Poverty Alleviation in Sri Lanka:with special reference to Samurdhi

(Prosperity) Movement

BySunil Jayantha Nawaratne

Professor of Management & E-CommerceSri Lanka Institute of Information Technology

ChairmanCentre for Strategic Management

ContentsContentsPoverty in the Global contextPoverty in the South Asian RegionBack ground of Sri LankaSri Lankan Economic HistoryPoverty in Sri LankaPoverty Alleviation Programs in Sri LankaSamurdhi Movement of Sri LankaSamurdhi movement todayIt’s Strengths and Weaknesses Future of Poverty Alleviation of Sri LankaFuture of Samurdhi Movement of Sri LankaSome comments on our Joint Research ProjectFinal Comments and Q&A sessions

Poverty in the Global ContextPoverty in the Global ContextDefinition :Definition :

People living with an income of $1 a day –Low income countries$2 a day – middle income

National Poverty Rate National Poverty Rate (NPR):(NPR): –– is theis thepercentage of the population living below that national poverty lineDifferent countries have different definitions of poverty.

The commonly used $1 a day standard, measured in 1985 international prices and adjusted to local currency using Purchasing Power Parities (PPP).There are many problems related to this poverty line

Poverty Rates in the RegionsPoverty Rates in the RegionsShare of people living on less than $1 a day (%)

Sub-Saharan Africa 50%South Asia 36%China 20%East Asia and Pacific 19%Latin America and Caribbean 12%Europe and Central Asia 　8%Middle East and North Africa 　5%

(Source: World Development Indicators, Page 1)

Poverty In the Global ContextPoverty In the Global ContextSource: 2004 World Development Indicators, Page 55-56

36.0% (1991)25.8%Zimbabwe (1991)

6.6% (1996)20%Sri Lanka (1991)

13.4% (1998)28.6%Pakistan (1993)

49.1% (1999)73%Madagascar(97)

23%(1997)40%Kenya (1994)

34.7% (2000)36%India (1993-94)

36% (2000)51%Bangladesh (1996)

2% (1995)22.6%Algeria (1995)

International Poverty Line($1)

National Poverty LineCountry

Extreme PovertyExtreme Poverty1990 vs. 20011990 vs. 2001

1990 ($1 a day)1,219 million1,219 million people or 28% of the28% of the low and middle-income countries , lived in less than $1 a day.

2001($1 a day)During the next 11 years GDP of those countries GDP of those countries grew 31%grew 31%Poverty rate has fallen to 21% or21% or 1,100 1,100 million million people inpeople in extreme povertyPopulation growth of those countries was 15% during the period

Other Indicators of PovertyOther Indicators of Poverty

Low IncomeHungerLow educationGender inequalityHigh child mortalityPoor Maternal HealthPoor ShelterPoor Infrastructure

Brief Introduction to Sri Brief Introduction to Sri LankaLanka

Historical Back Ground2550 years1505 – 1948- Portugese / Dutch / British1948 – 1977 – Closed Economy1977 – To date – Open Economy

Overall Evaluation of Sri Lanka

Poverty Alleviation of Sri LankaPoverty Alleviation of Sri Lanka

History of Poverty AlleviationJanasaviya (peoples vigor)Samrudhi (Prosperity) Movement

1994 – 20042004 onwards

Reaching MDGsin Sri Lanka

(MDG=Millennium Development Goal)

BackgroundIn September 2000, all 189 UN member states adopted millennium declaration: There is wide spread political support in the development mainstream – internationally and nationallyPeople Centered and clear roles for all development partners (Governments, international Organizations, Citizens, CSOsand private sector): Scope for internalization and national capacity building(CSO=Community Service Organization)Results oriented: MDGs are results based & can make international institutions and governments more accountable for results.

