Political Economy

REFORMING A POST-WAR ECONOMY IN FOUR YEARS?

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.

Sri Lanka’s Middle-Income Transition: Thinking Beyond the “Optics”, to the “Mechanics”

‘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 …

The Role of Tax Incentives in Attracting Investment to Sri Lanka: Time for a Re-think?

Based on a new Working Paper by IPS researchers titled ‘Incentivizing Foreign Investment in Sri Lanka and the Role of Tax Incentives’, this article argues that a key medium-term challenge facing the country is to find a balance between providing a competitive tax incentives regime to attract FDI and keeping tax foregone to a minimum in order to preserve domestic revenue.

Latest ‘Talking Economics Digest’ Innovation Special Issue Released!

Driving innovation in Sri Lanka is now increasingly being recognized as a key determinant of the country’s long term growth prospects. Everyone from private sector leaders to government policy planners are keen to understand how the power of innovation can be ignited to drive enterprise profitability and drive faster and inclusive growth nationally. We decided to tackle this issue in the latest version of the IPS Talking Economics Digest through an ‘Innovation Special Issue’.

Fiscal Imperatives for Growth and Stability

Fiscal consolidation efforts as set out in the Budget 2013 were not entirely unexpected.[1] With revenue collection falling short of the target, adjustments to ensure that the deficit for 2012 remains close to the forecast 6.2% of GDP is to …