Transition To Middle Income Economy Challenging But Achievable Through Appropriate Policies

By W.A Wijewardena -November 25, 2013 |

Dr. W.A. Wijewardena

IPS SOE 2013

The Institute of Policy Studies or IPS, Sri Lanka’s independent economic policy think-tank, has issued its review of the State of the Sri Lanka’s Economy in 2013 or SOE 2013 under a theme which is both current and opportune. The theme is how Sri Lanka should ensure a smooth and seamless transition to a middle income economy. Ensuring sustainability and tackling middle income trap are issues in Sri Lanka

This may be puzzling to many because Sri Lanka is already in the Middle Income Country Category as claimed by the country’s top policy makers. Then why should IPS talk about the country’s transition to a middle income country now? The reasons are many.

One is that though Sri Lanka is in the middle income country category, it has just graduated from a poor country to a lower middle income country a few years ago. It has to go a long way to consolidate its position as a lower middle income country first and then move up in the league table as a higher middle income country and finally to be a rich country, the goal of the country’s top policy makers.

Though this growth path seems to be straight-forward and achievable without midway hassles, there are indeed some midway hassles which other countries in a similar category have faced in their journey toward becoming rich countries. That hassle is known as the Middle Income Trap in which a country is ensnared making it impossible for it to move further up.

Thus, there are two issues which a country like Sri Lanka has to resolve successfully in its current stage of economic development. One is the maintenance of the current economic growth initiatives unimpeded, known as the sustainability issue. The other is the problem of shooting the country from middle income to high income, known as the middle income country trap.

Sri Lanka may have been caught in the lower middle income trap   Read More

Buddha, Bonobos, Lincoln, And Sri Lankans

By Jagath Asoka -November 26, 2013

DR. Jagath Asoka

Scientists, philosophers, theologians, and moralists have been arguing whether human morality is imposed from above or evoked innately. When scientists say that moral behavior is a product of evolution, theologians would vehemently disagree.

What is the origin of morality and equality? Most people think that morality and equality come from the Buddha, God, Jesus, Prophets, religion, or from some transcendent wisdom. It is not in concordance with what evolution shows us; our species is much older than religion. To think that our ancestors had no sense of right and wrong before the birth of religion, God, Jesus, or the Buddha is absolutely asinine. Our ancestors had moral systems before religion. It is not far-fetched to say that moral systems gave birth to religion in various forms and manifestations. Morality is essential for our survival as a species because, often, it puts community, society, or nation before the individual. Equality is the pinnacle of morality. To think and believe that all people are created equal is essential for our own survival, and the survival of our species. Our struggle for equality continues. Both sages and sagacious politicians—the Buddha and Lincoln—have promulgated equality. Lincoln was assassinated for promulgating his belief that “All men are created equal”—Thomas Jefferson first used this phrase—All men are created equal—in the Declaration of Independence.

Humans are not the only mammals who express emotions that we would associate with equality, empathy, and fairness. Our nearest ape cousins—bonobos, gorillas, chimpanzees, orangutans, gibbons and siamangs—express the same emotions because evolution has shaped our moral behavior. Theologians think that God introduced us to morality, but biologists think that evolution has shaped our morality. Biologists are not bashing and trashing religion. Anatomically, anthropoid apes—bonobos, gorillas, chimpanzees, orangutans, gibbons and siamangs—resemble human beings. It seems that human beings have a lot in common with bonobos than with chimpanzees. Compared to chimpanzees, bonobos are less aggressive because they often have sex, giving credence to the slogan: Make Love, Not War.                           Read More