 Overpopulation  1 billion & climbing.
 Economic development.
 Hindu-Muslim tensions.
 Gender issues  dowry killings.
 Caste bias  discrimination against untouchables continues.
 The Kashmir dispute and nuclear weapons.
 Political assassinations.

• Conflict over Kashmir – India & Pakistan
– Irrigation
– Pride
• Nuclear Weapons – India & Pakistan
• Flood control – India & Bangladesh
• Humanitarian Aid – India & Bangladesh

Why is India becoming an economic superpower?

India Story
% average annual GDP growth
1900 – 1950 1.0
1950 – 1980 3.5
1980 – 2002 6.0
2002 – 2006 8.0
Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India
(2001), 2000-2005 Finance Ministry

India Story
% average annual growth
1901 – 1950 1.0
1951 – 1980 2.2
1981 – 1990 2.1
1991 – 2000 1.8
2001 – 2010 1.5
Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001)

nd
•
•

•
•

India got democracy before capitalism and this has made all the difference
-It will be slower than China but its path will be surer
-India more likely to preserve its way of life

“By 2010 India will have world’s largest number of English speakers”
“When 300 million Indians speak a word in a certain way, that will be the way to speak it.”
-Prof. David Crystal, Cambridge Encyclopedia of the English
Language

India Story
%
1950 17
1990 52
2000 65
2010 (proj) 80
Source: Census of India (2001)

India Story
% Million
People
1980 8 65
2000 22 220
2010 (proj) 32 368
Source: The Consuming Class , National Council of Applied Economic Research, 2002

INDIA WILL GRADUALLY TURN
MIDDLE CLASS
%
1980 8
2000 22
2010 32
2020 50 West of the
Kanpur-Chennai line
2040 50 East of the
Kanpur-Chennai line

• Over 200 million people falling into a growing middle class of consumers.
• Technically defined as those earning between $4000-$21,000 a year.
• This actually only accounts for 60 M.
• “Middle class-ness” seems to include those going from living on $5 a day to $10.

India Story
1980 46%
2000 26%
2010 (proj) 16%
1% of the people have been crossing poverty line each year for 20 years. Equals ~ 200 million.

India Story
30% to 40% of GDP growth is due to rising productivity

India Story
(US$ ppp)
1980 1178
2000 3051
Source: World Bank

This means a per capita income roughly of (on a ppp basis):
($)
2000 2100
2005 3050
2020 5800
2040 16,800
2066 37,000

India Story
th
And it will cross Japan between
2012 and 2014 to become the 3 rd largest

Government and the Economy
• India is the world’s largest democracy.
• India is one of the strongest nations in Asia.
• One of India’s largest industries is its moviemaking industry —called Bollywood.
• Although India is one of the world’s top five industrial countries, millions of Indians live in poverty.

• Thomas Freidman has asserted that globalization has made the world “flat” as evidenced by the growing service sector within
India.
• This also implies that India is
“flat.”
• Reality on the ground may differ.

Domestic
Services
Consumption
Exports
Manufacturing
Investment
High tech, capital Low tech, labour intensive industry intensive industry

 The “mix” refers to private and public ownership. Socialism…
 Foreign aid and foreign investment are crucial (also something Gandhi disagreed with).
 Urban areas have high-tech companies.
 Three quarters of the population are farmers living in small villages.

• Licence Raj, also the Permit Raj refers to the elaborate licenses, regulations and the accompanying red tape that were required to set up and run businesses in India between 1947 and 1990.
• The Licence Raj was a result of India's decision to have a planned economy where all aspects of the economy are controlled by the state and licences are given to a select few.
• Up to 80 government agencies had to be satisfied before private companies could produce something and, if granted, the government would regulate production.
• The social democratic plan is too optimistic for Inidan immature environment.

