Rural revival for national rejuvenation: Dr. PB

Tuesday, 8 April 2014 00:01 - - {{hitsCtrl.values.hits}}

No meaningful development is possible until rural population is made more productive
Role of political leadership is to ensure process of development is made inclusive to best extent possible
Integrating rural economy, small enterprises and vulnerable groups into the process will “no doubt remain a challenge”
Says $ 7,000 per capita income by 2020 may be described as “too ambitious” but confident it is still suboptimal given country’s recent progress

By Shabiya Ali Ahlam As Sri Lanka aspires to reach greater socio-economic prosperity, Treasury Secretary Dr. P. B. Jayasundera yesterday asserted that the contemporary thrust of the Government’s development strategy is based on creating a climate that allows businesses of all scales to thrive. “I am sure that nobody will disagree with me if I say that no meaningful and balance development is possible in Sri Lanka until and unless the rural population is made more productive. This objective is unattainable without the expansion of irrigation, electricity, water, education, health, public service, marketing, and banking,” the Treasury Secretary said, delivering the Dr. W.M. Tilakaratna Memorial Oration yesterday. Doing so, he added, will not only create gainful jobs, but will also allow the Government to extend the required physical and institutional infrastructure while promoting competition The nation’s experience since independence and the thoughts of eminent economists and administrators such as Dr. W.M. Tilakaratna no doubt support inclusive development, he noted. The role of political leadership and technocrats is to ensure that the process of development is made inclusive to the best extent possible. Integrating the rural economy, small enterprises and vulnerable groups into this process will “no doubt remain to be a challenge” as markets failures are frequent in these areas and the “so-called efficiency in bureaucracy” is also not present. Required for such realisations is for the Government machinery and the service delivery mechanism to be strong and active, whereas for inclusive development multifaceted management skills at all levels and sound macroeconomic coordination are necessary. Noting that one aspect of development cannot be achieved on a sustainable basis at the cost of another, Jayasundera expressed it is encouraging to note that in comparison to the first 10 years of any post-independent Government and policy regime, the post-2005 policy regime has made development a reality. “Our challenge is to ensure further clarity, consistency and continuity to be able to sustain the present momentum. The wants of a middle income country population are different, hence managing monetary policy and supply side of the service economy involved different challenges.” While it is certain that labour market demands and skills and reorienting education towards meeting such skills cannot be overlooked, the World Bank and ADB have endorsed Government initiatives in this direction with a substantial cost sharing arrangement. However, lacking, he said, is the nation’s success story being told “loud and clear”. Recalling the post-war progress achieved, Jayasundera highlighted the continuous refinements to policy strategies of the post-2005 period, which he asserted had worked well for the country, and further a consolidation of a balance blend of the private and public sector role with special emphasis on the small sector and remaining facets of poverty will make Sri Lanka’s progress towards a $ 7,000 per capita income by 2020. “An ambitious target of less than 10% poverty headcount below $ 2 a day income is recognised for the medium term as the elimination of extreme poverty has been almost realised. Some may describe this as too ambitious, but I would argue it is still suboptimal given the country’s recent progress,” said Jayasundera, striking a confident note.