final_report - TITLE PAGE USAID/Sri Lanka Economic Growth...

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TITLE PAGE USAID/Sri Lanka: Economic Growth & Conflict Assessment
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1. Introduction This report presents the findings, conclusions and recommendations from an Economic Growth and Conflict Assessment sponsored by USAID/Sri Lanka in October/November, 2006. The report is based on a field assessment conducted by Bruce Bolnick of Nathan Associates on behalf of USAID/EGAT, Naren Chanmugam of USAID/Nepal, and Judith Dunbar of USAID/DCHA/CMM, with support and input from Dick Edwards, Lionel Jayaratne, and Mark Sorenson from USAID/Sri Lanka. The assessment team would also like to thank the USAID/OTI program in Sri Lanka for their substantive and logistical support in this assessment. The report also draws upon the Sri Lanka Economic Performance Assessment (EPA) conducted by Nathan Associates on behalf of USAID/EGAT under the Country Analytic Support (CAS) Project. The goal of the assessment was to develop recommendations for a robust yet conflict- sensitive approach to economic growth programming for USAID/Sri Lanka. The assessment team carried out research and fact finding in Sri Lanka and Washington, DC. The Economic Performance Assessment processed and summarized recent economic and conflict data from public sources as background for the assessment. The assessment team conducted over XXX interviews with private sector, NGO, government and civil society representatives across Sri Lanka, including Colombo, Kurunegala, Kandy, Moneragala, Pottuvil, Hambantota, Matara, Galle, Vanatha Villu, Mahavilachchiya, Thantrimale, Anuradhapura, and Trincomalee. This report first presents analysis of the current economic and conflict situation. It next provides recommendations, including potential program areas, program implementation approaches (including how and where to implement the program), linkages across the USAID portfolio, and possible program mechanisms. Recommendations summary Based on the analysis below, the assessment team concluded that USAID should pursue a program that promotes sustainable and equitable economic growth through private sector development that delivers major benefits to conflict-strategic regions and populations in support of a durable political solution to the conflict. By ‘conflict-strategic’, we mean people and geographic areas that are either directly impacted by the war, or are critical to successful peace negotiations. The program should engage these people and regions in two ways. First, it should work to improve private sector practices at the base level of supply chains in the rural sector, particularly focusing on agriculture, agribusiness, information and communications technology (ICT), and non-farm activities. For example, it might work with smallholders producing fruits and vegetables to improve their productivity or reduce their post-harvest losses. This engagement should be designed to produce a sustainable improvement in livelihoods in these regions. Second, the program should enable local actors, including both the private sector and local government, to engage in and eventually drive the
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final_report - TITLE PAGE USAID/Sri Lanka Economic Growth...

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