This paper focuses on economic consequences of policy reforms and their social and political impacts. Our central argument is the following: (a) contrary to many assertions in the immediate post-reform period, economic liberalisation in Sri Lanka had a significant impact on both household and regional inequality, though not one that was reflected in the conventional statistical measures that informed and dominated policy; (b) the changes in wealth distribution were realted to the altered pay-offs associated with certain assets (especially education) and people's access to them; (c) even if they were not reflected in conventional statistical measures, affected population groups were intensely aware of these changes in the distribution of relative wealth; and (d) their perceptions of increased inequality were magnified by a widening gap between expectations and the opportunities that were open to them.
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Paper provided by La Trobe - Department of Economics in its series Papers with number
98.11.
Find related papers by JEL classification: D60 - Microeconomics - - Welfare Economics - - - General I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data) O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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