Two years have passed since President Rajapakse took office in November 2005 and therefore it is timely to review the performance/management of the economy, which I term Mahindanomics. The salient features of Mahindanomics are the following

1. Remarkable economic (GDP) growth amidst high intensity civil war
   
   
2. Negative growth of the agricultural sector in spite of the fertiliser subsidy and guaranteed purchase price for paddy.
   
   
3. Low and declining unemployment rate.
   
   
4. Acceleration of public expenditure, particularly defence expenditure.
   
   
5. Sustained double-digit inflation.
   
   
6. Financial repression by way of suppressing interest rates.
   
   
7. Re-nationalisation and resurrection of bankrupt public and private institutions.
   
   
8. International capital market borrowings in lieu of concessionary loans from international financial institutions
   
   This article critically examines the foregoing characteristics of Mahindanomics in the past two years (2006 & 2007).
   

Last update : 28-02-2008 03:53

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