Haq's Musings: Sri Lanka Booms as India, Pakistan Lag Among South Asian Economies
Since the end of the civil war in 2009, Sri Lanka has been booming even as the rest of South Asia region has lagged.
Per Capita GDPs South Asia Region Source: Economist
Sri Lanka's per capita income has quintupled over the last two decades from about $700 to $3500, significantly outperforming all other South Asian economies. During the same period,Pakistan's per capita GDP has increased from $500 to $1300 while India's is up from $400 to $1400.
In addition to its high per capita GDP for the South Asia region, Sr Lanka has also excelled on Human Development Index (HDI), a key indicator of social development assessed each year by the United Nations Development Program (UNDP).
Human Development Index in South Asia Source: UNDP
Sri Lanka has the fastest growing economy with the highest social indicators in South Asia region. Its economy grew at 7.2% last yearand it is expected to post 8% growth this year. With a literacy rate of 91% and life expectancy of 76 years, the UNDP ranks it among countries with high human development. It has achieved this progress in spite of a 26-year-long violent insurgency by the Tamil Tigers (LTTE) which it successfully ended in 2009.
By contrast, both India and Pakistan continue to lag Sri Lanka in terms of both economic and social indicators. India's economy has slowed in recent years. India's per capita GDP has shrunk in US dollar terms this year, significantly reducing the gap with Pakistan whose GDP has also seen slow growth since 2008. India suffers from low levels of human development with a rank of 136 among 187 countries. Pakistan ranks even lower at 146.
GDP Per Capita in US$ Source: World Bank
Pakistan's per capita GDP remained essentially flat in 1990s before doubling in years 2000-2008 on Musharraf's watch when Pakistan joined the ranks of middle income countries with per capita income of $1000 or more. Pakistanis have seen a very modest growth in their incomes since 2008.
While India's human development is still low, it has continued to make steady progress in the last two decades. Pakistan's human development progress briefly accelerated in years 2000-2007 on President Musharraf's watch. Pakistan's HDI grew an average rate of 2.7% per year under President Musharraf from 2000 to 2007, and then its pace slowed to 0.7% per year in 2008 to 2012 under elected politicians, according to the 2013 Human Development Report titled “The Rise of the South: Human Progress in a Diverse World”. Going further back to the decade of 1990s when the civilian leadership of the country alternated between PML (N) and PPP, the increase in Pakistan's HDI was 9.3% from 1990 to 2000, less than half of the HDI gain of 18.9% on Musharraf's watch from 2000 to 2007.
There is much Pakistan can learn from Sri Lanka's record on human and economic development as well fighting violent insurgencies. It is especially important today as its economy and education suffer in the midst of a growing Taliban violence that threatens the very existence of Pakistan.
Haq's Musings: Sri Lanka Booms as India, Pakistan Lag Among South Asian Economies
Since the end of the civil war in 2009, Sri Lanka has been booming even as the rest of South Asia region has lagged.
Per Capita GDPs South Asia Region Source: Economist
Sri Lanka's per capita income has quintupled over the last two decades from about $700 to $3500, significantly outperforming all other South Asian economies. During the same period,Pakistan's per capita GDP has increased from $500 to $1300 while India's is up from $400 to $1400.
In addition to its high per capita GDP for the South Asia region, Sr Lanka has also excelled on Human Development Index (HDI), a key indicator of social development assessed each year by the United Nations Development Program (UNDP).
Human Development Index in South Asia Source: UNDP
Sri Lanka has the fastest growing economy with the highest social indicators in South Asia region. Its economy grew at 7.2% last yearand it is expected to post 8% growth this year. With a literacy rate of 91% and life expectancy of 76 years, the UNDP ranks it among countries with high human development. It has achieved this progress in spite of a 26-year-long violent insurgency by the Tamil Tigers (LTTE) which it successfully ended in 2009.
By contrast, both India and Pakistan continue to lag Sri Lanka in terms of both economic and social indicators. India's economy has slowed in recent years. India's per capita GDP has shrunk in US dollar terms this year, significantly reducing the gap with Pakistan whose GDP has also seen slow growth since 2008. India suffers from low levels of human development with a rank of 136 among 187 countries. Pakistan ranks even lower at 146.
GDP Per Capita in US$ Source: World Bank
Pakistan's per capita GDP remained essentially flat in 1990s before doubling in years 2000-2008 on Musharraf's watch when Pakistan joined the ranks of middle income countries with per capita income of $1000 or more. Pakistanis have seen a very modest growth in their incomes since 2008.
While India's human development is still low, it has continued to make steady progress in the last two decades. Pakistan's human development progress briefly accelerated in years 2000-2007 on President Musharraf's watch. Pakistan's HDI grew an average rate of 2.7% per year under President Musharraf from 2000 to 2007, and then its pace slowed to 0.7% per year in 2008 to 2012 under elected politicians, according to the 2013 Human Development Report titled “The Rise of the South: Human Progress in a Diverse World”. Going further back to the decade of 1990s when the civilian leadership of the country alternated between PML (N) and PPP, the increase in Pakistan's HDI was 9.3% from 1990 to 2000, less than half of the HDI gain of 18.9% on Musharraf's watch from 2000 to 2007.
There is much Pakistan can learn from Sri Lanka's record on human and economic development as well fighting violent insurgencies. It is especially important today as its economy and education suffer in the midst of a growing Taliban violence that threatens the very existence of Pakistan.
Haq's Musings: Sri Lanka Booms as India, Pakistan Lag Among South Asian Economies
