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WB: South Asia must explore untapped opportunities

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In South Asia, only 20 out of every hundred women actively participate in the labor market, while the labor force participation for men is 80 percent, far below the participation rates in other regions, says a World Bank Report.

The report titled ‘Unlocking growth across South Asia’ said: In the decade before the COVID-19 pandemic hit, South Asia struck a strong growth note of 5 percent per year in per-capita GDP, strongly outpacing other developing regions in the world, notably Latin America and the Caribbean; the Middle East and North Africa; and Sub-Saharan Africa—all of which grew less than 1 percentage point per year. Only East-Asian economies outperformed South Asia at a growth rate of 6.5 percent.

Undoubtedly, South Asia as a region, possesses a powerful growth engine.

Yet, what is striking is that this engine has not been firing on all cylinders, implying that large numbers of people and significant parts of the economy are not participating in the strong growth. In South Asia, only 20 out of every hundred women actively participate in the labor market, while the labor force participation for men is 80 percent, far below the participation rates in other regions.

Between 80-90 percent of the workforce is stuck in unproductive informal sectors that have notoriously limited access to credit and sales markets. The region’s exports of goods—traditionally a source of productivity growth—are only one third of the size of exports when compared to other countries around the world.

From the findings above, it appears that most of South Asia’s economic activity is concentrated in small pockets of societies, namely the formal workforce and male workers mostly employed by formal firms that have access to credit and are largely selling to domestic markets. These segments can grow fast, but this is not the full throttle mode that is required to launch economies to their fullest potential. Therefore, it’s not a surprise that currently, per-capita income in South Asia is only one fifth of the per-capita income in East Asia, a region with a much larger female labor force participation, smaller informal sectors, and an export-led growth strategy.

For South Asia to reach its full economic potential, it must explore untapped opportunities.

The latest  South Asia Economic Focus zeroes in on a possible answer to this conundrum. Using new data from 140 countries, the chapter on gender norms shows that in South Asia, perceptions about the role of women in society have not kept up with new economic opportunities as they have done in many regions of the world.  The analysis shows that these gender norms determine to a large extent, the participation of women in the labor force.

The paradox here is that in most countries, education of girls tends to increase female labor force participation as education increases potential wages, which makes it more attractive to participate in paid work. However, in South Asia, whereas education of girls has improved significantly during these past decades, the participation of women in the workforce has not kept up to speed.  If norms mandate that married women stay at home, then women are likely to withdraw from the labor market after marriage, irrespective of their education level. The latest South Asia Economic Focus also shows that conservative norms in South Asia are associated with other forms of gender inequality as reflected in freedom of movement, asset ownership, access to finance, preference for the male child, and domestic violence.



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Gul, Kharote spin Afghanistan to victory over Japan in Asian Games opener

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(File pic) Arab Gul took 4 for 8 in the opening match of the men's cricket competition ( Cricinfo)

Right-arm wristspinner Arab Gul,  took 4 for 8 on T20I debut and left-arm spinner Nangeyalia Kharote  picked up 3 for 19 as Afghanistan successfully defended a modest 129  against Japan   to open their Asian Games men’s competition  campaign with two points in Group A.

Two days after nearly beating India  in a rain-shortened game in Sano, hosts Japan made a steady start to the chase and reached 53 for 2 in the eighth over before losing their way.

Gul did much of the damage, taking two wickets apiece in the 12th and 14th overs as Japan slid from 60 for 4 to 63 for 8. Abdollah Ahmadzai and Kharote then finished off the lower order, with Japan bowled out for 81 in 19.3 overs.

Asked to bat first, Afghanistan had posted 129 for 6, with Mohammad Akram making 34, captain Darwish Rasooli 29 and Karim Janat 21.

But it was Mohammad Ishaq’s unbeaten 25 off 17 balls from No. 6 that provided the late impetus after Japan had kept Afghanistan to under six an over for the first 15 overs. Right-arm seamer Shoma Sugaya-Slater and offspinner Ibrahim Takahashi took two wickets apiece for Japan.

The two sides have games against Nepal lined up in Group A. The top two teams from the group will proceed to the quarter-finals.

Scores:

Afghanistan 129 for 6 in 20 overs  (Mohhamad Akram 34, Karim Janat 21, Darwish Rasooli 29,  Mohammad Ishaq 25*; Reo Sakurano Thomas 1-05,  Shoma Sugaya-Slater 2-18, Ibrahim  Takanashi 2-19) beat Japan 81  in 19.3 overs (Reo Sakurano- Thomas 23, Kendel Kadowwaki Fleming 14, Benjamin Ito Davis 17; Arab Gul 4-8, Abdullah Ahmadzai 2-13, Nangeyalia Khan 3-19, Najibullah Zadran 1-07 ) by 48 runs

(Cricinfo)

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BASL calls for conscience vote on 22nd Amendment

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The Bar Association of Sri Lanka (BASL) yesterday called on all political parties, represented in Parliament, to allow their members to vote on the proposed 22nd Amendment to the Constitution according to their conscience, stressing that the responsibility for deciding whether the Bill should be enacted now rests with Parliament.

