More economic instability under neo liberal policies - Prof. Lakshman

There has been greater economic instability under neo liberal policies. The policy package has nothing to correct this growth instability. By themselves the policy makers will not do anything to bring about equitable distribution either, Prof. of Economics and former Vice Chancellor University of Colombo, W.D. Lakshman said.

Prof. Lakshman was addressing the 4th South Asian Economics Students' Meet organised by the Department of Economics, University of Colombo on Friday. He said the general experience of almost all developing countries under neo-liberal policy regimes has been growing inequality.

Concentration of incomes and wealth is in the hands of a few. This pattern is seen in countries such as China and India known as growth successors in the last couple of decades, Prof. Lakshman said.

Though there was equal distribution of income in Japan today it is gradually fading. This is because neo-liberal policies supporting globalisation are creating favourable conditions for multinational companies and their executives to exploit.

Prof. Lakshman said as John Perkins describes in his 'Confessions of an Economic Hit Man' to exploit resources of the third world and promote a modern form of economic empire is global 'corporatocracy'.

Countries that followed neo-liberal and globalisation policies did not have reduction in poverty. Development involves stable growth of production, equitable sharing of benefits of growth, poverty reduction and employment opportunities of which stable and shared economic growth is widely advocated,he said.

There is a need to move out of the prevailing theoretical and policy paradigm. We ought to question the existing dominant paradigm and the world view. Social sciences are in crisis since world conditions are reducing the space for social scientists to think independently.

Governments who follow neo-liberal policies discourage research into new knowledge that would threaten the positions of the social elites.

Their power is secured as long as they can keep people believing that there is no alternative to globalisation and liberal markets, he said.

He also highlighted that many university economic faculties have confined to the teaching of the discipline that does not help students to analyse issues and develop their skills.

The text book culture prevents students to learn new methodologies and solutions. Faith in the economic policy model as "one type fits all has to be replaced with pragmatism if society is to achieve development, Prof. Lakshman said.

Country Coordinator of the Meet, Department of Economics University of Colombo Dr. Sirimal Abeyratne said the South Asian students forum sets the platform for undergraduate scholars pursuing economics to enhance their knowledge on economic and issues affecting the region by interacting with their fellow students.

The annual meeting of economics graduates comprising five universities in South Asia was inaugurated at Ramjas College, Delhi in 2003.

The Universities of Delhi, Dhaka, Lahore, Tribhuvan and Colombo are the members of the Meet.

(LF)