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The East Asian disanalogy, or why Sri Lanka cannot be a Singapore

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by Uditha Devapriya

Economists and political analysts tend to extol the virtues of free markets and the evils of state-led growth. They seem to think that Sri Lanka has, for the most, been caving into the latter approach, i.e. widening the state at the expense of the private sector. The solution, according to analysts, is to let the market decide and to limit the government to the role of what Robert Nozick described as a “Night-watchman”, formulating the rules of the economy without playing with them. These analysts then point at societies that prospered under such a state: the US, much of Western Europe, and the Tiger economies of East Asia.

Unfortunately, much of the hype surrounding advocacy of free market principles and small government is built on a tautological premise: economic liberalisation will lead to growth, so it should be implemented in the country. Import tariffs must be reduced or even eliminated, export-orientation must replace import-substitution, let’s not think of local industrialisation or machine-manufacture yet because we’re an island, and let’s reduce the role of the state because in the US, Britain, and East Asia, it played a minimal role.

Countries are not all endowed with the same levels or the same kinds of resources. Nor do they magically transit to free markets and small governments. To say economic liberalisation worked there and that owing to it these principles must be applied here is to assume that all it takes for a country to prosper is the implementation of policies to which those countries which are supposedly implementing them now resorted only after they had passed through certain stages. This assumption, quoting the late S. B. D. de Silva, is “a veritable non-sequitur of bourgeois scholarship.” As always, context is important.

The US got to where it is largely through its leap to industrialisation in the latter part of the 19th century. Much of the industrialisation which transpired at that time was financed, not by private initiative, but by the government: vast tracts of land running into millions of acres were handed over to railway companies. In Britain the state played an important role in promoting local industry, smothering the up-and-coming textile mills of India. Discussions about the success of private sector led growth in these countries leave out or ignore the role played by colonial conquest, which happened to be financed by the government. “Is there any greater example of a rampant state than the English state in the world?” asked a friend at an Advocata Night-Watchman seminar years ago. “When you’re talking laissez-faire, they were basically robbing the seas around the world, installing slavery.” True.

In East Asia three distinct case studies can be identified: Japan, Taiwan and South Korea, and Singapore. The foundation for Japan’s economy was laid down long before the war by the Tokugawa shogunate; it broke the stranglehold of petty traders, privileging industrial capital over merchant finance. Taiwan emerged from the war cut off from mainland China after the Communist takeover in 1949, yet American experts and economists who formulated that country’s transition to liberalisation didn’t embark on free market reforms right away. First they oversaw rent reduction in 1949, the sale of public lands in 1951, and a land-to-the-tiller program in 1953. Land reform limited ownership of paddy land to 4.5 hectares, much lower than the 10-25 hectare limit imposed by the Sirimavo Bandaranaike government in 1972 (a favourite punching bag for free market “Advocatas”). South Korea implemented the same set of reforms. It hardly need be added that in all three countries, democratisation followed, rather than preceded, the transition from agriculture to industrialisation.

Singapore is a different case, not least because unlike other East Asian countries it lacked a rural hinterland in which a transition from agriculture to industry could take place. Yet there too the role of government intervention cannot be denied, economically and also politically. Milton Friedman once referred to Lee Kuan Yew as a “benevolent dictator”, the very same epithet Maithripala Sirisena used on Mahinda Rajapaksa in 2014 after walking out from the then administration. In a 1993 essay William Gibson described the country as “Disneyland with the Death Penalty”, bringing to mind Jagath Manuwarna’s remark about Sri Lanka at a press conference in late 2014: “kalakanni Disneylanthaya.” Unlike Manuwarna’s statement though, Gibson’s essay was banned by the Singaporean government.

Liberals and classical liberals and even left-liberals tend to look up to Singapore and Yew’s reforms without realising that, as Regi Siriwardena observed, their achievements rested on the denial of democratic and human rights. Hence when one columnist, drawing wildly false analogies, argues that Singapore lacked a president, yet accomplished much (implying that Sri Lanka doesn’t need an Executive Presidency to get things done), he fails to acknowledge or chooses to ignore not only that Singapore had just one political party during its transition from third world to first, but also that it curtailed dissent in a way that makes any hounding of dissent in Sri Lanka today look haphazard in comparison; when asked why he refused to tolerate political cartoons, for instance, Yew bluntly told Fergus Bordewich that in Confucian society politicians ought to be seen as deserving of respect.

