Ethnic politics and economic activity a comparison of sri lanka and malaysia

ETHNIC POLITICS AND ECONOMIC ACTIVITY A COMPARISON OF SRI LANKA AND MALAYSIA NAVARATNAM RAVINTHIRAKUMARAN (B.A (Econ.) (Hons.) Jaffna, Dip-in-Econ, M.A Colombo) A THESIS SUBMITTED FOR THE DEGREE OF DOCTOR OF PHILOSOPHY DEPARTMENT OF ECONOMICS NATIONAL UNIVERSITY OF SINGAPORE 2006 i Acknowledgment There are many individuals and institutions who have contributed to the successful completion of my study First I would like to thank my supervisor, Professor Tilak Abeysinghe, for bringing the topic to my attention and for the able supervision, comments, and suggestions that have led to the completion of the thesis I also owe a debt of gratitude to other members of the thesis committee, Professor Anthony Chin and Dr Gamini Prenaretne who also offered very useful advice at various stages of the research I also express my sincere gratitude to Dr Ganeshamoorthy, OG Dayaratne Banda, and Gurpreet Singh Bhatia, who have helped me in various ways at different stages of my study I am also grateful to the National University of Singapore for providing financial support to enable me to complete my studies My deep appreciation goes to my parents Mr and Mrs Navaratnam, who have been very supportive of my ambition to pursue post-graduate studies This thesis is dedicated to my parents I also thank my father-in-law, Jeyaseelan, brothers and sisters, and my brothersin-law and sisters-in-law for offering me various forms of support during my studies Finally, I express my heartfelt appreciation to my wife Kalaichelvi and sons Saranyan and Hanosiyan for their support and encouragement throughout the duration of my study My wife also patiently read and provided excellent assistance in various ways ii Table of Contents Page Summary viii List of Tables x List of Figures xii List of Diagrams xii List of Appendices xiii Abbreviations xiv Chapter 1: Introduction 1.1 Introduction 1.2 Sri Lanka and Malaysia experience 1.3 The research focus 1.4 The organization of the thesis 10 Chapter 2: Ethnicity and Ethnic Conflict: General Concepts 2.1 Introduction 12 2.2 Definition of key terms 12 2.2.1 Ethnicity 13 2.2.2 Ethnic boundaries 15 2.2.3 Ethnic conflict 18 2.2.4 Economic openness 19 2.2.5 Economic growth and development 22 iii 2.2.6 Disciplined government 24 2.2.7 Democracy 25 2.2.8 Why ethnic conflicts occur? 26 2.3 Review of literature 28 2.3.1 Economic factors and ethnic conflicts 29 2.3.2 Political factors and ethnic conflicts 37 2.3.3 Cultural factors and ethnic conflicts 41 2.3.4 Justification of the literature studies 46 2.4 Summary 46 Chapter 3: Ethnic preference policies in Sri Lanka and Malaysia 3.1 Introduction 48 3.2 A brief background of ethnic preference policies 49 3.3 Ethnic preference policies in Sri Lanka 51 3.3.1 Evolution of ethnic preference policies 51 3.3.2 Ethnic preference in language 52 3.3.3 Ethnic preference in religion 55 3.3.4 Ethnic preference in education 56 3.3.5 Ethnic preference in employment 60 3.3.6 Ethnic preference in land settlement 64 3.3.7 Ethnic preference in policy decision 66 3.4 Ethnic preference policies in Malaysia 68 3.4.1 Evolution of ethnic preference policies 69 3.4.2 Ethnic preference in culture 69 iv 3.4.3 Ethnic preference in education 72 3.4.4 Ethnic preference in employment 76 3.4.5 Ethnic preference policies in other financial activities 78 3.5 Evaluation of EPPs in Sri Lanka and Malaysia 80 3.6 Summary 84 Chapter 4: Analytical explanation, theoretical and empirical analysis 4.1 Introduction 88 4.2 Analytical explanation 89 4.2.1 Degree of economic openness and ethnic conflict 93 4.2.2 The quality of governance and ethnic conflict 100 4.2.3 Economic growth and ethnic conflict 104 4.2.4 Poverty, inequality, deprivation and ethnic conflict 108 4.3 Theoretical model of ethnic conflict 111 4.3.1 Introduction 111 4.3.2 Assumptions of the model 112 4.3.3 The consequence of political options 113 4.3.4 Agreement or challenge? 