Page 1

The paddys ripening The elephants who bring sorrow
drive away With God's protection My reas core for the fiec And becauss an poor This vigilin a hut I keep
Folk SONG
Paddijo Farmiers/

Page 2
FOREIGN AND LOCAL PROJECTS APPROVED 1980 - 1985
4 . 50{}--
|سال}{أ(او (
3 ,'7{}{}- #-- #
! , 31}{}- -
900
慧_輯一鬆 : نہین۔ مست۔U
1980 1931 1982
Between 1980-1985, approved investment in industry tota||ed almost Rs 15.5 bn 280 (GCEC Rs 7,773 mn, FAC Rs 5,625 mn 224 and LIAC Rs 2,132 mn). During these years approved foreign investments (GCEC, FIAC) 168 reached a peak in 1980, tota||ing Rs 3.6 bn and declined steadily to a low of Rs 441 mn 112 in 1983, recovered slightly in 1984 and 酮 dropped to Rs 388 million in 1985. A major 56 سس share of local and foreign investments has − gone into ready-made garments and textile }_{ جلسبست 默 production. 198
it).
1 či ,
800
!
1981 1932
GCEC - INVESTMENT (Rs Mn)
GCEC - EMPLOYMENT
(Nos)
7, 3.
: )().
ز: , +}
*,JUD
198U 1931 1.Qe2 1983 1984
 
 
 
 
 
 
 
 

FIAC - INVESTMENT
(Rs Mn)
FIAC - EMPLOYMENT
(Nos)
瑟 - - - -
排 ہجع پ;
门豹 體 彗下
盎口量出口送
30 1982 1 gfჭ3
1991
LIAC - INVESTMENT (Rs Mn)
LIAC - EMPLOYMENT
(Nos)
网Food, Beverages, Tobbaco لینیشیا
Textiles Wearing Apparel, Leather Products
Wood & Paper Products
HRubber & Plastic Products (Chem--Petrim)
fENon metalic Mineral Products
Fabricated. Metalic Products & Transport Equipme
Manufactured Products
Services

Page 3
KONOMI REVIEW
Published by the People's Bank Research Department. Head office, Sir Chittampalam A. Gardinar Mawath colombo 2. Sri Lanka.
HE ECONOMIC REVIEW is intended to promote knowledge of and interest in the economy and economic development process by a many sided presentation of views & reportage, facts and debate THE ECONOMIC REVIEW is a community Ser Viere project of the People's Bank
its contents, however, are the result of editorial considerations only and do
O necessarily reflect Bank policies or the official viewpoint. Signed feature articles also are the personal views of the authors and do not represent the Institutions to which they are attached Similar contributions as ve as Connents and viewpoints are welcome THE ECONOMIC REVIEW is published monthly and is available both on subscription and on direct sale
Volume 12
C
Diary of Eve
Commodities
Foreign New
Surath Wickr
A Nationa D Control Boari
Cáro Vasso
CREDITS Th de
COVER
Photograph: The peasant by P. F. Aris
NEXT ISSU
* SUGAR: Sri
* Interest rate - the Sri L. irrigationar * Sri lanka's til
 
 

Number 6 September 1986
OLUMANS
ԴtS 2 July/August 1986
20 COCONUT: Prices, Earnings Decline
while Production, Exports increase
S Review 21 International Commodity Agreements
豎
SPECIAL REPORT
3 LAND SETTLEMENT IN SRI LANKA
FEATURES
a masinghe 23 Planning perspectives for Sri Lanka.
angerous Drug 28 Drug trafficking and abuse in Sri d report Lanka 刊 32 the one child solution
- Declining fertility in China
e Special Report in this issue was prepared by S.S.A.L.Siriwarna of the Research Department
Sby Stanley Kiriwandala
farmer's ballad, on the cover, was translated from the original yananda
E.
Lanka's Consumption, Production, imports & Distribution, - policies and trends policies and economic development ankan experience ld water use in settlement schemes rade pattern- recent trends

Page 4
**********ঞ্জ భణః
saka ar sine R
ః
| ang NAS SA
en o el
cost for this or విభణణణణ బి స్టళ్లుళ్ల
the interes
భణఃళ్ల
235 to era den sa
ধ্রুঞ্জ
heణణ kg వివి
The to s భణః భ్ర
భ గణ the Arranges
renewed in
5.
sas oso o
ធ្វថ្ងៃ ప్రణ
భఃణః భః
o sa o gran
sa se of Agress ుణ hభణః
e a cast State
people in r. భరణ భ at is hood a
భఃభః భః assin enn se strans
se i na se naas no na ធ្វ rs arte o st o30 Ooo dating ate that of safete
 

ຂຶ 2 ogs ooo ng 2 ooo onnes ః
aks to enter res సభణభక్షణః
羲 ణ
i ne est case ខ្មែs a ឬទ្ធ
sens vannisers an sua o RS 55 భః సభ భః: o rebber sna Bank anded ab e 1 sesis vive se inapura and ខ្ស
on asas onesia annes need that sa na rais een are is snared to earra Rs 56 na ខ្សធ្វ
ener o s e ke 500 tonnes of in se see aras e as భణ8 (ణభక్షణ
ied to be exported by the Entre year 毅
|eo .n.n.nt భః
Ra భ phase
se us and se ana coa
ຂຶ ప్రభ శకుడు tణణణg cణణణఃణn aభ సభ ased in exchange భitecణణఃణణ: ion has negotiated L S L L t L tt L L e L L L S SS OLS
毅
ECONOMIC REVIEW, SEPTEMBER, 1986.

Page 5
SIZE OF SETTLER ALLOTMENT
经 5
18,000
Tea
14,400
Fubber
10,000 - COCOn ut
용 Paddy C 7,200 -
3,600
i
1946 1g53
1963 1970
LAND SETTLEMENT IN SRI
Land settlement and land reform measures in most developing countries have attempted to improve the lot of their rural peasantry. In many such countries social unrest and inequities in their society are traced to landlessness or to the insecure and inequitable system of land tenure. Such situations have stirred the conscience of
ECONOMIC REVIEW, SEPTEMBER, 1986.
their rulers to ac among the majori lation who feel th: in the land and a a fair share of th bour. It is in this degrees of urgenc ment and land i Lanka, over the
 
 
 
 
 
 

addyLand
highland
*.
1982
LANKA
on and resentment of the rural poputhey have no stake e unable to receive a fruits of their lacontext, in varying , that land settleevelopment in Sri st one and a half
centuries, have been concerned mainly
with the need to raise the economic
and social status of rural poeple, particularly the peasantry - the small far
mers and the landless. The burden of
implementing policies to achieve these objectives have rested with government sponsored settlement schemes, since the lands to be opened up for settlement were state owned and it was only governments that could offer the necessary incentives and supporting facilities for new settlements. Even today there is an abiding concern with 'small farmer policies' and the old notion of government sponsored settlement schemes continues to be re
garded as the most acceptable method
of implementation.
Many reviews of past land settlement policies have shown clearly that in several developing countries the same kinds of projects, containing on the surface at least the same kinds of "mistakes, appear to have been steadily replicated time and again. An economist whò visited Sri Lanka, David Dunham, in an analysis of this situation has shown that such land settlements are costly compared to many other agrarian policies, offering low rates of return on the capital inwested; they often register disappointingly low output levels; they are administratively top heavy; they frequently suffer from internal social problems, and they often have fairly high rates of physical desertion. On the whole, the record of these schemes would seem to have been 'bad'. Dunham adds that 'Sri Lankan experience, stretching back as it does to the nineteenth century, is in no real sense an exception to the overall pattern. Its settlement projects have in general proved to be costly, and in practice they have tended to be implemented without any rigorous means of financial control'. To see the issues in properperspective it is necessary to look back on the early attempts at formal land settlement and land development.
The earliest settlements in Sri Lanka, which began around 300 B.C.

Page 6
and extended upto the 12th century
AD, were concentrated in the Dry Zone, where rice became the staple crop. By the first century AD large scale irrigation works were being built, and the first five centuries of this era are considered 'the most creative and dynamic era in the history of irrigation activities in Sri Lanka'. The response of the Dry Zone civiIisation to the environmental conditions in this region is evident even today in the land use pattern it created. The number of tanks in the Dry Zone may be regarded as one index of the intensive land use in specific areas. For instance, agriculture in this area was determined, by and large, by the physical characteristics of the land.
in these early times it is true that the king had certain claims over most of the land in his kingdom and there is evidence of the 'rights' of individuals with regard to land. The tank became an essential feature of ancient villages in Sri Lanka and the rights of villagers to the use of this land for cultivation came to be based on customs and traditional principles in Sri Lanka. This system of land use under village tanks ensured social equity through a fair and equal access to irririgation water and land. The principle in the ancient village system was to ensure a yield from the land and that every villager had the right to enjoy the fruits of cultivation. This system was a definite inducement for all in the village to engage in the development of land and the irrigation network. Around the 9th century, with the maturity of the hydraulic civilisation 'private rights' to property seem to have been more clearly established. Dry Zone lands, however, were generally held and administered by the village society and absolute ownership of individuals in traditional villages and the issuing of title deeds of land began only at the end of the 19th century. The villagers formed their
own village Committees and evolved
their own codes for the hanagement of water and development of land.
This form of land us Lanka was greatly a policies that follow lonial rule.
From about the mi century began the d Dry Zone with the b Sinhala kingdom at During the period 1 there was a movement pulation to the wette part of the country, joining the Dry Zone termediate zone. By th European Colonial po contact with Sri Lank lowlands had been se colonial powers, the Dutch and the Bri themselves mainly w which was beneficial Till the 1850's little c to the welfare and en traditional agriculture A change began under (1855-60) who initiate irrigation works and a bilitation of the Dry Z
the first British attem
gating the neglect of ture. However, his pre gation activity tended gularly cultivated lanc tivation; rather open peasant agriculture.
The Crown Lands Ordinance of 1840
During British rule 20th centuries, the C peasantry in Sri La several changes. Th attempts at land’ di settlement even befc colonial period, whe tored some ancient such as the Amparai tern Province. Howe settlement, specifical to land, was initiate with the enactment Lands Encroachment 12 of 1840. The enf and Order and a coi

pattern in Sri fected by the d under Co
die of the 13th -population of "eak up of the
Polonnaruwa. 200-1,500 AD and shift of poSouth Western to the part adcalled the ine time the first Wer Came into a the Wet Zone tied. Thé three Portugeese, the ish, concerned rith agriculture to their trade. oncern was paid Couragement of by the British. Governor Ward di restoration of ttempts at rehaone and his was ot towards mitipeasant agriculbgramme of irrito convert irreto regular culnew areas to
Encroachment
in the 19th and onditions of the nka underwent ere were mild }velopment and re this, in the the Dutch resirrigation tanks Tank in the Easer, format land y settling title by the British
of the Crown
Ordinance No reement of law trol of the land
as a state owned resource was basic British policy at the time, though positive measures to develop the peasant sector clearly did not figure in this policy. In fact, the introduction of this Ordinance in 1840 meant
that the state had begun to interfere
with the traditionally owned lands and rights of the peasantry. In terms of this Ordinance all forest, waste, unoccupied or uncultivated lands were presumed to be the property of the Crown until the contray was proved. This presumitive right of the Crown meant that most of the land in the Wet Zone, particularly in the Kandyan areas where land was used as chenas,
for village pasture, forests and village expansion
purposes was declared Crown Land. Possession of land was granted on the condition that it had been continuously cultivated for 30 years. Land deemed to belong to the crown was disposed off on an 'application system' and this system came to be continued as 'Land Kachcheris'. It is evident that the Ordinance was designed for those who had the capital resources for land development, and particularly in the Central High
lands and Wet Lowlands it made a
vital contribution towards the formation of the country's plantation economy. In the Dry Zone regions of the Northern, North Central and Eastern provinces, however, the effects of this Ordinance were different. These areas were comparatively sparsely populated and when the thousands of acres in these regions came under the Crown not many people felt it then. What in fact happened was that over hundred years later it was possible to make available all these vast extents of once fertile paddy lands for development on a planned basis, though the British never thought of it then.
Generally the peasants in rural Sri Lanka were greatly affected by this policy. Access to land in the villages had been based on tradition through generations, and the right to enjoy the benefits of the and were not dependent upon a title to property. Land which was traditionally culti
ECONOMIC REVIEW, SEPTEMBER, 1986.

Page 7
wated by the villagers through birth right, was now suddenly referred to as crown land. Discontinuity in terms of legal rights for cultivation of the lands was a disincentive to cultivate for many peasants. This policy not only jeopardized the traditional modes of possession but also created disunity in rural communities.
The ancient village leader the "Gamarala' was replaced by a person in a newly created position namely Wei Vidane. The 'Gamsabahawa which was the most powerful village level body, vas smothered by the centralized administrative machinery - the kachcheri system. To re-establish the irrigation discipline a complicated machinery of formal tribunals operating under provincial Government Agents was introduced.
The structure of the administration in rural areas was geared to serve the colonia needs of the British, that is, to gain control over the land and people. I he set up was riigid and bureaucratic with a chain of command going right down from the top, that is, to the village headman and wel-vidane at the village level. The Government Agent was the chief government official, and he had the power to enforce rules and regulations.
The other measure was resofving the question of irrigation water by enactment of an Ordinance. According to the irrigation Ordinance No. 9 of 1856 farmers themselves were required to do the earth clearing work and the officials were supposed to supervise each irrigation work. This step, however, was confined to the Ordinance. Instead of providing the necessary facilities and management for the cultivation of land under the irrigation system, it adversely affected the irrigation system in the Dry Zone. The irrigation water which was originally freely and equitably enjoyed by the villagers, was brought under rigid control under a set of rules and reguiations. The reaction to these rules was negligence of their village tanks and irrigation system. The situation had been reported to the Governor, Sir
EcoNoMac REVI EW, SEPTEMBER, 1986.
John Ward by vil
The irrigation used in a destruct
VA3S O e COSC the number of per state of misery
economy had inci
were becoming shal city to hold water The peasants thems the valuable princi construction and r and maintenance - ( did not maintain t in good condition a co-operate. Frustral to cut down the ta in order to ensure And when the locat inconveniently loca cut down holes at the bund; nearest to The whole irrigatic rated'' (Baily 1952).
Paddy Cultivation (
The next step ta ment to overconne the introduction of
wation Ordinance o'
vided for the take-o ment of repairs of th restoration was del curred by the go connection had to the villagers in inst years. These effor not as successful peasants rejected th the revenue office central government the grounds that e ration work was cal
sants were unable to
Ses in instaments. ( Ordinance was not areas inhabited by peasants. Therefore, amending Ordiaance the peasants thems a convenient metho
cost of tank restora But stil there was n conditions in most
ZOՌe.

lagers as follows:
system had been tive manner, there tion of any farms; ople forced into a in a degenerated reased. The tanks low and their capawas thus reduced. elves had neglected bles of the past rerepair of the tank of channels. They anks and channels nd neither did they ted peasants began ink bunds selfishly a supply of water. ion of anicuts was ated the peasants different places of their paddy fields. }n system deterio
Drdinance of 1857
ken by the govern
this situation was
the Paddy Cultif 1857 which prover by the goyernhose systems where ayed. The cost in
vernment in this
be reimbursed by aments within 10 ts, however, were as expected. The his Ordinance and
rS tGo , asked the to modify it, on ven though resto
rried out, the Pea
) repay the expen
On the whole, this
relevant to the poverty stricken in 1873 a new in terms of which elves could select d of repaying the tion was enacted. o improvement of parts of the dry
Government Experiments in Irrigation Settlement
One of the earliest government experiments in irrigation settlement schemes was the Kalawewa settlement in 1887. The British administrators tried to develop this scheme within the capitalist framework of the plantation agriculture in the wet zone. But, there were also other prototypes. According to the sessional paper of 1892 this settlement scheme was carried out as an experiment following the contemporary Indian experience in Punjab. The intention behind the project did not guarantee that proper concern was given to local conditions.Attention was for example, not given to the
cropping pattern and irrigation practi
ces of the Dry Zone peasants. Apart from the local population, settlers were selected from the people outside the area where there was a surplus of labour. The government provided
them free transport, a means of sub
sistence for six months, a dwelling house, free seed materials and agricultural implements as aid. Jungle clearing was attempted by employing local labour. Tamils and low country Sinhalese were grouped in batches. With the emergence of this organization various kinds of dis-unity between different racial groups and disputes
between colonists and villagers began
to appear. Tamils brought down from Jaffna went back, leaving behind the
facilities provided to them by the
government. With the settlement of low country Sinhalese a type of society alien to the traditional social and economic order emerged. The ultimate result of this social conflict was that many who had reclaimed land in the colony returned to their homes. Others left the area due to 'sickness, and dissatisfaction from not getting the land free. When the Kalawewa experiment failed, the remaining land was alienated among private applicants according to the Ordinance enacted in 1840. Most of that land went to landlords and the poor peasants who were genuinely interested in cultivation became their tenants.