The absence of a rural hinterland made it all the easier for Singapore’s government to enact capitalist reforms, since it could dispense with the need to abolish the kind of pre-capitalist social relations that existed in Taiwan and South Korea. Despite this, however, government intervention swept across the country; in the words of one economist, Singapore responded to international economic forces “through manipulating the domestic economy.”

Wage adjustments vis-à-vis a National Wages Council, a high savings and investment culture promoted via state enforced and state directed abstinence, the shift towards manufacturing in the latter part of the 1960s, the growth of public enterprises (believed to have accounted for 14% to 16% of manufacturing output), and tight government control of trade unions all played a part in bolstering its prospects. As Hoff (1995) noted, the paradox of Singapore’s economic success was that while investments came from the private sector, savings relied on the public sector. It is true that contributions by foreign investment were significant, yet had Singapore not had a rigidly regulated economy where, for instance, compensation costs for production workers were one-third that of the US equivalent by 1993, it would not have become the third world’s first success story it is touted as today.

The specific conditions under which the East Asian economies transformed from developing to developed, from inward-looking to outward-looking, make their emulation in other parts of the world untenable, if not unlikely. At the time the governments of these countries were imposing reforms, Western Europe was struggling to recover from wartime recession and MNCs had not become as active in peripheral countries as they would decades later. Their geopolitical alignment with the US in the Cold War guaranteed the success of the East Asian Tigers. Moreover, these were hardly what one could call classical liberal societies: political authoritarianism cohabited with economic liberalisation. Even that dichotomy comes off as false when we consider that government intervention figured heavily in these economies, something the “Advocatas” of free markets don’t seem to be aware of today.

There was another very significant factor: the absence of a merchant trader class in these countries. The Tokugawa reforms extended to Korea and Taiwan after Japan turned them into granaries for its domestic needs. The US experts hired to oversee reforms in Korea and Taiwan facilitated, rather than reversed, these processes. In Sri Lanka and much of the Third World, by contrast, experimentation with free market classical liberalism has resulted in not just political authoritarianism, but also the defenestration of an industrial sector, leading to lopsided growth subsidised by a Pettah merchant class: rather than manufacturing goods, they are imported and resold. The call for “going local”, then, contrary to what intellectuals, institutions, and Opposition MPs think, say, and write, has to do with more than a hysterical call for a garrison state. This is not economics. This is common sense.

False analogies, assumptions, and tautologies will thus get us nowhere. It is certainly ironic that think-tanks and institutions that privilege reason over guesswork end up indulging in selective scholarship. Even more ironic are statements uttered by academics from countries which passed through several stages before making the transition from a planned order to a free market advising us to bypass those stages when implementing policy reforms here. It takes not only foresight and hindsight, but also courage, to swerve from and dispute these assumptions, dig deep into history, and understand what drives the wealth of nations and the poverty of others. Free markets alone will not do, as even the history of countries where they flourish today tell us. Something else can, and something else must.

 

The writer can be reached at udakdev1@gmail.com



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Ukraine crisis continuing to highlight worsening ‘Global Disorder’

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The human costs of war: Ukrainians displaced by war. (BBC)

The world has unhappily arrived at the 4th anniversary of the Russian invasion of Ukraine and as could be seen a resolution to the long-bleeding war is nowhere in sight. In fact the crisis has taken a turn for the worse with the Russian political leadership refusing to see the uselessness of its suicidal invasion and the principal power groupings of the West even more tenaciously standing opposed to the invasion.

One fatal consequence of the foregoing trends is relentlessly increasing ‘Global Disorder’ and the heightening possibility of a regional war of the kind that broke out in Europe in the late thirties at the height of Nazi dictator Adolph Hitler’s reckless territorial expansions. Needless to say, that regional war led to the Second World War. As a result, sections of world opinion could not be faulted for believing that another World War is very much at hand unless peace making comes to the fore.

Interestingly, the outbreak of the Second World War coincided with the collapsing of the League of Nations, which was seen as ineffective in the task of fostering and maintaining world law and order and peace. Needless to say, the ‘League’ was supplanted by the UN and the question on the lips of the informed is whether the fate of the ‘League’ would also befall the UN in view of its perceived inability to command any authority worldwide, particularly in the wake of the Ukraine blood-letting.

The latter poser ought to remind the world that its future is gravely at risk, provided there is a consensus among the powers that matter to end the Ukraine crisis by peaceful means. The question also ought to remind the world of the urgency of restoring to the UN system its authority and effectiveness. The spectre of another World War could not be completely warded off unless this challenge is faced and resolved by the world community consensually and peacefully.

It defies comprehension as to why the Russian political leadership insists on prolonging the invasion, particularly considering the prohibitive human costs it is incurring for Russia. There is no sign of Ukraine caving-in to Russian pressure on the battle field and allowing Russia to have its own way and one wonders whether Ukraine is going the way of Afghanistan for Russia. If so the invasion is an abject failure.

The Russian political leadership would do well to go for a negotiated settlement and thereby ensure peace for the Russian people, Ukraine and the rest of Europe. By drawing on the services of the UN for this purpose, Russian political leaders would be restoring to the UN its dignity and rightful position in the affairs of the world.

Russia, meanwhile, would also do well not to depend too much on the Trump administration to find a negotiated end to the crisis. This is in view of the proved unreliability of the Trump government and the noted tendency of President Trump to change his mind on questions of the first importance far too frequently. Against this backdrop the UN would prove the more reliable partner to work with.

While there is no sign of Russia backing down, there are clearly no indications that going forward Russia’s invasion would render its final aims easily attainable either. Both NATO and the EU, for example, are making it amply clear that they would be staunchly standing by Ukraine. That is, Ukraine would be consistently armed and provided for in every relevant respect by these Western formations. Given these organizations’ continuing power it is difficult to see Ukraine being abandoned in the foreseeable future.

Accordingly, the Ukraine war would continue to painfully grind on piling misery on the Ukraine and Russian people. There is clearly nothing in this war worth speaking of for the two peoples concerned and it will be an action of the profoundest humanity for the Russian political leadership to engage in peace talks with its adversaries.

It will be in order for all countries to back a peaceful solution to the Ukraine nightmare considering that a continued commitment to the UN Charter would be in their best interests. On the question of sovereignty alone Ukraine’s rights have been grossly violated by Russia and it is obligatory on the part of every state that cherishes its sovereignty to back Ukraine to the hilt.

Barring a few, most states of the West could be expected to be supportive of Ukraine but the global South presents some complexities which get in the way of it standing by the side of Ukraine without reservations. One factor is economic dependence on Russia and in these instances countries’ national interests could outweigh other considerations on the issue of deciding between Ukraine and Russia. Needless to say, there is no easy way out of such dilemmas.

However, democracies of the South would have no choice but to place principle above self interest and throw in their lot with Ukraine if they are not to escape the charge of duplicity, double talk and double think. The rest of the South, and we have numerous political identities among them, would do well to come together, consult closely and consider as to how they could collectively work towards a peaceful and fair solution in Ukraine.

More broadly, crises such as that in Ukraine, need to be seen by the international community as a challenge to its humanity, since the essential identity of the human being as a peacemaker is being put to the test in these prolonged and dehumanizing wars. Accordingly, what is at stake basically is humankind’s fundamental identity or the continuation of civilization. Put simply, the choice is between humanity and barbarity.

The ‘Swing States’ of the South, such as India, Indonesia, South Africa and to a lesser extent Brazil, are obliged to put their ‘ best foot forward’ in these undertakings of a potentially historic nature. While the humanistic character of their mission needs to be highlighted most, the economic and material costs of these wasting wars, which are felt far and wide, need to be constantly focused on as well.

It is a time to protect humanity and the essential principles of democracy. It is when confronted by the magnitude and scale of these tasks that the vital importance of the UN could come to be appreciated by human kind. This is primarily on account of the multi-dimensional operations of the UN. The latter would prove an ideal companion of the South if and when it plays the role of a true peace maker.

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JVP: From “Hammer and Sickle” to Social Democracy – Or not?

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Rohana Wijeweera

The National People’s Power (NPP), led by the Janatha Vimukthi Peramuna (JVP), came to power promising democratic renewal and long-awaited economic, educational, healthcare, and social transformation. It pledged to build a modern Sri Lanka rooted in democratic values while steering the country toward its vision of Democratic Socialism. For many supporters, the NPP’s rise to the pinnacle of political power represents a historic opportunity to reset the nation’s direction.

Yet recent developments have stirred unease. Statements by several senior ministers and certain policy signals have prompted critics to question whether the government’s path remains firmly democratic. Some warn that in the pursuit of rapid development and social justice, central pillars of the NPP’s election campaign, there may be a growing temptation to consolidate power in ways that edge toward policies of old “Hammer & Sickle.”

Is the NPP committed to pluralistic democratic socialism, or is Sri Lanka witnessing the early signs of a more centralised political model? To answer this question, it is necessary to revisit the JVP’s ideological history, examine the pressures that shape governing parties once in power, and weigh the potential consequences, both promising and perilous, of any shift in direction.

History of the JVP

The JVP emerged in the mid-1960s with a revolutionary agenda, mobilising youth through its Five Lecture Programme, which criticised capitalist policies, questioned the country’s “real independence,” opposed Indian influence, and called for armed struggle. This ideology culminated in the 1971-armed uprising against the elected government, leading to widespread violence, a harsh state crackdown, mass arrests, and the banning of the party.

Although suppressed, the JVP later re-entered democratic politics after its leaders were imprisoned and eventually pardoned. In the 1980s, after electoral defeat, the JVP shifted from strict Marxist-Leninist ideology toward a national, framework known as “Jathika Chinthanaya”, while maintaining strong opposition to Indian involvement.

However, it launched a second violent insurgency in 1988–1989, resulting in significant loss of life and severe repression, including the killing of its leader, Rohana Wijeweera. These events marked a decisive turning point, after which the party gradually moved away from armed struggle and embraced parliamentary politics.

By 1994, the JVP abandoned armed insurrection and embraced parliamentary democracy. While retaining its Marxist-Leninist identity, it adopted a more pragmatic socialist approach, seeking influence through elections rather than violence.

Embracing Parliamentary Democracy

The party served as Ministers and Deputy Ministers under President Chandrika Kumaratunga (2004–2005) and later supported Mahinda Rajapaksa in the 2005 presidential and subsequent parliamentary elections. Between 2005 and 2010, the JVP aligned with the Rajapaksa government in opposing federalism and supporting a unitary state.

Historically, the JVP opposed federalism. Under Anura Kumara Dissanayake (AKD), however, there appears to be a strategic shift toward decentralisation and inclusivity, without formally endorsing federalism. Since 2019, the NPP/JVP has criticised successive governments for failing to implement the 13th Amendment fully. This transformation is real and should be acknowledged.

Reports indicate the NPP/JVP is drafting a new constitution, but there is limited public clarity on its position regarding abolishing the Executive Presidency and devolving powers to Provincial Councils. Sri Lanka can chart a path toward a united, prosperous future where all citizens feel valued and represented. Therefore, I hope that NPP will consider the Provincial Councils in their current form might best serve as a relic of the past, making way for more cohesive and efficient systems of governance.

It is also a fact that many parties have historically criticised the Executive Presidency while in opposition, only to retain it in power. Whether the NPP/JVP will pursue genuine reform remains a subject of debate.

Democratic Concerns State Power

A recent statement by a senior Cabinet Minister that the party holds government power but has not yet “captured” broader state power raises fundamental questions. In a parliamentary democracy, winning government is the highest legitimate authority a party can obtain. Government power is temporary which is granted by voters, limited by the Constitution, and revocable at elections.

State power is permanent and it lies with state institutions i. e. the judiciary, administrative service, armed forces, law enforcement, and independent commissions. These bodies must remain politically neutral and serve the Constitution, to prevent any ruling party from dominating the permanent machinery of governance.

