Spotlight: Econ Op-eds in Summary (Week ended 13th November '19)
1. Economic performance dependent on political outcome and economic policies
By: Nimal Sanderatne
· Political stability in the aftermath of the upcoming elections and adopting sound economic policies are vital for future economic performance. Export oriented policies also are essential to solve the fundamental economic problem of high public debt, particularly the foreign debt. However, the current populist policies are likely to worsen the situation.
· The front running candidates are yet to present a clear economic programme. The election statements made are quite self-contradicting with both inward looking protective policies and policies to enhance exports and modernize the economy. Export growth would require liberal economic policies especially in a resource limited country like Sri Lanka.
· Recently exports have been limited by protective policies, rendering Sri Lanka to be one of the most protected economies in Asia. Despite evidence of clear failure of such inward-looking policies during 1970-1977, some economists and politicians stick to this impractical framework. Along with political stability, policies that promote external demand are vital in reviving growth.
(Compiled by: Chayu Damsinghe & Asel Hettiarachchi)