Reliance, Jet Airways, Infosys, Wipro,
Ranbaxy, Bharat Forge, Tata Motors,
TCS, Bharati, ICICI and HDFC Banks

> 100 Indian Companies have market cap of US$ 1 billion
> 1000 Indian Companies have received foreign institutional investment
> 125 Fortune 500 companies have
R&D bases in India
> 390 Fortune 500 companies have outsourced software development to India.
< 2% bad loans in Indian banks (vs ~ 20% in China)
> 80% credit goes to private sector (vs~10% in
China)

+ Dynamic democracy
+ Free, lively media and press
- Poor governance
- High subsidies High fiscal deficit
- Creaky infrastructure
Inefficient government companies

1) Even slow reforms add up-state getting out of the way
2) Young minds are liberated
3) India has found its competitive advantage in the knowledge economy

Key Reforms
• Opened economy to trade and investment
• Dismantled controls
• Lowered tariffs
• Dropped tax rates
• Broke public sector monopolies

• Per Capita GDP - $3600
• 60% agricultural/ but only 20% of
GDP.
• 100 million farmers own NO land.
• Approximately 80% of all Indians live on the equivalent of less than
$2 a day.

2
• Farming methods have improved, but few families own enough land to support themselves.
• Many farmers have set up cottage industries to add to their income.
• India is a leading industrial nation, and advances have been made there in technology and consumer industries.
• The growing middle class forms the market for consumer goods.

INDIA: ECONOMIC GEOGRAPHY
Primary Sector:
• Indian agriculture is inefficient and labor intensive.
• Animals are frequently used for power.
• The village is the focus of life for 74 percent of the Indian population with an estimated 580,000 villages.
• Approximately 2/3 of India's huge working population (63 percent) depends directly on the land for its livelihood.
• Substantial progress toward modernization has been made in the
Punjab's wheat zone.
• In the early 1980s more than 1/4 of India's cultivated area was still owned by only 4 percent of the country's farming families.
• Half of all rural families either owned as little as a half hectare
(1.25 acres) or less, or no land at all.
• Land consolidation efforts have had only limited success, except in the states of Punjab, Haryana, and Uttar Pradesh.

INDIA: ECONOMIC GEOGRAPHY
•
Major crop zones:
1.
Wheat . Dry northwest notably in the Punjab and neighboring areas of the
Upper Ganges. Many gains from the Green Revolution through the introduction of high-yielding varieties developed in Mexico.
2.
Rice. Moist east and a summer monsoon drenched south. More than 1/4 of all of India's farmland lies under rice cultivation, most of it in the states of
Assam, West Bengal, Bihar, Orissa, and eastern Uttar Pradesh. This area has more than 100 cm (40 inches) of rainfall. India has the largest acreage of rice among the world's countries. Yields per hectare are still low at below
1,000 kg (900 lbs./acre), however.
3.
Coconut.
Malabar Coast. (Kerala)
4.
Millet.
Southwestern India. A cereal grass, Setaria italica, extensively cultivated in the East and in southern Europe for its small seed or grain, used as food for man and fowls, but in the U.S. grown chiefly for fodder.
5.
Groundnut.
Kathiawar Peninsula.
6.
Cotton.
West-Central India (Deccan Plateau).
7.
Chick Peas.
Northwest.
8.
Plantation.
Northeast.

INDIA: ECONOMIC GEOGRAPHY
•
Livestock:
• India has more livestock than any other country in the world.
– Cows - 200,000,000
– water buffalo - 60,000,000
– Goats and sheep - 60,000,000
– Horses, donkeys, and elephants - 5,000,000
• Sheep are of major importance in the drier west where the
Islamic population is clustered.
• Water buffalo is dominant in the Ganges Delta and coastal regions.
• Cattle (particularly the Brahman or Zebu breeds) are found throughout India.

INDIA: ECONOMIC GEOGRAPHY
• Cattle are an integral element of the Indian agricultural economy.
– They are the primary source of draft power (plowing, pulling carts, grinding grain, and a host of other tasks).
– Cattle graze on forage which would otherwise be wasted during a dry season.
– Cattle consume secondary agriculture byproducts (straw, rice husks, and corn stalks).
– Cattle produce an estimated 771,000,000 metric tons (850,000,000 tons) of cow dung, the principle source of domestic fuel a year.
– Dung is also mixed with mud and used for plaster; also a major source of fertilizer.
– Cattle also produce most of India's milk (the bulk of which comes from the water buffalo).
– When a cow dies, it is consumed by the untouchables (who have no prohibitions about consuming beef when it is available) of the large Hindu population.
– Cow hides are a major source of leather.
– The maintenance of the large numbers of cows and buffalo is a completely rational activity in the Indian agricultural economy.



