Saturday 3 August 2013

Acts of faith

The IMF recently called on Sri Lanka to increase government spending on education and healthcare saying it would lead to increased labour productivity.

However for a government under real pressure, increasing public spending is a brave decision.... and a signifiant act of faith.

Will it really increase productivity? And when? And by how much? And is this a better investment than spending or, say, infrastructure or technology?

Who would be a public policy director?  The best you can do is to get it 'least wrong'.

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