UN & the MDGs – Core StrategyThe guiding principles for the overall strategy are The guiding principles for the overall strategy are that:that:

(i)(i) all 8 all 8 MDGsMDGs & their 18 targets are equally & their 18 targets are equally important; important;

(ii) national ownership and participation will be pivotal (ii) national ownership and participation will be pivotal to the achievement of the to the achievement of the MDGsMDGs; ;

(iii)(iii) partnership, with Governments but also with partnership, with Governments but also with CSOsCSOsand the private sector, will be essential; and the private sector, will be essential;

(iv)(iv) much of the work required to achieve the much of the work required to achieve the MDGsMDGs is is already underway but demands greater focus & already underway but demands greater focus & urgency; urgency;

(v) focus on (v) focus on MDGsMDGs neither diminishes nor precludes neither diminishes nor precludes the important work of UN system in other mandated the important work of UN system in other mandated areasareas

1 GOAL 1 – Eradicate extreme poverty and hunger

GOAL 2 – Achieve universal primary education

GOAL 3 – Promote gender equality and empower women

GOAL 4 – Reduce child mortality

GOAL 5 – Improve maternal health

GOAL 6 – Combat HIV/AIDS, malaria and other diseases

GOAL 7 - Ensure environmental sustainability

GOAL 8 – Develop global partnership for development

223344556677

8 Goals 18 Targets and 48 Indicators

88

8 Goals & 18 targets at a glanceGoal 1 : Extreme Poverty & HumberGoal 1 : Extreme Poverty & HumberHalf (1) extreme poverty and (2) hunger by 2015Half (1) extreme poverty and (2) hunger by 2015Goal 2 : Universal Primary EducationGoal 2 : Universal Primary Education3. Achieve Universal Primary Education by 20153. Achieve Universal Primary Education by 2015

Goal 3: Gender EquityGoal 3: Gender Equity4. Eliminate disparity in all levels of education4. Eliminate disparity in all levels of education

Goal 4 : Reduce Child MortalityGoal 4 : Reduce Child Mortality5. Reduce under 5 and infant mortality rate by 2/35. Reduce under 5 and infant mortality rate by 2/3

Goal 5: Improve Maternal HealthGoal 5: Improve Maternal Health6. Reduce MMR by 75%6. Reduce MMR by 75%

Goal 6 : Combat HIV/AIDS, Malaria Goal 6 : Combat HIV/AIDS, Malaria ……7.Halt and reverse spread of HIV/AIDS; 8. Same for 7.Halt and reverse spread of HIV/AIDS; 8. Same for Malaria and other major diseasesMalaria and other major diseases

Goals, targets & indicators at a GlanceGoal 7 : Ensure environmental sustainability.Goal 7 : Ensure environmental sustainability.9. Integrate 9. Integrate ““Sustainable DevelopmentSustainable Development”” in national in national policies & policies & progsprogs & reverse loss of environmental & reverse loss of environmental resources. 10. Halve lack of access to safe drink water; resources. 10. Halve lack of access to safe drink water; 11. Improve the situation of slums11. Improve the situation of slumsGoal 8: Develop a Global Partnership for Goal 8: Develop a Global Partnership for developmentdevelopment12. Open, rule12. Open, rule--based trading & financial systembased trading & financial system13. Address special needs of LDC13. Address special needs of LDC14. Address special needs of Land locked 14. Address special needs of Land locked CosCos15. Deal with debt problems15. Deal with debt problems16. Dev. & 16. Dev. & impletimplet. strategies for youth employment. strategies for youth employment17. Affordable essential drugs in dev. 17. Affordable essential drugs in dev. CosCos18. Make available benefits of the new technologies 18. Make available benefits of the new technologies especially especially inforinfor. & comm.. & comm.