Page 8
it is apparent that there were no genuine efforts at 'aided' colonisation on a wide scale during this period. Those with capital were sold the land under the restored tanks, and this gave the peasants no chance of bidding for the land. Some peasants illegally squatted on Crown Land, which influenced the enactment of the Waste Lands Ordinance of 1897.
Government policy and its interest at that time was to expand plantation sector activities which was unswervingly devoted to the mercantilist ideology. Most of the construction work carried out by the British administrators during the 19th century were in some ways connected with upcountry plantation agriculture. A major part of this was on the development of highways between the upcountry and Colombo. Table 1 below shows the limited government expenditure on Dry Zone development.
they required in th food crops. Howev of the government A project given ti Company in 1920 wewa scheme failed about 9, 100 acre were made availab This too failed wit In 1921 the Low Association started under the Kirindi C all the governme this project also e The main reason fo project was the int new system of d to capitalist farmi sation in Sri Lanka contradiction of agricultural polic structure and soci teristics of the crui suitable for comp
Table 1
PUBLIC EXPENDITURE ON MAJOR PROVINCES OF THE WE ZONE PROVINCES (FIVE YEAR AVERAGE)
Year Wet Zone Provinces Dry Zone Pro"
Value Percentage Value (Rs "000) (Rs "000) 1875-1879 3019 61.8 1094 1880-1884 1676 65.6 471 1885-1889 1189 47.9 696 1890-1894 1936 50.4 793 1900-1904 2485 55.9 688 1905-1909 2635 56.0 877 1910-1914 4254 62.3 953
Source: Ceylon Blue Books.
During the first World War the export-import economy of Sri Lanka showed signs of collapse, and while the population increased the country faced a serious shortage of food. As a result the special attention of the government was directed to the Dry Zone as the only alternative to solve the food problem. Settlement of people on crown land in the Dry Zone was accelerated. Private entrepreneurs and companies were provided with facilities to obtain as much land as
because of the lack of transport, i Water, pOor mana ble methods adop planning. It was ground that the
resettment was str
A.
The land polici 1920's laid the foi settlement projec Around this tim was directed towa
on easy terms, e
 
 

2 Dry Zone to grow ar, this new scheme : did not succeed. p the Ceylon Mill
under the Kalaby 1922. In 1919 s from Minneriya le for cultivation. hin a short period.
Country Products
paddy cultivation ya scheme. Despite nt encouragement nded up in failure. or the failure of this ernal barriers to the velopment leading ng and industriali, which was a major
the government's y. The agrarian o-economic charac'al Sector were not any based farming
T ZONE AND DRY
vinces
Percentage
20.4 18.4 27.3 20.5 16.O 18.8 12.8
Door infrastructure, nadequate irrigation gement and unsuitaited without proper against this backstate aided peasant engthened.
7 formulated in the Indations for future sts in Sri Lanka. settlement policy rds disposal of land stablishment of the
peasants upon the land, development of markets for their produce, raising their standards of living and easing the
pressure of population in the Congested areas of the Wet Zone. It was around this time that the unique method of settlements, called the 'peasant proprietor system' was established. Under this system, first tried out in the Eastern Province, peasants could obtain land for food production on conditions that enabled them to preserve the ownership of the land. But this gave speculators an opportunity of using the peasants to obtain land and the system failed to work satisfactorily and the peasants did not seem to benefit. The outcome was the appointment of a Land Commission in 1925, which submitted its report in 1929. This report proved to be a turning point in aided colonisation and all subsequent settlement projects were primarily based on its findings.(See 1 Box ón page 7)
Government Sponsored Settlement Programme after the 1930's
During the 1930s the Dry Zone of Sri Lanka became the leading area of the government's development programme and policies. One of the main strategies was the opening up of irrigation settlements. Government sponsored Colonisation Schemes and peasant families were given land by the government under different irrigation schemes. Several economic, social and political factors influenced the acceeration of this development in the 1930's.
a) The situation within the plantation agriculture sector of the wet zone deteriorated with the rapidly declining trend in export earnings. The wet zone plantation economy which had contributed a large part of the GNP could no longer maintain its population properly and many were simply 'pushed' out. b) Declining export earnings affected imports which created a severe shortage of food. The rapid increase of population and the growing demand for food stimulated migration to the Dry Zone. c) Comprehensive investigation of the government land policies and important recommendations for future changes of the
ECONOMIC REVIEW, SEPTEMBER,1986.

Page 9
and and irrigation programmes had been given in the Report of the Land Commission 1929. Suggestions were made to change government policies in order to protect the peasantry. The recommendation of this report were adopted as a policy guideline by the government. d) in 1931 a separate Ministry called the Ministry of Agriculture and lands was introduced, and power of policy formation had been transferred to the first Ceylonese Minister Mr.D.S.Senanayake who headed this Ministry. Since then attempts were made to implement a national development plan which had long term agricultura deve
opment as its basic objective.
As a result of the above factors, colonisation programmes in the Dry Zone were strengthened. There was a breakthrough of the colonisation poli
cies in the 1930s and the settlement
of people in large irrigation schemes.
were implemented to achieve the following objectives:
a) increase food production, particularly paddy, by opening up irrigable land. b) Relieving population pressure of the densely populated wet zone as well as the southern parts of the country by shifting the land less unemployed population to the dry zone areas in which land and irrigation water could be provided. c) Provision of employment opportunities to the increasing population. d) Protection of the peasant farmers as a class. e) Promotion of agricultural development in general.
ECONOMIC REVIEW, SEPTEMBER, 1986.
These governmen nies experienced pro closely linked eithe directly with other government as well. of peasantry throu poor peasants was th available to eliminat of political instab after the 1848 peasa tish began to adopi attitude towards the Secondly, the settle was the leading sour in the non industria nomy in Sri Lanka by the British. Thir the plantation secto agriculture was not vestment and it w peasants who were food production unc tions. In the light of degree of achievem mic objectives wer only on the efficie of the officials but a lity of an administra implement the progr the attainment of th pended on the effic tion and land. The zation Were ambiti
 

It sponsored coloblems which were ar directly ör ininterests of the The preservation gh settlement of he only alternative e various elements ility. Particularly ant revolt', the Brit a more cautious : rural population. 2ment programme ce of employment commodity ecowhich was created dy, in contrast to r prefit, Dry Zone attractive for inas only the poor able to settle for ider difficult condithis situation the ent of the econoe dependent not ncy and attitudes also on the suitabitive machinery to ammes. Moreover, nese objectives deient use of irrigapolicies of colonious in many res
pects. However, it appears that this policy was influenced by the desire to promote general peasant welfare and the attention paid to its practical impfications or to production requirements was not enough. This was reflected in the selection of settlers and the concern to solve some of the wet zone problems simultaneously. Even though the government's land policy had at times succeeded in removing some of the traditional features of the peasant sector and made proper physical arrangements, it failed to find solutions to the problems of peasants in terms of productivity of irrigation water and productivity of labour. The new policy was successful first and foremost in finding lands for some of the landless peasants but the procedures followed in cultivation had failed to take stock of the knowledge associated with a modern irrigated agricultural system.
The main reason for these defects was the absence of peasants representatives who could participate in discussions about the new policies and their implementation. Those in the higher positions of the administrative hierarchy were invariably drawn from the elite urban sectors of the Community and even if they were supposed to have a rural background, their outlook and interests were based in the main ctities. Their awareness of the reality of the rural peasantry was therefore limited. In the economic background of the 1930s the demand for land was very acute. But not every person who received and utilized it carefully and efficiently. This is, of course, logical since the basic consideration of the authorities in selecting people was population pressure, indebtedness and landlessness. A majority of the peasants selected for land alienation in the Malay settlement located in the Hambantota district, of the South of Sri Lanka, had their basic qualifications as salt collectors of the Hambantota salterns. They did not have permanent jobs, a knowledge of agriculture and had hardly any interest

Page 10
in agriculture although they were settled as farmers. In this settlement area there was also land which was owned by Muslims who were not engaged in agriculture but who rented it out to Sinhalese tenants. This happened despite all the regulations regarding transfer or sale of settler's land. Although the government reserved the legal right and power to eject any settler who did not cultivate his land, it was not an easy task to take over such land even if the farmer did not do well. Taking over of the land legally alienated under the peasant proprietor system had to be done through legal bodies which required satisfactory legal proof. It was not possible to take-over any land that was , being cultivated by tenant cultivators since the agreement between owner and tenant was informal. The Minister for Agriculture and Lands Mr. D.S. Senanayake was unhappy with the situation. His strong and positive attitude towards the peasant proprietor system appeared to be one of the main obstacles to a fuller transformation of the land to peasants. He suggested that the first batch of settlers be taken as an experiment and that this experience be examined to find out whether those farmers were cultivating successfully rather than alienating all the land at once. If the land use by the first batch was not a success there was no need to repeat this alienation programme experiment. Allottees were to be selected on this basis. However, this method could not provide sufficient evidence for understanding the ability and interest of the farmers. This led to a strong commitment of more productive land to experiments. Secondly, in this type of checks and balance process, if further alienation was postponed or prohibited more capable farmers would also be deprived of land.This policy on the other hand was beneficial to the more rich and progressive farmers rather than the poor which was the main target of the settlement programme. Once the land was alienated there was no way of supervising the cultivation
work of the farm widespread malar the shortcoming programmes durir
In 1935 an a bring the land more systematic sanction to the la settlement progra ment by introdu lopment Ordinan was possible aft this Ordinance t tenants and own reduced by provi to the cultivato would have the tenant of his ow This would en tenant farmers to tivation and une urban areas also agriculture. The lopment was acce 1936 land aliena only urder the p also under the
system.
The govern mer middle class farm siderable interest tial investment Howevër, a midd privileged person earn his living by was a businessma riculturist. When such a person owner who tend cultivated by teni very rarely that licants cultivated mily labour. LC the State Counci other independer attention on th this land policy ciently to the C culture as expec actual achieveme The major obse rapidly increasir
poverty among
trary to the exp the main reaso
 

ers. On the whole a a epidemic added to of the settlement g 1930-35. tempt was made to ise practices into a control giving legal nd development and mme of the governcing the Land Deve-e No. 19 of 1935. It r the enactment of at the gap between ers of land could be ding legal protection r. No land owner power to deprive a hership to such land. Bouraged the poor ) continue their culamployed people in could be settled in Drocess of and develerated because after tion was made not rotected tenure, but unprotected tenure
ht presumed that the ers Would show Con
and made substanin cultivating land. le class farmer Was a who usually did not cultivating land; he n rather than an ag
land was given to
he became a land ed to have his and int cultivators. It was he middle class appland employing faoking at this trend, debates as well as it observers focussed e question whether contributed Suffievelopment of agried and whether the nts were sufficient. wation was that the g indebtedness and he settlers was concted goals. This was why the Minister
Mr.D.S.Senanayake was concerned and he pointed to the experience of the peasants in the Dry Zone who had
been experiencing numerous hardships
for decades; he maintained that they
wanted not only the land but also a
fully equipped settlement. The heated
debates that ensued when the Aided
Land Colonization Bill was presented
by D.S.Senanayake as Minister of Agri
culture in 1939 in the State Council
reveals a precedence of politics over
economics in the concept of the whole
idea.
Yet aided colonisation in the Dry Zone did not make much progress. In the Legislative Council criticism of members like Dr N.M. Perera and Mr Philip Gunawardena was harsh on the entire settlement policy. Whether it was the Minneriya scheme, or the Tabbowa scheme in Puttalam district or Pitigala scheme in the Galle district or Deranagala scheme in the Matara district it was found that the performance of most colonists was disapointing. An Economic Survey of the Ministry of Labour, Industry and Commerce, which carried out a detailed investigation into the Tabbowa colonization scheme maintained that there was no clear idea of what the scheme intended to achieve. in this context it stated "A colonization scheme should, as far as possible, serve one clearly defined objective. A mixture of objects is often fatal to success. We should make sure whether our aim is to increase food production or create a peasantry or simply relieve congestion of population in other areas, or do something for unemployed or ill-employed people of the country'. -
At Nachchaduwa a project where some families were settled on five acres of paddy land each with all the assistance failed for lack of interest among the settlers. Sickness and inability to repay the cash advance also contributed to the failure of the projects. A number of unassisted less am. bitous survived but these could not be considered successful tests of land
settlement.
ECONOMIC REVIEW, SEPTEMBER,1986.
ޗަރ

Page 11
The New Policy in 1939
During the 1930's the involvement of the authorities in land and settle
ment activity broadened considerably. ܓܝ
The take-over of the restoration workat a high capital cost- was of course a very clear indication that peasant labour efforts were not deemed good enough. But there were all types of interventions such as: the construction of irrigation channels, roads, soil research and the provision of engineering services. Subsidies were granted for jungle clearing and for the procurement of agricultural implements. Credit facilities and seed were also provided by the authorities. Hospitals, sales centres and co-operatives were constructed at government
expense.
Following the expansion of welfare measures of the government, the farmers tended to become highly dependent on external assistance to carry out even the activities which they could perform with their own abour. With increasing welfare aid and assistance the settlers began to feel that a Ready Made Colony with various kinds of facilities should be given to them by the government. Indeed, this entire policy came to be characterized as 'spoon-feeding'. With the increasing involvement of the Government, the cost of the irrigation settlement schemes increased faster than their benefits. And the heavy involvement was often coupled with a low discipline. The government had in fact to employ outside labourers. For example, at the Minipe settlement scheme the government employed about 1600 labourers for jungle clearing in the allotment of farmers, but only about 20 of them turned up. Most of them did not know how to handle an axe (Record of Colonisation Office 1946).
According to several estimates (B. H. Farmer 1957, The Agricultural Plan 1958) the Government spent about Rs. 12,000/= to 15,000/= to settle one family in a state sponsored Colonisation scheme. When the financial aid
ECONOMIC REVIEW, SEPTEMBER, 1986.
for housing and tance were taken the government's family was a But the return
was not at all Sati the output ratio schemes was on to the Gall Oya report (one of the projects with the investment) capit about 3 percent. water use was C. main cause for th government spc schemes. Irrigatic ween 15 to 20 a higher than the which ranges fro
in 1939 the re. Colonisation pres tive Council by t culture and Lands 1) that farm size
to make the independent, 2) specific plani 3) a liberal sys 4) systematic pla
Nine settleme over 14.000 acres established durin 1947.
The period 19 an accelerated dis the Land Develo 1935. Over 6000 were given to ab The scheme of change. Farm size to three acres p acres of highland. reduction in farm paddy land and th were that: 1) family labour for the optir large farms, 2) a large numbe given the limit loped land. The most im took place in this opment of the G
designed for:

ther forms of assisinto consideration, cost for a settler bout Rs.25,000/=. from these schemes sfactory. As a whole of the colonisation ly 17:1. According project evaluation a largest colonisation highest government at outlay was only Low efficiency of Onsidered to be the he low return in the nsored settlement n duty ranged betc.-ft. This Wvas much actual requirement, m 3 ac ft. to 5 ac. ft. port on Aided Land ented to the Legislahe Minister of Agri
recommended: should be sufficient settler economically
ning of cultivation, tem of assistance, anning of projects. nt projects covering of paddy land were g the period 1935
48 to 1955 brought sposal of land under pment Ordinance of 0 acres of rice land out 16,500 settlers.
assistance did not was reduced in 1953 addy land and two The reasons for the
size from five acres hree acres of highland
was not sufficient num cultivation of
of persons could be ed resource of deve
portant event that period was the deveal Oya Project. It was
1) the agricultural development of 42,000 acres (32,000 acres in paddy land and 10,000 acres in sugar cane) 2) flood protection, and 3) provision of domestic water to over
20,000 farm families. By 1965 the project had established over 30 villages and about 12,000 families in both village expansion and major colonisation areas. Farm size was four acres of paddy land and three acres of highland which was later reduced to three acres of paddy land and two acres highland.
Settlement Schemes after Independence in 1948
Inspite of several changes in the administrative Set-up the main features of the settlement schemes in Sri Lanka were almost the same even after independence. In the main the welfare oriented approach continued. Both the administrators and the people began to enjoy their newly won national freedom during the 1950's, and it was therefore difficult to limit the privileges and facilities given to the settlers during the colonial time. The dynamics of the situation rather underpinned a strengthening of the welfare programmes. The government's generosity was especially extended to health and education aspects. Massive anti-malaria campaigns helped to eliminate one of the recurrent plagues of the dry zone. However, the administrative apparatus was weak and co-ordination was lacking. The System of central planinning consisted merely of a synthesis of sectoral investment programmes for agriculture, education, transport and communication. There was no attempt either to study the projects in required detail or to co-ordinate them for the purpose Of OVera|| al location Of resources. There were only such general principles that high priority should be given to investments that fostered the development of the sparsely populated dry zone of the country. Finally, as a resuit of the national health programme

