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Public Sector and Governance

The Legacy of Saman Kelegama

Sanjay Kathuria's picture
Saman Kelegama, a Sri Lankan economist and the Executive Director of the Institute of Policy Studies (IPS Sri Lanka) died prematurely in June 2017. He was a champion of deeper South Asian cooperation.
Saman Kelegama, a Sri Lankan economist and the Executive Director of the Institute of Policy Studies (IPS Sri Lanka) died prematurely in June 2017. He was a champion of deeper South Asian cooperation. Credit:  Institute of Policy Studies

I first met Saman in the early 1990s in Delhi.  Over the years, our paths diverged.  When I re-engaged on South Asia, I ran into Saman again. We re-connected instantly, despite the long intervening period.  This was easy to do with Saman—soft-spoken, affable, a gentleman to the core.  He bore his considerable knowledge lightly.  

Despite his premature passing away in June 2017, he left a rich and varied legacy behind him. I will confine myself to discussing his insights on regional cooperation in South Asia, based on his public writings and my interactions with him.

Saman was a champion of deeper economic linkages within South Asia. He was also pragmatic. 

Along with a few other regional champions, Saman, as the head of the Institute of Policy Studies in Colombo, helped to kick-start the “South Asian Economic Summit”, or SAES, in Colombo in 2008, to provide a high-profile forum for dialogue on topical issues, especially South Asian regional integration. It is remarkable that the SAES has endured, without any gap. The fact that the policy and academic fraternity meet with unfailing regularity, despite on-and-off political tensions in the region, is testimony to its value.

Saman repeatedly stressed that Sri Lanka has been able to reap benefits from the India-Sri Lanka FTA (ISFTA), contrary to the general belief. His arguments were powerful: the import-export ratio for Sri Lanka improved from 10.3 in 2000 (the start of the ISFTA) to 6.6 in 2015; about 70 percent of Sri Lanka’s exports to India get duty-free access under the FTA, but less than 10 percent of Sri Lanka’s imports from India come under the FTA (since India provided “special and differential treatment” to Sri Lanka).

Professionalizing public procurement in Vietnam

Kien Trung Tran's picture
World Bank-financed school in Vietnam's Can Tho province. Photo: World Bank

Vietnam spends an estimated US$25 billion in goods and services each year. Recognizing that an efficient public procurement system is essential to delivering quality public services in a timely manner, the Government has set a mandate to professionalize the public procurement function.

Steps to increase cooperation between national development banks, the private sector and multilateral banks

Ceyla Pazarbasioglu's picture

Again, Uruguay shows that when civil society intelligently promotes coalition-building and finds sympathetic allies in government, media reform is possible. On June 10, the Congress passed a bill to reform the Penal Code and the Press Law. The new law will abolish libel laws and subject national legislation on communication issues to criteria enforced by the Inter-American Commission of Human Rights. The bill is likely to be approved by the Executive.

This achievement is another landmark of recent efforts towards media democracy in Uruguay. During the past two years, legislation on community broadcasting, access to public information, and national archiving of information was approved. The passing of community broadcasting law in December 2007 represented a major success. The law assigns one-third of radio frequencies to community, non-profit stations. It defines community stations in terms of the nature of their goals (“social mission”) and ownership (“collective properties”) rather in terms of reach or geographical location. It stipulates the existence of the Consejo Honorario Asesor de Radiodifusión Comunitaria, a multi-sectoral committee with significant representation from civil society that oversees the bidding process and monitors the performance of stations to ensure that they meet social goals. The passing of the “freedom of information” law in October 2008, and the elimination of libel and contempt laws are other positive advances. This is encouraging if we consider that, like in the rest of the region, the dominant media system historically conformed with the norm of media policies in Latin America: state patrimonialism and collusion between governments and large business.

Global Investment Competitiveness: New Insights on FDI

Anabel Gonzalez's picture

It is easy enough to find data on flows of foreign direct investment (FDI). There are also plenty of anecdotes out there that purportedly encapsulate what businesses worldwide are thinking. It is far more difficult, however, to establish rigorous connections between global investment trends and individual investment decisions by international companies. In the World Bank Group’s newly published Global Investment Competitiveness Report 2017–2018, our team does just this, combining new survey data, rigorous econometric analysis, and extensive literature reviews to reveal what is going on behind the headline numbers.



Here are some of the key takeaways:
 

Are you reaping the full benefits of the technology revolution?

Sara Sultan's picture

Also available in: العربية



On this Sunday, October 11, the world marks the International Day of the Girl Child. While the day is an opportunity to advocate for girls’ rights across many sectors, one persistent, pernicious issue deserves renewed attention:  the high prevalence of child marriage.

