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| Tuesday, 27 April 2004 |
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Getting the poor back into the growth chart Asia watch by Lynn Ockersz Global economic growth prospects are believed to be soaring for the first time since the September 11th Twin Tower tragedy, but the crunch point is whether the poorest of the poor too would be partaking of the projected benefits.
A Washington-datelined Reuter report from a meeting of Finance Ministers and Central Bank Governors of the Group of Seven industrialised countries highlighted the distortions of this seemingly exhilarating trend in the world economy. "While Asian giants China and India have managed to lift millions out of poverty, many African countries are getting poorer; not richer - not least because of trade barriers in the developed world," the report said, in virtual substantiation of the well-known criticism that economic globalisation is really no equaliser. So, economic growth prospects are remaining bright for only the world's foremost economic powers while the outlook for the desperately poor remains depressing. "More balanced global growth", therefore, remains the principle challenge for the powers charting the economic future of the world with the globe's simmering trouble-spots, hopefully, serving to remind them that lop-sided growth would be in no one's favour. But, then, how are China and India managing to pull it off? How are 'millions' being retrieved from the poverty mire in these countries, while in the case of Sri Lanka, for instance, the segment of the population continuing to depend on Samurdhi assistance remains at 40 per cent? As far as the analyst could recollect, these have been the proportions of poverty in this country for decades - all this in spite of our heady immersion in the globalisation process. Sri Lanka, then, along with some chronically poor states of the world, constitute the "other half" of "global economic growth". The secret of China's and India's relative developmental success is that they have not plunged headlong into a process of dismantling central control over economic management and the distribution of the gains from growth. Sri Lanka cannot boast of the same degree of central control over the economic development process. It is now showing signs of rethinking some aspects of its growth strategy and there could be some benefits for the people from this evaluation process. For instance, the new UPFA Government speaks in terms of reviving the Cooperative Movement which proved a mainstay of the poor some decades back. The aim also seems to be market some of the country's paddy produce to Samurdhi recipients through a network of cooperative outlets. To be sure, what is desirable is not stifling central or State control over the economy but selective State intervention in the economy to ensure that the poor are not left out in the chill winds of poverty and deprivation. Besides, the State cannot lose complete control over the process of Foreign Direct Investment. Any "Robber Barons" cannot be allowed to come in and thrive under a benignly neglectful eye of the State. India's economic fortunes have picked-up to such a degree that the Indian Rupee is firming remarkably against the Dollar. India's growth upturn could be traced, among other factors, to the fact that the BJP government has managed to keep internal political turmoil at a minimum. For instance, it has stayed its hand from playing the "Hindutva Card", which could have stirred communal tensions to unprecedented heights. |
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