Page 12
the population in the Country began to increase more rapidly than ever before.
The situation was thus very complicated with three interlaced characteristics: an official policy which had to be welfare oriented and oriented towards a geographical area which was to a large extent previously underdeveoped and underpopulated but which was to accommodate a large number of immigrants and a growing population.
in such a situation it was natural that there should be unwanted deviations. The most obvious side-effect included encroachment of crown land, subdivision of allotments and tenurial practices such as lease, share Cultivation etc. The sub-division, sale mortage or lease of land was prohibited. But the legal aspects did not prevent the settlers from disposing their allot
ments. Especially among the children
such division of the allotment was common. The cultivators who subdivided their allotments had difficulties in obtaining credit from institutional sources and were therefore dependent on non-institutional sources. As a result leasing of paddy land on the basis of mutual understanding between the cultivator and the person who was preapared to provide the finance became a common feature of the settlements. Finally, the actual holder of the land became the tenant on his own land and the operational landlordship was taken over by somebody else. This gave rise to an inequitable distribution of land and wealth within the settlement schemes. One reason for this illegal development was that the alienation process did not move fast enough to meet the increasing demand for land and the delay in alienation diminished the interest of the peasant in obtaining land in the 'correct' way.When they could not lease any land and when there was no other means of livelihood the peasants rather than wait for government to alienate land, started to enroach on crown land. Thus by 1956 an extent of land totalling 30,000 acres had been
O
encroached on by
(Sessional Paper 1958 nisation schemes the extents were higher extents actually alien lers. The most cruc from this process problem of the availal of irrigation water in Water disputes incre of the misuse of irri en Croached land and disharmony. Use of for an additional ext wastage, evaporation a and lack of propoer affected the storage c ciency of performance System.
The enactment of | Act in 1958 was one and important remedi, the Government to av problems listed above small farmers were n of a greater security more equitable share but they were for t settlement history, afi provided with an orga mote their interest. O tives of this provisio the rights to land cult cultivators. The ejectr cultivator was made fence. Tenurial rights C nant cultivators, if an sorted to.
A second step was the monopolistic rig owner to reduce or i rent in a manner det tenant cultivator at ar of this provision the was required to pay ti a fixed rent of only production or 15 bu per acre, whichever wa
These measures co, tenure and the regula were not successfully anticipated by this A cultivation, indirect le even today remain im

28,000 people. ). In some colototal encroached
than the total
ated to the settial issue arising was the serious bility and supply the settlements.
ased as a result gation water for it created social irrigation water 2nt, Scarcity and ind run-off losses management all apacity and effiof the irrigation
he Paddy Lands of the popular a steps taken by oid many of the With this Act, ot only assured of tenure and a
· of production he first time in er colonial rule, anisation to proine of the objecin was to ensure ivated by tenant ment of a tenant a punishable ofif the ejected teiy, had to be re
the abolition of ht of the land
ncrease the land
erimental to the ny time. In terms tenant cultivator
o the land-owner 1/4 of the total shels of paddy as less. fering security of tion of land rent
implemented as ct. Ande (share) Base of and etc. portant features
of the tenurial system in the Dry Zone. Even after the Paddy Lands Act, the 'Ande' system was practised as before but in hidden forms in order to evade the law. The most fundamental defect of the Paddy Lands Act now appears to be the failure to recognize the strength of the traditional bonds that so closely tied the tenant cultiwator to his landlord. It was therefore inevitable that tenant cultivators would not co-operate to implement the law, as they had a fear of losing the cultivation under the Ande sys
te.
Under this Act an attempt was also made to introduce a village level body called the 'Cultivation Committee', based on ancient villagers' own organisations, such as Gamsabhawas. This Committee was supposed to consist of representatives of all classes of cultivators for the purpose of attending to all matters of cultivation including planning, construction and maintenance of irrigation works and other village work. The Committee was given the power to investigate land disputes, the right to prosecute in case
of cultivation offences and the autho
rity to promulgate and enforce irrigation regulations and the annual cultivation calendar... Theoretically, members of the Committee had to be elected from all social strata, but in practice the involvement of poor farmers and ternant cultivators was very insignificant. Since the tenant cultivators
often had a fear of being ousted by
their patrons they were constrained from opposing the election of the landed gentry to positions of office in the cultivation committee. In many cases former vel vidanes (irrigation Headman) (who were referred to as a 'Colonial anachronism') and their subordinates continued to hold key positions in the Committees.
The disputes regarding irrigation, land and other issues were supposed to be settled by cultivation committees in the first place. Therefore, wealthy landlords who were in the Committee, determined to their own advantage and there was little chance to oppose such decisions.
ECONOMIC REVIEW, SEPTEMBER, 1986.

Page 13
Prior to the setting up of Cultivation Committees, the regulation of cultivation and control of water were carried out under the irrigation Ordinance, which laid down the duties and obligations of every cultivator together with disciplinary procedures to ensure the observance of those rules. With the introduction of the cultivation Committee system cultivation discipline and maintenance of irrigation works suffered a deterioration. Legal power of the Committee was poor because in many cases action taken by the Committee was not accepted due to the problem of legislation. On the other hand this Committee could not be legally constituted because of the non-cooperation of the cultivators.
Secondly, although the Committees had been formed disciplinary action for non-performance was still enforcable only under the Irrigation Ordinance. The Committee could not take action against cultivators. Therefore the misuse and mis-management of irrigation water and land could not be controlled as expected. The defects of the village level administration bodies also represented the defects of the entire administrative machinery. With increasing departmentalisation not only was the Government Agent's authority progressively eroded but also the officials who headed the district branches of large government departments were inclined to enforce their independence from the Government Agent's Office and establish their lines of Communication direct with their departmental heads. It was difficult to maintain a satisfactory discipline on irrigation and land at the settlement level mainly due to the lack of co-ordination between the officials of the various departments. The Department of Agriculture was responsible for agricultural extension. The Land Commissioner's Department was responsible for administration of crown land and its disposal for agriculture. Agricultural inputs were handied by the Department of Co-operatives. The Agrarian Services Department controlled and administered the
ECONOMIC REVIEW, SEPTEMBER, 1986.
Paddy Lands Act mittees. Admini of irrigation netw sibility of the li The impact of d the settlement and a smootheni which were pass therefore the each other. Mc favoured corrup were in a positio and punishments.
The result of G at colonisation administrative se irrigation water a together with oth but not to prom peasant or the
and cultivation p.
left settlers wit cultivate paddy according to the cultivation practit
No provision animals in the Schemes, as con paddy Cultivatio the settlers losing along with the r supplementary c and eggs. This sit or directly restri of secondary ac settlements.
inadequate pa tlement areas c. animal husbandr Was difficult at purposes in the were often forced into the jungle C maintenance. Cor an acute shortage loes during time settlement areas, some of the ani jungle turned wild When the irrig available to the st
tion was to cu though the land because of the m stability and secul

and cultivation comtration and control 'orks was the responrigation Department. epartmentalisation at vel was inefficiency ng of responsibilities, ed on to others and Departments blamed reover, this system tion since officials to divert complaints
overnment's attempts within the above t up was to provide nd land to the people er aid and assistance; lote the skills of the traditional irrigation ractices. This system n no choice but to with irrigation water r own traditions and
CeS. was made for rearing large Colonisation plementary to their n. This resulted in their draught power nutritionally valuable liets, such as milk uation indirectly icted the promotion tivities within their
Sture Within the setaused problems for y. Rearing of cattle east for cultivation settlement. Settlers to drive their cattle ue to difficulties in sequently there was of cattle and buffaof cultivation in the particularly since mals driven into the
jable land was made ettler his main intentivate paddy (even
was not suitable) larketability, income ity of paddy as com
pared to other crops. Secondly, highland cultivation with rain water and subsidiary food crops cultivation in the irrigable lands were totally neglected by the planners. Furthermore,the identification of crop combinations, careful examination of available technology and other facilities, required guidance on relative profitability of growing different types of crops, ensuring availability of inputs, provisions and markets were the most important measures required in the concentrated efforts supposed to be taken by Government planners and extension officials; but an organised plan of action of this nature was not forthcoming.
The possession of a paddy allotment was a matter of prestige for a farmer and was supposed to reflect his standard of living. Much of the government assistance and subsidies were also given to the paddy cultiwators and Colonisation schemes were organised accordingly. Considering the |low lewe of income and the labour requirements to cultivate between 3-5 acres of land a settler was able to cultivate only paddy since it required less labour and low investment Compared to other crops.
identification of the size of an allotment as a viable economic unit, was a crucial problem of the settlement process. An allotment consisted of 5 acres of paddy land and 3 acres of highland in earlier settlement schemes. But this was too large for most settler families to handle alone. Therefore, settlers were compelled to extensively cultivate the land, as well as lease out the land or give it on ande (share) cultivation or sub-divide it among their children. In 1955 the standard size of the allotment was reduced to three acres of paddy land and two acres of highland. By reducing the size of allotments the government was able to reduce the cost per settler and provide land to more people. At the same time, settlers could earn the same income without using hired labour or machinery by intensive cultivation methods. In the 1960's an allotment size was
1

Page 14
reduced further to two acres of low and and one acre of highland. The main objective of this step was to provide allotments (whether it was sufficient or not) to the increasing population of the country. In the early 1970's the size was changed again because two acres of paddy allotment was not sufficient for a settler family.
However, all these measures were not sufficient to promote the cultivation practices and irrigation water use of the settlers. By reducing the size of allotment intensive cultivation was
achieved to a certain extent; but the
cropping pattern had not changed. This was mainly due to lack of physical and agricultural planning. While the cost of irrigation increased rapidly the management of such costly irrigation water remained a crucial problem of the settlement. Even now the engineering and technical aspects of the irrigation and settlement schemes play a dominat role while the agriculture and social aspects are given low priority. The land which could receive irrigation water from channels is being considered as paddy land whether the soil suitable or not. Various studies have found that insufficient attention is given to the quality of soit, local beliefs, land use and irrigation practices; while the long experience in settlement policies seems to be disregarded.
After 1956 a form of social revolution which gave the people greater confidence to participate in the political system also resulted in a demand for more resources. Land was the resource most in demand and the need for land now was much greater than in the earlier period. in the late 1950's and early 1960's the general view was that disposal of land should be further accelerated although the limiting fac
tors were the lack of capital and man
power for the development of land. To meet this situation a major change was made in the timing of the arrival of colonists to the project. Under the new system the settlers participated in the construction work and earned wages; in areas with a shortage of
2.
labour for construct works and cana di settlers filled in the g were not only more their new environme ging in their families greater sense of p ownership in the pi system of land dis illegal soquatting in irThere was rapid disp 35.000 settlers bene scheme covering an 90,000 acres of paddy
During the 1960s Government in Sri phasised land settlem strategy for creati opportunities for poor segment of the The tvo leading poli
came into power ove
sidered and se icy as a stabilizer for While doing so they with deep problems economic and politi same time. From the strategy has been import substitution. couraged by being teed price for paddy supply, introduction varieties and fertilize was an impact of th average paddy prod irrigation settlemen
 
 

ion of irrigation evelopment, the ap; the colonists
acclamatised to :nt (before brin) but also had a articipation and rojects; the new posal minimised rigation projects. osal of landover Fitted under this
extent of over f land.
and 1970s the anka further efnent as the major ng employment the unemployed rural population. itical parties that r this period conttlement pOOtheir own power. I had to struggle in achieving both cal goals at the
1960s settlement
directed towards
Farmers were en
rovided a guaran| a greater credit of high yielding r subsidies. There ese incentives On uction. In major ts such as Uda
Walawe, Parakrama Samudra etc. paddy production increased beyond the national average. In addition to the usual settlement programme, a concept of special projects was also adopted to increase food production. However, those projects showed progress due to a higher concentration of assistance and foreign aid support. With the introduction of the new technolo. gy package a large number of intermediaries began to play a leading role at the grass root level because market opportunities were increasing for the sale of inputs and purchasing of farm products.
From the beginning of the 1970's however, economic problems began to increase much faster than the achievement of land settlement and developmeրt.
Of a 4.1 milion Work force in the country about 0.55 million were estimated to be unemployed. Among the unemployed population 67 percent were male and 33 percent female. More than 75 percent of those unemployed people were in the rural sector. The employment opportunities in the urban sector were greatly limited and about 14,000 graduates and 112,000 G.C.E. A/L qualified youth were without jobs because the Urban Sector could not absorb unemployed people due to non-industrial development tendencies in the country. In 1970 and
ణిజ్ఞ నీళ్లఖ
、ធ្វ developæ to maximse production ೫೩8 BRD (FAO, mission that visited Sri Lanka in 1966 The ob
duction through improved methods of skrivaron institutional arrangements in respect of marketing, credit and farm
ECONOMIC REVIEW, SEPTEMBER, 1986.

Page 15
1971 the economy was expected to grow at a reasonable rate to absorb a considerable proportion of the new labour force. But the growth rate kept falling from 4.1 percent in 1970 to 2.9 percent in 1971. The price of imported goods increased by about 33 percent and most of those imports were essential food items.
The growing food crisis was further accentuated by all those factors, with
ECONOMIC REVIEW, SEPTEMBER, 1986.
 