119 4.3.5 Can ethnic peace be achieved? 122 4.3.6 The implications of the analysis 124 4.3.7 The degree of economic openness and ethnic peace or conflict 126 4.4 Empirical analysis 4.4.1 Research design 131 131 v 4.4.2 Estimation techniques 141 4.4.3 Results 143 4.4.3.1 Results of economic growth 143 4.4.3.2 Results of disciplined government 147 4.4.3.3 Results of ethnic conflict 149 4.5 Summary 153 Chapter 5: The impact of economic activity on inter-ethnic relations in Sri Lanka and Malaysia 5.1 Introduction 162 5.2 Economic activities and their outcome in Sri Lanka and Malaysia 164 2.1 Degree of economic openness in Sri Lanka and Malaysia 164 5.2.2 Role of the government in Sri Lanka and Malaysia 171 5.2.3 The level of macro-economic stability in Sri Lanka and Malaysia 176 5.2.4 Economic growth in Sri Lanka and Malaysia 182 5.2.5 Poverty and Inequality in Sri Lanka and Malaysia 186 5.3 Socio-economic status of ethnic groups in Sri Lanka and Malaysia 5.3.1 Ethnic composition and socio-economic attainment 195 196 5.3.1.1 Education achievement by ethnicity 197 5.3.1.2 Employment and unemployment pattern by ethnicity 200 5.3.1.3 Ownership of capital assets by ethnicity 210 5.3.1.4 Monthly mean income by ethnicity 213 vi 5.3.2 Geographical area and socio-economic performance of ethnic groups 216 5.3.2.1 Geographical area and socio-economic performance of ethnic groups in Sri Lanka 216 5.3.2.2 Geographical area and socio-economic performance of ethnic groups in Malaysia 5.4 Economic aspects of inter-ethnic relations in Sri Lanka and Malaysia 226 229 5.4.1 Inter-ethnic relation in Sri Lanka 229 5.4.2 Inter-ethnic relation in Malaysia 238 5.5 Summary 243 Chapter 6: Conclusion 6.1 Introduction 247 6.2 Summary of findings 247 6.3 Policy implications 259 Bibliography 262 vii Summary Sri Lanka and Malaysia are basket cases of socio-economic policies that have resulted in vastly different socio-economic outcomes Despite a vast and growing literature on ethnic tensions, the economic dimension of the problem remains largely unexamined; analyses on ethnic tensions have inevitably led to a misleading impression that both countries’ ethnic tensions are purely an ‘ethnic issue’ and that it has to be analyzed in the context of ethnic disparities of each country This thesis addresses this misconception focusing on the economic dimension of the problem The objective of the thesis is to analyze how economic policies can act as a stimulant to ethnic tensions or cordial ethnic relations, using Sri Lanka and Malaysia as case studies The thesis shows that a high degree of economic openness to trade and investment ensures high growth and a disciplined government that is turn set the pre-conditions for ethnic peace Chapter provides definitions and explanations regarding the key terms of ethnic-related issues such as ethnicity and ethnic conflict and then explores the relevant literature on ethnic conflicts Chapter discusses the origins and evolution of ethnic preference policies in Sri Lanka and Malaysia More specifically, the thesis highlights the following major components: the background of ethnic preference policies - the origin and nature of the ethnic polity in Sri Lanka and Malaysia and the rationale of their ethnic preference policies; an analysis of the major domains of ethnic contestation and state intervention in both countries; and a critical evaluation of the effectiveness and impacts of such ethnic preference policies in Sri Lanka and Malaysia viii Chapter provides a general theoretical and empirical framework Using an analytical framework, the thesis discusses the fundamental relationship between economic activities and ethnic conflict In order to explain the relationship further, it utilizes an adapted a game-theoretic model of conflict between ethnic groups based on their behavior It then provides an empirical analysis, using a panel data set for 12 multi-ethnic countries from 1980 