Introducing higheryielding varieties of seeds in 1965.
Increased use of fertilizers & irrigation.

GOAL  make India self-sufficient in food grains.
 India's "Green Revolution" allowed RICH farmers to triple their crop by using modern science and technology.

INDIA: ECONOMIC GEOGRAPHY
• Green Revolution describes the development of extremely highyielding grain crops that allow major increases in food production, particularly in subtropical areas.
• In 1953, scientists developed rust-resistant dwarf wheats which doubled Mexico's per acre production in the next decade.
• After a major drought in India in 1965, Mexican dwarf wheat was widely planted in the Punjab region, producing dramatic increases in wheat yields.
• The improved rice (IR)- IR-8 was spotted in 1965 at the Los
Ba Z os research institute in the Philippines, which was set up using aid from the Ford and Rockefeller Foundations.
• Its first harvest, from 60 trial tons of seeds, produced a six-fold increase of rice under field conditions.
• About 10% of India's paddy land is now planted with IR-8 varieties.

INDIA: ECONOMIC GEOGRAPHY
• Green Revolution benefits:
– Two to four times the yield of indigenous grains.
– A shortened growing season allows two crops per year.
– “
Miracle grains" have a wider tolerance for climatic variations.
• Green Revolution problems
– Need for high application of fertilizer and insecticide, and in the case of rice, there is a need for copious irrigation.
– "Miracle grains" have been adopted in the most prosperous areas and among the most prosperous farmers. As a result, interregional and social gaps have widened.
– Traditional marketing patterns have been upset. Thailand and
Myanmar (Burma) have found their traditional markets disappearing, and Japan now looks for exports.

INDIA: ECONOMIC GEOGRAPHY
• Secondary sector:
• At the time of independence (1947), Indian industries emphasized textiles and food processing.
• Gandhi championed development of the cottage industries that existed prior to the intervention of Britain.
– A cottage industry involves small scale production using high labor inputs.
– Cottage industries are very important because they are labor intensive.
– They employ 40 individuals for every one employed in a large automated factory producing the same products.
– A total of 750 products is produced by small industries which use <=$100,000 in capital. (Receivers, tools, plumbing fittings, etc.).
• Manufacturing employs only 13% of the labor force.

INDIA: ECONOMIC GEOGRAPHY
Manufacturing Regions:
1. Kolkata (Calcutta) and Jamshedpur form an emerging industrial region in northeastern India.
– Calcutta forms the center of the Bihar-Bengal area where jute manufacturing dominates, but engineering, chemical and cotton industries also exist. Jute : a strong, coarse fiber used for making burlap, gunny, and cordage; it is obtained from two East Indian plants-Corchorus capsularis and
Corchorus olitorius of the linden family.
– The Jamshedpur region 240 km (150 mi) west of Calcutta has the Tata Steel Works, India’s single largest steel making complex (Indian Ruhr).
– In the nearby Chota-Nagpur district, coal mining and iron and steel manufactures have developed, and Bhilai is a growing nucleus of heavy industry.

INDIA: ECONOMIC GEOGRAPHY
Manufacturing Regions:
2. Western Zone Mumbai (Bombay)-Ahmadabad:
This Maharashtra, Gujarat area specializes in cotton and chemicals with some engineering and food processing, automobiles, and petrochemicals.
3. Southeastern Zone- Chennai (Madras): specializing in textiles.
4. Bangalore supports diversified electrical manufacturing, machine tools, the construction industry, and food processing.

• 60% of people work in agriculture
• 28% of people work in new service industries
• New Technology has helped expand the economy
• Important Industries
–Textiles, chemicals, steel, software, mining

India: Technology Superpower

Geneva-based STMicroelectronics is one of the largest semiconductor companies to develop integrated circuits and software in
India.

Texas Instruments was the first to open operations in Bangalore, followed by
Motorola, Intel, Cadence Design Systems and several others.