16. MMR; 17. %births attended by skilled health workers

Goal 5: Improve Maternal Health6. Reduce MMR by 75%

13. <5 mortality rate;14. IMR; 15.% of <1 immunized against measles

Goal 4 : Reduce Child Mortality5. Reduce under 5 and infant mortality rate by two – thirds

9. Female Gross Primary Enrol Ratio as a % of male ratio;

10. 15-20 M:F Literacy Ratio. 11. Share of women in non agric. wage

employment. 12. % women MPs

Goal 3: Gender Equity4. Eliminate disparity in all levels of education

6. Net Primary Enrolment Ratio;7. % children reaching Grade five; 8. Literacy rate of 15-20

Goal 2 : Universal Primary Education3. Achieve Universal Primary Education by 2015

1. Population < $1; 2. Poverty Gap ratio; 3. share of consumption of poorest 20%; 4. % of underweight >5y;5. % below min. dietary energy consump.

Goal 1 : Extreme Poverty & HungerHalve (1) extreme poverty and (2) hunger by 2015

Indicator(48)Goals (8) & Targets (18)

Goals, targets & indicators at a glance

Introduction

Samurdhi means – Prosperity.Started in 1994 as the national poverty reduction program.It’s just an 11 year old movement but a strong and steady one.The original concept was designed and developed by Hon. S.B. Dissanayake, who was the Minister of Samurdhi, then.

Situation Now

Today, it is a giant organization with a national network of CBOs as well as public administration network.(CBO=Community Based Organization.)

At present, nearly 26,000 full-timers are engaged as “Change Agents” of the movement. 24,000 SDOs and 2,000 graduate managers.(SDO=Samurdhi Development Officer)

Nearly 2,000,000 families are covered.

Vision & Mission

Samurdhi movement has a very clear Vision. Mission, Goals, Objectives, and Strategies.We will highlight the Vision and Mission here.

Vision

Prosperous Sri Lanka withMinimized Poverty

Mission

Contributing to the national developmentnational developmentthrough empowerment and graduationempowerment and graduation of the lowlow--income peopleincome people out of Poverty LinePoverty Lineand reducing disparityreducing disparity in their livelihood inthe manner of participatory developmentparticipatory developmentthrough the process of identification identification anddevelopmentdevelopment of innate abilitiesinnate abilities of the low income families in the form of effective, effective, efficient, sustainable and proefficient, sustainable and pro--poor mannerpoor manner.

Our Major Achievements

During the last 10 years the movements major achievements are as follows:

Our Formal & Informal Organizational Structure

Samurdhi Movement is a combination of both formal & informalformal & informal structures.Formal Structure Ministry, Departments, Authority, District Secretaries, Divisional Secretaries, Areas(kalapa), Village Vasama (Grama Vasama).

Formal Structure

MINISTRY OF SAMURDHI

POOR RELIEF DEPARTMENTSUBSIDY PROGRAMME

SAMURDHI AUTHORITYEMPOWERMENT AND DEVELOPMENT PROGRAMME

SAMURDHI COMMISIONER'S DEPARTMENTSOCIAL INSURANCE AND INFRASTRUCTURE DEVELOPEMNT

Formal Structure

National LevelProvincial Level – 9 provinces (no office)District Level – 25 DistrictsDivisional Level – 323 DivisionsGrama Vasam – 14,100 vasamVillages – 52,000 villagesFamilies – 4,000,000 (total number)

Informal Structure

Family level – 2,000,0005 member group – 326,000 groupsSamurdhi Society – Village levelArea (kalapa) Society – Area level – 1,000General union (Maha sangam) level – 179District level – 25National level – 1 ( Poor Peoples Parliament)

Major programs

Programs are divided into six major areas.1. Social Welfare (safety net)2. Social Insurance 3. Infrastructure Development4. Micro Credit5. Income Generation6. Socio-cultural Development

Social Welfare

Implemented by the department of poor relief.Poverty Line – Rs. 1,500 per family/per month.Subsidy scheme – Rs. 1,000, 700, 400, 350, 250, 140Total subsidy amount Rs. 12,000,000,000.(US$120,000,000)

Samurdhi Subsidy Programby year 2005 – No. of Families

9,635mil.