In a statement issued after the Supreme Court’s determination on the 22nd Amendment Bill, BASL President Rajeev Amarasuriya and General Secretary Nalin de Silva have said the SC’s determination should not be interpreted as an endorsement of the proposed constitutional amendment as a matter of policy.

The BASL has said the SC’s jurisdiction, under Articles 120, 121 and 123 of the Constitution, was to determine the constitutional requirements for the enactment of the Bill, including whether the Bill, or any of its provisions, required approval at a referendum under Article 83.

“The determination is therefore not a determination as to whether the proposed amendment is good or bad policy, desirable or undesirable, wise or unwise, or whether Parliament ought to enact it,” the BASL said.

Full text of the BASL statement: The Supreme Court has now delivered its Determination on the Twenty-Second Amendment to the Constitution Bill and determined that the Bill does not require the approval of the People at a Referendum.

In terms of Articles 120, 121 and 123 of the Constitution, the jurisdiction of the Supreme Court in relation to the Bill is to determine the constitutional requirements for its enactment, including importantly whether the Bill, or any provision thereof, requires the approval of the People at a Referendum by virtue of Article 83.

The Determination is therefore not a determination as to whether the proposed Amendment is good or bad policy, desirable or undesirable, wise or unwise, or whether Parliament ought to enact it.

This distinction is also evident from Sri Lanka’s previous constitutional amendments. During the 48 year history of the second republican Constitution there have been many amendments which passed constitutional muster but nevertheless had a negative effect on democracy, constitutionalism, the independence of the judiciary and the rule of law.

The question that now arises is whether Parliament ought to enact the proposed Amendment. That responsibility rests with Parliament and with each individual Member of Parliament when they vote on the Bill.

In making that decision, Members of Parliament should be mindful of the possible and probable consequences the 22nd Amendment will have on our nation. They should also consider the lack of transparency and a proper consultative process in the introduction of the 22nd Amendment. As representatives of the people they should also consider the concerns that have been expressed in relation to the proposed Amendment by a broad cross-section of society including the Maha Nayakes of the Three Nikayas, the Catholic Bishops’ Conference in Sri Lanka, the Church of Ceylon, the Bar Association of Sri Lanka, the Judicial Service Association, the Commonwealth Lawyers Association, LAWASIA, the International Association of Judges, the United Nations Special Rapporteur on the Independence of Judges and Lawyers, the French National Bar Council, and more than 40 Professional Associations and Unions, including the Government Medical Officers’ Association and other leading professional bodies.

Accordingly, the Bar Association of Sri Lanka calls upon all the political parties in Parliament to allow the Members of Parliament to speak and vote on the 22nd Amendment according to their conscience.

The responsibility now lies with Members of Parliament, when called upon to vote, to take a principled position according to their conscience giving due consideration to their constitutional responsibility, their representative capacity and most importantly their duty to the sovereign People of Sri Lanka.

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IMF: Sri Lanka on course for 2027 market return

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SL to regain access to international financial and capital markets next year in line with IMF projections

Sri Lanka is on course to regain access to international financial and capital markets around 2027, in line with the International Monetary Fund’s (IMF) current economic projections, IMF Mission Chief Evan Papageorgiou said yesterday.

Papageorgiou said the IMF’s core assumptions under Sri Lanka’s economic programme continued to envisage the country returning to international capital markets in 2027.

“Our previous assumption that Sri Lanka will go back to capital markets still stands. We still have a good trajectory to achieving this in 2027 or thereabouts, and that should be the goal,” he said.

Papageorgiou stressed that Sri Lanka could not rely solely on domestic sources of financing to build long-term economic resilience and would need a diversified funding strategy.

“Every country needs to have a good ability to access funds both in domestic markets, as it already has, as well as international markets for eurobonds and other modes,” he said.

He said a return to international capital markets would have significant implications for Sri Lanka’s external debt composition, while strengthening foreign exchange reserves would remain essential as the country prepares to meet future debt-servicing obligations.

The IMF’s assessment comes amid improving international investor sentiment towards Sri Lanka and positive developments in the country’s sovereign credit ratings.

Papageorgiou cited Fitch’s recent upgrade of Sri Lanka’s credit rating as a positive development, saying global investors were increasingly viewing the country from a more constructive perspective.

Sri Lanka remains under the IMF’s Extended Fund Facility (EFF) programme, which is scheduled to continue until March 20, 2027. Regaining access to international capital markets remains a key milestone under the country’s broader economic recovery.

The IMF has stressed the importance of rebuilding Sri Lanka’s foreign exchange buffers and maintaining stability in domestic financial markets as the country approaches substantial external debt repayments.

A sustained improvement in these areas would help strengthen the country’s capacity to return to international markets while safeguarding macroeconomic stability, the IMF has indicated.

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