 

many serious implications arising from this situation. Important among them were the youth uprising in April 1971, the impact of the prolonged drought in the dry zone the rising cost of living and increasing indebtness. In the light of this situation the government's crash programme on food production was set in motion. (See Box). Greater attention to settlements and dry zone development was inevitable in any programme of food production so that the Five Year Plan, issued in 1972, laid special emphasis on irrigation settlements. While concentrating on the development of new land a step was taken to derive maximum benefit out of the land already settled through a programme of crop intensification and crop diversification. This approach became a popular feature of the Government's land settlement strategy in the 1970s because more and more families could be settled in smaller parcels of land if improved farming methods and new technology were used as expected.
The Five Year Plan of 1972 -76 recognised that paddy still remained the crop with the largest potential for import-substitution. Paddy, therefore, received very high priority in this Plan
too, but the Plan emphasised that the
"modernisation of peasant farming cannot be accomplished on the basis of mono-crop agriculture'.
The five year Plan thus included a programme of assistance and extention for the cultivation of subsidiary food crops which upto then was a neglected
13

Page 16
area in the agricultural Sector. Accordingly a considerable part of the agricultural land was to be used for the growing of such crops. However an important place Was assigned in the Plan to paddy cultivation which still could play a vital role in import substitution. One major feature of the Plan was the very high investment on irrigation. About 200,000 acres of new land area which could be provided with irrigation facilities through irrigation schemes such as Mahaweli, Walawe and Lunugam Vehera were expected to be developed during the Plan period (1972 - 1976). In addition, irrigation facilities were to be provided to 200,000 acres of land then under cultivation. The government, however, did not expect this to be used entirely for paddy cultivation.
As shown in Table 2 a new land area of about 300,000 acres was to be developed and provided with irrigation facilities. The question was whether such a vast extent of land Could be developed and made suitable for settle
ment and cultivation within four or
five years. The Government, under its action programme, however, made an attempt to grow new crops, and expand particulary the programme of growing crops like chillies and onions. But there was greater social and economic attraction to rice production for a variety of reasons such as the insufficient progress made in crop diversification and crop rotation and other skills, lack of organization in production and marketing, unstable incomes and inadequate provision of facilities to meet the future aspirations of smallholders. About 80 percent of the increased paddy production during the Plan period was estimated to be received from the land already under cultivation and the balance from 100, 000 acres of paddy land expected to be developed for paddy cultivation. Settlement schemes of the Dry Zone were to have over 75 percent of their total extent of land made suitable for paddy cultivation. However, at the last stages of the Plan period it was found that achievements were far below the expected goals. ,
14
The programme get off the ground lopment of 300,00 was expected to five years from 19
The use of padi factory after 1970
ble climatic coi
of the land capa suitable for padd Dry Zone only percent was culti the Maha and Yala ly. Of this too, Maha season and
Yala were subject
fact is that though cultivation had in 74, there had no
1972/73 Mah Wet Zone Yala Dist. ΤΟ
Dry Zone Mah
Dist. Yala
ΤΟ
Other Mah | Dist. Yala
ΤΟ
1973/74 Mah Wet Zone Yala Dist. TO
Dry Zone Mah
Dist. Ya:
ΤΟ
Other Mah Dist. Ya
TO
1974/75 Mah WAfet Zone Yala | Dist. TOT
Dry Zone Mah
Dist. Ya
Other Mafi Dist. Yala
Source: Censu

: took three years to although the deveD0 acres of new land pe completed within 70.
dy and was unsatis) due to un favoura
nditions. In 1972
ble of being made y cultivation in the .
72 percent and 22 wated with paddy in a seasons, respective46,000 acres during
9,000 acres during
to crop failures. The the land area under
creased during 1973/
t been any increase
in real production as shown in the Table. Compared with the previous year 1972/73, paddy production in the Dry Zone during 1973/74 had declined by 9.3 million bushels. Thẽ position in 1974/75 was worse. Only 57 percent of the cultivable land could
is be cultivated due to severe drought
and unfavourable climatic conditions. Of this too, no harvest could be collected from 163,000 acres due to crop failures. On the whole paddy production in Sri Lanka decreased by 530 million bushels. (Central Bank Report, 1975); which was a drop of 57% and 16% respectively in Maha and Yala seasons. The fact that this deterioration was observed throughout the country could be seen from the ex
Table 2
JTLZATION OF RRGABLE PADDY LAND
Aswed- Cultiva- Harves- Production
dumized ted ted Acreage
(000) ('000) ('000) ('000)
2 3 4
a 380 349 327 11,768 380 272 262 8,978 AL 760 621 589. 20,746
864 624 578 41605 864 190 181 7,567 All 1,728 814 750 49,172
a. 250 216 89 6,151 250 151 131 4,347 TAL 500 367 32O 10,498
3. 381 364 360 14,590 381 306 294 10,470 A. 762 670 654 25,084
866 724 708 30,860 } 866 231 226 9,002 A. 1732 955 934 39,862
3. 250 226 22O 7,180 義 250 17 16 5,213 FA 500 397 381 12,393
謚 388 : 369 360 14,273 388 312 301 9,547 All 776 68 66 23,820
a. 878 540 377 16,127 懿 878 168 64. 6,913
3. 235 187 138 4.325 3. 4,412 153 43 255 ܗܡ
s & Statistics
EconoMic REVIEW, SEPTEMBER, 1986.

Page 17
Table 3
NEW LAND TO BE DEVELOPED UNDER NEW RRIGATION PR
1972 - 1976
Scheme New Lland. Ac
Mahawei Scheme 80,000 2. Uda Wallawe 50,000
3. Major Minor irrigation
(Mainly for Paddy) 77,000 4. Cashew Farming 26,000 5. Other permanent crops 35,000 Total 269,100
Source: Five Year Plan 1972 - 1976
tents of land cultivated in the Wet and intermediate Zone (See Table).The dramatic drop in paddy cultivation caused a set-back in economic growth. Thus it is clear that the growth rate during the five year period of 19711975 reached low levels when compared with the minimum growth rate of 6 percent expected in the Five year Plan. The average growth rate dering the 5 year period after 1970 was 2.4% compared with an average rate of 5.8 percent during the 5 years preceding 1970. The Five Year Plan based its high growth rates on development levels reached during years free of economic disasters and hopes of increased production in significant sectors such as agriculture. Although contemporary observers had expressed doubts about these targets.
For instance, an LO study team had their doubts about raising the level of rice production to 6 percent in the Five Year Plan, in the light of an average rate of a 4 percent increase achieved through a period of 20 years. They also pointed out that it was more dangerous to place such high hopes on the yield level of 1970 which was fattened by the casual rainfall of the Maha monsoon. Their estimate was an annual rate of increase of production of only 4.5 percent (LO, 1971). It was difficult to reach even this lewe in 1970S.
The most serious problems that arose from the above adverse economic condition in the 1970s was decreasing capacity of settled farmers to carry out intensive farming with
ECONOMic REVIEW, SEPTEMBER, 1986.
modern technolog debtedness and lack Various Credit Sche by the State banks liberate the farmer private money lend ders. A system of ç
more generous Way duction cost withou into operation. Sinc not adequate to rep farmers borrowed spent on inappro consumption needs, payments of villag On several occasion: were re-scheduled as and this led to fur payments and as a capacity of the ba crease. Consequent the defaulters but a neighbours who we titutional credit. G reluctant to be gua fearing that they a able to obtain loans in need of credit guarantors. When it obtain credit from the high costs of mers had no alternat private sources of way out for them w; gage or leasing out
and which created real ownership and rational ownership o'
A resolution on place in 1972 with the Land Reform L.

DJECTS
reage
I due to heavy inof credit facilities. mes Were tried Out
but they failed to
form the grip of ers and village tra|ranting credit in a to meet the proIt supervision came e their output was ay those loans, the money which was priate techniques, weddings and ree money lenders. s the loan defaults a political gesture ther default in reresult the lending nks began to dey it was not only so their innocent e deprived of inspod farmers were rantors for others so would not be Those who were were in search of was difficult to banks to meet arming these farive but depend on inance. The only as either the mortof their plots of a gap between nominal or opeland.
land policy took
the enactment of w No. 1 of 1972.
This process continued in 1973 with the State Land (Special Provisions) Sales Act and in 1975 with the Land Reform Law Amendment Act. The objects these reforms had been to impose well determined ceilings on land ownership in order to improve the legal and economic status of settlers and thereby to distribute: land among landless villagers and reduce the inequalities in land ownership and income distribution. These expectations were fulfilled to some extent in regard to tea, rubber and coconut plantations in the Wet Zone but the results achieved in regard to paddy lands in the Dry Zone were limited. This reform in fact affected mainly the up country plantations which had only about 18% of the total land area and 20% of the total population in the country. Further, the paddy lands formed only 3% of the total extent of land wested in the Land Reforms Commission by the end of 1974. This amounted to 16,270 acres. These reforms were not an adeuquate remedy for resolving the problems connected with paddy lands in an area which had nearly 82% of the total population.
De Vroey and Shanmuganatharf who reviewed the Dry Zone resettlement policy maintained that these reforms were only an alternative land reform which were inspired by class
interest on the part of the policy
makers to preserve existing property relations. It is also significant to note that a re-distribution land reform was not present in the political manifesto of any party in Sri Lanka. In other words, and settlement policy could be used to avoid or postpone radical
land reform.
In the late 1970s, diverting Maha
weli waters into the Dry Zone of Sri Lanka and the settlement of people became the major rural development activity of the Government. Under the first stage of this irrigation scheme which was the largest concerned in Sri Lanka about 6000 families were expected to be settled. This area consists Michel De Vroey and N. Shanmugarat
nam in a study (1984) on 'Peasant Resettlement in Sri Lanka’’.
15

Page 18
of several villages within System. H 1 under the Kalawewa. By 1976, the farmers were able to cultivate only a small part of the irrigable lands during the Yala season. About three quarter of the cultivated lands were subject to CrОО failures due to lack of water during the time of cultivation. This was because the water level of the Mahaweli river reached its lowest due to the severe drought gripping the entire country at the time. The farmers were discouraged because their hopes in a stable supply of water were shattered.
Present problems of land settlement
After the new government came into power in 1977 and settlement in Sri Lanka was undertaken on a massive scale under the Accelerated Mahaweli Development Programme. During five
decades of peasant re-settlement in the
country only about 100,000 families had been settled whereas under the Accelerated Mahaweli Programme about 250,000 families were expected to be settled within the short span of six years. This government saw a large scale family farm settlement programme as an effective solution to the problems of increasing poverty, unemployment and landlessness in the rural sector. The settlement planners of the Mahaweli Scheme maintain that the new settlement policy has been evolved after detailed study and pilot project experiments. While it has been enriched by the past experiences in colonization, care has been taken to avoid the mistakes of the past. But the weakness of the Mahaweli settlement that are being discovered are not much different from the major weaknesses of the past settlements.
SS
Volume IV Nos 8 + 9, Nov/Dec 1978 and Volume X Nos 4 + 5 July/Aug 1985 of our Economic Review gives more detailed information on various aspect of the Accelerated Mahaweli Programme. Our concern with this issue is to provide an overview on the current problems of settlement.
16
This was main cation of an unalt policy of providi land to the poc However, a domi strategy of land intervention und Scheme it seems entails the establis tional structure : and closely supe small scale produc new type of fami search Studies ha has frequently en of a settlement large bureaucracie jection of foreig assistance leading capsulation of far erosion of indep king in the field o' tion. The governn tlement authority system of services lizer and market access to basic re. water). Based on these authorities allowed to prod They have to p. surplus to cover in these areas by logy and inputs paddy to cash ci be achieved acci planners by a or Which Was theori an economic unit with family labou
But, in realit actually happen Settlement, acco servations. In fac was subjected to past and even to
small parcels family has led among the your to the second ge areas. The secor already exists th Mahaweli areas. tunities are crea ration settlers W.

y due to the repli}red land settlement ng small parcels of peasant families. lant feature of the ettlement and rural er the Mahawe i has, emerged which hment of an instituimed at organizing vising a system of ion units based on a y farming. Some ree reported that this tailed the setting up administration with is and a massive inaid and technical to the increasing enmily farms and to the endent decision maF agricultural producment has set up a setf to co-ordinate the such as credit, fertiing, and to control sources (eg. land and the assumptions of the settlers cannot be luce for themselves. roduce a marketable the heavy investment using modern technoand diverisfying from ops. This could best prding to settlement
le hectare allotment
'tically considered as for a family to work
r.
if this is not What is ng in the Mahaweli rding to many obthe size of allotment heated debates in the day the alienation of of one hactare to a o a serious problem people who belong heration in settlement d generation problem rough out the settled Jnless new job oppor2d soon the first genebe compelled to do
what settlers have done in the older settlement schemes. Maintaining their day to day subsistence living may be a rational decision but it might have adverse development implications due to increased emphasis on staple Crop production for subsistence purposes, reduced sales, lower net income and less employment generation over the long term.
Land settlement is generally meant for the poorer segment of the rural population. However, their choice is not to remain poor; their efforts have to be substantially advanced by the government policies with regard to land. However, one of the weakness of settlement policy was that the economic viability of small allotments tended to be judged on the advanced urban based assumptions rather than the social adoptability and capability of poor peasants. Two leading experts on Third World settlement involved in evaluation and monitoring Mahaweli Settlement implications revealed that many of the assumptions on the small family farm in the Mahaweli Scheme were incorrect. The other argument is that the economic viability of a small farm does not depend very much on its size but rather on the improvement of adoptability and capability of poor farmers through well organised training, extension, community development and other input deliveries. However, in the new settlements the planned social change is increasingly directed by monthly wage earning urban based officials who are more exposed to urban values.They perform duties rather than effectively work with weaker groups. This often leads to
an unequal access to the common ser
vices and reduces the capabilities of settlers. A recent expert study on the settlement problems in the Mahaweli Settlement described these conditions of new settlers as follows:
The major conclusion of our present assessment is that net incomes of the large majority of settlers households in even the oldest Mahaweli Settlement areas have not yet moved beyond the susbistence level. Indeed in
ECONOMIC REVIEW, SEPTEMBER, 1986.

Page 19
a significant number of cases in both Systems 'H' and Zone 2 of System 'C' living standards actually appear to have dropped at the very time in the settlement process that they should be going up, if the settlement component is to catalyze development.....
Less than 20 percent of the settlers in the project area have been able to complete the construction of their pere manent dwellings. Many farmers defaulted on low interest government loans primarily due to crop failures in successive drought years, making them inelligible for future loans.
These observations indicate the possibilities for discontent with the peasant proprietor system which is emerging under the present land settlement policy. The situation is such that in many areas settlers do not have the ability, knowledge and capacity to own and improve their land. They lack good housing, good living conditions, self respect and a say on public questions. As a result of such factors the possibility of their getting organised as a group and mobilising opinion in their favour is limited among these poorer settlers. However, their problems are being taken into consideration and new attempts are being made to improve their conditions.
This kind of policy involved slight changes of the administrative system, without any alteration in the basic approach. This was a farely consistem feature of the land Settlement policy. It has been argued that this policy of settlement management has involved only slight changes in the administrative system, without altering the basic approach of the existing policy. This basic approach has been maintained since the 1930’s, with only slight modifications. De Vroey and Shanmugaratnam in their study (1984) have explained these trends of recent land settlement in the country as follows: -
“In the light of these theoretical
considerations, what lessons can be drawn from our empirical survey? Three features can be pointed out.
1. The study reveals an increase in the importance of commodity production for trade and of monetization, along with a relative decrease in importance both in domestic and in
ECONOMIC REVIEW, SEPTEMBER, 1986.
collective good effects of the W 2. It also confi independent unviable. Dif.
manCeS ass Ong come discrepa between welland those whic the brink of ba 3. However, desp and the failure ditions for a producer syste velopment of has emerged.
These two re following comme sence of develop relationship in th culture phases C followed by pha makes agriculture zation of regula. during the peak anaount of labou. length of labour peaks it would fore, the utilizat labour seeins no implies that suc not have the ful ners. Furthermor culation within 5 production is int troduction of a un necessary. Far: sed, numerous a: a small amount C number of big ir power usually lea of the latter. The changing this strl cing the wage rel ling situation is them for two hand, through c they can obtain monetary surplus from an exploita relationship. On do not have to rial risk which is the farmers.
The situation raises certain iss vance to the pr transition in an e
 

ds(the narrowing of elfare State). ims the idea that an producers system is ferences in perforfarmers leads to inncies and to a split performing farmers ) are bankrupt or on nkruptcy. ite this monetization i to maintain the constable independent sm, no significant dethe wage relationship
searchers make the nt regarding the abment of a real wage is situation. “In agriof peak activity are ses of waiting. This e unfit for the utilir wage labour, since periods the required r exceeds the normal time while between be quite low. Thereion of seasonal Wage re adequate but this h wage-labourers do 1 status of wage-eare, the structure of cirwhich the agricultural egrated, makes the infull wage relationship mers who are dispernd who control only if money, face a small termediaries. Market ins strongly in favour By have no interest in acture and in introduationship. The prevaimore benefitting to easons. On the one irculation of profits, the same or greater than they would get tion profit in a wage the other hand, they bear the entrepreneuentirely supported by
in the resettlements ues that are of releoblematic of agrarian conomy that has gone
through a very long process of commoditization under conditions of underdevelopment. Peasant resettlement has been going on in Sri Lanka for over fifty years. The state has been the main agent in the creation of resettlement schemes. With time the scale of state investment has also been growing. But when we look back at the whole experience it looks like an endless exercise in extending petty commodity production which has
neither given way to large scale capitalist farming nor solved the problems of landlessness and rural poverty it set out to tackle.
This has brought about a physical limit to the extension of peasant resettlement. After the much publicised Mahaweli project, Sri Lanka will not be left with any major river basins or vast stretches of uncultivated but potentially arable land for future development. But landlessness and rural poverty will remain".
In answering the question of what went wrong, their interpretation is that: “It was the belief of the policy makers that the solution to rural poverty and landleness was to resettle poor and landless peasants on lands developed by the State. But as Sri Lanka approaches the extensive margin of land for resettlement the problem remains as intractable as ever. The lesson is that resettlement by itself is no solution to landlessness. The easy explanation for the situation is population explosion, but that explanation could only further confound the misconception that the solution to the problem is land. Population growth within the given context would certainly compound the problem but cannot be the cause in any way.
The causes of rural poverty and landlessness are to be found in the basically untransformed structures that have perpetuated underdevelopment. The strategy of land colonization has failed as a solution to the problem of landlessness and rural poverty not through its own demerits alone. The primary cause of the problem lies in the inability of Sri Lanka's economy to generate a capitalist dynamic of indistrial transformation. The strategy of land settlement is not only a pro
17