To frame democratic victory as incomplete without “capturing” state power, suggests a conception of power that goes beyond electoral legitimacy. It echoes a revolutionary mindset highlighting the real transformation requires ideological alignment of the state itself.

Past few decades, Sri Lanka has suffered from politicised institutions. Replacing one form of control with another is not reform, it is substitution.

Judiciary and Due Process

Public frustration over past corruption is understandable. However, allegations must be addressed through due legal process. In a democracy, individuals are innocent until proven guilty in a court of law. When parliamentarians publicly pass judgments on opposition figures before judicial proceedings conclude, it risks undermining the rule of law and raising concerns about political overreach.

Concerns are further heightened when there are perceptions that the rule of law is not applied equally, particularly if members of the governing party are treated differently in similar circumstances in the recent past. Unequal enforcement of legal standards can erode public trust in institutions. If such patterns persist, they may raise broader questions about the strength and impartiality of democratic governance.

Village-Level Courts

Democratic Concerns
State Power

In another recent statement, by a senior Minister reiterated one of his earlier proposals to establish judicial courts at the village level to adjudicate certain legal cases, depending on the nature and severity of the alleged offences. While improving local access to justice may enhance efficiency, such courts require strong institutional safeguards.

As this proposal raises serious concerns, it bears characteristics often associated with totalitarian systems, where village-level courts may be controlled by ruling party “cadres” who preside over legal matters and pass judgments against individuals. Without strong safeguards to ensure independence, transparency, and adherence to the rule of law, such courts could be misused to suppress dissent and curtail legitimate political opposition.

Any reform of the judicial system must uphold constitutional protections and preserve the separation of powers. Failing to do so could raise broader concerns about democratic accountability and institutional independence.

Civil / Administrative Service

Before 1978, Sri Lanka’s civil service was widely respected for its professionalism and independence. Over time, however, political appointments increasingly influenced senior administrative positions.

There are growing concerns that some recent appointments to high-level administrative service posts by the NPP may also be politically motivated. Many voters expected systemic reform and a decisive shift toward merit-based governance under the NPP/JVP. It is disappointing to observe indications that similar patterns of politicisation may be continuing.

The real test of reform lies not in rhetoric but in institutional safeguards. Transparent selection criteria, independent oversight mechanisms, and clear accountability structures are essential to ensuring that the administrative service remains professional and non-partisan.

History shows that democracy does not usually collapse overnight. It erodes gradually when ruling parties seek to align permanent institutions with their own ideological or political objectives.

Strengthening institutional independence is not optional, it is imperative. Sri Lanka’s democratic future depends not only on who holds power, but on how responsibly that power is exercised.

Media Freedom

“I disapprove of what you say, but I will defend to the death your right to say it”
(Evelyn Beatrice Hall, describing Voltaire’s belief in freedom of speech.)

Recent reports suggest the NPP/JVP government is dissatisfied with parts of the media, accusing some outlets of political bias and even proposing bans for allegedly spreading false information. Such actions would be undemocratic and would weaken constructive criticism.

Governments already possess legal remedies for defamation. If laws are inadequate, they may be reviewed. However, this must not undermine the media’s fundamental right to fair, independent, and legitimate criticism of those in power.

Every government dislikes criticism. But mature democracies tolerate it. Any attempt to restrict the media risks eroding democratic freedoms and should be adamantly opposed by all who value an independent media.

Religion and Public Conduct

In the past, opposition parties accused the JVP of being hostile to religion, particularly toward Buddhist monks aligned with political opponents. Confirming this accusation, recently a few NPP/JVP ministers, MPs, and party supporters have publicly criticised Buddhist monks who speak and organise meetings against the government.

At the same time, social media contains intolerable language about the conduct of certain Buddhist monks. While misconduct by members of the clergy is concerning, it does not justify hostile or disrespectful reactions from politicians or the public.

Responding with anger and division contradicts the very Dhamma many claim to defend. Using monks as political tools, or attacking them publicly, only deepens social divisions. If there are genuine concerns about the monastic order, they should be addressed respectfully through proper religious channels rather than through public humiliation.

