News

Developed nations may adopt protectionist policies

From Neville de Silva in Bangkok

Sri Lanka warned Asia-Pacific nations against the possibility of developed countries adopting further protectionist measures as they are confronted with the problem of slow and sluggish economic growth.
Dr. Sarath Amunugama, Sri Lanka's Senior Minister for International Monetary Co-operation was addressing over 50 nations from this region at the launch of the Asia-Pacific Trade and Investment Report for 2011 prepared by the Bangkok-based ESCAP, the largest regional arm of the United Nations system.

Dr Amunugama, the current chairman of the ESCAP Commission having been unanimously elected to the position in May this year and who was a principal speaker at the launch of this report produced by the Trade and Investment Division of ESCAP headed by Dr. Ravi Ratnayake, reiterated that the global economic downturn has had a serious impact on the economies of the developed countries.
He said this global phenomenon had compelled the developed countries to look inward to enhance domestic production and consumption.

Dr. Amunugama said that looking at vital employment figures in the developed world, especially with elections looming in some countries, one notices a worrying pattern of developed-country economies’ unable to significantly stimulate growth. This in turn could lead to calls for protectionism from within their societies and from policy makers to safeguard jobs and promote the consumption of local manufactures and produce.

He told the developing nations gathered in Bangkok that in the light of the current problems facing the developed economies, the Asia-Pacific region would need to change their strategies to keep their own economies growing. New markets need to be found within our own populations and among the huge populations residing in the region. He plugged the idea of trade agreements between and among nations which will enhance greater sub-regional and regional trade.

Speaking earlier in the week at the opening of the Asia-Pacific Business Forum, Dr. Amunugama pointed to the urgent need to identify the comparative advantages enjoyed by the developing nations and make use of those advantages to the benefit of the developing world.

He said that comparative advantage does not only denote cheap labour for agriculture and manfactured goods that has attracted investment to the Asia-Pacific region. It also means adaptability, the growth of science and technology, infrastructure such as roads, railways and shipping to move locally-produced goods to global markets, procurement of raw materials and connectivity. He pointed out that leading economies of Asia have succeeded in providing such "packages."

But there are other significant factors that provide such comparative advantages. One such factor now emerging is the demographic pattern of many countries. He said that population growth in developed countries is ranged between zero population growth or less than one percent growth annually.

It means that the trained industrial workforce of developed countries will be eroded with an ageing society bringing in its wake health, social and political problems. The currently emerging problems of the United States and Japan, for example, stem from this and are likely to worsen in the future.
While many developing countries too will face this demographic phenomenon eventually, they have a short-term advantage in that this "demographic window" will be open to them for about another two decades.

Dr. Amunugama urged the developing economies to prepare themselves to seize this advantage.
He thanked Under Secretary-General of the UN and Executive Secretary of ESCAP Dr. Noeleen Heyzer and her staff at the Trade and Investment Division for producing a valuable report that provided many insights to the situation in the region.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other News Articles
US delivers demarche: Refer LLRC report to UNHRC
Humanitarian operation: Defence Ministry report tomorrow
Norway killer for Muslims’ eviction from Sri Lanka
Army thwarts Pillayan’s bid to free bank robbery suspect
President orders review of GF project
Uthayan news editor brutally attacked
Developed nations may adopt protectionist policies
Indian company rigged to drill Mannar basin free of taxes
KDU to explore post-conflict development challenges
Oral submissions by Prosecution on Sep. 9
Lanka seeks urgent meeting with Indian Minister on fishing dispute
Ranil links Lanka’s demand with South Sudan’s C’wealth entry
‘The people of the north and east have spoken, now the govt. must listen’
Lanka to get WiFi zones
Sigiriya frescoes threatened by construction work, warns activist
Creating a Rwanda for Rwandese
Now, Sinharaja under ‘road-threat’
Villagers block junction demanding solution to Human-Elephant Conflict
Ex-DIG Traffic warns cops against misleading signals to motorists
London bound bank-robber family had inside help
UGC dissolves SE Uni Council two months before expiry
Teledramas should not disrupt studies, says President
Kap ceremony to launch Kandy perahera
Missing NGO worker’s body found in partly built house
7-year search for missing Lieutenant ends in cemetery
High rejected votes due to lack of voter education: monitors
Kumari’s selfless courage, guides her visually impaired family to success
MIRACLE or CORRUPTION: More palmyrah plants on Kalpitiya highway
Veggies and faecal matter at the Dambulla Market
Order for clean lunch boxes
CBK’s morning after thoughts
Lesson from Bangladesh: Electoral system begs a change

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution