A true People’s Company for a People-Centered Economy

By JUSTIN KEPPETIYAGAMA
Jdkgama02@gmail.com

As per the policy manifesto of President Gotabaya Rajapaksa, ‘Vistas of Prosperity and Splendour’ (‘Rata Hadana Saubhagyaye Dekma’), the main objective of the government is creating a people-centered economy through rural development.

In achieving these expectations, Sapiri Gamak, a community-based development programme is being implemented, anticipating to convert the entire country to one development zone, by building a people-centric economy that will be fully owned by the people of the country, and strengthen the local entrepreneurs; instead of selling and mortgaging national resources and financial assets of the country to foreigners.

The objectives of this programme are, improving employment and livelihoods through development of rural facilities, and thereby uplifting the socio-economic condition of the rural economy. These development projects should facilitate the income pathways of villagers and generate self-employment opportunities.

Under the guidance of the Prime Minister through this programme, projects for development of roads, infrastructure facilities required by the agriculture sector, facilities required to uplift the economy at rural levels, facilities required for development and upgrading of rural health, development of education by providing electricity, water and sanitary facilities for schools and other priority physical infrastructure facilities that are directly attributed to development of rural economy will be implemented.

Under this programme, Rs. 2 M. will be spent to implement development programs at each Grama Niladhari Division, covering 14,021 Grama Niladhari divisions of the country. At present, under this program, 37,862 development projects worth of Rs. 27,920 M. are being implemented island-wide by the Divisional Secretaries under the supervision of District Secretaries.

Divisional Secretaries and District Secretaries are not the stakeholders of these projects. To implement this project there should be a mechanism that should include all villagers as the stakeholders of this project. It should not be a mechanism, operated by bureaucrats, or one dependent on budgetary funding. It should be a mechanism, funded by the people, entrepreneurs, farmers, producers, consumers, living within the G.N. division and supplemented by the Government. It should be a mechanism, owned by the villagers and operated by the villagers and for the benefits of the villagers. This should be a self-financing mechanism; a legal entity having its own identity. It should be a village-based mechanism to address the problems faced by the villagers. It should be a mechanism that leads to a self-sufficient economy.

The situation prevalent today must be changed. The course of development followed so far must be reversed totally. It must be village-based. All modes of production must be village based. The villagers must be given the knowledge to improve all their economic activities. Any industries facilitating all economic activities of villagers should be commenced in the village itself and by the villagers themselves. All technological knowledge we get must reach the villagers. This mechanism should transform all villagers to stakeholders in the village economy.

1. To create a people-centered rural economy I propose to promote one co-operative society per G.N area under the Co-operative Societies Act. It should be an enterprise of villagers, by the villagers for the benefit of the villagers. There should be 14,021 co-operative societies covering the entire island. The objectives of these co-operative societies should include:

a. Buying, stocking, selling and supplying all forms of industrial, agricultural and trading inputs and consumables and livestock required for raising the living standard of villagers.

b. Accepting deposits from members and providing venture capital or debenture capital to them to carry on their business activities. It should be the Rural Bank.

c. Providing credit, in cash, or in kind, to members to meet their other needs.

d. Undertaking the promotion, management, control and supervision of any enterprise or scheme using identified deposits of members for the benefits and advancement of such members or a group of members, and charging a fee, commission or a share of profits for such services.

e. Making investment of identified deposits of members in stock, shares or securities, on behalf of such identified members

f. Carrying out survey and research, issuing publications, and maintaining a database helpful for improvement of economic conditions of its members.

g. Providing professional services to the members regarding investment in income generating activities.

h. Promoting all types of business entities as sole proprietorships, partnerships, joint ventures, limited liability companies, or cooperative societies among or between members and be a partner, shareholder as the case may be, of such business.

i. Consulting, promoting, issuing, organizing, managing and administering mutual funds of any type or character for the benefit of their members.

j. Rendering managerial, marketing, technical and administrative advice to members to carry on any form of commercial or economic activity.

All government development projects relevant to a particular G.N. area should be contracted to the relevant co-operative society. They also should be agents for state owned enterprises such as Paddy Marketing Board, Sathosa, Milk Board, Fisheries Co-operation and State Banks.

2. To create a people-centered national economy the government should promote one Peoples Company making all 14,021 G.N level co-operative societies and all State Owned Enterprises as its shareholders. Government’s all national level development projects should be contracted to this company.