Page 20
duct but a victim of this incapacity which is the final result of the political and economic actions of the class/ classes which wield power'.
Contrary to what the above analysis advocates those responsible for planning and implementation of settlement policies have given greater emphasis to their original goal of regenerating a self-sustained and independent family farm economy through the equitable distribution of land, water and other resources. The success of this programme is being proved through statistics on the progress of land development and settlement. According to this data more and more people are becoming proprietors of land and overall production is on the increase. Social unrest in urban areas and other overpopulated districts had also been reduced by settling more people on the land. Therefore to this extent land settlement has had an impact on Sri Lanka's society and economy. However, contrary to the popular notion of egalitarianism which was expected from the policy measures and legal protection introduced over the last five decades, growing inequalities leading to social differentiation has become more apparent in recent settlements. This aspect too is reported on in the study by Michal De Veroy and N.Shanmuganathan as follows:
"The leagalistic approach ignores certain basic laws that operate due to inequalities in physical, financial and intellectual resources within a community. -
In this instance the concrete manifestation of those inequalities, even when land is assumed to be equal, are found in the individual economic strength, access to water and other inputs and institutional sources of credit, marketing and technical knowhow among the settlers. The process is more clearly present in the colonization schemes in the entire country. The upper levels of those communities include members of non-settler origin who have usurped land by illegal means. Thus the law has become a dead letter and statistics of size and ownership based on official documents are bound to be misleading'.
Another viewpoint specific to settlers in the Mahaweli project was
18
put out by Thoma study on "Social Di Peasant Colonization tes Kapila Wimaladi Additional General M.D.B. (Settlements who portraying the future Mahaweli Socie
"with the progres weli settlements are vance from tradition ciety, from subsisten farming, from bureat patory management. settlement policy air tion of economic di an egalitarian land te form ownership pa settlers are aided by come affluent farner fellow-men elsewhere
These statements of the expectations de theories of the don settlement policy and ning current at the tir discussion attention w inequalities in peas: schemes tend to em quence of the curren schemes. Typically, t based on the principl. ming relying on new t percent probability o! ted agriculture, and freeholdings. The foi are apparently not pc the high costs involv ting such projects. corresponds to the ment of most Third ments to encourage SI become modern agric
seUrlS.
A fact not often ta ration is that a comb such as those applied colonization schemes and social viability. duction in these sch new technology can by irrigation water, h highly profitable. Ho lies only o tine few

S Krimmel in his
Fferentiation and
", where he quonama, the former
Manager of the
and Operations),
image of the
ty wrote:
s of time, Mahaexpected to ada to modern soCe to Commercial |cratic to particiThe Mahaweli ns at an eliminasparities through } nure and an unittern. Mahaveli the state to beS relative to their in the island'.
are an expression riving from basic hinating ideas on settlement planne. Earlier in this as drawn to how ant Colonization
erge aS a COinSeit design of such hese schennes are es of modern farechnology, an 80 F success in irrigaon small peasant mer two factors issible because of ed in implemenThe third factor political commiti World governmall producers to Cultural enterpre
ken into consideination of factors to these peasant lacks economic Agricultural proemes, when the be supplemented as in fact become
wever, this app
who can afford
to participate in this kind of agricultural production. The majority of the small producers cannot bear the risk involved in such a high input/highyielding technology that has to be employed in order to comply with the requirements of irrigated agriculture. The risk of production is further emphasized by the rate of success calculated for the irrigation system. It is evident that a theoretical 80 percent success does not necessarily secure large profits for every settler in four out of five years. Rather, it means that, on the whole, the total output in the project area will prove the scheme to be a success. As can be seen from the performances at the indivi: dual farm level, this pattern varies considerably from one settler to another. The disaggregated analysis highlighted that there are always a few who manage to reap profits, no matter whether the whole are suffers a drought or produces a bumper harwest. Simultaneously, there are also those who always lose or at least profit much less- not enough to keep on sustaining themselves. This is because they are either unable to economize on costs of production or because they are unable to achieve profitable yields. Of course, this latter aspect is considerably dependent on the design of the irrigation system and on factors such as the quality of the soil. Buts success is also influenced by power, influence, knowledge and material resources. As a result of the highly uneven resource endowments among settlers differentiation continues in spite of a formal equalization. The individual allotments, originally distributed evenly among the settlers, rapidly change hands. A few are able to accumulate land and wealth, whereas in the long run, the majority of the
poor allottees are condemned to lease their plots - with only few exceptions. Employment prospects for those however, who, in the course of this process, are marginalised do not look too rosy; as they cannot be easily integrated in urban-industrial society.
ECONOMIC REVIEW, SEPTEMBER, 1986.

Page 21
It seems unlikely that a livehood can be found from casual agricultural wage abour, either since there could be considerable underemployment preavailing throughout the year, with only a few concentrated periods of peak labour demand during field preparation and harvest.
Whether it is the tenurial conditions, or choice of suitable settlers or irrigation and farm management practices there are laws and regulations governing each of these for particular and settlement schemes. Apart from the structural constraints these various features face there is also often the lack of political will which prevents the legal provisions from being fully applied. For instance, the 'minor' deviations in the pattern of holdings of equal size in a major settlement project were looked on as a kind of self-adjusting mechanism or a reward for the pains of those who could acquire a little more. A key officials of this project is reported to have responded thus to a question on this issue:
'Of course, we are aware that some people are cultivating more than their 2.5 acre plot. There are always some who are more alert, who take the initiative and who work harder than others. Why not? Let them accumulate'.
But as observed in the earlier analisis on this process of accumulation, permitting this type of social differentiation encourages polarisation of a few better off farmers and the majority of poorer ones. It finally amounts to the failure of the peasant colonization scheme in so far as it does not
solve the problems for which these
schemes were originally intended, namely, to improve the lot of the land. less and rural poor. As maintained at the outset of this Report land settlement and land reform measures were intended to improve the lot of the rural peasantry.
ECONOMIC REVIEW, SEPTEMBER,1986.
To quote fre 'Development a Dunham raises such schemes mus moted despite lin tes: 'Sri Lanka is illustration of the
tions that lie at ment sponsored schemes. As one marked of the Sri settlement schem peasant holdings tendencies of fra and growth of hid being the product approach in an climate'
'Even so, the gained by illustr there is different lers rarely have d or the same exp differences in th farms and Soil fer the goal of com embraced by of more surprising it not occur, indeed an integral part
model'.
“The ist of y afflict these settle extended further cases of “faulty se encroach ment, th, enders, the mist whole series of o' A far more releva that more often t seem to be a num tua factors Whi many of these s wrong". Clearly, faulty judgements but far more imp rity of cases has b political support.
'Settlement po to be seen in relat

Im the publication ld Change', David the question why t continue to be prolited results. He Staa particularly useful kinds of contradic
the root of governand settlement observer aptly reLankan experience: is which aim at equal have seen the twin gmentation of land den landordism, both of an individualised unequal economic
re seems little to be ating the fact that iation. Because settuite the same assets perience, because of e location of their tility and because of mercialized farming ficials, it would be f differenitiation did , it may very well be of the conventional
Joes that commonly ment schemes can be to the much-quoted lection', problems of e frustration of'taise of funds, and a ther'pitfalls' as well. nt point, however, is han not there would ber of basic contexsh explain why so maller elements 'go echnical errors and have played a role, ortant in the majoben the nature of the
*醉
licy in Sri Lanka has on to the country's
structure, the nature of the state and the pattern of capital accumulation within which it was promoted. Control of land has always been a source of power and status in Sri Lanka society (especially in rural areas), and the acquisition of land has often proved to be vital in consolidating the new positions achieved through upward mobility. Granting them and has been a way of rewarding loyal supporters,and the control of land in itself has been very important in securing and in maintaining political power'. . . ."
The socio-economic problems preValent in present land settlement projects are far more complicated than they appear to be. The changes and developments occurring in these settlements cannot be understood or explained through study of only a particular set of features. It needs to be accepted that a central feature of the current settlement strategy of heavy capital investment and overhead costs incurred by the state, is that the government has to achieve a satisfactory economic return. Thus, even though the goals of the settlement programme are described in terms of equity and participation ideals, the primary motivation must remain that of securing a sufficiently high level of production for the market to offset the high infrastructure and administrative costs and to meet conditions imposed by the external lending agencies. in order to achieve this, it is necessary to develop various organisational measures designed to stimulate the 'conmoditization’ of production. This process entails the increasing dependence of the settler and his family on external agents, including both government and servicing institutions that handle such questions as agricultural extension, water management and various technical inputs, as well as private interests involved in trading and money lending. The functioning and survival of settler households should be understood within this framework.
19

Page 22
COCONUT:
Prices, Earnings Decline
Production, Exports Increase
Market Prices
The prices of coconut products in the international market continued their decline over the first six months of 1986. (The decline is seen clearly in diagram 1). Average prices of copra and coconut oil during this period Were US$ 193 and 291 per metric ton respectively, a decline of 60 percent comparative to prices in the same Period in 1985. The price od Desiccated Coconut declined by 55 percent and its average price was US$ 559 per metric ton. In June 1986, however, prices of all three kernal products indicated a slight increase compared with May, with copra prices going up from US$ 153 to US$ 65; and coconut oil prices going up from US$ 233 to US$ 254. The price of Desiccated Coconut increased from US$ 450 to US$ 576.
INTE RNATIONAL MARKET PRCES (PRICE US$ PER MT.)
340
ily у у
in the local market, the prices of coconut products indicated similar trends. The average price of copra in
the first six moths of 1985 Was i RS 1240 per kg: while in 1986 in the same period, it was Rs 4.89. Coconut oil prices averaged Rs 19.12 in the first six months of 1985, but in the same period of 1986 it came down to Rs 7.48. Both products' prices declined by 60 percent approximately,. The declining trend in local market prices is also illustrated in figure 2. Prices
20
have kept declining stocks of vegetable the vegetable marke ever, was expected the latter part of the Chernobyl Nu Russia, which has t of sun flower oil a oils.
TABLE 1. ΙΝ"
Jan.- Copra
1984 774.81 1985 481.33 1986. 193.00
COCOnut Dey
TABLE 2
JanJune Copra
1984 20.31 1985 12.40 1986 4.89
Coconut Devo
TABLE 3
Jan- Coconut June
1984 40 1985 19,554 1986 56,157
Coconut Deve
TABLE 4.
Jane Fresh nu June (Mn)
1984 874 1985 1,296 1986 1,587
Coconut Deve
TABLE 5
Jan.-June
1984 1985 1986
Source: Coconut Deve
 
 
 

due to the heavy s oils released on t. This trend, how
to be reversed in the year following clear incident in hreatened supplies hd other vegetable
COLOMBO MARKET PRICES
(pRICE PER KG)
TERNATIONAL MARKET PRICES (USS per M.T)
% Coconut % Desiccated % Decrease Decrease Coconut Decrease
12O7.83 1547.13 38 742.50 39 1238.OO 2O 60 29O.67 61 558.48 50 2lopment Authority
COLOMBO MARKET PRICES (Rs per Kg)
Desiccated % Decrease Coconut % Decrease Coconut % Decrease
33.21 27.19 39 19.12 42 16.40 40 61 748 61 8.00 51 2lopment Authority
EXPORTS
oil % Desiccated % Copra %
Increase Coconut Increase Increase
5,599 461 23,748 325 1,480 221 187 25,566 8 3,693 149 Elopment Authority
PRODUCTION
ÉS % Coconut Oil % Desiccated %。 Increase (MT) Increase Coconut (MT) Increase
14,299 5,821 48 49,957 249 24,074 314 22 82,831 66 27,050 12
alopment Authority
EXPORTS OF KERNAL PRODUCTS
Total Exports Total Avg. F.O.B.Value (in M.nut equivalent) FOB value (Rs Mn) (Rs)
40.93 217.57 5.32 328.84 1,202.74 3.66 647.17 950.31 1.47 lopment Authority
ECONOMIC REVIEW, SEPTEMBER, 1986.

Page 23
Production
During the first half of 1986 better coconut harvests were obtained due to the favourable weather conditions. A 22 percent increase in coconut production was recorded during the first half of this year compared with the first half of 1985. Production of coconut oil increased by 66 percent and Desiccated Coconut by 12 percent.
Exports
The volume of kernal products (copra, coconut, desiccated coconut, fresh nuts and seed nuts) exports increased by 97 percent in 1986 Compared to the same period in 1985. In the 1986 period the volume of kernal products exported went up to 647 miltion nuts, equivalent, from 329 in million nuts equivalent in the first half of 1985. But in value terms movement of export earnings indicated a negative trend. In the 1985 period foreign earnings from kernal products were Rs. 1,232.7 million; while in Jan.-June 1986 it came down to Rs 95.0.3 million, a decline of 20 percent;the main contributory factor being the decline in the average F.O.B. value per nut equivalent. The 1986 period F.O.B. price per nut equivalent was Rs 147 compared with Rs 3.66 in the 1985 period. .
The volume of Coconut Oil exports increased sharply in the first six months of 1986, while that of Desiccated Coconut and Copra increased marginally. (See figure 3).
EXPORTS OF COCONUT PRODUCTS
(VOLUME IRJ MT)
57,000 -
xjoIII 45,500 - Desiccated
F.3 CopIra فسان}۔ 200, 34
22: ՅՅՅ
""
it 1354 1
EconoMic REVIEW, SEPTEMBER, 1986.
International C
The fifth ro
Ween COCOa pro Countries in Ge successfully aft negotiations. T Cocoa Agreem enter into for year, and will years with poss tensions. After Secretary Gen described the mism as the fir of CA's (Inter Agreements); a
adoption today
Agreement wit visions will un ther impetus t ducers and cor modities to Wor |listic and mutua to the problems dity sector'.
Sceptics were that there Was r the era of the tion on comm drawing to a nations had fai gotiate a new market and a th also collapsing
COrԴՏԱf**ՅքS Արa currency to be level trigger su also on the pro leve.
Talks on a r mained stadled, meeting held in between produ The internation one pact that c be wound up the chances of
also un certain V regarding quota
The UNCTA however hailed
 
 
 
 

ommodity Agreements
ind of negotiations beducing and consuming neva finally concluded er nearly two years of he new international ent, 1986, is due to Ce from October this remain in force for 3 ibilities of further ex
the accord UNCTAD eral i Penneth Dadzie Agreement with optist of a new generation national Commodity nd he concluded the of this new Cocoa h full economic prodoubtedly give a furo the efforts of prosurners of other Com k together to find reatly beneficial solutions besetting the commo
of the view, however, mounting evidence that North South coopera
odity pricing may be
close. Rubber trading ed tvvice earlierto neaccord to stabilise the ird round of talks was
with producers and ble to agree on the
used in a new price pport mechanism and cedure for revising its
Iew Sugar pact also re
With an inconclusive
London in May 1986 cers and consumers. at Tin Agreement was ollapsed and is due to next year. Meanwhile, a Coffee accord were lith no final agreement
shares for producers.
D Secretary General the new Cocoa agree
ment as "an important turning point in the history of producer consumer co-operation within the framework of international commodity agreements'.
He stated on this occasion that cooperation between producers and consumers was one of the main pillars of the Intergrated Programme for Commodities established in resolution 93 at UNCTAD IV (in Nairobi in 1968) and that, despite the bleak prospects for international commodity agreements in recent years, the international community had demonstrated its continued commitment to this particular form of international co-operation. The Secretary General regarded the negotiation of a new International Agreement on Wheat; on Olive Oil and Table Olives; and moves for new Nickel and Tropical Timber agreements as positive commitments towards international economic co-operation. The Cocoa Agreement was now expected to give a further impetus in this direction.
The negotiations for the new cocoa accord provides a typical example of the apprehension of commodity producers who are at the mercy of international cartels that wield a major influence over the price mechanism of commodities. At the negotiating sessions on Cocoa in March the Ivory Coast's Minister of Agriculture charged that prices were effectively set in the commodity exchanges of New York, Chicago, London and Paris by anonymous speculators not subject to international control, and refused to join the new agreement on the grounds that it could not guarantee a fair price for producers, taking into account increased costs of production. It was only after Ivory Coast (the world's largest producer) was persuaded to return to the negotiating table that producers and consumers agreed on key issues of price structure, price levels, and price adjustment mechanisms.
21