to 2000, how openness, disciplined government and economic growth interact to create the necessary conditions for ethnic peace Chapter moves on examine the impact of economic activity on inter-ethnic relations in Sri Lanka and Malaysia In this context, it provides a critical evaluation of economic activities and there outcome in Sri Lanka and Malaysia, a critical assessment of the socioeconomic status of ethnic communities in both countries, and a critical examination of effectiveness and impacts of economic activities on inter-ethnic relations Lastly, in order to close the thesis, Chapter summarizes the major findings of the thesis and draws some policy implications ix List of Tables 2.1 Ethnic conflict and economic factors: A summary 30 2.2 Ethnic conflict and political factors: A summary 38 2.3 Ethnic conflict and social factors: A summary 41 3.1 Sri Lanka: Composition of public service 1948, 1979/80 62 3.2 Sri Lanka: Ethnicity of settlers in Mahaweli irrigation 67 4.1 List of countries by openness status and degree of governance 95 4.2 Relationship between degree of openness and growth: 1981-2000 97 4.3 Relationship between growth and inequality 107 4.4 Dependent variable: Economic Growth 144 4.5 Dependent variable: Disciplined Government 147 4.6 Dependent Variable: Ethnic conflict 149 5.1 Sri Lanka: Political parties in power and economic policy regimes 1951-2000 165 5.2 Malaysia: Political parties in power and economic policy regimes 1959-2000 166 5.3: Sri Lanka and Malaysia: Fiscal operations 1960-2000 180 5.4: Sri Lanka: Incidence of poverty 1969/70 - 1995/96 187 5.5: Sri Lanka: Income distribution and gini ratio 1953 - 2000 189 5.6: Malaysia: Incidence of poverty 1957/58 – 2000 190 5.7: Malaysia: Income distribution and Gini ratio 1957/58 - 2000 192 5.8: Sri Lanka: Employment and unemployment rate 19559/60-2000 201 5.9: Sri Lanka: Employment by ethnic group and occupation 1981/83 203 x La Porta, R., Lopez-de-Silanes, F., Andrei, S and Vishny, R (1998), “The Quality of Government,” Journal of Law, Economics and Organization, Vol.15, No.1, pp.222279 Lake, David and Donald, Rothchild (1996), “Containing fear: The origins and management of ethnic conflict”, International Security, Vol 21, No 2, pp.41-75 Lakshman, W.D (1997), “Dilemmas of Development” Fifty years of economic change in Sri Lanka, Sri Lanka: Sri Lanka Association of Economists Lakshman, W.D (1998), “Poverty in Sri Lanka: Measurement and Alleviation Exercises”, Self-help Support Program Working Paper, Sri Lanka: InterCooperation Lakshman, W.D (2004), “Youth unemployment: An exploratory study”, in Economic Policy in Sri Lanka: Issues and Debates, Kelegama, Saman (Ed.), Sri Lanka: Vijitha Yapa Lakshman, W.D and Tisdell Clament A (2000), “Sri Lanka’s Development since independence; Socio-Economic perspective and analysis”, New York: Nova Publishers Inc Lee, Hock G (2000) “Ethnic relations in Peninsular Malaysia: The cultural and economic dimensions”, Institute of Southeast Asian Studies WP, Social and Cultural Issues, No.1, Singapore: Institute of Southeast Asian Studies Levine Ross, Renelt David (1992), “A sensitivity analysis of cross-country growth regressions”, American Economic Review, Vol 82, No 4, pp 942-963 Lindenberg, Marc (1990), “World economic cycles and Central American political instability”, World Politics, Vol.42, No.3, pp 397-421 283 Ling, L.S., Kok W.K., Michael, Y.O., Lim L.L., David, C and Chua, J.M (1988), “The Future of Malaysian Chinese”, Kuala Lumpur: Malaysian Chinese Association Lipset, Seymour M (1959), “Some social requisites of democracy: Economic development and political legitimacy”, American Political Science Review, Vol 53, No.1, pp 69-105 Mah, Hui L (1985) “Affirmative action, ethnicity and integration: The case of Malaysia”, Ethnic and Racial Studies, Vol 8, No 2, pp 250-277 Mankiw, G.N., Romer, D and Weil, D.N (1992), “A contribution to the empirics of economic growth”, The Quarterly Journal of