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| Tuesday, 15 June 2004 |
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Growing gap between WP, other areas We are all familiar with economic growth figures, which are generally taken as a figure for the whole of Sri Lanka. But is this the reality ? It is common knowledge that the Western Province (Colombo, Kalutara and Gampaha districts) is the richest region of the country, with the most affluent households. There is a discernible disparity between the urban and rural areas. This very disparity was the subject of a discussion last week at the Sri Lanka Institute of Directors. Its Power Breakfast Meeting featured Dr. Uditha Liyanage, Member of the International Board of Trustees of CIM International UK and past Chairman of CIM Sri Lanka branch, who explained in great detail the growing gap between the Western Province and the other areas. The Uva, Northern, Eastern and North Central provinces are at the bottom of the scale while Central, Southern, North Western and Sabaragamuwa are trying to catch up with the Western Province. In fact, the average monthly income of a rural household is half of that of an urban household. Poverty is essentially a rural phenomenon which the Government is striving to alleviate through programs such as Samurdhi. This does not mean that there are no poor families in urban areas, but most of the impoverished are rural dwellers. The results of elections in both India and Sri Lanka indicate that the majority of voters, especially in the rural areas, were generally unhappy at being left out of the economic plans. Dr. Liyanage has cited the rapid rise of the New Urban Middle Class (NUMC) as one of the reasons for the acceleration of growth in the Western Province. The average salary of an executive in the mercantile sector is fairly substantial now, enabling him to buy/lease a car, purchase a house and splash on a better lifestyle. It is no coincidence that more cars are registered in the Western Province than in any other. Similarly, the Province has more housing projects, upmarket shops, malls and supermarkets, international/private schools, banks, world-class hospitals and entertainment complexes than perhaps all other provinces combined. This signifies an unequal distribution of wealth across the country. Both the government and private sector must analyse these trends and statistics to gain an idea as to why they have failed to achieve the ideal goal of prosperity for all. As the speakers at the Directors' meeting stressed, there should be corporate social responsibility. With the possible exception of bank branches, most private sector establishments are based exclusively in Colombo or in a suburb. The formal private sector caters largely to the NUMC segment. The private sector should attempt to abandon this attitude and venture into the provinces. Such a move would stimulate economic growth in the outstations. However, there is another side to this coin. Private sector enterprises, especially industries, cannot operate without good infrastructure. The authorities should provide reliable infrastructure facilities and give incentives to investors who move out of the Western Province. The Government has rightly given priority to uplifting the rural economy, which has been neglected for so long. In addition to infrastructure, these plans should include health and education facilities, transport and employment generation. In formulating proposals for developing the rural areas, both public and private sectors must not lose sight of the potential of agriculture, the country's lifeline. We depend far too much on traditional methods of agriculture; for example, little thought is given to how yields can be increased or an excess harvest can be stored. New value-added products could be made from the myriad of crop varieties here, with an eye on the export market. Policy planners and private sector decision makers must not leave out any part of the country or any segment of society from the development process. We will only be deluding ourselves if we equate the growth of Colombo with that of the other areas. |
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