80 of the World’s 117 SEI CMM Level-5 companies are based in India.

5 Indian companies recently received the globally acclaimed Deming prize. This prize is given to an organization for rigorous total quality management (TQM) practices.

15 of the world's major Automobile makers are obtaining components from Indian companies.

This business fetched India $1.5 Billion in 2003, and will reach $15 Billion by 2007.

New emerging industries areas include, Bio-
Informatics, Bio-Technology, Genomics,
Clinical Research and Trials.

World-renowned TQM expert Yasutoshi Washio predicts that Indian manufacturing quality will overtake that of Japan in 2013.

McKinsey believes India's revenues from the IT industry will reach $87 Billion by 2008.

Flextronics, the $14 billion global major in Electronic Manufacturing
Services, has announced that it will make India a global competence centre for telecom software development.

India: Technology Superpower

Over 100 MNCs have set up R&D facilities in India in the past five years.
These include GE, Bell Labs, Du Pont, Daimler Chrysler, Eli Lilly, Intel,
Monsanto, Texas Instruments, Caterpillar, Cummins, GM, Microsoft and IBM.

India’s telecom infrastructure between Chennai, Mumbai and Singapore, provides the largest bandwidth capacity in the world, with well over 8.5
Terabits (8.5Tbs) per second.

With more than 250 universities, 1,500 research institutions and 10,428 higher-education institutes, India produces 200,000 engineering
graduates and another 300,000 technically trained graduates every year.
(note: per capita numbers are lower in comparison with first world, Russia and Israel, indicating
India should increase the number of educational institutions and educational opportunities to its 1.3 billion population)

Besides, another 2 million graduate in other areas in India annually.

The Indian Institute of Technology (IIT) is among the top three
universities from which McKinsey & Company, the world's biggest consulting firm, hires most.

• India produces about 100,000 new engineers a year. About 3 times the number of the U.S.
• But still only 1.6 million people are employed in IT and Service Center jobs.
• Key centers include Bangalore, New
Delhi, Gurgaon, and Hyderabad.

U.S. companies in India
IT Services-design, support, and or production
• Adobe, Cisco Systems, Dell,
Google, Hewlett-Packard,
General Motors, IBM, Intel,
Microsoft, Motorola, Texas
Instruments, Yahoo

India: Trade

Tata Motors paid $ 118 million to buy Daewoo commercial vehicle Company of Korea.

Ranbaxy, the largest Indian pharmaceutical company, gets 70% of its $1 billion revenue from overseas operations and 40% from USA.

Tata Tea has bought Tetley of UK for £260M.

India is one of the world's largest diamond cutting and polishing centres, its exports were worth $6 Billion in 1999.

About 9 out of 10 diamond stones sold anywhere in the world, pass through India.

Garment exports are expected to increase from the current level of $6 billion to $25 billion by 2010.

The country's foreign exchange reserves stand at an all-time high of $120 Billion.

India's trade with China grew by by 104% in
2002 and in the first 5 months of 2003, India has amassed a surplus in trade close to $0.5M.

Mobile phones are growing by about 1.5Million a month. Long distance rates are down by twothirds in five years and by 80% for data transmission.

Wal-Mart sources $1 Billion worth of goods
from India - half its apparel. Wal-Mart expects this to increase to $10 Billion in the next couple of years.

GAP sources about $600 million and Hilfiger
$100 million worth of apparel from India .

India: Self-Reliance

India is among six countries that launch satellites and do so even for Germany,
Belgium, South Korea, Singapore and EU countries.

India's INSAT is among the world's largest domestic satellite communication systems.

India’s Geosynchronous Satellite Launch
Vehicle (GSLV) was indigenously manufactured with most of the components like motor cases, inter-stages, heat shield, cryogenic engine, electronic modules all manufactured by public and private Indian industry.

Back in 1968, India imported 9M tonnes of food-grains to support its people, through a grand programme of national self-sufficiency which started in 1971, today, it now has a food grain surplus stock of 60M.

India is among the 3 countries in the World that have built Supercomputers on their own.
The other two countries being USA and Japan.

India built its own Supercomputer after the
USA denied India purchasing a Cray computer back in 1987.

