Locking-in and locking-out business and economic reconciliation in the conflict-affected region of Sri Lanka

International Journal of Business & Economic Development

卷:2

关键词: Investment;    Lock-in;    Path dependence;    Reconciliation;    Post-conflict;    Sri Lanka;   

DOI  :  

来源: DOAJ

【 摘 要 】

Using economic geography concepts, this paper compares four groups of investors to the conflictaffectedregion of Sri Lanka and critically analyses the key factors that are “locking-in” and “locking-out”investment, business development and employment creation. It argues that foreign/Diaspora investorswere mostly being influenced by political and social factors, and thus far had not invested significantly inthe region. Traders from the non-conflict-affected region of the country had benefitted the most due toopportunistic behaviour, their acceptance of the political realities and the short-term economicopportunities that had opened up. Large investors from outside the region, on the other hand, had eitherbeen disappointed with the economic situation or had invested due to a sense of social responsibility andlong-term business prospects. Local SMEs within the conflict region were hit hard by the opening of thewar-affected economy and have been unable to cope with the change. Political, economic, and social factorshad all contributed to their unwillingness and inability to expand their businesses. The paper concludesthat the climate for investment must be improved significantly by creating a strong “path-creating”environment and “de-locking” investment inhibiting factors. There must be better collaboration amongstdifferent types of businesses, and coordination amongst different stakeholders. If done well, enhancedinvestment and employment creation could make a significant impact on reconciliation and long-termpeace in the country.

【 授权许可】

Unknown