One-stop shops and the human face of public services

Jana Kunicova's picture
Graphic: Nicholas Nam/World Bank

Delivering pension or disability services may sound mundane, but if you have seen the recent award-winning movie, I, Daniel Blake, it is anything but. As the film poignantly demonstrates, treating citizens with respect and approaching them as humans rather than case numbers is not just good practice -- it can mean life or death. In the film, Mr. Blake, an elderly tradesman with a heart condition, attempts to apply for a disability pension. In the process, he navigates a Kafkaesque maze of dozens of office visits, automated phone calls, and dysfunctional online forms. All of this is confusing and often dehumanizing.

Share your views on Sri Lanka’s Vision to End Poverty: The Road to 2025

Mariam Yousef's picture

After years of bad news from developing countries about high rates of health worker absenteeism, and low rates of delivery of key health interventions, along came what seemed like a magic bullet: financial incentives. Rather than paying providers whether or not they show up to work, and whether or not they deliver key interventions, doesn’t it make sense to pay them—at least in part—according to what they do? And if, after doing their cost-benefit calculations, women decide not to have their baby delivered in a health facility, not to get antenatal care, and not take their child to be immunized, then doesn’t it make sense to try to change the benefit-cost ratio by paying them to do so?

Bicycles can boost Bangladesh's exports

Nadeem Rizwan's picture
Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall
Bicycles are the largest export of Bangladesh’s engineering sector, contributing about 12 percent of engineering exports. Credit: World Bank
This blog is part of a series exploring new sources of competitiveness in Bangladesh

Did you know that Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall?

Bicycles are the largest export of Bangladesh’s engineering sector, contributing about 12 percent of engineering exports.
 
This performance is in large part due to the high anti-dumping duty imposed by the EU against China.
 
Recently, the EU Parliament and the Council agreed on EU Commission’s proposal on a new methodology for calculating anti-dumping on imports from countries with significant market distortions or pervasive state influence on the economy.
 
This decision could mean that the 48.5 percent anti-dumping duty for Chinese bicycles may not end in 2018 as originally intended. China is disputing the EU’s dumping rules at the World Trade Organization.
 
As the global bicycle market is expected to grow to $34.9 billion by 2022, Bangladesh has an opportunity to diversify its exports beyond readymade garments. Presently, Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall.
Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall
EU27 bicycle imports in 2016 (Million $). Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall. Source: UNComtrade through WITS

However, if the EU anti-dumping duty against China is reduced or lifted after 2018, Bangladesh’s price edge might be eroded.
 
Bangladeshi bicycle exporters estimate that without anti-dumping duties, Chinese bicycles could cost at least 10-20 percent less than Bangladeshi bicycles on European markets. And Chinese exporters can ship bicycles to the EU market with 35-50 percent shorter lead times.
 
So, how can Bangladeshi bicycles survive and grow?

Six reasons why Sri Lanka needs to boost its ailing private sector

Tatiana Nenova's picture
 Joe Qian / World Bank
A view of the business district in Colombo. Credit: Joe Qian / World Bank

Sri Lanka experienced strong growth at the end of its 26-year conflict. This was to be expected as post-war reconstruction tends to bring new hope and energy to a country.
 
And Sri Lanka has done well—5 percent growth is nothing to scoff at.  
 
However, Sri Lanka needs to create an environment that fosters private-sector growth and creates more and better jobs. To that end, the country should address these 6 pressing challenges:

1. The easy economic wins are almost exhausted

For a long time, the public-sector has been pouring funds into everything from infrastructure to healthcare. Unfortunately, Sri Lanka’s public sector is facing serious budget constraints. The island’s tax to growth domestic product (GDP) ratio is one of the lowest in the world, falling from 24.2% in 1978 to 10.1% in 2014. Sri Lanka should look for more sustainable sources of growth. As in many other countries, the answer lies with the private sector.
 
2. Sri Lanka has isolated itself from global and regional value chains 

Over the past decades, Sri Lanka has lost its trade competitiveness. As illustrated in the graph below, Sri Lanka outperformed Vietnam in the early 1990s on how much of its trade contributed to its growth domestic product. Vietnam has now overtaken Sri Lanka where trade has been harmed by high tariffs and para-tariffs and trade interventions on agriculture.


Sri Lanka dropped down by 14 notches to the 85th position out of 137 in the recent  Global Competitiveness Index.
           
3. The system inhibits private sector growth

Sri Lanka’s private sector is ailing. Sri Lankan companies are entrepreneurial and the country’s young people are smart, inquisitive, and dynamic. Yet, this does not translate into a vibrant private sector. Instead, public enterprises are the ones carrying the whole weight of development in this country.
 
The question is, why is the private sector not shouldering its burden of growth?


From the chart above, you can see how difficult it is to set up and operate a business in Sri Lanka. From paying taxes to enforcing contracts to registering property, entrepreneurs have the deck stacked against them.
 
Trading across borders is particularly challenging for Sri Lankan businesses. Trade facilitation is inadequate to the point of stunting growth and linkages to regional value chains. The chart explains just why Sri Lanka is considered one of the hardest countries in the world to run a trading business. Compare it to Singapore–you could even import a live tiger there without a problem.


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