Kalpana Chawla was one of the seven minutesbefore its scheduled landing on Feb
1st 2003, she was the second Indian in space.

India’s new ‘PARAM Padma’ Terascale astronauts in the Columbia space shuttle when it disintegrated over Texas skies just 16 have this capability.

Supercomputer (1 Trillion processes per sec.) is also amongst only 4 nations in the world to
India is providing aid to 11 countries, writingoff their debt and loaning the IMF $300M.

It has also prepaid $3Billion owed to the
World Bank and Asian Development Bank.

India: Pharmaceuticals

The Indian pharmaceutical industry at $6.5 billion and growing at 8-10% annually, is the 4th largest pharmaceutical industry in the world, and is expected to be worth $12 billion by 2008.

Its exports are over $2 billion. India is among the top five bulk drug makers and at home, the local industry has edged out the Multi-National companies whose share of 75% in the market is down to 35%.

Trade of medicinal plants has crossed $900M already.

There are 170 biotechnology companies in India, involved in the development and manufacture of genomic drugs, whose business is growing exponentially.

Sequencing genes and delivering genomic information for big
Pharmaceutical companies is the next boom industry in India.

India: Foreign Multi-National Companies
Top 5 American employers in India:
General Electric:
Hewlett-Packard
IBM
American Express
Dell
: 17,800 employees
: 11,000 employees
: 6,000 employees
: 4,000 employees
: 3,800 employees

General Electric (GE) with $80 Million invested in India employs 16,000 staff, 1,600 R&D staff who are qualified with PhD’s and Master’s degrees.

The number of patents filed in USA by the Indian entities of some of the MNCs (upto September,
2002) are as follows: Texas Instruments - 225, Intel - 125, Cisco Systems - 120, IBM - 120, Phillips -
102, GE - 95.

Staff at the offices of Intel (India) has gone up from 10 to 1,000 in 4 years, and will reach 2000 staff by 2006.

GE's R&D centre in Bangalore is the company's largest research outfit outside the United States. The centre also devotes 20% of its resources on 5 to 10 year fundamental research in areas such as
nanotechnology, hydrogen energy, photonics, and advanced propulsion.

It is estimated that there are 150,000 IT professionals in Bangalore as against 120,000 in Silicon Valley.

Top 5 American employers in India:
General Electric:
Hewlett-Packard
IBM
American Express
Dell
: 17,800 employees
: 11,000 employees
: 6,000 employees
: 4,000 employees
: 3,800 employees

General Electric (GE) with $80 Million invested in India employs 16,000 staff, 1,600 R&D staff who are qualified with PhD’s and Master’s degrees.

The number of patents filed in USA by the Indian entities of some of the MNCs (upto
September, 2002) are as follows: Texas Instruments - 225, Intel - 125, Cisco Systems - 120, IBM -
120, Phillips - 102, GE - 95.

Staff at the offices of Intel (India) has gone up from 10 to 1,000 in 4 years, and will reach 2000 staff by 2006.

GE's R&D centre in Bangalore is the company's largest research outfit outside the United
States. The centre also devotes 20% of its resources on 5 to 10 year fundamental research in areas such as nanotechnology, hydrogen energy, photonics, and advanced propulsion.

It is estimated that there are 150,000 IT professionals in Bangalore as against 120,000 in Silicon
Valley.

.”
William H. Gates, Chairman and Chief
Software Architect Microsoft
Corporation
(b-1955):
Gates emphasized that India had emerged as a major global IT hub not because of the availability of low-cost skills, as many believe. Rather, it had more to do with the ''quality'' and ''worldclass skills'' to be found in India, he said. ''The key is the quality of the human talent here. When people do software projects in
India, they do so because this is the place they can find people with the latest skills. It is not on the (cheap) price (of labor),'' he was quoted as saying by The Times of India newspaper. Gates had high praise for the ''quality of educational institutions which could make India into an IT superpower.'’ September 19, 2000.
http://www.atimes.com/ind-pak/BI19Df01.html

