The Way Of The Global Economy
S. Sivathasan
The post war world has seen phenomenal changes since 1950. The global economy has displayed a capacity for unprecedented growth, apprehensions and misgivings notwithstanding. Human ingenuity has trounced the fringe of negative sentiment and secured the course for the economy to flourish. Changes have been in the spheres of education, medical facilities, infrastructure, scientific research and technological advances. Their cumulative impact has been on levels of production, making for assured access to goods and services to incredibly vaster numbers. Steady growth of wealth among nations has resulted in an increasing Gross World Product (GWP). Effusing therefrom was sustained Foreign Direct Investment (FD I). Seen apace was the pervasive spread of Multi – National Companies (MNC). The world is now in a confident mood.
Gross World Product (GWP)
The extent of the transformation may be briefly surveyed. When the parameters of change over the last 60 years are observed, the rapid expansion of the global economy stands out. The GWP of 1950 was $ 4 trillion. In 2012 it had risen to $ 72 trillion, depicting an 18 fold increase in 60 years. In the same period population expanded to 7.0 billion from 2.5 billion. Agriculture moved in tandem and met the demands of consumption. What is even more significant is the drastic change in the sectoral composition even as a healthy balance was striven for. At present agriculture composes 6 % of the GWP and sustains industry and services which compose 94%. Of still greater import is that all three sectors reinforce one another and proceed in harmony. When the current population advances by a further 2.2 billion to 9.2 billion by 2050 as the UN forecasts, it is not overweening optimism to prompt the thought that food needs will be met. Adverse impact on any one sector has been avoided and the specter of ‘limits to growth’ has been dispelled never again to haunt.
Basil gears to mislead the Middle Eastern countries
Sunday, 10 February 2013
Economic Development Minster Basil Rajapaksa had said at the Cabinet meeting on the 7th that the “halal issue” has posed a problem to the relations with Middle Eastern countries.
Basil had pointed out that the countries relations with the Middle Eastern countries could be affected if the Sinhala Buddhist extremism is allowed to act in this manner, especially at a time when Europe and other Western countries were not purchasing Sri Lankan exports due to various reasons. He had observed that all actions need to be taken in a manner that would please the Middle Eastern countries.
Ministers Champika Ranawaka and Dinesh Gunawardena have opposed Basil’s view and said the government’s survival was based on the support of the Sinhala Buddhist people. Basil had responded saying that he was aware of the wishes of the Sinhala Buddhists, but only wanted to mislead the Middle Eastern countries by showing that the halal certification was being issued.
Angry minister have then told Basil that problems should not be created to the country’s exporters by trying to impose on them various processes when exporting goods. They have said that Sri Lanka in such a situation would stand to lose everything. Basil had remained silent.
Minister Rauf Hakeem had then said that permitting the Ulamas of Jamiyathullah to act as they pleased would undoubtedly result in religious disharmony at some point of time. He had said that like the Opposition Leader had pointed out, an investigation should be held to determine the law that has enabled the Jamiyathullah to issue halal certifications.
The President after listening to all view points had appointed a committee consisting of Hakeem and Minister Nimal Siripala de Silva to inquire into the matter and submit a report.