Economics, Vol 107, No 2, pp 407-437 Manogaran, Chelvadurai (1987), “Ethnic conflict and reconciliation in Sri Lanka”, Honolulu: University of Hawaii Press Marga Institute (1995), “Inter racial equity and national unity in Sri Lanka” Marga Institute, Colombo, Sri Lanka Marga Institute (2001), “Economic social and human cost of the war Sri Lanka”, National peace council, Colombo, Sri Lanka Marshall, Monty G and Keith, Jaggers (2002), “Polity IV Project: Political Regime Characteristics and Transitions, 1800–2001”, Data set user Manual, College Park, MD: University of Maryland Marshall, Singer R (1990) “Prospect for conflict management in the Sri Lankan ethnic crisis”, in Conflict and Peacemaking in Multiethnic Societies, Joseph V Montville (ed.), New York: Lexington Books Martin, Christian W Schneider, Gerald (2002), “Knocking at the globalization door: 284 Regulatory competition, regional convergence and foreign economic in the developing world”, Paper Presented at the Conference on Polarization and Conflict Barcelona, 15-16 December Mauro, Paolo (1995), “Corruption and Growth”, Quarterly Journal of Economics, Vol 110, No.3, pp 681-712 Means, Gordon P (1986), “Ethnic preference policies in Malaysia”, in Ethnic preference and public policy in developing states, Neil Nevitte and Charles H Kennedy (eds.), Boulder, Colorado: Lynne Rienner Publishers Ministry of Finance, Economic report, various issues, Ministry of Finance, Kuala Lumbur Mohamed, Azali (2000), “The Malaysian economy and the Monetary policy”, Free Lecture Notes Prepared for Economic causes (ECN 3141 and ECN 4149) in 2000 Mohamed, Rabie (1994), “Conflict resolution and ethnicity”, Westport, Connecticut: Praeger Mahmood, Hasan H (2002), “When is economic growth pro-poor? Experience in Malaysia and Pakistan”, IMF Working Paper 02/85, International Monetary Fund Molanaa, H., Montagnaa, C and Violatoa, M (2004), “On the causal relationship between trade-openness and government size: Evidence from 23 OECD countries”, Research Paper 2004/14- Research Papers Series, Internationalization of Economic policy, University of Nottingham Moore, Mick (1990), “Economic liberalization versus political pluralism in Sri Lanka” Modern Asian Studies, Vol 24, No.10, pp 341-383 Muller, Edward N (1985), “Income Inequality, Regime Repressiveness, and Political 285 Violence”, American Sociological Review, No 50, No.1, pp 47-61 Muller, Edward N and Erich, Weeds (1990), “Cross national variation in political violence: A rational actor approach”, Journal of conflict resolution, Vol 34, No 4, pp 624-651 Muller, Edward N and Mitchell, Seligson (1987), “Inequality and insurgency”, American Political Science Review, Vol 81, No 2, pp 425-451 Murdoch, James C and Sandler, Todd (2002), “Economic Growth, Civil Wars, and Spatial Spillovers” Journal of Conflict Resolution, Vol.46, No.1, pp 91-110 Mutaliph, T.M.Z., Wasantha, D and Bandaranaike, Anila D (2002), A provisional estimation and analysis of regional economic activity in Sri Lanka 1996-2000”, Central Bank of Sri Lanka, Staff Studies, Vols, 31 and 32 Nafziger, E.W and Auvinen J (2002), “Economic development, inequality, war and state violence”, World Development, Vol 30, No 2, 153-163 National Human Development Report (1998), “Regional dimensions of human development”, UNDP, Sri Lanka Neeman, Z., Daniele, P and Avi Simhon (2004), “Corruption and Openness”, Discussion Paper Series 353, Center for Rationality and Interactive Decision Theory, Hebrew University, Jerusalem Nevitte, Neil and Kennedy, Charles H (1986), “The analysis of policies of ethnic preference in developing states” in Ethnic Preferences and Public Policy in Developing State, Nevitte, Neil and Kennedy, Charles H (eds.), Boulder, Lynne Rienner Publishers O’Sullivan, Meghan (2001), “Sri Lanka: civil strife, civil society, and the state1983- 286 1995”, in War and Underdevelopment, Stewart, Frances and Valpy, Fitzgerald (eds.), Oxford: Oxford University Press