4,742,705

2,065,554

368,257

244,457

367,655

464,218

613,782

7,840

All

Amount

Total Family

Number

Rs.140

Rs.250

Rs.350

Rs.400

Rs.600

Rs.1000

District

Social Insurance Program

Implemented by Samurdhi Commissioners DepartmentRs. 30 deducted from the subsidy and entitled for followings:

Death – Rs. 5,000Wedding – Rs. 3,000Child birth – Rs. 2,000Hospitalization – Rs. 1,500 (Rs.50 x 30 days)

Educational Scholarship Program for AL students.6,000 students are getting this.

Infrastructure Development Program

Implemented by Samurdhi AuthorityParticipatory Development ApproachBasic Material Cost from the Government and labor contribution from the beneficiaries.Up to now progress is as follows:

Rural Development Division

Infrastructure development through community participation – Rs. 200 million in year 2003.Bank building network developmentCanals, rural roads, steps, culvert, agro-wells, common amenities developmentOne month subsidy donation programRatnapura district – Kuruwita example

Micro Credit Program

Samurdhi Bank network has been developed.At present 1010 banks are operating.(Including North-East areas)Two types of savings

Compulsory savings: Rs. 100 from subsidyVoluntary savings

Program progress is as follows:

Samurdhi Bank Program

- Compulsory Savings - Rs. 6 Billion- Voluntary Savings – Rs. 4 Billion- Self Employment Loans- Agricultural Loans- Consumption Loans- Recovery Rate- Bad Debts

Socio-cultural Development

Social Development, Human Resource Development, Youth & Cultural Development Programs are implemented.Samurdhi Housing Development Lottery

Rs. 10 from subsidyRs. 150,000 x 100 houses in a month.

Up to now progress is as follows:

Social Development

Anti smoking, alcohol, and drug prevention program.Reducing Illiteracy programSuicide prevention and reduction programAnti smoking flag day – housing development for acute poor ( Rs. 18 mil-2002) – 2000 housesChild care and widow mother developmentSpecially trained 450 SDOs are engaged

Youth and Cultural Development

New division of the authorityAlleviate poverty through youth development (empowerment)Vocational trainingTalent identification and developmentOrganizing the youth and provide knowledge, information, attitude and skills

Income Generation Programs

Also Implemented by SA.Agri-Business, Livestock Development, Small Industry Development, Marketing Network Development Programs.Up to now progress is as follows:

Agri- Development Division

Forward contracting – cutting flower & leaves, horticulture, organic rice and vegitableExport Oriented AgricultureNew Technology – Drip / Sprinkler /Poli-Tunnels / Post-harvest technology42,000 families to be empowered in 2003

Livestock DevelopmentReduction malnutrition and improve income generationBack yard poultry / Goat farmingSub-contracting with private sectorNelana Farm + Samurdhi Program- cage for 1000 birds by the people- chicks, food, drugs and extension services

from the company- after 42 days guaranteed purchase- average income after 42 days per family –Rs. 25000 – 30,000.( Nelana = a poultry company)

Small Industry Development

Alleviate poverty through value additionMicro and small industry developmentred-clay, coconut fiber pots, garments, metal crushers, lime processing, rice milling and packing, steel furniture, decorating lights, electric and electronics, wooden furniture for some examples.

Marketing Network Development

Rural fair development – 300 rural fairsHome based retail shopsWholesale suppliersDoor to door distribution (milk, bread, news paper, vegetables, etc.)Samurdhi Home Services Ltd.Ice-cream distribution through three wheelers – Cargils Magic Ice Cream

Ultimate Objective

Graduation of low income families from the poverty through total empowerment:Economic EmpowermentSocial EmpowermentCultural EmpowermentPhysical and Psychological EmpowermentPolitical Empowerment (Leadership)

National Targets - 2003

Contributing to the national economy more than the double the cost of the programTotal Cost – Subsidy –Rs. 9 bil.

