Issues in. India Sri Lanka

Transcription

1 Issues in India Sri Lanka Economies M.K. Agarwal Northern Book Centre New Delhi

2 Contents Foreword v " Preface ** Editor 's Note x "i List of Contributors xvii List of Tables xxvii List of Figures xxxi 1. Emergence of the Economies of India and Sri Lanka 1 Democracy and Economic Growth 4 Growth of the Indian Economy 7 Growth in the Sri Lankan Economy 18 Concluding observations about India and Sri Lanka 25 Endnotes 26 References Domestic Food Production and Nutritional Security in Sri Lanka 30 Introduction 30 Food Sector of Sri Lanka: Exports, Imports and Production 32 Domestic Supply of Food 40 Cereals 41 Sugar 42 Fresh Vegetables 42 Fruits 45 Milk 46 Eggs 47 Fish 48

3 XX Contents Meat 50 Agricultural development: Agricultural productivity 51 Conclusions 54 References Globalisation and Fiscal Decentralisation in India 60 I. Introduction 60 II. Theories of Fiscal Federalism: Old 62 Theories of Fiscal Federalism: New 63 Market Preserving Federalism 64 Intergovernmental Transfers 64 III. Public Finance: The Rieh Indian Tradition 65 Fiscal Federalism in India 67 Vertical Sharing 68 Horizontal Sharing 69 IV. Economic Reforms in India 72 Fiscal Decentralisation in India 73 Removal of Licensing 73 VAT and GST 74 Fiscal Deficit 75 Pooling Taxes for Devolution 75 Linking Federal Transfers to Fiscal Performance 76 FRBM Act V Concluding Remarks 77 Appendix First Discussion Paper on GST in India 79 Design 79 GST Rate Structure 80 References Over-education and Unemployment in Sri Lanka Introduction Theoretical Considerations Country Context 85 Educated Youth Unemployment 87 The Incidence of Over-education and Under-education 90 Overall Assessment Conclusion and Policy Implications 101 Acknowledgement 102

4 Contents xxi Endnotes 102 References Promotion of Agro Tourism and Rural Development in South Asia: A Coping Strategy to Global Economic Crisis 105 Introduction 105 World Tourism and South Asia 106 Scope of Agro Tourism 111 Agro Tourism Potentials in South Asia 113 Agriculture and Rural Sector in South Asia 118 Potentials for Agriculture and Rural Development 120 Conclusion 122 References India as a Source Market for Tourism Industry of Sri Lanka 'Too Big To Be Ignored' 125 Introduction 125 Tourism Industry in Sri Lanka: An Overview 126 Features of Tourism Industry 126 Tourism Industry in Sri Lanka: Recovery from Suppression 128 India as a Source Market 131 Indian Tourists in Sri Lanka: Some Basic Characteristics 133 Tourism in India: The Outbound Outnumbers the Inbound 137 Conclusions and Policy Guidelines 141 Policy Recommendations 142 References Entrepreneurship and Global Business Competitiveness in Sri Lanka and India 145 Introduction 146 Competitive Environment 146 Entrepreneurship in Sri Lanka: A Review of Government Policies 149 Global Competitiveness of Sri Lanka 153 Entrepreneurship in India 158 Global Competitiveness of India 161

5 xxii Contents Comparison and Conclusion 172 End notes 172 References 173 Appendix Number of Foreign Technology Collaborations (year-wise) An Inquiry into the Changing Poverty Landscape in Rural Sri Lanka: Nexus between Public Policy and Social Well-being 178 Parti 178 The Setting 178 The Objectives 179 Methodological Issues 179 Partll 180 Contours of Poverty with Special Reference to Rural-agricultural Sectors ( ) 180 Two Policy Regimes 181 Other Proxy Indicators 190 Part III 192 Case Study of Selected Villages in the District of Hambantota 192 TheLocale 193 Methodological Issues 194 Rural Economy and Status of Poverty in the Study Area 195 Income Inequality 199 Part IV 200 Concluding Remarks 200 Endnotes 202 References An Assessment of Public Service Provision to the Vulnerable Households in the Eastern Province in Sri Lanka 209 Introduction 209 Study Approach and Methodology 211 Quantitative 211 Qualitative 212 Gender, Poverty and Vulnerability 212 Extent of Vulnerability in the East 217