Oberst, Robert C (1986), “Policies of ethnic preferences in Sri Lanka”, in Ethnic Preferences and Public Policy in Developing States, Nevitte, Niel and Kennedy, Charles H (eds.), Boulder, Lynne Rienner Publishers Obeyesekere, Gananath (1974), “Some comments on the social backgrounds of the April 1971 insurgency in Sri Lanka”, Journal of Asian Studies, Vol 33, No 3, pp 367-384 Obeyesekere, Gananath (1984), “Political violence and the future of democracy in Sri Lanka”, International Asian Forum, Vol 15, Nos & 2, pp 39-60 Oliver, H.M (1957), “Economic opinion and policy in Sri Lanka”, Durham, N.C: Duke University Press Olzak, Susan and Joanne, Nagel (1986), “Competitive Ethnic Relations”, New York: Academic Press Onn, Fong C (1989), “Malaysian corporate economy restructuring: Progress since 1970”, Paper presented at the seminar on New Economic Policy and Its Future, Malaysian Social Science Association, Kuala Lumpur, 24 -26 July Osmani, S.R (1993), “Is there a conflict between growth and welfarism? The tale of Sri Lanka”, Working Papers No.109, World Institute for Development Economics Research, The United Nations University Peiris, G (2001), “Poverty and entitlement dimensions of political conflict in Sri Lanka”, A bibliographic survey, Netherlands Institute of International relations, The Hague 287 Perumal, M (1989), “Economic growth and income inequality in Malaysia, 19571984”, Singapore Economic Review, Vol 34, No 2, pp.32-46 Phadnis, Urmila (1945), “Ethnicity and National Building in South Asia”, New Delhi: Saga publication Ponnampalam, Satchi (1983), “Sri Lanka: The National Question and the Tamil Liberation Struggle”, London: Zed Books Population and Housing Census (2000), Department of Statistics Malaysia, Malaysia Posner, Richard (1997), “Equality, wealth and political stability”, Journal of Law, Economics and Organization, Vol 13, No.2, pp 344-365 Puthucheary, Mavis (1978), “The politics of administration: The Malaysian experience”, Kuala Lumpur, Malaysia: Oxford University Press Rajapathirana, Sarath (1988), “Foreign trade and economic development: Sri Lanka’s experience”, World Development, Vol.16, No.10, pp 1143-1157 Rankaduwa, Wimal and Cooray, N.S (1999), “Economic impact of defense and nondefense spending: An empirical investigation” Upanathi, the Journal of Sri Lanka Association of Economists, Vol 10, Nos & 2, pp.102-115 Ratuva, Steven (2002), “Affirmative action and good governance: Some lessons for Vanuatu” Paper presented at the Vanuatu Governance Update - 2002, Emalus Campus, USP, Pt Vila, August Reynal-Querol, Marta (2001), “Religious and ethnic conflict, political systems and growth”, PhD Thesis, London School of Economics Reynal-Querol, Marta (2002), “Ethnicity, political systems, and civil wars”, Journal of Conflict Resolution, Vol 46, No 1, pp 29-54 288 Richardson, John and Shinjinee, Sen (1996), “Ethnic conflict and economic development: A policy oriented analysis”, Ethnic studies Report, School of International Service, American University Ritchie, Bryan K (2004), “Politics and economic reform in Malaysia”, William Davidson Institute Working Paper Number 655, William Davidson Institute at the University of Michigan, Stephen M Ross Business School Rivera-Batiz, Francisco (2002), “Democracy, governance, and economic growth: theory and evidence”, Review of Development Economics, Vol.6, No 2, pp 225247 Rodrik, Dani (1995), “Trade policy and industrial policy reform”, in Handbook of Development Economics, J Behrman and J Srinivasan (eds.), Amsterdam: NorthHolland Rodrik, Dani and Rodriguez, Francisco (1999), “Trade policy and economic growth: A skeptic’s guide to the cross-national evidence”, NBER Working Paper 7081 Cambridge, Massachusetts: National Bureau of Economic Research Romer, Paul M (1986), “Increasing returns and long run growth", Journal of Political Economy, Vol 94, No.5, 1002-1037 Romer, Paul M (1990), “Endogenous technological change”, Journal of Political Economy, Vol 98, No.5, pp S71-S102 Roslan, A (2001), “Income inequality, poverty and development policy in Malaysia”, Paper presented to the Conference on Poverty and Sustainable development, University Montesquieu-Bordeaux, November Rummel, Rudolph J (1997), “Is collective violence correlated with social pluralism?” 