Can a country bring about economic reforms in just four years after a war? This article looks at post-war Georgia where the progress was transformative. She argues that while circumstances differ between countries, the Georgian case demonstrates that coherent and focused efforts can bring about significant transformation in just four years. Yet, sustaining the positive trajectory requires a focus beyond aggressive reform to also include important elements of economic governance and institutional strengthening.
‘The middle-income transition’ – a challenge that dozens of countries are grappling with and, as of late, is increasingly being spoken about in Sri Lanka as well. A recent business forum (by LBR-LBO) was one of the first private sector …
China’s rebalancing towards consumption will have positive impacts for those looking to sell into the Chinese market, with the right products at the right price. With a booming Chinese middle-class, there could be niche markets available for Sri Lankan exporters. Overall, it will be interesting to see how China’s rebalancing pans out. The global economy’s reaction to it will certainly give a good indication of to what extent China’s economy is now ‘systemically important’ than before. But whichever side you’re on – the panda-huggers or dragon-slayers, one thing is clear – the Sri Lankan private sector and policy planners must keep a close eye on the developments in the Chinese economy.
In an independent and incisive take on Sri Lanka’s current external stability position, IPS Deputy Director argues that the build-up of external payments stress is a cumulative process, where the lines between external public debt, public-guaranteed external debt, and private sector external debt become blurred, and virtually disappear at times of external payments crises. The most prudent strategy to insulate an economy from rising exposure to foreign debt is to ensure a healthy growth in earnings from exports of goods and services, and build-up a ‘war chest’ of non-borrowed official reserves.
An e-book of the ‘Sri Lanka: State of the Economy 2012’ containing summary information and visuals of the 7 key chapters is now available for free download. This e-book also contains links to a video presentation of the main highlights of the report.