Page 24
THE Economist commodity Price INDEX First estimates of the 1986-87 World Cocoa crop suggest it will be little changed from last year (around 1.9m tonnes), resulting in a surplus for the third year running. Output in Brazil will be 20% higher, at 440,000 tonnes, and Malaysia will also have a record crop of 150,000 tonnes, double the output five years ago. However, the Ivory Coast's crop will fall by 55,000 tonnes because of dry weather, and Nigerian Cocoa production may be only 80,000 tonnes, the lowest for nearly 140 years.
international Cocoa Organisation 140 daily price Cents/b
1981 82 83 sa as ' sa
World production mtonnes Total: 1.g. 20.
Tota: 1-7
Malaysia - 홍 - Cameroun -核 15
Nigeria --- al-Ghana 1.O
Brazil
- 0.5
Other
O
1980-81 1986-87 forecast
Source: Gill & Duffus
As in the existing Cocoa Agreement, buffer stocking constitutes the main mechanism for price stabilization. The Overal size of the buffer stock remains unchanged at 250,000 tonnes, with the possibility of an additional 100,000 tonnes. The Minister of Agriculture of Ivory Coast - (which is not a member of the present Agreement) gave his country's explicit endorsement, of the new Agreement. He termed it a 'dynamic compromise' and said that, with the increased resources now available to it, its potential effectiveness for stabilizing prices had been greatly enhanced. UNCTAD's Deputy Secretary General, Alistair McIntyre, however, had a far more pessimistic prognosis on possibilities of better prices for primary commodities.
Malaysia sees grim future for commodity producers
The cocoa Agreement was obvious
22
ly timely as this was primary commodities
the falling price trenc
few years. But even
commodity analysts it cast that prices were before long as the high butter made it a prim chemists searcing for a titute. There was also that suppliers would
demand as new pr were harvested. More ever, were the prosp other commodities. A
pondent, S. Ramachan
recently in Kuala Lu that low prices for cc rubber, palm oil and persist because of a bas link between the eco modity producing CO richer industrial natio economists and polit Kuala Lumpur.
'Whenever priees d failing demand during the past 40 years, cor cers could look forwar price rise as the indu turned to better grow Alistair McIntyre, De General of the Unite ference on Trade an (UNCTAD - which p trade conditions for d tries) has warned that not continue'.
ooThe traditional li? clical fluctuations in ec and demand for raw m. broken', he said in a bankers of raw mat countries.
The price fall has b the case of palm oil, ti sian export Which had to MS 440 from MS 1 the beginning of 1985.
Among Malaysia's tin had lost half its va period. Rubber had b around 180 sen (Mala a kg as compared with 1980.
 
 
 
 
 
 
 
 

one of the few that has escaped over the past here a firm of
n London foreikely to decline price of cocoa e target for bio
synthetic substhe possibility
Soon OverStep oduction areas
gloomy, howects for Certain HNDU corresdran, who was impur reported om modities like metals would sic change in the nomies of comuntries and the ns. according to tical circles in
ipped to reflect a-recession Over mmodity produd to an eventual strial world rewith rates'. But puty Secretary d Nations Cond Development promotes better
eveloping Coun
'the trend will
nk between cyconomic activity aterials has been
letter to senior erial pröducing
een dramatic in he staple Malaydropped steeply 205 a tonne at
other exports, alue in the Same een ruling weak lysian currency) 330 sen in early
Malaysian Prime Minister Mohamed Mahathir has said that “o” a constellation of forces have driven down the prices of virtually all primary commodities produced and exported not only by Malaysia but by the whole world. 'He said the recent total collapse of all commodities was a new phenomenon. There seemed little doubt that for some Commodities the end was near. Commodity producing countries were expected to be put on the 'chopping block'.
Economists blame rapid technological change for the lower prices. Better irrigation, seeds and fertilizers had all increased production to the point where today's yield of rubber is ten times that of the original trees found in the Amazon forests.
Technological progress had produced synthetic substitutes for natural materials, according to M.Sakamoto, Cheif Economist at Japan's Institute for International Trade. He said copper was being rapidly replaced by cheaper glass fibres in the communications industry. Glass, plastics and aluminium were all replacing tin in food packaging.
To compound the problems, industrial countries, notably the U.S. and Europe, had become large food exporters because agricultural subsidies had led to greater production. As a result, U.S. rice exports now threaten Thailand's lucrative rice trade in Asia. E E. E.C. sugar exports had the same depressing effects on the developing Country Sugar exporters.
UNCTAD's Deputy General Secretary was of the view that developing countries should diversify export products or face a grim future. 'Far reaching changes are occurring in patterns of demand and supply for most major primary commodities, which are bound to affect profoundly development prospects in many developing countries', he said. Such countries access to markets in developed countries for their new products but they faced a strong protectionist sentiment.
ECONOMIC REVIEW, SEPTEMBER, 1986.

Page 25
FEATURES
PLANNING PERSPECTIVES FOR
Surath Wickramasinghe
Chartered Architect and Tow. Planner
- The city as it exists today is a consequence of certain historical processes that include rapid population growth, industrialisation and migration from rural areas to further employment opportunities and better living conditions. This trend commenced at the turn of the century. As recently as 1971 urban population constituted about 16 percent of the World's population. In 1980 it rose to 41.3 percent. It is envisaged that at the end of the century a phenomenal 50 percent will live in cities, Between the years 1980 and 2000, the third world will approximately double their population from 972 million to 2116 million, whereas in the case of the developed World the increase will be from 834 million to 1093 million which represents an increase of 31.1 percent.
In acCordance With the 1981 Census the urban population of Sri Lanka is estimated to be around 22 percent of the total population. In this connection, the urban population is confined to the Municipal and Urban Council areas only. Considering the situation in Colombo, the 1981 Census indi. cafes a population of 602,000. However, the Colombo urban area could be considered to have extended to a radius of approximately 10 miles from the City Centre to include Town Council areas such as, Maharagama, Battara muilla, Thalawathugoda, Hendala and Wattala, thereby effectively increasing the population to app
roximately 1.4 million. Similar in
creases in the urban population could be applicable to other cities such as Kandy, Galle, Matara, Neqombo, and other urban Centres. On this basis We could estimate the present urban population of the country to be around 30 percent of the total (i.e. 4.5 mil|jon).
ECONOMIC REVIEW, SEPTEMBER, 1986.
The main fact ributed to the in
tion in urban are government offic establishments a for employment, and other service
Although we increase in the facilities available regard to school not shown a sign Moreover, the being allowed to reasons such as a comprehensive
riment.
in trying to the extent of pri commercial dev suitable for parks being reduced du buildings. There dency for house utilise 5-7 perche tant rates and li back and side t within easy acc schools, hospitals and their service the land values in Virons have incre the last ten years.
The direct Cor
sire to visit the C bouring areas is til congestion. There existing road netv inadequate to ac sent flow of traff The improvement that are being cal rable expense will meet demand if t traffic and increa tion is to continu be more dominan

SRI LANKA
ors that could be attcrease in the populaas are the location of es, major commercial hd the opportunities schooling, hospital facilities. notice a considerable Irban population the in the urban areas in and hospitals have ificant improvement. xisting services are ) deteriorate due to lack of finances and plan for develop
meet these demands me land suitable for elopment and land
and open spaces are e to construction of
is an alarming tenbuilders in the city to
s of land at exhorbi
ocate them back to o side purely to be ess of the leading government offices S; as result of which
Colombo and its enased twenty fold in
sequence of the deities from the neighhe problem of traffic
is no doubt that the work in the cities are commodate the preic from the suburbs. Es to these facilities "ried out at considenot be adequate to he present growth of se in urban populale.'This Situation Wi || it in the case of Co
lombo where the catchment area will extend to a radius of approximately 20 miles oy the turn of the century, at which stage the improvements required for strengthening the infrastructure services would be of a formidable scale.
The Victoria Project has stimulated the growth of the Digana Town Centre and the resultant demands on facilities existing in Kandy are subject to increasing strain.
Negombo has had a similar impact as a result of having to cater to the needs of the nearby Free Trade Zone. Thus the over-urbanised cities constitute serious problems and require radical thinking when considering planning perspectives for the 21st Century. It is noted that similar problems have existed and continue to exist in several major cities of the World to a scale much larger than what we experience in Sri Lanka.
Shanghai
Prior to the planning element being introduced, Shanghai was growing at an abnormally fast pace, with the influx of impoverished peasants from the countryside, resulting in the population increase from one million in 1930 to 5 million in 1949, an increase that imposed a severe strain on the existing facilities."
Subsequent to order being restored with the liberation of the Country in 1940, an appreciable increase in the standard of living took place as a result of the improvement to facilities and the levelling off of population increase through various means, one being family planning. Orderly development made it possible for the industrial production in 1979 to increase 23 times over the level that prevailed in 1949. A noticeable increase in agricultural production was also recorded. This increase in production went hand in hand with the provision of welfare facilities such as public health, medical care, social secuirity, and the care of the sick, old and the disabled. This resulted in the dramatic increase in life expectancy from 43.8 years in 1951 to 73 years in 1979.
23

Page 26
Hanoi
As in other Asian cities the population increase in Hanoi was very marked during a period of instability. Since conditions were stabilised, Hanoi has managed to restrict population increase to 1.9% per year (inner city rate is lower) through family planning
near S.
Moscow
The orderly development of one of the biggest cities in the world (Population in 1981 - 8,099,000) had been made possible by means of a Master Plan. The vast problems that are seen
elsewhere in similar agglomerations
had been avoided by the adoption and efficient implementation of the Master Plan oni a long term basis. The provi-- sign of scope for cultural appreciation and leisure activities is a key element of the Master Plan.
Cairo
Of the Egyptian population of 42 million in 1980, as much as 21 percent lives in the Capital City of Cairo. Devices such as family planning and disincentives to migration and the provision of facilities in the sorrounding areas are being adopted to reverse this trend.
Rome
Rome's population in 1982 was 3 million. Its growth had been mainly due to the absence of controlling legislation thereby creating an illegal Rome alongside a legal Rome. The remedy now sought is to build satellite cities and to prevent the growth that was like an oil spill in concentric circles.
It could be seen from these instances of abnormal growth that it is the planning element together with stable political conditions that had been in a position to check and redress the ugly features of over-urbanisation.
Having discussed the need for change, I shall in the next part of this paper examine what the patterns of change should be.
Patterns of Change
The patterns of development since Sri Lanka gained independence, upto
24.
1977 could be c change due to development; an There has not b or systematic a since the priori successive Govej to 1977 the patit under the third ging, with deve dynamic and resu The Vaha Scheme which grammed for at eventually sched within a period (
 

CINTERMEDIATE S
DEVElOPMENT AREĀš
3/ \, MULLATonyu - ݂ ݂ }0is?rics - حصہ لا کسم
// / · S5
...গ صخ\ MANNAR A / vÄUNYA District 7 District
/
RATNAPURA District
ategorised under: (1) d-hoc planning and
d (2) incremental. Ben a comprehensive proach to planning es had varied with nments. Subsequent rn Could be classified category- Leal Forgopment being more È Oriented. eli Development was originally proirty year period was ed to be completed 6 years. In the field
ECONOMIC REVIEW, SEPTEMBER,1986.
NATIONAL & REGONAL COMMUNICATION STRUCTURE
LEGENO
- - - - - OSTRICT BOUNDARY
PANNING REGIONS
s=== SPAf A BOUNDARY Of
OEVELOPMENT CATEGORIES
NATIONA
NOAN
of urban development, almost three million sq.ft. of office space has been built. In the Hotel industry 3,000 additional rooms have been provided. The target of 100,000 houses has been achieved and the million houses programme is now in progress. Similar progress has been achieved in exports to O.
In the meantime there has been infrastructure improvement in communications with the introduction of subscriber trunk dialling, international direct dialling, telex , facsimile, computers and colour TV. These developments have been accepted by the peo

Page 27
ple and have tended to change their outlook within avery short period. The level of unemployment in the country has also been reduced significantly from 22 percent in 1977 to 12 percent in 1985. A large measure of technological transfer was also possible. Future development should therefore take into consideration the continuity of this pattern of change, since these changes were made possible with the financial assistance received in the form of Aid, Grants and Special Loans from foreign countries and lending institutions. It should be realised that assistance of this kind cannot be expected to continue ad infinitum.
It is therefore necessary to alternate sources of financing in order that the development activity may continue at the same or accelerated pace so as to achieve an appreciable increase in the per capita income from a figure between US$ 250 and US$ 300 to US$ 10,000 within the next four decades. In this connection a parallel could be drawn from the South Korean experience wherein the per capita income rose from under US$ 200 to US$ 5,000 within a period of 18 years. If one were to look into the shortcomings that exist today, the following could be highlighted: (A). Overurbanisation in and around Colombo and its environs as previously described, (B) Transportation, (C) Communications (D) Educational facilities (E) Health Care facilities, (F) Employment (G) Housing and Sanitation (H) Social activities.
The regional development function by itself could bring about a substantial improvement in the abovementioned areas. For this purpose the country should be divided into five regions as indicated in Map No. 1.
The policy in this regard should in
clude: a) Commitment to a gradual decentralisation of public administration/privatisation b) Evolution of a degree of decision making power to regional administrations initially in the fields of housing, education, health, employment and transport systems.
The planning should also consider
ECONOMIC REVIEW, SEPTEMBER, 1986.
the technical and of regionalisatio utilities such as, Electricity and W.
One source of be by diverting otherwise be utilis to already urbanis be supplemented raising funds.
One of the tures of the syst ninn shnuld be Regional Develo Authority for region. The mai Authority şhoi ild ration of a Mas consideration the of the reginn ar. the implementatic stimulate the so development of th The compositi Develin pomant AL multidisciplinary man of the AuthC nister overlooking co-ordinate action and the central g thority has to b povers to formul plementation proc each of these reg of the Regional rity should be: a foster the econor the region, b) Wi the base of the ecc c) Encourage and ment and develo ture, Industry, CO Housing, Health c. ter affairs of the ordinated implem 1. Human settler and Health care Transportation 4 Industrial develop Cultural developm exploit untapped trial resources of research and devi These functions a the functions of th

financial feasibility of certain state elecommunications, ter Supply. hese functions could
funds that would ed for improvements ed areas. This should by other means of
most important fea2m of regional planthe setting up of a ment and Planning each administrative tasks of such an include the prepaer Plan taking into } aviable resources d the mrnitoring of on of these plans to cial and economic e region. on of the Regional thority should be by nature. The Chairrity should be a Mithe region, who will between the regions overnment. The Aue autonomous with ate policies and im:edures in respect of ions. The objectives Development Autho
) To encourage and
nic development of den and strengthen nomy of the region, foster the establishomient of Agriculummerce, Education, are etc., e) Adminisregion through coentation units fornents 2. Education 3) Highways and | Agricultural and ment, 5) Social and ent, 6) Explore and mineral and indushe region including opment functions. re to be similar to 2 G.C.E.C.
21st Century Perspective
I would like to commence by quotina from Alvin Toffler's 'The Third Wave (1980)'
"A new civilization is emerging in our lives, bringing with it new family styles changed ways of working, loving and living, a new economy, new political conflicts beyond all these and altered consciousness. Humanity faces a quantum leap forward. It faces the deepest social upheavel and creative restructuring of all times.' It is now necessary to devise ways and means of accelerating the implementation process to meet the demands of the 21st Century. Technology should be the basis for the generation of income, knowledge and providing for the overall well-being of the people. The technology so relevant is now broadly called information Technology. This involves the gradual introduction of micro electronic devices which are daily becoming less expensive and thereby affordable to many in Sri Lanka. These devices include satellite communications equipment, TV, computers, robotics, fascimile, data transmission etc., They will accelerate the pace of development with a view to rapidly improving the standards of living of the people.
One will not imagine a person in any region in Sri Lanka in the 21st century not having the use of Telephones or TV or even a Computer for his productive use. Our challenge is to find the resources to make these available initially at least at the community level if individual facilities cannot be provided at the commencement.
would now indicate how information Technology can assist in the integrated planning and development pro
cess which Will permit a comprehen
sive development of Sri Lanka.
in planning for the future, integrated development efforts would involve the initiation of a communication and information system that would co-ordinate between the Rural, Regional and National needs. Rural Development has hitherto Sufffered as a result
25

