would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. 
Home
Management Method
Mar 25, 2012 (LBO) - Proper economic management is the key to prosperity, not whether a country is resource-rich or poor, a top Japanese economist has told Sri Lanka.
Price stability is also necessary for development and should be considered a priority by policymakers, said Hirohisa Kohama, professor in the faculty of international relations, the University of Shizuoka.
And good policy dialogue between government and business was another key ingredient in Japan's success and recovery after the devastation caused by the Second World War, he told a forum to mark 60 years of diplomatic ties between Japan and Sri Lanka
"But private sector dynamism is key and relations between government and the private sector people is very important."
He said Japan's MITI (ministry of international trade and industry) which was responsible for industrialisation became a common platform to exchange views between the private sector and government policy makers.
There were also communications channels between these two groups at different levels to discuss the requirements of private companies.
"Based on such talks they implemented a very realistic industrial policy. Such kind of communications is one of the keys to the success of Japan's industrial policy."
The end of the island's 30-year ethnic war in 2009 provides many opportunities for economic progress, Kohama told the forum organised by the central bank.
"Targets should be set by government but targets should be realistic. Setting realistic targets is very important. The government should present realistic targets and must realise them.
"And then the people and private sector who are watching will approve and will have confidence in government policy."
Another priority is efficient investment and for certain development phases investment acceleration is very important, Kohama said.
He said there was a debate whether having natural resources was a curse or blessing, given the poverty of countries like Nigeria, which has oil.
But countries like Japan and South Korean, both poor in natural resources, had managed to modernise rapidly and become developed nations, overtaking countries with better natural resources.
Botswana, which is rich in diamonds, had been one of the poorest countries in Africa at the time of her independence but was now an upper middle income nation.
"The message is economic management - not whether a country is resource rich or poor," Kohama said.
The use of advanced foreign technologies is important for rapid catching up as well as how to use the late comer's advantage.
"All countries are late comers (to economic development) but some realise the late comer advantage and others do not."
Kohama said it was also important to ensure growth with equity as economic development is the improvement in the standards of living of ordinary people.
"Therefore, growth with equity is important and necessary for social stability. And social stability is important for sustainable economic growth."
He said there was a debate among economists on the trade-off between growth and equity and whether there should be growth with equity and growth versus equity.
"Growth means efficiency enhancement which is important but the equity aspect is also very important. So the key is how to balance between these two targets.
"Employment is also important for equity," Kohama said, noting that Sri Lanka's employment rate was good compared with neighbouring countries.
Japan's policy philosophy had from the beginning been growth with equity, he said.
Japan began rebuilding her economy after the war around 1950 after price stabilization was achieved following a bout of hyperinflation during 1946-48 when inflation hit three-digit levels.
"Price stability is a necessary condition to sustain economic growth," Kohama said.
"Your inflation is low. Please think about price stability as a necessary condition for economic development in future."
Kohama noted how one of Japan's best selling cars, the Toyota Corolla, had become more affordable in the country's quest for growth with equity and price stability.
When it began making the Corolla in 1966 its price was equivalent to 10 months' of salary of ordinary workers.
This fell in the 1970s to six months' salary and by 1991 had dropped to 2.4 months' of an ordinary worker's salary.
http://lbo.lk/fullstory.php?nid=542943439
Mar 25, 2012 (LBO) - Proper economic management is the key to prosperity, not whether a country is resource-rich or poor, a top Japanese economist has told Sri Lanka.
Price stability is also necessary for development and should be considered a priority by policymakers, said Hirohisa Kohama, professor in the faculty of international relations, the University of Shizuoka.
And good policy dialogue between government and business was another key ingredient in Japan's success and recovery after the devastation caused by the Second World War, he told a forum to mark 60 years of diplomatic ties between Japan and Sri Lanka
"But private sector dynamism is key and relations between government and the private sector people is very important."
He said Japan's MITI (ministry of international trade and industry) which was responsible for industrialisation became a common platform to exchange views between the private sector and government policy makers.
There were also communications channels between these two groups at different levels to discuss the requirements of private companies.
"Based on such talks they implemented a very realistic industrial policy. Such kind of communications is one of the keys to the success of Japan's industrial policy."
The end of the island's 30-year ethnic war in 2009 provides many opportunities for economic progress, Kohama told the forum organised by the central bank.
"Targets should be set by government but targets should be realistic. Setting realistic targets is very important. The government should present realistic targets and must realise them.
"And then the people and private sector who are watching will approve and will have confidence in government policy."
Another priority is efficient investment and for certain development phases investment acceleration is very important, Kohama said.
He said there was a debate whether having natural resources was a curse or blessing, given the poverty of countries like Nigeria, which has oil.
But countries like Japan and South Korean, both poor in natural resources, had managed to modernise rapidly and become developed nations, overtaking countries with better natural resources.
Botswana, which is rich in diamonds, had been one of the poorest countries in Africa at the time of her independence but was now an upper middle income nation.
"The message is economic management - not whether a country is resource rich or poor," Kohama said.
The use of advanced foreign technologies is important for rapid catching up as well as how to use the late comer's advantage.
"All countries are late comers (to economic development) but some realise the late comer advantage and others do not."
Kohama said it was also important to ensure growth with equity as economic development is the improvement in the standards of living of ordinary people.
"Therefore, growth with equity is important and necessary for social stability. And social stability is important for sustainable economic growth."
He said there was a debate among economists on the trade-off between growth and equity and whether there should be growth with equity and growth versus equity.
"Growth means efficiency enhancement which is important but the equity aspect is also very important. So the key is how to balance between these two targets.
"Employment is also important for equity," Kohama said, noting that Sri Lanka's employment rate was good compared with neighbouring countries.
Japan's policy philosophy had from the beginning been growth with equity, he said.
Japan began rebuilding her economy after the war around 1950 after price stabilization was achieved following a bout of hyperinflation during 1946-48 when inflation hit three-digit levels.
"Price stability is a necessary condition to sustain economic growth," Kohama said.
"Your inflation is low. Please think about price stability as a necessary condition for economic development in future."
Kohama noted how one of Japan's best selling cars, the Toyota Corolla, had become more affordable in the country's quest for growth with equity and price stability.
When it began making the Corolla in 1966 its price was equivalent to 10 months' of salary of ordinary workers.
This fell in the 1970s to six months' salary and by 1991 had dropped to 2.4 months' of an ordinary worker's salary.
http://lbo.lk/fullstory.php?nid=542943439