289 Journal of Peace Research, Vol 34, No 3, pp.163-176 Sachs, Jeffrey and Warner Andrew (1995), “Economic reform and the process of global integration”, Brookings Papers on Economic Activity 1: Washington, Brookings Institution Sachs, Jeffrey and Warner Andrew (1997), “Fundamental sources of long-run growth”, American Economic Review, Vol 87, No.2, pp.184-188 Sala-I-Martin, Xavier X (1997), “I just ran two million regressions”, The American Economic Review, Vol.87, No.2, pp.178-183 Samarasinghe, S.W.R.D (1984), “Ethnic representation in central government employment and Sinhala-Tamil relations in Sri Lanka 1948-1981”, in Independence to Statehood, Goldmann B Robert, and A.J Wilson (eds.), London: Frances Pinter Sambanis, Nicholas (2000), “Partition as a solution to ethnic war: An empirical critique of the theoretical literature”, World Politics, Vol 52, No.4, pp 437-483 Sambanis, Nicholas (2001), “Do ethnic and non-ethnic civil wars have the same causes? A Theoretical and Empirical Inquiry”, Journal of Conflict Resolution, Vol 45, No 3, pp 259-282 Sarji, Ahmad (1989), “Equity in public service in Malaysia”, in Equity in public employment across nations, K Tummala (ed.), New York: University Press of America Schaffer, Lena-Maria (2004) “Economic growth and civil war: A one-way street?”, Paper presented at the Fifth Pan-European International Relations Conference in The Hague, Netherlands, 9-11 September Sebastian, Edwards (1997), “Trade policy, growth, and income distribution”, American 290 Economic Review, Vol 87, No.2, pp 205-210 Shamsul, Haque M (2003), “The role of the state in managing ethnic tensions in Malaysia”, American Behavioral Scientist, Vol 47 No 3, pp 240-266 Shang, Jin W (2000), “Natural openness and good government” Policy research WP 2411, The World Bank Shils, Edward (1957), “Primordial, personal, sacred and civil ties”, British Journal of Sociology, Vol 8, No 2, pp.130-145 Sigelman, Lee and Miles, Simpson (1977), “A cross-national test of the linkage between economic inequality and political violence”, Journal of Conflict Resolution, Vol 21, No.1, pp 105-128 Silva, Kingsley De M (1997), “Affirmative action policies: The Sri Lankan experience” Ethnic Studies Report, Vol 15, No.2, pp 245-286 Silva, Kingsley De M (2001), “Ethnicity and governance in the Third World: Case studies from South and Southeast Asia- Sri Lanka and Malaysia”, in Ethnicity and Governance in the Third World, M J Mukum, A.O Pita, and K.S Mwangi (eds.) England: Ashgate Publishing Ltd Sivarajah, Ambalavanar (1996), “Politics of Tamil nationalism in Sri Lanka”, New Delhi: South Asian Publishers Skaperdas, Stergios (1996) “Contest Success Functions”, Economic Theory, Springer, Vol 7, No 2, pp 283-296 Smith, Anthony D (1991), “National Identity” Reno: University of Nevada Press Snodgrass, Donald R (1966), “Ceylon: An export economy in transition” Homewood, Illinois: Richard D Irwin 291 Snodgrass, Donald R (1975), “Trends and patterns in Malaysian income distribution, 1957- 1970,” in Readings on Malaysian Economic Development, David, Lim (ed.), Kuala Lumpur: Oxford University Press Snodgrass, Donald R (1980), “Inequality and Economic Development in Malaysia” Kuala Lumpur, Oxford University Press Snodgrass, Donald R (1988), “The economic development of Sri Lanka: A tale of missed opportunities” Development discussion paper No 637, Harvard Institute for International Development, Harvard University Snodgrass, Donald R (2002), “Economic growth and income inequality: The Malaysian Experience” in Public policy in Asia: Implications for business and government, M.G Asher, N David and S.P Thomas (eds.) Westport, Connecticut: Quorum Books Solow, Robert M (1956), “A contribution to the theory of economic growth”, Quarterly Journal of Economics, Vol 70, No.1, pp 65-94 Sowell, Thomas (1990), “Preferential Policies: International Perspectives”, New York: Morrow and Company Stafford, Geoffrey (1999), “Economics and ethnicity: Why Malaysia will not follow the Indonesian example of racial relations”, Paper presented at the 2nd International Malaysian Studies Conference, University of Malaya, Kuala Lumpur, Malaysia, 2-4 August State Failure Task Force Report (2004), “Internal wars and failures of governance 1955-2002”, Political Instability Task Force Data Page, University of Maryland: http://www.cidcm.umd.edu/inscr/stfail/sfdata.htm 292 Stavenhagen, Rodolfo (1990), “The Ethnic Question: Conflicts, Development and Human Rights”, Tokyo: United Nations University Press Stavenhagen, Rodolfo (1996), “Ethnic Conflicts and the Nation-State”, London: Macmillan Steinberg, Stephen (1981), “The Ethnic Myth: Race, Ethnicity, and Class in America”, New York Summers, R., Heston, A and Aten, B (2002), “Penn World Table Version 6.1”, Center for International Comparisons at the University of Pennsylvania (CICUP) Summers, R and Heston, A (1984), “Improved International Comparisons of Real Product and its Composition, 1950-1980”, The Review of Income and Wealth, Vol 30, No 2, pp 207-262 Tambiah, Stanley J (1996), “Leveling Crowds Ethno Nationalist Conflicts and Collective Violence in South Asia”, Berkeley: University of California Press Tan, Tat W (1984), “Trends in Malaysian Economic Development”, in The Malaysian Economy at the Crossroads: Policy Adjustment or Structural Transformation, L.L Lim and P.L Chee (eds.), Kuala Lumpur: Malaysian Economic Association and Organisational Resources Tham, Siew Y (2003), “Foreign Direct Investment in Malaysia”, Paper prepared for the Asian Development Bank RETA 5994: A Study on Regional Integration and TradeEmerging Policy Issues for Selected Developing Member Countries, ADB, Manila The report of Consumer Finance Surveys (1963), Central Bank of Sri Lanka, Colombo, Sri Lanka The report of Consumer Finance Surveys (1973), Central Bank of Sri Lanka, Colombo, 293 Sri Lanka The report of Consumer Finance Surveys (1978/79), Central Bank of Sri Lanka, Colombo, Sri Lanka The report of Consumer Finance Surveys (1980/81), Central Bank of Sri Lanka, Colombo, Sri Lanka The report of Consumer Finance Surveys (1981/82), Central Bank of Sri Lanka, Colombo, Sri Lanka Thenuwara, H.N (1997), “The scope for inflation targeting in Sri Lanka; A Focus on the Transmission Mechanism”, Central Bank of Sri Lanka, Staff Studies, Vol 2728 Todaro, Michael P (1992), “Economics for a Developing World An Introduction to Principles, Problems and Policies for Development”, Essex: Longman Treisman, Daniel (2000), “The causes of corruption: A cross-national study” Journal of Public Economics, Vol 76, No 3, pp 399-457 Tudawe, Indra P (2000), “Review of Poverty Related Data and Data Sources in Sri Lankan”, MIMAP-Sri Lanka Series No.4, Institute of Policy Studies, Colombo U.S Department of State (1999), Annual report on international religious freedom for 1999: Malaysia Washington, DC: U.S Department of State UNCTAD (2004), “Investment Policy Review: Sri Lanka” United Nation, New York and Geneva UNHCR (2001), “The Role of the International Community”, Human Rights Watch, New York, USA UNICEF (1985), “Sri Lanka: The social impact of economic policies during the last 294 decade”, UNICEF, Colombo United Nations (2003), “Assessment of needs in the conflict affected areas of the Northeast Province”, Colombo United Nations Development Program (2002), “Human Development Report 2002”, New York: Oxford University Press http://hdr.undp.org/reports/global/2002/en/ United Nations Development Program (2003), “Human Development Report 2003” New York: Oxford University Press http://home.student.uu.se/anbr3915/inequality.htm United States