6 Contents xxiii Social and Demographic Characteristics of Vulnerable Households 220 Living Conditions and Asset Ownership 220 Employment, Household Income and Expenditure 222 Household Income and Expenditure 222 Credit Facilities for Self-Employment/Income Generation Activities (IGAs) 227 Income Generation Activities (IGAs) / Self-Employment Types 232 Constraints and Problems Faced by Households Involved in Income Generation Activities and Services 235 Role and Contribution of Women in Household Income and Decision-making 237 Participation in Economic and Community Development Activities 239 Overall Assessment of Vulnerability in the Eastern Province 242 Conclusion 243 References Lessens from Indian Flagship Programme*: The Disconnect for Evaluation Framework 247 Introduction 247 Rationale of MIS 248 (i) MIS has to be Derived from the Log Frame 249 (ii) Authentication and Validation 250 (iii) Data Reporting Mechanism 250 (iv) Accessibility ofdata for Public 250 (v) Utilization ofdata 251 (vi) Connecting Output, Outcome and Survey Data 251 (vii) User-friendly Website 251 MIS in Flagship Programmes 252 The Rural Road Programme: Pradhan Mantri Gram Sadak Yojana (PMGSY) 253 Low Cost Housing to Rural Poor: Indira Awaas Yojana (IAY) 254 National Rural Drinking Water Programme (NRDWP) 255 Rural Electrification Programme: Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) 257

7 xxiv Contents The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 257 Universalization of Elementary Education: Sarva Shiksha Abhiyan (SSA) 259 Integrated Child Development Services (ICDS) 260 National Rural Health Mission (NRHM) 261 Total Sanitation Campaign (TSC) 262 Irrigation 263 Rural Telephony 265 Mid-Day Meal Scheme (MDMS) 266 Jawaharlal Nehru National Urban Renewal Mission (JNNURM) 268 The Way Ahead 269 Acknowledgements 270 Endnote 270 References Contemporary Domestic Agriculture of Sri Lanka 272 Preamble 272 Role and Significance of Agriculture 273 Domestic Agriculture 275 Surplus Labour 275 Insecurity of Tenure 275 Landlessness 276 Uneconomic Holdings 277 Productivity 278 Challenges Pacing Domestic Agriculture 280 New Push to Domestic Agriculture 280 Innovative Phase 281 State Patronage and New Directions 284 Novel Projects 285 Emerging New Challenge 285 Conclusion 286 Endnotes 287 References Plantation Agriculture in Sri Lanka: An Overview 289 Introduction 289 Sri Lanka Economy and Salient Features of Plantation Agriculture 290 i

8 Contents XXV Trend in Main Plantation Crops 295 Tea 295 Extent, Production and Productivity 295 Export and International Market 297 Rubber 297 Extent, Production and Productivity 298 Cost and Returns 298 Exports and International Market 299 Coconut 300 Extent, Production and Productivity 300 Cost and Returns 300 Exports and International Market 302 Other Agricultural Export Crops (Minor Export Crops) 302 Government Policy and Institutions 303 Challenges and Opportunities 304 References The Status of Small and Medium Enterprises and Promotion«for their Growth in Sri Lanka 308 Introduction 308 Overview of the Sri Lankan Economy 308 Small and Medium Enterprises 309 Defining Small & Medium Enterprises (SMEs) 311 Literature Review 312 Objectives of the Study 314 Significance of the SME Sector in the Sri Lankan Economy314 Private-Public Participation (PPP) and its Benefits to SMEs 319 Conclusion 323 References Economy in the Eastern Province of Sri Lanka: Entrepreneurship and Small Business Development 326 Introduction 326 Methodology and Approaches 327 Economic Contribution of the Province 327 Role and Status of Small Business Development in the Eastern Province 330 Profile of Small Business in the Eastern Province 331 Operational Status of Small Business Sectors in the Province 333

9 xxvi Contents (a) Productivity 335 (b) Type of Finance 335 (c) Permanent Employees 335 (d) Casual Employees 335 (e) Adequacy ofraw Material 335 (f) Adequacy of Labour 336 (g) Status of Infrastructure Facilities 336 (h) Channels of Distribution 336 (i) Level of Supply of Products/Services 337 (j) Identification of Marketing Opportunities 337 (k) Future Business Plans 337 (1) WillingnesstoAddValue 338 Potential for Contribution to the Eastern Province Economy 338 Strategies for the Development to the Eastern Economy 342 Endnote 348 References 348 Index 349