IPS Research Themes__Agricultural Economic <strong>Policy</strong>and determining the farm productivity and accessibilityto financial and labour markets. This study attempts todevelop a programme for empowering the poor so thatthey can participate in planning on matters related toland and land use.Agricultural Trade Liberalization Trendsin the Asia PacificCountries, such as China and Thailand, have usedbilateral and regional trade agreement mechanisms inin an attempt to make progress on agricultural trade Dilhani Marawila and Manoj Thibbotuwawa during a fieldvisit to a vegetable plot in Nuwara Eliya and having a discussionliberalization. A comparative assessment <strong>of</strong> the expected with the farmers on the project “Agricultural Land Sector in <strong>Sri</strong><strong>Lanka</strong>”.impact <strong>of</strong> regional trade agreements and multilateraltrade liberalization on trade and development <strong>of</strong> theagricultural sector is needed to assess whether LDCs, many <strong>of</strong> which are still engaged in the WTO accessionprocess, take a similar approach? Thus, the main objectives <strong>of</strong> this research are: a) to map the characteristicsrelated to agricultural trade under different agreements in this region; b) examine the nature and level <strong>of</strong>agricultural liberalization <strong>of</strong> these different trade agreements; c) to analyze the extent and nature <strong>of</strong> welfaregains, effects on trade and effects on different industries under various scenarios <strong>of</strong> trade liberalization inagriculture in the Asia Pacific Region; and d) to derive implications and recommendations for policy makersand negotiators. A research network was established with the Centre for <strong>Policy</strong> Dialogue (CPD) Bangladesh,Bangladesh, Philippine <strong>Institute</strong> for Development <strong>Studies</strong> (PIDS), Philippines, Peking University, Chinaand Griffith University, Australia through the Asia Pacific Regional Trade Network (ARTNeT) at the UnitedNations Economic and Social Commission for Asia and the Pacific (UN-ESCAP). A presentation was made onpreliminary findings <strong>of</strong> the Study “Agricultural Liberalization Trends in Asia Pacific” at the Second ARTNeTConsultative Meeting <strong>of</strong> <strong>Policy</strong> Makers and Research Institutions organized by the UN-ESCAP at theUniversity <strong>of</strong> Macau, Macao, China on 7 October.South Asia Strategy Paper: The research team at theIPS also prepared a paper on “<strong>Sri</strong> <strong>Lanka</strong>’s AgriculturalSector” for the “South Asia Strategy Paper onAgricultural Sector” compiled by the InternationalFood <strong>Policy</strong> Research <strong>Institute</strong> (IFPRI). This paperconsisted <strong>of</strong> major reforms in the agricultural sector,key issues in food security, important gaps in productdevelopment and technology, critical issues inagricultural policies and more specifically, policy leveland institutional recommendations.Parakrama Samaratunga and Manoj Thibbotuwawa at theARTNet Research Team meeting held at the IPS during9-10 August.Research PersonnelP.A. Samaratunga , Dilhani Marawila and Manoj Thibbotuwawa24__________ <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>
IPS Research ThemesPoverty & Social WelfareDespite continued efforts by the state to reduce poverty through a dual approach <strong>of</strong> growth generatingpolicy reforms and continued assistance to the deprived via social welfare programmes and povertyalleviating initiatives, poverty level in <strong>Sri</strong> <strong>Lanka</strong> has continued to remain high over the past decades. Giventhe continued dominance <strong>of</strong> the macro-adjustment based development strategy in <strong>Sri</strong> <strong>Lanka</strong>, there is a strongneed to understand the mechanisms and processes that translatemacroeconomic policy reform to increased welfare, and alsoPublications in <strong>2005</strong>the reasons why certain population segments