Economic Democracy

Following Sri Lanka’s 2022 fiscal crisis, the NPP/JVP revised its economic policy and aligned itself with a framework closer to Social Democracy. This shift suggests that the JVP has accepted capitalism as the economic system necessary to revive the collapsed economy. At the same time, it has emphasised redistribution, welfare measures, and regulatory reforms aimed at reducing inequality.

The NPP/JVP’s economic policy now focuses on reforming capitalism rather than replacing it. The party initially sought to renegotiate the IMF agreement to ease the burden on the public. However, it was unable to secure significant changes. A key long-term objective remains reducing dependency on imports. The NPP aims to promote local industries and agriculture, while supporting small and medium-sized enterprises (SMEs) to reduce unemployment and expand export capacity.

Although the party pledged to strengthen state-owned enterprises through improved management rather than outright privatisation, recent developments indicate a shift toward public-private partnerships and selective privatisation.

Overall, economic progress is gradually aligning with these reformed Capitalist policies. This approach marks a significant departure from the original “Hammer and Sickle” ideology associated with classical Marxist theory as articulated by thinkers such as Karl Marx, Vladimir Lenin, and Friedrich Engels.

If judged solely on economic direction, the shift from revolutionary rhetoric to reformist governance appears substantial.

Bribery and Corruption

The nation is deeply grateful to the NPP government for taking bold steps to minimise bribery and corruption, which have long been a cancer eating away at our society. For decades, this practice has existed from top politicians to the lowest levels of the state sector, and even within society at large. Full credit must be given to the NPP government for prioritising the fight against this unethical and deeply rooted problem. It is hoped that the law will be applied equally to everyone, irrespective of status or party affiliation.

However, the public remains sceptical about the delay in pressing charges against the alleged culprits. During the election campaign, the JVP claimed that it possessed substantial evidence, over one hundred files, sufficient to prosecute members of previous governments accused of misusing public funds. Are they now discovering that the evidence is not as concrete as initially suggested?

Conclusion

Having analysed the current situation of the NPP/JVP, it is evident that there are conflicting statements from some senior figures in the JVP. Some favour the continuation of the traditional “Hammer and Sickle” policies. Others within the NPP emphasise and implement aspects of Social Democratic policies. Considering these differences, the nation is entitled to seek clarity regarding the government’s present direction.

It remains to be seen whether the JVP is merely marking time before reintroducing its former ideological policies, or whether it has genuinely chosen the path of Social Democracy.

By Gamini Jayaweera

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Valentine’s Day fundraiser … a huge success

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The scene at Chris Cannon’s Valentine’s Day fundraiser

In Melbourne, Australia, catering veteran Chris Cannon hosted the annual Valentine’s Day fundraiser at the Springvale RSL, with all proceeds being donated to the Home of Compassion in Sri Lanka, run by the Mother Teresa Sisters.

The Valentine’s Day fundraiser was held on 14 February and the event featured music by Shey and George (of Redemption fame) and DJ Jeremy Ekanayake.

Shey and George providing the entertainment

The international buffet was a spread of Thai specialties and yummy Sri Lankan dishes and the large crowd present enjoyed the setup thoroughly, I’m told.

The lucky winner … trip to Sri Lanka

The Thai Street Food buffet was provided by Chris Cannon’s catering service, with his Thai wife, Annie, doing the needful.

The Cannon Team: Alice, Annie and Chris

His daughter, Alice, also played an active part in this fundraiser.

Chris, a Sri Lankan-born Melbourne resident, who has been hosting this annual event for several years, with all proceeds going to charity, attributes the success of this Valentine’s Day fundraiser to the team that worked tirelessly to make it a happening event.

Rose and a teddy for the ladies

“I’m ever so grateful to the Team that was responsible for the success of this fundraiser. They all worked with enthusiasm and the smiles on their faces, at the end of the event, said it all.”

It was a sell-out, with every lady receiving a rose and a teddy but, unfortunately, said Chris “we had to disappoint several who wanted tickets as it was a limited space venue.”

What’s more, there were also attractive prizes on offer, including a seven nights stay in Sri Lanka.

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