Goldman Sachs Report of 1 October, 2003 –
"Dreaming with BRICs: The path to 2050"
India's GDP will reach $ 1 trillion by 2011,
$ 2 trillion by 2020,
$ 3 trillion by 2025,
$ 6 trillion by 2032,
$ 10 trillion by 2038, and
$ 27 trillion by 2050, becoming the 3 rd largest economy after USA and China.
In terms of GDP estimates, the continental India (1.3 billion, with $ 0.5 trillion in 2000) will overtake Italy (60 million, $ 1.2 trillion in 2000) by the year 2016, France (60 million, $ 1.4 trillion in 2000) by 2019, UK (60 million, $1.5 trillion) by 2022, Germany (85 million, $ 2.0 trillion in
2000) by 2023, and Japan (130 million, $3.9 trillion in 2000) by 2032.

Indians abroad
A snapshot of Indians at the helm of leading Global businesses
The Co-founder of Sun Microsystems (Vinod Khosla),
Creator of Pentium Chip (Vinod Dahm),
Founder and creator of Hotmail (Sabeer Bhatia),
Chief Executive of McKinsey & Co. (Rajat Gupta)
President and CFO of Pepsi Cola (Indra Nooyi)
President of United Airlines (Rono Dutta)
GM of Hewlett Packard (Rajiv Gupta)
President and CEO of US Airways (Rakesh Gangwal)
Chief Executive of CitiBank (Victor Menezes),
Chief Executives of Standard Chartered Bank (Rana Talwar)
Chief Executive officer of Vodafone (Arun Sarin)
President of AT & T-Bell Labs (Arun Netravali)
Vice-Chairman and founder of Juniper Networks (Pradeep Sindhu)
Founder of Bose Audio (Amar Bose)
Founder, chip designer Cirrus Logic (Suhas Patil )
Chairman and CEO of Computer Associates (Sanjay Kumar)
Head of (HPC WorldWide) of Unilever Plc. (Keki Dadiseth)
Chief Executive Officer of HSBC (Aman Mehta)
Director and member of Executive Board of Goldman Sachs (Girish Reddy)
Chief Economist of the International Monetary Fund (Raghuram Rajan)
Former CTO of Novell Networks (Kanwal Rekhi)

• Young talent leaving India seems to be slowing down.
• Average starting salary for an IT engineer in
India today is approximately $10-12,000.
• Many are graduates of the Indian Institute of
Technology
– Several campuses located throughout the country
• This salary provides a comfortable lifestyle in modern India for the privileged few.

Statistics that show:
38% of doctors in the USA,
12% of scientists in the USA,
36% of NASA scientists,
34% of Microsoft employees,
28% of IBM employees,
17% of INTEL scientists,
13% of XEROX employees,
… are Indians.

Of the 1.5M Indians living in the USA, 1/5 th of them live in the Silicon Valley.

35% of Silicon Valley start-ups are by Indians.

Indian students are the largest in number among foreign students in USA.
US H1-B Visa applicants country of origin
1. India 44%
2. China 9%
3. Britain 5%
4. Philippines 3%
5. Canada 3%
6. Taiwan 2%
7. Japan 2%
8. Germany 2%
9. Pakistan 2%
10. France 2%

“IIT = Harvard + MIT + Princeton”
“IIT = Harvard + MIT + Princeton” , says CBS ‘60 Minutes’.
CBS' highly-regarded ‘60 Minutes’, the most widely watched news programme in the US, told its audience of more than 10 Million viewers that “IIT may be the most important university you've never heard of."
"The United States imports oil from Saudi Arabia, cars from Japan, TVs from Korea and
Whiskey from Scotland. So what do we import from India? We import people, really smart people," co-host Leslie Stahl began while introducing the segment on IIT.
“…the smartest, the most successful, most influential Indians who've migrated to the US seem to share a common credential: They are graduates of the IIT.”
“…in science and technology, IIT undergraduates leave their American counterparts in the dust.”
“Think about that for a minute: A kid from India using an Ivy League university as a safety school. That's how smart these guys are.”
There are “cases where students who couldn't get into computer science at IIT, they have gotten scholarships at MIT, at Princeton, at Caltech.”