Admin. - Rs. 3.5 bil.Total - Rs. 12.5 bil

Estimated total contribution – Rs. 28 bilIn way of Income improvement, Infrastructure development, Housing development, and improved savings.

Graduation from poverty

Monthly income has to be improved more that Rs. 5000Total families in the year 2003 – 200,000 families.District allocation and divisional allocation is given to each district and divisional heads.Various poverty reduction plans:NPRP / DPRP/ DivPRP/ KPRP / VPRP

Investments in Community Projects

1995–2001 (Rs. mn)

61,5772458.8430121Total2,005169.673012120016,071416.6529421200013,206611.902832119996,061373.5028321199811,288562.5423518199711,640210.5223518199611,306114.06235181995

No. of Projects

Investments

No. of Divisional Secretary Divisions

No. of District Secretariat

Year

Community Dev. Projects

54,430,0005,443 x Rs. 10,000Marketing Centers / Collection Centers/ Public Facilities

2,831,800,00028,318 x Rs. 100,000Transport/ Roads/ Bridge / Culverts / Climbing Steps

621,400,00012,428 x Rs. 50,000Public Wells/AgriWells/Small Scale Water Supply Schemes

70,990,0007,099 x Rs. 10,000Irrigation Canals/Dams/Anicuts

Actual ValueTotalProject Category

( Anicut = a concrete dam in a canal)

3. Samurdhi Banking Program

Promoted by Change Agents?

4,556366,234(Small Groups)

Voluntary

6,367886,055Compulsory

Amount Rs. Million

No. of FamiliesSavings Program

Quantum & Value of Loans given by SBs

Category

4th in the Market

104.03.5

Market LeaderMicro Fin.

Recovery %

Default %

80.804,86970.30613,595Self-employment

.2615.11.6014,076Distress

.2414.81.4012,087 Fishery

.8464.7041,074Consumer

17.91,08422.00192,514Agriculture

PercentageAmount Rs. Million

PercentageQuantity

Labor Intensive People's Projects (LIPP)

Special feature of this Programmeis the expenditure 65% of the allocated provision for rural labor and balance 35% as the Capital.

Projects Constructed Under the LabourIntensive People's Projects (LIPP)

440140100200Amount of expenditure Rs. million

1,078,980678,826400,154-Number of labor units engaged

93,73045,17521,25427,301Extent of land cultivated

217,85183,20242,64492,005No. of beneficiaries

64111637Other

24110124116Agro wells

1,530595348587Minor irrigation

1,037209183645Small Tanks

2,8729165711,385Total number of projects

Total200019991998Particulars

Other Programs

All Implemented By the Change Agents

Death/Marriage/Birth/ Ailments Relief

21,142Social Security Program

Weekly fairs, Trade Centers, Mobile Stalls

8,173Marketing Development

Training & Financing Projects

1,022Animal Husbandry

Training & Financing Projects

4,326Agriculture Dev.

Training & Employment

5,256Small Industry Dev.BenefitNo. of familiesProgram

Budgetary Allocation and Actual Expenditure for Development Programmes – 1996 to 2002

(Rs. mn)

32.450.02002406.0403.02001564.0500.02000845.0942.01999991.0930.01998749.0978.71997308.5400.01996

ExpenditureAllocationYear

Cost & Benefit of the Change Agents?

Total Cost of SDOs & SMs28,000 x Rs.10,000 = Rs. 280,000,000If one officer can graduate 10 families out-of poverty trap by improving their income up-to Rs.3,000 a month the Total Benefit will be 26,000 x 10 x Rs. 3,000 = Rs.780,000,000If 200,000 families income can be improved up-to Rs. 3,000 per month then = Rs.600,000,000If 100,000 families income can be improved up-to Rs. 3,000 per month then = Rs. 300,000,000.