Page 28
of the absence of reliaole Communication thereby isolating itself from the field of information. Besides skills acquisition and the provision of basic and continuing education, health services and other social services too have been neglected as a result.
The advantages in these innovations is their low cost reduced power requirements and the use of simply constructed earth stations with ability to reach remote locations in undeveloped areas and difficult terrain with the minimum of infrastructure facilities. The information Technology and their applications have the capacity to evaluate the implications of changes in supply, demand, production, consumption, poverty levels, affluence etc., and has access to the knowledge that identifies the best possible means for the development of policies, programmes and measures in this respect. in order to reap the maximum benefit from the information Technology at the grass roots level, it is necessary to have links with the national and regional levels.
information Technology systems of increasing capacities from the village to the National Centre that form the heirachial order will then be the medium of Communication and information to the masses.
At a village level, these inatallations shall initially be accessible on a collective basis (Community Command Base) and gradually extend to individuals (Home Command Base). With the general improvement in living standards the home will undergo a vast change with increased use of applfiances.
With further advancements the same information technology wil make it possible for individuals to operate from their home bases and have access to the Global Network enabling them to purchase products, manage financial affairs, communicate with business concerns, have personal contacts and learn and work from home. The physical impact will then be flexi place location, independent working, with the home as the supreme
26
command base p working, consuming and thereby creatin
Sector.
The first indust sulted in migration t 21st Century will with the de-urbanisa vitable. Further imp tion vil en anate frt
Corporate structure location diminishin tions becoming all distance will then hindrance.
in this emerging

oviding housing, for the individual a new economic
iai revolution reb urban areas. The severse this 'trend ion becoming ineetus in this direcom a change in the and the need for with conuberamost obsolete as no longer be a
pattern, the 21st
Century will witness a radical change in the structure of National, Regional and Rural settlement irrespective of locational or proximity determinants and the resultant settlements pattern
would be clusters of predominantly
eletronic villagės in a nuclear development order of built form as shown in Plate 1. جم جير Recommendations
Having looked into the reasons as to why a change is necessary and in what direction we should change,
would now set out some recommendations of particular activities to be
undertaken to meet the demands of the 21st Century.
GOBA COMMUNICATI0N
@ RURAL
REGIONAL COMMUNICATION
SATELLES
NATIONAL COMMUNICATION BASE - NB
BASE- RGB
COMMUNICATION BASE - RUCB
(ဒွိပြဲ VILLAGE COMMUNICATION BASE - VCB
。。。。战
HOME COMMUNICATION BASE HCB
ECONOMC REVIEW, SEPTEMBER, 1986.

Page 29
2.
1.In planning the future road network system, it is desirable to have rapid transit motorways linking the major cities. However, it would not be economically feasible to provide links only between one or two cities in implementing such a programme. I would therefore propose a Ring Road at about 1,000 MSL elevation which would connect locations such as: Eheliyago da, Kuruwita, Uggalkalthota, Weelawaya, Bibile, Mahiyangana, Pubbanawela, Nalanda and Mawatagama.
1.1 Radial roads emanating from this Ring Road could be provided to connect other cities not covered
ECONOMIC REVIEW, SEPTEMBER, 1986.
RING ROAD & RADIALS CC
6 NMAJOR CENTRES
LEGEND
& PROF Ŝ) EXIS (2) HARE O NTE
by the ring road is similar to a Map Nü. 2. 1.2Colombo by-pa. East to divert til to be carried ou ble. Similar appr in other major ci Kurunegala, Gall 1.3.Construction of head bridges for at Railway crossi
2. Rail Net Work
Whilst laying development of
 
 

NNECTING
OSED AIRPORTS
ANG ARPORTS
OUR
NATIONAL AIRPORTS
| in a structure that “COBWEB. Refer
SS from North and raffic to the South ut as early as possioach to be adopted ities such as Kandy, e, Matara. | fly-overs or overthe road network
ngS.
emphasis on the the road network,
it would be necessary to supplement this with an efficient rail and air transport system.
2. 1 Rail Network
Development of the rail network should include the electrification of the system within the Colombo Region.
2.2Introduction of underground rail
way network within the city which would be a surface railway system in the suburbs. The underground network system should be ideally located beneath the major roads, for example, Galle Road, High level Road, Buller's Road, Reclamation Road etc.,
2.3To relocate the existing coastal
railway lines from Colombo to Matara by moving it inland by approximately 5 miles from the coastal line.
3. Air Strips
The location of air strips should be outside the Ring Road at points close to Pelmadulla, Wellawaya and Nalanda. In addition, air strips could be located at Velimada, Kurunegala, and Mullaitivu. These would serve to supplement the existing domestic air stips at Weerawila, Amparai, Batticaloa, Chinabay, Pallali, Mannar, Puttalam, Negombo, Ratmalana and Koggala. Tihe pressure now felt at the International Airport at Katunayake could be relieved by the location of a second International Airport in Trincomalee. See Map No. 2.
. Harbours
Harbours for coastal transportation should be provided at Arugam Bay, Batticaloa, Trincomalee, Mulaitivu, KIKS, Pooneryn, Mannar, Puttalam, Negombo, Colombo, Beruwela, Galle, Matara, Hambantota ånd Kirinda.
. Over the past 50 years the City of
Colombo has been transformed from the Garden City to a highly congested urban situation as we observe today. This is a result of the inadequacies in the planning function that have been carried out and the resulting ad-hoc development over the years. We should therefore learn from this experience.
27

Page 30
LEGEN)
Q NATIONAL BASE
S REGIONAL BASE ©VILLAGE BASE
and avoid similar mistakes When
planning for the 21st Century. The proposed Regional Development Plans should therefore include effective controls in the allocation of land for different purposes such as Residential, Commercial, Educational, Industrial, Agricultural and so on at Regional/Urban/Rural and village levels. For example, the residential development 鑫囊受零 should be confined to small units with 200-400 housing units together with common infrastructure facilities. This will not only result in better utilisation ofland but will also bring about economies in pro
REGIONAL &
COMMUNICATIC
LEGEND
s ANN
assass SPA,
viding infrastru addition, this setting up of the nication netWO1 21st Century Plate 3.
6. Establish comm
village, rural a linking to a nati which access C village to a glot pect reference
Map 3 and Plate
(Excerpted frog at the annual sessi Lanka Institute of
 
 
 

RURAL }N STRUCTURE
Cf BOUNDAR, ING REGIONS
Al Boundary of OPFAENT CATEGORIES
OMALEE
IN DAN
cture services. In will assist in the
electronic commuk planned for the as referred to in
inication centres at nd regional levels onal centre through in be gained from all level. In this reshould be made to 1.
a paper presented ns of the Sri Architects).
DRUG TRAFFICKING AND
The National Dangerous Drugs Control Board have found in several of their recent Etudies that the easier availability of certain drugs has become a key factor in the increasing abuse of drugs in Sri Lanka. in this report the drug most expansively dealt with is heroin as its use has become comparatively vide spread in Sri Lanka. One conclusion from this study is that drug trafficking generates vast profits which tend to undermine the economic and social order, spreads violence and corruption and endangers the political stability and security of some countries.
HNTRODUCTION
The abuse of a variety of drugs remains at a high level in most parts of the world and in some countries, including Sri Lanka, is on the increase. Health hazards are being aggravated by multiple drug use often in combination with alcohol.
illicit cultivation and production of drugs involve a growing number of countries located in several regions of the world including the Near and Middle East and SouthAsia. It has been found that illicit cultivation, production and trafficking in the above areas has inevitably led to abuse by the local population; the abuse increasingly affecting young people and thereby presenting a danger to the future of such countries.
llicit activities are financed and operated by organised criminal syndicates often with international links and a dangerous development in several regions is the close connection between drug trafficking, the proceeds of which are used to finance other major criminal activities including the illegal traffic in fire-arms; subversion and international terrorism. Drug trafficking generates vast profits which tend to undermine the economic and social order, spreads violence and corruption and endangers the political stability and security of some countries. The international community has already launched comprehensive counter attacks against illicit drug trafficking and abuse and stronger political commitments are being made at the highest levels of Governments. New initiatives regularly taken to promote effective and co-ordinated action and improving inter-regional co-operation, particularly at the operational level, is leading to a measure of success. The joint counter actions all proceed from the common conviction that effective and lasting progress can be made in any one affected country only if all countries co-operate. The large quantities of opium and heroin which are being seized in neighbouring countries indicate the existence of extensive
ECONOMIC REVIEW, SEPTEMBER.1986.

Page 31
ABUSE IN SRI LANKA
illicit poppy cultivation and a substantial heroin manufacturing capacity. The increasing traffic in heroin and its easy availa
bility has led to an escalation of the abuse
of this drug in many parts of the Asian
region including Sri Lanka.
DRUG ABUSE
No nation has managed to avoid the negative consequences of drug trafficking and drug dependency which is jeopardizing the health of citizens and undermining economic and social institutions. The abuse of cannabis, opiates and other dependence producing drugs continues at epidemic levels resulting in both drug related deaths and crime. It particularly destroys the young, and thereby saps the future strength of many nations. Continued production leads to an abundance of supply, and availability being accepted as a key factor in the abuse of drugs; heroin use in particular is certain to become even more widespread.
DURGS OF ABUSE IN SRI LANKA Cannabis
Cannabis is cultivated mainly in the Southern and South Western regions of the country , in jungle tracts at Thanamalwila, Hambantota, Monaragala, Wel lawaya and - Bibie. The total area under cultivation at present is estimated to be 200 acres. The harvested cannabis is invariably transported to Colombo and its suburbs by the financiers and individual buyers. Transport is by road, concealed in vehicles conveying regular merchandise such as vegetables from these areas.
The undermentioned table indicates the quantities seized and the number of persons arrested from 1980 to 1985, for cannabis related offences.
quired for local cons tions especialiy in t vealed that locally illegally exported; m in regular exports su and teachests.
Detections also r which is of a higher product is being bị
Yea 1980
1981
1982 1983
1984
195S
from India, mainly by sea, both for lo transit to Europe
During the past til price of local cann ranged between Rs kg. at source; Rs.10 in Colombo and Rs. quality, meant for ex
Hashish
The greater prop country originates India and is usual nationals. The follow tections from 1980 it
Year 1980 1981
1982
1985
1984 1985
Psyschotropic Subst
There have been
Yeär No. arrested 1980. 6,009
1381 5,015
1982 - 4,977
1983 3.893 : ܡ
1984 90
95 3.058
Special eradication campaigns launched in 1980, 1981 and 1983 resulted in a reduc
tion of the total area under cultivation.
However, due to other national priorities, enforcement action since 1983 has considerably decreased.
There was an estimated 18,000 chronic cannabis users in 1981. It is now established that the quantity of cannabis produced in this country is in excess of the amount re
ECONOMIC REVIEW, SEPTEMBER, 1986,
the abuse of psychc ever, substance abu valent, mainly due sources. Opium
Illicit opium is bution locally, fro across the Pak St. crease in availabili years. This reducti

umption. Recent deteche United Kingdom re
produced cannabis is ainly by sea, concealed ch as coconut oil drums
eveal that Kerala ganja. potency than the local rought into Sri Lanka
No. . arrested
三鲁é8
1 & 5 166 1 48
152 68
by illicit transportation :al consumption and in
and North America. hree years the wholesale labis in Sri Lanka has 40/- and Rs.120/-, per 0/= to Rs.250/= per kg. 500/= per kg for better Крогt
ortion of hashish in this From either Pakistan or y brought in by nonwing table shows the deto 1985.
No arrested
ances few detections involving
Juantity seized
360,227 kg
433,777 kg 11 532 kg 70,548 kg 7, 396 kg 1 1 , 238 kg
tropic substances. How
59
98
99.
61
47
25
se in believed to be pre. to diversion from ilicit
smuggled in for distrim India, mainsy by sea "ait. Figures show a dety of opium in recent ion is due mainly to a
switch-over to heroin by opium abusers and new user preference for heroin due to its higher potency. The presence of security forces in the traditional landing areas in the North has also contributed in some measure to curb the smuggling of opium. The following table gives particulars of the arrests and quantities seized from 1980 to 1985.
Quantity seized 188 kg
28 kg 1133 kg 6.3 kg 1 . 4 kg 4.6 kg
During tine period 1975 es 1979, of 3,000 persons who sought assistance in overcoming drug dependence, 40% were chronic users. In 1980, it was estimated that there were about 5,800 opium users in the country. The mean age of a hospitaised group of opium dependents was found to be 55 years and 95% of them were married. Between 1980 and 1985 there was a decline in the abuse of opium, which coincided with the rapid increase in the number of heroin abusers. Availability of opium is presently at a very low level.
Except for one clandestine heroin laboratory which was detected in 1981, there has been no evirence of conversion of opium into morphine and heroin in Sri Lanka.
Quantity seized
79 kg
126 kg 28.2 kg
2.5 kg 18.5 kg
1 2 kg
Heroin
India and Pakistan are the sources of almost allt the heroin brought into this country. This drug originates in the 'golden crescent' region which is the area within the boundaries of Afghanistan, Pakistan and Iran, where the opium poppy is illicitly cultivated, and where it is claimed, enforcement of the law is difficult due to the terrain and lack of government control in tribal areas. The majority of traffickers are Sri Lankan couriers who travel by air and arrive in this country from ports in. india and Pakistan. There has also been limited it legal transport of heroin by sea into this country by Sri Lankan merchant seamea. There have also been a few instances of non-nationals smuggling heroin into Sri Lanka, mainly by air; travel originating
29

Page 32
again from ports in India and Pakistan. These couriers have been Pakistani nationals and West Europeans. Given below are the figures of arrests and quantities seized from 1980 to 1985.
The ready availabi Pakistan and India ha number of Sri Lankans Payment for the purch foreign currency and
Year No. arrested " Quantity se ngao Ni). N 1981 O8 O2 1982 33 3 OC 1983 263 5.2E 1984 1,794 38.7 1985 3,339 18.25
Sri Lanka has been used as a transit point for movement of heroin especially to Western Europe. However, this trend has noticeably declined during the last two years, as couriers find it more convenient to move the drug direct from Pakistan or India. In both instances, whether for local consumption or in transit to Europe, heroin is usually smuggled in false bottoms and compartments of passenger baggage or concealed in articles carried by the passenger. Sri Lankan couriers have also been known to resort to concealment in body cavities.
An increasing number of Sri Lankans, the majority of whom belong to the Tamil ethnic group, have seen arrested abroad for trafficking in heroin. The following table gives the number of Sri Lankans: arrested for traffficking offences abroad.
Year No arrested
1980 42 1981 82 1982 128 1983 231 1984 301 1985 315
When compared to the increase in arrests of our nationals abroad, the arrests of foreigners in Sri Lanka for drug offences, shows a marked decrease, partly attributed to the stringent penalties stipulated by the amended law. The following table depicts the number of foreigners arrested in Sri Lanka for drug offences from 1980 to 1985.
Year Noe arrested
1980 88
1981 147 1982 139 1983 123 1984 54 1985 34
3O
o includes non
of gold being used as a or sold to obtain funds of herojn. Gold is sm Lanka for this purpose.
HIERON ABUSE
The abuse of heroin detected for the first tin availability has increase with it, the numbers abu drug.
Increasing availability/use
At the outset, heroir in the city of Colombo resort areas. There is rece use is occurring in other and in a few rural areas cern, is a suspicion that has begun to spread to areas of the country.
During the latter part conducted a study on th tion in the Hikkaduwa ment Agent's Division, in tourist resorts of the area objectives of this study and assess the nature a current drug abuse situati area and also to assess the on the problem of drug ab
Some of the major find
were:-
1. The population densit in this area and a hous an average of 6 to 7 p. tional standards of relatively low: 29 perc have terminated their 8 and only 8 percent to Grade 10. The land and other for agricultural activi low. The more lucrativ

ity of heroin in
attracted a large to act as couriers. se of herojn is in nere are instances
ized) (in kq.)
nationals
barter commodity for the purchase Jggled out of Sri
in Sri Lanka was he in 1980. Heroin d since then and sing this dangerous
use was detected and a few tourist nt evidence that its urban, semi-irban . Of growing conheroin dependence
new developmental
of 1985 the Board e drug abuse situaAssistant Govern.
which many major
were located. The were to identify nd extent of the ion in this affected impact of tourism
)ԱՏՅ:
ings of this study
y is relatively high sehold consisted of ersons. The educa-. the people were :ent were found to ducation at Grade had proceeded up
"esources available ties are relatively fe tourist industry
in the area occupied vast stretches of land traditionally used for beaching of fishing craft. This industry has also attracted the younger fisher-folk from their traditional occupation; which has contributed substantially to the decline of the fisheries industry.
2. Tourism is the major source of income of the majority of the people living in the Division. In addition to the income derived from lawful occupations COn neCted with tourism, people engage in unlawful activities such as female and male prostitution and drug trafficking to increase their earnings. Since the Hikkaduwa economy is mainly based on tourism, the orjertive of the people is to maximise their earnings, especially during the tourist season by providing services legal or otherwise to this industry. In Hikkaduwa the drug abuse problem cannot be viewed in isolation since it is inter-connected with other social problems.
3. The most widely abused drugs in the area are heroin and cannabis. Association with tourists who are drug users have often led local youth to take to the drug habit,although many at present are being introduced to drugs by their peers. Heroin peddling in the Hikkaduwa area is almost totally in the hands of Sri
Lankans.
4. There are a number of tour-guides who are themselves involveed in male prostitution and the abuse of drugs, mainly to avoid losing a foreign client to a competitor.
5. As estimated 2,000 drug dependents reside in this area. Many drug dependents from neighbouring areas such as Ambalangoda and Galle visit Hikkaduwa to purchase heroin due to the relatively lower price prevailing in Hikkaduwa.
Recent trends
Until recently opiate use was a phenomenon mostly prevalent among the middleaged. It has now shifted towards the youth. Several surveys have indicated that heroin dependence is commonest among young people. Enforcement statistics indicate that persons most often involved in drug related offences are between 18 and 30 years of age. Experience with dependent persons who have sought treatment points to an involvement of an even lower age group.
A survey designed to assess knowledge, attitudes and practices regarding non-medi
ECONOMIC REVIEW, SEPTEMBER, 1986.