• Ayodhya riots
• Mumbai riots
• 1992-93.
Thousands dead.

Hindu fundamentalism opposes Indian
National Congress’s secularism.

• BJP Party wins national elections in 1998.
• Favors confrontation with Pakistan
• Develop nuclear weapons program, acccomplish little else.

Demographics Of Sri Lanka
3 Major Groups…
(in descending order)
 Sinhalese (Buddhists, speaks Sinhala)
 Tamils ( Hindus, speaks Tamil)
- Sri Lankan Tamils (indigenous Tamils)
- India Tamils (tea/rubber plantation workers from
India)
 Moors (Muslims)

Conflicts In Sri Lanka
Conflicts in the areas of…
 Citizenship Rights
 Jobs in the Govt (‘Sinhala Only’ policy)
 University Admission Criteria
 Resettlement of Population

Impact of Conflict In Sri Lanka
Political Consequence
A. Armed conflict
 Tamils felt they were 2nd class citizens
 tried to make peaceful demands
 early 1950s… Federal Party asked Tamil areas to be recognised as a federation
 did not ask for separate state
 did not use violence
 … so why was there violence used against them?

Impact of Conflict In Sri Lanka
 till 1976, demands were not met
 a new political party emerged
- Tamil United Liberation Front
- asked for a separate INDEPENDENT state to be called Tamil Eelam
 why asked for a separate state?
 believed only separation would ensure the rights of the
Tamils

Impact of Conflict In Sri Lanka
 proposal rejected by the Sinhalese govt
 result: anger & dissatisfaction!!!
 Tamil youths formed a militant group…
 Liberation Tigers of Tamil Eelam (LTTE)
 or popularly known as the Tamil Tigers, terrorist group:
- attacked Tamil members of the police force
- attacked members & supporters of the ruling party
- attacked Tamil politicians who did not support the proposed separate state
- attacked Sinhalese

Impact of Conflict In Sri Lanka
 unfortunately, violence also came form the Sinhalese
- eg 1956…1st anti-Tamil riot (as a response to a peaceful Tamil protest against the ‘Sinhala Only’ policy)
 hundreds of Tamils lost their lives, millions $ worth of property
 many incidents between 1981-1983
 encouraged by Sinhalese security forces (army)
 consequence
- thousands of Tamils fled to Tamil Nadu
- Indian govt was forced to intervene

Impact of Conflict In Sri Lanka
B. Foreign Intervention
 conflict attracted big neighbour … India
 Foreign Minister sent to Sri Lanka to mediate … failed
 3 June 1987: Indian tried to help the Sri Lankan Tamils
- 20 Indian ships of food and petroleum products for the
Tamils
- turned back by the Sri Lankan navy
- 4 June 1987: Indian Air Force dropped the food and medical supplies instead and violated the Sri Lankan airspace

Impact of Conflict In Sri Lanka
B. Foreign Intervention
 July 1987: Sri Lankan signed a peace accord with India
- a ceasefire between the Tigers and the Sri Lankan forces
- Tigers to surrender their arms to Indian peacekeeping troops
- merging of the Tamil dominated Nn and the En provinces
 Oct 1987: Tigers did not surrender their weapons fully
- Indian troops took control of the Tiger-controlled
Jaffna by force

Impact of Conflict In Sri Lanka
B. Foreign Intervention
 Oct 1987 to Dec 1988: clashes in the N and E of Sri
Lanka bet the Tigers and the Indian peacekeeping forces
 the latter withdrew in March 1990
 the Tigers moved in to take control of the NE
 tensions continued… up to now…once in a while, clashes bet the Sinhalese and the Tigers would appear in the news
 no settlement in sight due to LTTE’s demand for a separate state

 Political
◦
Armed Conflict
◦
Foreign Intervention
 Economic
◦
Unemployment
◦
Loss of Investments from other Countries
◦
Fall in the Number of Tourists

Social
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Sri Lankan Tamils Driven Out of their Homeland


One consequence of the Sinhalese-Tamil conflict has been an armed conflict between the LTTE (Tamil Tigers) and Sinhalese government forces.
 When the Tamils’ peaceful demands were rejected, a group of youths formed the LTTE (Tamil Tigers) who believed that violence was the only way to demand and obtain rights for the Tamils.

