Coomaraswamy Chinthana: The rationale of the country’s economic policy package

The need for demystifying economic policies

Monday, 18 December 2017

Economic policies have always been mysteries to laymen. They have become mysteries because top economists often present them in a language not comprehendible by ordinary people. Policymakers design policies after much labour and thought. Yet, they fail to explain their rationale to people, leaving them in a state of confusion. 

This leads to the creation of a trust deficit between the policymakers, on one side, and those who are to benefit from policies in the long run, on the other. It also gives opportunities for those who feel threatened by new policies to put pressure on governments not to go for them by mobilising people and other forces to serve their cause. 

As a result, even the policies which are essential and carry high economic costs if they are not implemented are abandoned mid-course due to prolonged public protests. Sri Lanka’s past is full of such instances. It also explains why Sri Lanka’s economic growth has been low – about 4.4% on average annually in the whole post-independence period – and why it had been a laggard compared to its peers. 

Coomaraswamy Chinthana The rationale of the country’s economic policy package.docx by Thavam on Scribd