Samurdhi Movement Has Done a Lot

Through our village based Change Agents has done a lot to Empower the Poor and Graduate them out of the Poverty Trap.It has a giant networkLet’s use that network more Effectively and Efficiently through Pro-poor Approaches for the benefit of Poor People themselves.

20.520.526.126.122.122.1Estate

34.734.728.728.726.426.4Rural

18.218.213.413.47.97.9Urban

Sector

30.430.426.726.723.923.9Sri Lanka

Percentage of poor households

Percentage of poor households

Percentage of poor households

1990/911995/962002Survey Period

Area

Percentage of poor household by area and survey period

170717071135113519281928Estate

276527651348134834023402Rural

524352431435143556545654Urban

Sector

304830481341134137093709Sri LankaSri Lanka

Non- poor households

Rs.

All householdsRs.

Ppoorhouseholds

Rs.

Mean per capita income per monthArea

Per capita income (average monthly) by area and poverty status of the

household - 2002

2.52.514.614.637.137.1EstateEstate

18.818.819.619.664.264.2RuralRural

57.757.747.147.186.886.8UrbanUrban

Sector

22.922.922.922.965.765.7Sri LankaSri Lanka

Electricity using

households %

LP Gas households %

Telephone using

households %

Mean per capita income per month

Area

Electricity, Telephone and LP Gas using; households (percentage) by area 2002

We vs. Them We vs. Them 1950 1950 -- 20002000

Per Capita Income in US$

3030SINGAPSINGAP

9090JAPANJAPAN

8989SRI LANKASRI LANKA

19501950--$$CountryCountry

Japan vs. Sri LankaJapan vs. Sri Lanka

Per Capita income inPer Capita income in US $

SINGAPORSINGAPOREE

JAPANJAPAN

SRI LANKASRI LANKA

CountryCountry

28,00028,0003030

32,00032,0009090

8408408989

20002000--$$19501950--$$

Growth Compared

933114

28,0003,420

3030

SingaporeMalaysia

35532,00090Japan

984089Sri LankaGrowth %20001950Country

Why did this happen to us?

1. No Long-term Vision2. Too much freedom / No discipline3. Giving every thing, everyday, to 　　everybody free of charge4. Working on wrong paradigms and conflicting policies

Public DebtCentral Bank Report 2002

105.345.559.81,669,284

2002

96.943.153.81,218,700

2000

16.93.213.76541950

As a GDP %Total

As a GDP %Foreign

As a GDP %Domestic

Total Rs. Millions(‘000)

Year

War Expenditure

Defense Budget 1998 – 2003 –Rs.Million

49,72150,21254,24256,91540,07142,496Rs. Mill.

200320022001200019991998Year

Foreign ExchangeCentral Bank Report: 2002

0.70114.78Rs.75.782000

0.0113.33Rs.4.761950

Japanese Yen

UK Pounds

US$Year

The Way Japanese The Way Japanese ThinkThink

SelfSelfBokuBoku

FamilyFamilyKazokuKazoku

OrganizatioOrganizationn

KaishaKaisha

CountryCountryKuniKuni

Our GNP vs. Global 500Our GNP vs. Global 5002001 2001 Our GNP was Our GNP was RsRs.. 1,377.11,377.1

US $ Bil. 15.42000 GLOBAL 500-World’s Larges Corporations

12 24712 24715 515 5KAJIMAKAJIMA292292230,929230,9294949NESTLENESTLE4141221,043221,0435151FIATFIAT4040112,000112,0005454HONDAHONDA3434189,700189,7006060SONYSONY3030

18,44618,4466565NISSHO IWAINISSHO IWAI20205,3065,306109109ITOCHUITOCHU1010

388,000388,000176176GENERAL GENERAL MOTORSMOTORS

11

EMPLOYEMPLOYEESEES

REV:$ REV:$ BilBil

CORPORATIONCORPORATIONRANRANKK

Honda’s Growth

Mr Honda also started his company in 1948In year 2000 -34 rank /US$54 bil /112,000 employeesIn year 2003 -25 rank / US$72 bil/ 131,800 employees.2000 – 2003 – 33% growth, 9 positions up.If assumed in year 2003 – our GNP is US$ 20 billion, there are 248 companies are their bigger than our GNP. 248th

