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Showing posts from June, 2013

On Power Sector Reform

Foreword to the PC Cirdular Debt Report
Power sector inefficiencies have cost us well over 7% of GDP in direct budget costs in the last 5 years. In addition, growth has been slowed down by at least 2% per annum i.e., over 10% foregone output in the last 5 years. Yet the problem is far from behind us. The restructuring and reform of the power sector has been held up for over 2 decades leading the costs to accelerate in recent years. The important question that needs wide debate is “why are we incapable of addressing such a big problem?” I would like to put forward 2 major propositions relating to this issue. The problem requires careful study and research which can only happen if time and resources are devoted to the problem. Resources would include the assembling of independent expertise with adequate funding to develop perspectives on reform. With enough independent expertise and research for developing a body of knowledge on the required reform, a process of reform must be dev…

Restore the Planning Process!

Restoring the Planning Process The Planning commission is the apex body for making visions and plans for the future of the country as well as for coordinating the medium-term Macroeconomic framework. The vision and plans for the future gave all departments in all levels of government guidance and direction for policy making and planning in all aspects of the economy. The medium term macro framework defines the longer term resource base as well as guidelines for fiscal discipline and planning. The planning process instills a certain discipline in government economic policymaking. Both these activities are based on a widespread consolation at all levels and hence the development of coherence and coordination in government. In conducting these activities, the planning process collectively identifies the opportunities and constraints for the coming period. Sadly we lost the planning process and focused only on projects. In the early days, when the country was young with l…