Commission on Civil Rights, (1984), “A Citizen's Guide to Understanding the Voting Right Act”, Washington DC: USA University Grants Commission (1981), “Ethnic distribution of university entrance in Sri Lanka”, Colombo, Sri Lanka Upreti, Bishnu C (2001), “Ethnicity, identity and state in South Asia: An overview” in Ethnicity, identity, and state in South Asia, A.J Kousar (ed.), New Delhi: South Asian publications Venugopal, Rajesh (2003), “The global dimensions of conflict in Sri Lanka” Paper presented to the conference on Globalization and Self-Determination Movements, Pomona College, Queen Elizabeth House, University of Oxford, 21– 22 January Vidanapathirana, Upananda (1986), “Pattern of industrialization: Strategies and responses”, in Facets of Development in Independent Sri Lanka, W Rasaputra, W.M Tilakaratna, S.T.G Fernando and L.E.N Fernando (eds.), Ministry of Finance and Planning, Sri Lanka 295 Vijayakumary, Kanapathy and Salleh, Ismail M (1994), “Malaysian economy: Selected issues and policy Direction”, Kuala Lumpur, Malaysia: Institute of Strategic and International Studies Wallensteen, Peter and Margareta, Sollenberg (2000), “Armed Conflicts: 1989-1999”, Journal of PeaceResearch, Vol 37, No.5, pp 635-649 Wan, Asna W.M.N (1999), “Political and economic accommodation in peninsular Malaysia”, in Political Economy of Development in Malaysia, B.N Ghosh and M.S Salleh (eds.), Kuala Lumpur: Utusan Publications Weede, Erich (1981), “Income inequality, average income and domestic violence”, journal of Conflict Resolution, Vol 25, No 4, pp 639-654 Wikipedia, the free encyclopedia, http://en.wikipedia.org/wiki/Ethnicity Wilson, Jeyaratnam A (1979), “Politics in Sri Lanka, 1947-1979”, London: Macmillan Wilson, Jeyaratnam A (1988), “The Break-up of Sri Lanka: The Sinhalese-Tamil Conflict”, Honolulu: University of Hawaii Press World Bank (1993), “The East Asian Miracle: Economic Growth and Public Policy”, New York: Oxford university press World Bank (1999), “Sri Lanka: A fresh look at Unemployment”, Poverty Reduction and Economic Management Unit, South Asia region, Report No 19609-CE, Washington DC: The World Bank World Bank (2001), “Global Economic Prospects and the Developing Countries”, Washington DC: The World Bank World Bank (2002), “Low income countries under stress”, Washington DC: The World Bank 296 World Bank (2003), “Memorandum of the President of the International Development Association and the International Finance Corporation to the Executive Directors on a Country Assistance Strategy of the World Bank Group for the Democratic Socialist Republic of Sri Lanka,” April 23; Report No 25413-CE World Bank (2004), “World Development Indicators”, Washington DC: The World Bank Yeoh, Kheng K (1999), “State, socio-racial diversity and the public sector: implications for Malaysia”, Paper presented at the 2nd International Malaysian Studies Conference, University of Malaya, Kuala Lumpur, Malaysia, 2-4 August Yoshihara, Kunio (2004), “The comparative economic performance of Malaysia: An Analysis”, Southeast Asian Studies, Vol 42, No 1, pp 1-25 Young, Crawford (1993), “The rising tide of cultural pluralism: The nation-state at bay”, Madison: University of Wisconsin Press Ziegenhagen, Eduard A (1994), “Political conflict, political development, and public policy”, Westport, Connecticut: Praeger 297 ... Sri Lanka and Malaysia 182 5.2.5 Poverty and Inequality in Sri Lanka and Malaysia 186 5.3 Socio -economic status of ethnic groups in Sri Lanka and Malaysia 5.3.1 Ethnic composition and socio -economic. .. of economic openness in Sri Lanka and Malaysia 164 5.2.2 Role of the government in Sri Lanka and Malaysia 171 5.2.3 The level of macro -economic stability in Sri Lanka and Malaysia 176 5.2.4 Economic. .. section of the chapter, an attempt is made to provide a profile of Sri Lanka and Malaysia, outlining some key aspects Both Sri Lanka in South Asia and Malaysia in Southeast Asia were generally a colonial