Company –Aventis (France)

Sri LankaSri Lanka’’s Largest Companiess Largest Companies2001 2001 GNP was GNP was RsRs.. 1,377.1 1,377.1 (US $ Bil. 15.4)

2000 2000 TOP TEN In Sri LankaTOP TEN In Sri Lanka

0.03950.0395NESTLENESTLE99

0.03940.0394AITKEN SPENCEAITKEN SPENCE1010

0.0430.043DISTILLERIES COMPANYDISTILLERIES COMPANY77

0.0410.041CEYLON TOBACCO COM.CEYLON TOBACCO COM.88

0.0460.046NDBNDB55

0.0450.045COMMERCIAL BANKCOMMERCIAL BANK66

0.0620.062CENTRAL FINANCECENTRAL FINANCE44

0.0780.078HNBHNB33

0.0890.089HAYLEYSHAYLEYS22

0.1050.105JOHN KEELSJOHN KEELS11REV:$ BilCOMPANY NAMERANK

2004 Top Ten CompaniesOverall Performance

1. Distilleries Company of Sri Lanka (5.940)2. John Keels Holdings (5.750) 3. Sri Lanka Telecom (5.075) 4. Hatton National Bank (4.160) 5. Commercial Bank (4.065) 6. Ceylon Tobacco Company (3.800) 7. Aitken Spence & Company (3.565)8. Hayleys (3.060)9. DFCC (2.910)10. Carson Cumberbatch & Co. (2.850) -

Top Ten 2004Based on Turnover (‘000)

1.Sri Lanka Telecom –Rs.25,553,0002.John Keels Holdings – Rs.20,924,5203. Hayleys – Rs.15,476,5764. Hatton National Bank –Rs.15,158,4445. Seylan Bank – Rs.11.110,0596. Distilleries Co. SL – Rs.10,651,4067. CIC –Rs.10,018,9818. Commercial Bank – Rs.9,749,4639. Aitken Spence – Rs.9,049,24410. Central Fiance – Rs.8,408,531

StrategicStrategic ApproachApproach

1970

2010

1990 2000

1980

1975

1985

1995

2005

StrategicStrategic

Effectiveness Effectiveness & & EfficiencyEfficiency

EffectivenessDo the right things

Poverty Indices Poverty Indices –– District District wisewise (Except N/E)

25Kegalle28Matara27H’tota

37R’pura25Galle49M’gala21Nuwaraeliya

30Badulla35Matale27P’naruwa30Kandy33A’pura26Kalutara33Puttlam11Gampaha

34K’negala10Colombo

Poverty Incidence

DistrictPoverty Incidence

District

Sources: Poverty estimates: Gunawardana 2000;

GDP Shares and Average Growth (Province)

--2.62.62.12.12.42.4NorthNorth--3.63.63.83.84.54.5North CentralNorth Central

--5.15.14.04.05.05.0UvaUva--1.21.24.54.54.84.8EasternEastern--7.17.16.76.79.19.1SouthernSouthern

1.21.29.39.38.98.9SabaragamuSabaragamuwawa

--1.61.69.99.910.610.6Central Central --1.81.810.410.411.311.3North WesternNorth Western

3.33.349.449.443.543.5WesternWestern

Average Average GrowthGrowth %%

2000200019961996ProvinceProvince

““Tada Tada gaga Ichiban Ichiban TakaiTakai””––FREE IS MOST FREE IS MOST EXPENSIVEEXPENSIVE

DEAD DEAD MONEY MONEY & &

LIVELIVE MONEYMONEY“Shinigane – Ikigane”