By Anthony B. Kim, Research Fellow and editor of the index of economic freedom notes that thee serious lack of good governance and economic freedom are the root causes of Sri Lanka’s ongoing turmoil.
The researcher identifies fiscal health and business freedom as key factor in sustainability, identifies poor political and economic governance as trigger of protest and recommends that Washington needs to hold any future government in Colombo to a basic set of good
governance standards.
Good economic governance is about much more than ensuring a business environment in which entrepreneurship and prosperity can flourish. Economic freedom under the effective rule of law nourishes.
Institutional resilience and sustains the overall quality of life, explains Kim.
He cautions that “it is in the clear interest of Washington to hold any future government in Colombo to a basic set of good governance standards.
Sri Lanka ‘s downward economic spiral offers yet another unmistakable reminder: Good governance, both political and economic, matters and as Kim explains ‘The overthrow by ordinary Sri Lankans of an irresponsible government that bears responsibility for decades of mismanagement wasn’t a revolution. It was instead the result of frustrated Sri Lankans’ desperate outcry against policy failure caused by the feckless government and the
country’s long-time political dynasty.
Unfree Economy.
As noted by The Heritage Foundation’s annual Index of economic Freedom, Sri Lanka has been stuck in the rating of “mostly unfree” economies over the past decade. Its economy is ranked 132nd out of the 177 countries whose economic freedom the 2022 index assessed.
Good economic governance is about much more than ensuring a business environment in which entrepreneurship and prosperity can flourish. Economic freedom under the effective rule of law nourishes institutional resilience and sustains the overall quality of life.
“It is in the clear interest of Washington to hold any future government in Colombo to a basic set of good governance standards” cautions Kim .
Full article: Daily signal
