Structural transformation towards economic activities that require higher technologies, higher skills, and better managerial technologies is an imperative for Sri Lanka, Prof. Ha-Joon Chang-Director of Centre of Development Studies, University of Cambridge said.
Speaking at the Central Bank of Sri Lanka 71st Anniversary oration, under the theme, ‘Why Sri Lanka Needs Structural Transformation and What can the Central Bank do to help it’, Prof. Chang said the achievement of such transformation cannot be done simply by the private sector firms, not to speak of the ‘invisible hand’ of the market.
“It requires a strategic intervention by the Government as shown by the experiences of rich countries in the past and even some sectors in developing countries today. Contrary to the common belief, the Central Bank can play and has played in many countries a very important role in the structural transformation process.”
“We need to consider this broader, long- term oriented and strategic view of Central Banking that sees the Central Bank as an active agent of structural transformation over the narrow, short-term oriented and rigid view of it, which has dominated the world in the last few decades of neo-liberalism to the detriment of structural transformation and long- term development.” Prof. Chang added.
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