    <i> and </i> for italic effect

     

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