remain deprived. Tilakaratna, G., U.Wickremasinghe and T.IPS research programme on poverty and social welfare seeks Kumara, “Micr<strong>of</strong>inance in <strong>Sri</strong><strong>Lanka</strong>: A Household Levelto improve knowledge on poverty dynamics <strong>of</strong> vulnerableAnalysis <strong>of</strong> Outreach andgroups in order to emphasize the need to balance economic andImpact on Poverty”, Poverty andsocial issues in policy making and implementation, which Social Welfare Series No. 7 ,would eventually lead to improved status <strong>of</strong> the poor. The <strong>Institute</strong> <strong>of</strong> <strong>Policy</strong> <strong>Studies</strong> <strong>of</strong>focus <strong>of</strong> the research under this theme include the <strong>Sri</strong> <strong>Lanka</strong>, Colombounderstanding <strong>of</strong> the links between poverty and various macro Jayanetti, S. and G. Tilakaratna,policies such as trade liberalization and education policies, “Impact <strong>of</strong> Trade Liberalizationmonitoring poverty at the community level and evaluating the on Poverty and Householdimpact <strong>of</strong> various micro level initiatives such as provision <strong>of</strong>Welfare in <strong>Sri</strong> <strong>Lanka</strong>”, Povertyand Social Welfare Series No. 6,improved access to financial services to the poor.<strong>Institute</strong> <strong>of</strong> <strong>Policy</strong> <strong>Studies</strong> <strong>of</strong><strong>Sri</strong> <strong>Lanka</strong>, ColomboJayanetti, S. and G. Tilakaratna,Highlights<strong>Policy</strong> Brief on “Macroeconomic<strong>Policy</strong> Choices for Growth andMicr<strong>of</strong>inance in <strong>Sri</strong> <strong>Lanka</strong>: Outreach and ImpactPoverty Reduction: The Impacton Poverty<strong>of</strong> Trade Liberalization andDespite the long history <strong>of</strong> providing micr<strong>of</strong>inance services to Poverty in <strong>Sri</strong> <strong>Lanka</strong>”, TheNorth-South <strong>Institute</strong> (NSI),the poor and the large number <strong>of</strong> micr<strong>of</strong>inance institutionsCanada, May <strong>2005</strong>. (http://(MFIs) in <strong>Sri</strong> <strong>Lanka</strong>, the role <strong>of</strong> micr<strong>of</strong>inance on reducingwww.nsi-ins.ca)poverty in the country has been somewhat ambiguous. In thisBook Review: Tilakaratna, G.,context, the research team <strong>of</strong> IPS undertook a study to assess‘Our Future Our Responsibility:the outreach and the impact <strong>of</strong> the micr<strong>of</strong>inance sector in <strong>Sri</strong>Road Map towards a Poverty<strong>Lanka</strong>, under the ‘Micro Impact <strong>of</strong> Macroeconomic and Free South Asia’. <strong>Report</strong> <strong>of</strong> theAdjustment Policies’ (MIMAP) - <strong>Sri</strong> <strong>Lanka</strong> project funded by Independent South Asianthe International Development Research Centre (IDRC), Commission on PovertyCanada. The study finds that micr<strong>of</strong>inance services in <strong>Sri</strong> <strong>Lanka</strong> Alleviation (ISACPA), in <strong>Sri</strong><strong>Lanka</strong> Economic Journal, Vol. 5,have a wide geographical outreach, but the extent <strong>of</strong> outreachNo. 2by the private operators including NGOs and commercial banksis rather limited. Although the poor groups have been reached,a significant proportion <strong>of</strong> micr<strong>of</strong>inance clientele is found to be from the non-poor groups. This study waspublished as a IPS working paper titled “Micr<strong>of</strong>inance in <strong>Sri</strong> <strong>Lanka</strong>: A Household Level Analysis <strong>of</strong> Outreachand Impact on Poverty”. The findings <strong>of</strong> the study were presented at both national and international foraincluding the Fourth General Meeting <strong>of</strong> the “Poverty and Economic <strong>Policy</strong>” (PEP) Research Network heldin Colombo in June .25__________ <strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>