Study indicates slow economic progress in central province

By Bandula Jayasekara
A study has revealed that the economic progress in the Central Province is slow despite substantial investment in entrepreneurial activity.

The study points out despite high entrepreneurial activity, the Central province has not experienced significant economic growth. It states that the first half of the 1990s was relatively favourable for enterprises and production and sales were high and the end of the decade saw a downturn, primarily due to external economic factors, such as the devaluation of the rupee and increase in fuel prices, as well as the East Asian crisis, created by internal factors such as the intensified war and political instability.

The study titled ‘Joint Initiative for Monitoring Development Trends in the Central Province’ (JIMOD) conducted through the Centre for Poverty Analysis (CEPA) and jointly supported by the Government of the Netherlands and the Government of the Federal Republic of Germany, through the German Technical Cooperation (GTZ) recommends the increase in employment and income to be a first priority for the Central Province. For this purpose, it says that it needs to generate economic growth within the province by systematically attracting outside investment and supporting existing enterprises to prosper and motivate start-ups. It also suggests a greater integration of the province’s economy with that of the Western Province, where the most dynamic economic growth is currently taking place.

However the study has found that the health and living conditions in the Central Province have improved considerably in the past decade and the people of the Central Province today had better access to upgraded health facilities, quality treatment and medication. According to the study the province also witnessed improvements in its housing stock and sanitation facilities. However the study reveals that the province’s water supply was at high risk of contamination due to poor storage and bad preservation methods which give rise to a number of water-borne diseases. Another interesting aspect of the study is the finding that the province’s disease patterns were shifting from contageous diseases to lifestyle-related ones, such as heart disease. In the past decade, the Central Province has witnessed a drastic increase in those inflicted by diseases of development such as hypertension, diabetes and cardiovascular diseases. The researchers have observed some changes in food consumption habits such as regular consumption of butter or margarine for breakfast, specially provided for children. Increased consumption of processed spices, noodles, chicken and sausages was noted, given that these were now available in close proximity to most people’s homes.

The study recommends the increase in employment and income to be a first priority for the Central Province. For this purpose, it needs to generate economic growth within the province by systematically attracting outside investment and supporting existing enterprises to prosper and motivate start-ups. It also suggests a greater integration of the province’s economy with that of the Western Province, where the most dynamic economic growth is currently taking place. According to Dr. Volker Steigerwald, GTZ Programme Coordinator Regional Development, the German government through development cooperation will support this process in close partnership with the Ministry of Central Region Development. Guiding investments into sectors where the area has competitive as well as comparative advantages and growth potential in the future is essential and agro-processing, tourism and information technology are some of these areas with such potential. Concentrating investment in certain areas with growth prospects within the region is also necessary.