Economy of the conflict region in Sri Lanka : from embargo to repression
2007; Taylor & Francis; Issue: 44 Linguagem: Inglês
ISSN
1470-1006
Autores Tópico(s)Migration and Labor Dynamics
ResumoExecutive SummaryThis study examines the nature of the economy in the Northern and Eastern Provinces of Sri Lanka and explores the causes and effects of economic and social decline in the region during the past quarter century of civil conflict. It compares the economic and social development of the conflict region over time and vis-a-vis other provinces during the pre-conflict, civil war, and ceasefire periods and argues that despite the higher growth rate during the ceasefire period, very little positive change has occurred in the structure, nature, and extent of the region's economy.In terms of income and consumption poverty, the conflict region is worse off than all other Sri Lankan provinces. The northeast region has the lowest per capita income in the country and scores worse than other provinces on selected indicators of relative deprivation. Income inequality measured by the Gini coefficient is highest in Eastern Province, and the region as a whole is more vulnerable to food insecurity than other parts of the country.Numerous direct and indirect causes can be identified for the economic and social decline in the region during the past quarter century of civil conflict, and especially from 1990 to 2001. These include: an economic embargo imposed by the Government of Sri Lanka on the conflict region, illegal taxation (or extortion) by the Liberation Tigers of Tamil Eelam (LTTE), unceasing violence against individuals, the establishment of high security zones, restrictions on fishing, land mines set on agricultural lands, closure of numerous roads, a lack of transport facilities, massive displacement of the population, lack of electricity, lack of teaching and health professionals, and lack of physical security for inhabitants of the region. Of these causes, the economic embargo imposed by the Government of Sri Lanka between 1990 and 2001 was the single most important cause of the economic and social decline.Northern Province had the smallest economy of Sri Lanka's nine provinces during the fifteen-year period between 1991 and 2005. Eastern Province was the lowest contributor to the national economy in 1990 and second lowest between 1991 and 1995. During the civil war, the economy of Northern Province was transformed from a predominantly agrarian economy to a service-oriented economy. By 2001, more than 70 percent of provincial gross domestic product (PGDP) accrued from the service sector. The single highest contributor to PGDP in Northern Province was the public administration and defense subsector, which accounted for 38 percent of PGDP in 2003. Although agriculture contributed only around 20 percent to the PGDP of the north in 2001, approximately 56 percent of the employed population in the province worked in this sector. Therefore, in terms of livelihood agriculture was the dominant sector in the north.Rice, red onions, green chili, potatoes, tobacco, fish, diary products, and eggs are the major agricultural products of the northeast. In Eastern Province, rice, red onions, and green chili outputs increased between 1980 and 2001, while output of these products declined in Northern Province in absolute as well as relative terms. Notably, the fish catch in Northern Province in 2000 was only about one-third the level it had been in 1980. During the ceasefire that held from early 2002 to 2005, rice, red onions, and green chili outputs decreased or remained constant in Eastern Province, while increasing in Northern Province. Yet output in Northern Province has not attained the levels of the pre-conflict period (1980). In 2005, due to the impact of the December 2004 tsunami, production of these crops declined in Eastern Province.In the industrial sector, although the total number of enterprises increased in Eastern and Northern Provinces, the share of industrial employment halved as a percent of the provincial employment between 1983 and 2003. In terms of economic infrastructure, the northeast region has had the lowest road density, number of telephones per capita, and households with electricity in the country in recent years. …
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