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| Wednesday, 24 November 2004 |
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Lanka's economy should play major role with regional economies - Prof. Stiglitz by Sudarshana Perera Asia could emerge as an engine of economic growth in the world and Sri Lanka's economy should play a major role with regional economies to support this objective said Prof. Joseph Stiglitz. Prof. Stiglitz, a former World Bank Chief Economist and Noble Prize winner in economics in 2001 in an interview with the Daily News said that foreign banks should introduce a separate banking portfolio to lend Small and Medium Enterprises (SMEs) to help SMEs to compete in the international trade regime. He said it is vital that foreign banks operating in open financial markets in developing countries such as Sri Lanka should provide lending facilities for Small and Medium Enterprises (SMEs) to better face the challenge of globalisation Prof. Stiglitz said. He said that developed countries have benefited mostly from globalisation and it is a matter of distribution for global economic giants. 'Developing countries in obtaining financial aid should always maintain a balance between the World Bank and International Monetary Fund (IMF) requirements and their own economic, social and democratic', he said. He said that the Asian economy is based on export, foreign investment and transfer of technology. "Developing countries should also do their best to utilise financial aid effectively and privatisation alone will not lead to economic growth. Those countries should continue to provide subsidies for agriculture to narrow the gap between the rich and the poor and added that infrastructure in under developed areas need to be developed with greater allocation of money", he said. Speaking on the trends of globalisation, he said that a single currency would emerge due to the globalisation challenge and it will eliminate trade competition and productivity. "Asia could emerge as an engine of economic growth in the world and the main worry is the surge in oil prices as it will affect the economies of the developing countries", he said. Developed countries should create pro-development strategies, he said. |
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