Page 33
cal use of dependence producing drugs among 6205 students in Grades 8 to 12 in the Kalutara Education Circuit was conducted in 37 schools during the first quarter of 1985. This survey was centred in the National institute of Health Sciences at Kalutara and reasons of accessibility and ease of operation led to the selection of this district. Besides, the Kalutara district shares several characteristics of Sri Lankan rurality and the urban scene. An added reason was the proximity to Colomho and the influences from tourism. This survey revealed that 1.2 percent had used dependence producing drugs at least once. The current users are all male students. Of the students who have used any drug at least once, 63.9 percent had used cannabis, 33.3 percent had used heroin and the balance 2.8 percent had used opium. The study also reavealed that 38.7 percent of the students who have used drugs have done so out of curiosity and another 49.3 percent due to pressure by friends.
2.7 percent of the users had their first experience besefore the age of 12; 13.3 percent between the ages of 12 and 16 and the balance 84 percent after they were 16.
Of the total number of students sufveyed 11.7 percent had used alcohol and 9.0 percent had used tobacco.
Extent of heroin abuse
Since 1980, about 6,000 persons have been arrested annually for drug related offences in Sri Lanka. Since the introduction of heroin to the drug scene in 1980, heroin related cases have increased almost tenfold between 1984 and 1985, to the extent that heroin detections which consisted of only 15 percent of the total number of all drug related detections in 1984 increased to 51 percent in 1985 during which year approximately 3,000 heroin related offenders were detected. in keeping with the internationally accepted figure of 80 users pe 100 arrests, approximately 2,400 of those arrested woulri also be heroin users. Using the W.H.O. index of indentified to real as 1:10 the estimated number of heroin users for the year 1985 would be 24,000.
The average daily consumption of a heroin dependent is presently in the region of 500 mg. On this basis the estimated 24,000 heroin users would require a totalt of 12 kg. of heroin each day to maintain their habit. Daily expenditure on heroin by users in Sri Lanka exceeds Rs. 2.5 milion Statistics indicate that the total aliantity of heroin seized by Enforcement Agencies i.e. Police, Customs and Excise in 1985 is less than percent of the estimated total quantity of heroin smuggled into the country
ECONOME CREVIEW, SEPTEMBER, 1986.
that year. Studie prove that drugs sents only 7 to 10 actually smuggled.
Social consequence
Sri Lanka is por lems experienced b associated with the of heroin. Heroin di to be a factor resp. and personality disr
Many users had of their depende The average da less than what the heroin habi sorted to the sa belongings resu relationships anc Some of the de in both petty dependents of known to have A considerable employment ha to cope with t tioned at a low Which Was sua ment of ability, motivation and the drug.
NARCO-TERROR
An increase in t Sri Lankan nationa was first observedi has been a progres kans arrestedinfore
The number of 1984 was 301 of Tamis, and in 1988 arrested according the Police Narcotic 90 percent are Sri kan Tamils have bet ficking mainly in Germany, Switzerla dom. Investigations nite irsk betyveår h anni terroristinn Oy connection has be. documentary and here and abroad di on admissions made of them have been refugee status in C rope whilst a few refuge after arrest.
Sri Lankan Tan and organised in ti
 

at international level sized world wide reprepercent of the amount
sently faced with proby many other countries illegal traffic and abuse pendence is now known insible for social, family lption.
lost their jobs as a result nce on the drug. ily income often being was needed to maintain t, many dependents ree of personal and family |ting in adverse family | circit innstances. pendents were involved ind grave crime and 14 a sample of 100 were past criminal records. number of addicts in d experienced inability heir occupations, funcer jevel Of effectiveress | fy attributed to impaira loss of interest, lack of sluggishness caused by
SM
he involment, abroad, of
ils in drug related cases :
a 1982. Since then there sive increase of Sri Lan sign countries.
Sri Lankans arrested in which 80 percent were 315 persons have been to the data available at Bureau. Of these over
Lankan Tamilis. Sri Lan
in arrested for drug trafaly, France, Spain, West d and the United Kinghave established a defiBroin trafficking and the ment in Sri Lanka. This fa established both by ther evidence gathered Iring investigation, and
by those arrested. Most persons claiming political untries of Western Euhad claimed political
is are we established ese countries and they
now handle not only the conveyance but almost the entire distribution of heroin smuggled by them into several European countries, They are known to have deveoped links with other criminal and terrorist organisations. According to the reports published by jinternational agencies in February, 1986:-
The majority of Sri Lankans found themselves unemployed and were largely of low educational background making them even easier targets for the illicit trafficking organisations. This process continues and the number of Sri Lankans arrested in recent years bears wuyitness to these facts. Almost 50 percent of these persons are in the age group 18 to 30 years. As a result of continued involvement in this type of drug trafficking, one time couriers have formed themselves into trafficking groups located in Spain, Switzerland, Italy and France. Sri Lankan couriers have established iclose contacts with drug dealers and criminal syndicates in Paris, Rome and Amsterdam and have become involved with Indians. Pakistanis, Iranians and Nigerians, nationals who have proved to be significant heroin traffickers. The majority of Sri Lankan couriers will be in possession of false and adapted passports with forged visa endorsements. They will also carry separatist political propaganda. It is expected that Sri Lankans and other couriers will move in a large quantity of heroin from India and Pakistan to Western Europe in Summer 1986.
While some of these Sri Lankan Tamils travel to India or Pakistan legally or illegally and then proceed with heroin to the West European countries, most of these traffickers first enter the European countries as political refugees and travel from there to India and Pakistan to pick up the heroin for the organisations established in the European countries. These organisations consist of Sri Lankan Tarns and other international criminal and terrorist organisations which hande details of travel, stay, documentation and financi Ag and also help such persons to establish their claims for political refuge.
Investigations have also revealed connections with foreign based terrorist training centres and also the siphoning of part of the proceeds to international terrorist organisations in recompense for their support activities to the Tamil dominated drug rings.
(From a National Dangerous Drugs Control Board report).
31

Page 34
義
THE ONE CHILD SOLUTION
Declining Fertility in China
Carol Vassoff 鲨
China is undergoing a demographic transition with a rapidity never before experienced in the history of mankind. Crude birth rates plummeted from an estimated of about 50 births per thousand population in 1963 to only 21 in 1983. Death rates also declined markedly. As a result, the population growth rate during the 1980-85 period 1.17 percent per year - approximated that of the industrialized world.
These dramatic declines have been attributed largely to China's vigorous family planning program, the promotion of one child families, and a systerm of related rewards and penalties. The goal is to halt population growth by the year 2000 at 1.2 billion, and gradually to reduce the population size in the years thereafter.
Chinese authorities have devoted considerable attention to research on population characteristics and trends in the past few years. This represents a major boost in the status of demography in the People's Republic. Demographic statistics used to be based mostly on speculation and inferences from press reports, with occasional references to a little known official population registration system. Since 1982, however, information has been collected and reported in a vigorous manner from a number of sources: registration figures for births, deaths and year-end population totals from 1950 to 1982; the 1982 population census, which was conducted with meticulous care; a 10 percent sample survey of census questionnaires; and a one-per-thousand sample fertility sur
vey, also conducted in 1982.
The most current contributions to China's growing bank of demographic information are coming from an indepth fertility survey conducted in April 1985 by the State Statistical
32
Do Ca^O_2 Véa.440/4 4 444 Ociaẻe Dàzecéo 2, 2 and Deue (opment feaea/zch f/log/amme, in the Sc-ience á Div i Á-ion oÁ the Inte/en.at iona4 De) srešea/zc/h Centne (IDRC) Canada.
Bureau (SSB).
Assistance was pri das (DRC) Internatio Research Centre and Danish donors. DR provide training for searchers in the sur methodology.
The results, once c. lyzed, will provide a mation on fertility, abortion, infant mor preferences, and a government policy before investigated ir The survey covere Hebei and Shaanxi, pality, Shanghai. The about 10 percent of pu lation. Hebei is ty! tal provinces of I Shaanxi, of the inla Shanghai, of the la
Centres.
In each area a ra
5000-7000 househol From these, all w bearing age who had e were interviewed, am than 13000 responder
The quality of the tional, as was the si they were collected. high response rate C percent in each of tİ flects both the dedic vey team members a tic co-operation of
The interviewers, held other jobs as workers, worked lat studying for examina assess their readines the fieldwork. ‘‘Un marks of over 90 pe
one interviewer, 'we
to participate. We
 

ορμβα έέon. Socials 24o/mമnt
ovided by Cananal Development
Norwegian and C's role was to the Chinese rervey design and
ompiled and anawealth of inforcontraception, ality, family size ttitudes toward subjects never detail in China. d two provinces, and one municise areas contain China's total popical of the coasnorthern China; ind regions; and "ge metropolitan
ndom sample of ds was selected. omen of childver been married founting to more
htS.
data was exceppeed with which The remarkably if more than 95 he three areas reation of the surnd the enthusiasthe respondents.
many of whom
family planning e into the night tions designed to is to unddertake less we obtained rcent', explained were not allowed didn't do it for
money, only as part of our regular jobs. It was a wonderful opportunity to learn how to conduct a scientific survey'.
As for the high level of public participation, it can largely be explained by the pre-survey efforts of the research team. 'The survey was advertised in advance in newspapers and billboards' said one of the survey supervisors, "and people were urged to co-operate. This meant that they were prepared for the survey and even felt honoured to be chosen. We also arranged interview times to siut the women so that the questionnaire was not viewed as an inconvenience but rather as a novel, and even special, event'.
The preliminary tabulations now available contain a number of interesting insights. And the information appears to be remarkably consistent with the 1982 census results and other
S0U fCGS, 夔
The success of China's family planning program is demonstrated by a dramatic fall in fertility. The total fertility rate (TER) - roughly the number of children per completed familydeclined from 5.4 in the 1940s to 2.6 in 1981 for the country as a whole.
The 1985 in-depth survey revealed further declines, at least for the three study areas, with TERs of 2.4, 2.3, and 1.1 in, Hebei, Shaanxi, and Shanghai, respectively. These large ruralurban differences between the provinces and Shanghai' are attributed by Chinese researchers to the greater intensity of family planning programs in urban areas. They conclude that if China's population growth is to be halted at the 1.2 billion mark by the year 2000, family planning efforts will have to be concentrated in rural
areas.
EconoMic REVIEW, SEPTEMBER, 1986.

Page 35
Another important factor contributing to lower fertility is the transition to later marrying ages of women over the past 30 years. The in-depth survey revealed that in Shanghai, for example, 42 percent of the oldest cohort of women (aged 45-49) were married during their teens, compared with only 3 percent of those aged 20-24. This increase in age at marriage is mainly the result of a national policy encouraging delayed marriage and of a weakening of the tradition of arranged marriages.
The use of birth Control in China approximates that of the industrialized countries, with about 70 percent of married women of reproductive ages practicing contraception in 1982. In the three surveyed areas, 70-80 percent of the Women interviewed had used at least one family planning method, and the large majority were practicing birth control at the time of the study: 83 percent in Shanghai, 76 percent in Hebei, and 69 percent in Shaanxi.
Chinese researchers Were concerned that a small but significant proportion of Women were not using birth control but already had one or two children. These were seen as the most important target for family planning information.
Since 1979, in keeping with the one-child-per-family policy, the Chinese government has been issu ing single-child certificates to couples with one baby who pledge to have no more. In 1982, the one-per-thousand survey revealed that 43 percent of single offspring mothers had accepted the one child certificate. Only 6 percent of certificate holders interViewed had failed to maintain their pledge, nearly all of them from rural areas.
Infant deaths among certificateholding families were amazingly rare. Family planning officers attributed this to the fact that an only child is better cared for because by law he or she is entitled to superior medical services. Furthermore, an only child does not have to complete with siblings for parental care and attention. Following the traditional Chinese preference for male offspring, 60 per
Cent Of the Certif boys, 40 percent couples Were mor not to have any mc first baby Was a bo' The imbalance Was nounced in rural are Data on One-ch ders from the in-dep yet been analyzed Sults indicate an inc of the one-Child ni for instance, fourWomen had borne compared with less pondents in e Shaan: researchers attribut to variations in inf among the three are per 100 births in S 1000 in the other t common for rural several children in t more will die).
Varying infant divergent social and in Shanghai, for exa jority of deliveries 1 tals, whereas in the Vinces most of th home. Thus, resear the One-child fami|| ceed in rural areas, there must be subs
CONVINCING THE
In spite of its r na's population po
 
 

ied children Were girls. In effect, e likely to agree re children if their y rather than a girl. , again, more pro
aS.
ild Certificate ho|- oth survey have not put preliminary re:reasing acceptance Orm. In Shanghai, fifths of sampled only one child, than half the resxi and Hebei. The 2 these differences ant mortality rates as from 19 deaths hanghai to 35 per Wo provinces. (lt is Couples to have he fear that one or
mortality reflects health conditions: mple, the large maake place în hospimore isolated pro2 births occur at chers note that if f policy is to suchealth Conditions antially improved.
PEASANTS
cord to date, Chiicy still faces nu- :
merous challenges, including the need to improve family planning acceptance in rural areas. Many Chinese express doubt as to whether the policy's success in the coi Intryside will ever match that of the metropolitan areas. The "responsibility system', Which permits the sale of surplus produce on the open market, has already greatly enhanced the welfare of rural peasants, enabling some to provide for several children independently. They may well be willing, therefore, to forego some of the public benefits offered to one-child families.
Another challenge is the reversal of public prejudice in favour of sons so that couples will be content with only one child, whether male or female. This radical change in sex preference has already begun, and there is little Concrete evidence of female infanti
cide or neglect.
One researcher noted that ancient
proverbs in praise of girls are being
revived. One, for example, compares
boys to jackets, which are meant primarily for appearance and are easily removed. Girls, on the other hand, are like undershirts: their value is less obvious but they are Worn close to the heart
It will be fascinating to follow the future course of demographic trends
in China, the World's most populous nation. Indeed, if current enthusiasm for fertility surveys continues, the re. sulting documentation will be, rich and plentiful. -

Page 36
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