Riots which occurred in the 1980s between the Tamils and the Sinhalese sparked off a long armed conflict between the Sinhalese government forces and the LTTE
(Tamil Tigers).

• This has led to a bitter 20 year war between the Sinhalese government and the LTTE and has cost more than 60,000 lives and has resulted in other economic and social consequences which have affected Sri Lanka.

Tamil villagers identify the bodies of their loved ones killed during clashes between government forces and Tamil Tigers

1983 Riots in Sri Lanka

Aftermath of the 1983 Riots in Sri Lanka

• The Sri Lankan riots of 1983 lead to massive unemployment.
• Both Tamils and Sinhalese lost their jobs.
• Many of the jobless Sinhalese also took part in vandalizing, looting and burning their places of work.
• With unemployment and the subsequent destruction of places of work would result in suffering and economic hardship for Sri Lanka and its citizens.

Impact of Conflict In Sri Lanka
Economic consequence
Unemployment
 breadwinners killed during armed struggles
 factories and plantations closed/destroyed
 looting, vandalising, burning places of work by the
Sinhalese
 thousands of workers, self-employed persons lost their jobs (Tamils and Sinhalese alike)

Wrecked businesses following the 1983 Riots in
Sri Lanka (also known as Black July)

• The Sri Lankan conflict has scared off potential investors to Sri Lanka who are afraid that the instability in the country would cause them to lose their investments.
• With a loss of investment, Sri Lanka cannot grow its economy, re-build damaged infrastructure or create jobs

Impact of Conflict In Sri Lanka
Loss of foreign investments
 foreign investment needed
 but political instability is an unattractive factor
 foreign investors may not have the confidence to invest in a politically unstable country
 US$66m (‘82) to US$39m (‘83) to US$22m (‘86)

Economic – Fall in the Number of
Tourists
 The Sri Lankan conflict has scared off many tourists who do not dare to travel to Sri Lanka.
 As tourism is one of Sri Lanka’s major income earners, there has been a fall in tourism earnings and a loss of tourism-related jobs.

With a loss of foreign investment and a drop in tourist earnings, Sri Lanka cannot get the funds needed to re-build infrastructure or to develop attractive amenities and facilities causing the country to be in a state of continuous financial hardship.

Impact of Conflict In Sri Lanka
Decline in tourism
 tourism was a major income earner
 seriously affected by the violent internal conflict
 tourist arrivals decreased, loss of jobs, fall in earnings
 less funds to develop attractions, amenities and facilities
(hotels, transport, housing etc)

Tourist Attractions in Sri Lanka

Impact of Conflict In Sri Lanka
Social consequence
Refugees
 65k Tamils fled to India after 1983 riots
 creation of High Security Zones to keep LTTE away
 army move into Tamil areas
 refugee camps  overcrowded

Social – Sri Lankan Tamils Driven
Out of Homeland
 Following the 1983 riots, thousands of Tamils fled to India

In the early 1990s, the Sri Lankan Army set up
High Security Zones (HSZ) where access is controlled and occupied large parts of Tamildominated areas to deal with the Tamil Tigers.
 Due to this conflict, many Tamils have fled from their homes and live in overcrowded refugee camps.

Social – Sri Lankan Tamils Driven
Out of Homeland
• Most Tamils have lost their homes as a result of the conflict and have to suffer in overcrowded, unhygienic conditions in refugee camps.
• Many families have also been broken up or separated during the fighting and many
Tamils have suffered during the 20 years or so of endless conflict, robbing them of a bright future in their country.

Tamils fleeing from their homes in Jaffna, the northern part of Sri Lanka

Tamils fleeing Sri Lanka by ship following the
1983 Riots

Sri Lankan missing in Tamil sea raid
March 21, 2001
TRINCOMALEE, Sri Lanka -- Seven sailors were killed when a Sri Lankan navy boat was sunk by
Tamil Sea Tigers in an attack .

Peace In Our Times
 no sight of peace
 violence is a daily happening even after the 2004
Tsunami
 political assassinations (political leaders to law makers) common