Creating Peace in Sri Lanka: Civil War and Reconciliation

By Robert I. Rotberg | Go to book overview

control the situation in northern Sri Lanka. This may be the reason the LTTE has been targeting the economy with bomb attacks in Colombo. The Sri Lankan economy has shown the ability to grow at 6 percent even when the war was at a peak. Achieving 8 percent growth with some degree of peace would not be impossible.

Citing the Malaysian experience in the context of ethnic diversity and economic policy, Prema-Chandra Athukorala indicates that economic policy-making in Malaysia after independence turned out to be a continuous struggle to achieve development objectives while preserving communal harmony and political stability. 31 Regrettably, in Sri Lanka this factor was not taken into account in economic policy-making. Sri Lanka would do well to take a lesson from the Malaysian experience.


Notes
1.
World Bank, World Development Report ( Washington, D.C., 1978, 1997).
2.
Saman Kelegama, "Economic Development during 50 Years of Independence: What Went Wrong," in People's Bank Fifty Years of Independence Commemorative Volume ( Colombo, 1998).
3.
World Bank, World Development Report ( Washington, D.C., 1980), 90.
4.
See Andrew Cuthbertson and Prema-Chandra Athukorala, "Sri Lanka," in Demetris Papageorgiou , D. Michael Michaely, and Armeane Choksi (eds.), Liberalizing Foreign Trade ( Oxford, 1991), 5.
5.
Far Eastern Economic Review ( 23 October 1978).
6.
1993 was a year of large foreign direct and portfolio investment flows to South Asia in general, and in particular, to Sri Lanka.
7.
United Nations Development Programme, Human Development Report ( New York, 1997), 189.
8.
Asia Week ( 1 August 1997).
9.
From 1979 to 1982, nearly 50 percent of the export increment came from firms with foreign direct investment. Saman Kelegama, "Liberalization and Industrialization: The Sri Lankan Experience of the 1980s," South Asia Journal, V ( New Delhi, 1992), 262.
10.
When a Japanese bank shows an interest in investing in a country it indicates that it is coming to support large-scale Japanese investment in the country. The very fact that the Bank of Tokyo was ready to come to Sri Lanka shows that many Japanese were considering Sri Lanka as an investment center at that time.
11.
Prema-Chandra Athukorala, "Foreign Direct Investment and Manufacturing for Export in a New Exporting Country: The Case of Sri Lanka," The World Economy, XVIII ( 1995), 543-64.
12.
In May 1986, the LTTE blew up an Air Lanka passenger carrier, killing a number of Japanese "honeymoon couples" proceeding to the Maldives. This event marked the point at which the Japanese began considering Sri Lanka a high-risk country for investment.
13.
World Institute of Development Economic Research, Mobilizing International Surpluses for World Development: A WIDER Plan for a Japanese Initiative, II ( Helsinki, 1987).
14.
See chapter 6 by Donald Snodgrass in this volume.
15.
S. Gnanaselvam and L. M. Grobar, "The Economic Effects of the Sri Lankan Civil War," Economic Development and Cultural Change, III ( 1993), 395-405.
16.
Ministry of Shipping, Ports, Reconstruction and Rehabilitation, Emergency Reconstruction and Rehabilitation Programme--Phase II ( Colombo, 1995).
17.
See Harry Goonetileke, "The Ethnic Conflict in Sri Lanka--A Military Perspective," unpublished paper ( 1997).

-86-

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