Lessons from regional growth

Thursday, 14 July 2011 00:00 - - {{hitsCtrl.values.hits}}

WHEN it comes to regional growth the latest set of numbers seem to be telling a positive tale. In the latest data released by the Central Bank the Western Province is growing slower than its counterparts and excluding the Northern Province, Rajarata and Sabaragamuwa are getting rich fast.

The data bundle shows that the GDP growth of the Southern Province is actually lesser than the growth of the Central and Uva Provinces despite the Government funnelling billions of rupees to the port and other development projects in Hambantota.

Growth of the Western Province also lagged behind the country figure of 14.8% and it was joined by the North Western Province (third richest) up by 11.94% to Rs. 225,000 and Uva, where the per capita income improved by 13% to Rs. 190,000. Understandably, as a direct result of the post-war rebound, the per capita income of the Northern Province grew at the fastest pace of 22.9% from a low base to Rs. 161,000, whilst the relatively richer Eastern Province saw its figure grow by 16.4% to Rs. 212,000. The Central Province’s per capita income grew by 16.8% to Rs. 208,000.

In 2010 the GDP at current prices grew by 15.9%, and reached Rs. 5,602 billion with a per capita income of Rs. 271,259, equivalent to US$ 2,399. The Western Province made the highest contribution to GDP in 2010. However, its share in GDP reduced to 45.1% from 45.8% in 2009. As in 2009, the Southern Province provided the second highest contribution, which was 10.7%, an increase compared to 10.5% in 2009.

The Central Province provided the third highest contribution, maintaining its relative position compared to 2009 and managing to increase its GDP contribution to 10.0% in 2010. However, the contribution of the North Western Province declined to 9.4% in 2010 from 9.6% in 2009. The contributions to GDP from Northern, Eastern, North Central and Sabaragamuwa Provinces increased in 2010 while that of the Uva Province was unchanged.

While bridging regional disparities is a crucial part of development the growth of per capita incomes in the provinces shows the amount of work that remains to be done. Take for example the Sabaragamuwa Province that is rich in natural resources. Its extensive gem mines have been more a curse than a blessing with unscrupulous businessmen making profits and little of the wealth filtering into making the community enjoy better standards of living. Even though Sri Lanka is world famous for its gem wealth this has only contributed to wreaking the environment in the Sabaragamuwa Province. Unemployment, high school dropout rates, daunting poverty levels and lack of entrepreneurship are a few of the problems that the province has faced over the decades.

Developing these regions in an eco friendly manner and ensuring that the people are given opportunities to increase their standard of life is the aim of development. Having suffered from three decades of war the north and eastern provinces face the challenge of equitable development acutely. Regardless of the per capita income increasing attempts must be made to support livelihoods of vulnerable communities so that the development is sustainable. The statistics are not only an indication of what has been achieved but what remains to be done.