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US vs China as aid givers

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Aid is a necessary evil for Sri Lanka at this juncture, as it grapples with a declining economy, while in the grip of the Covid pandemic. Our economy was good in 2014, and we could have survived without much aid if not for the pandemic and the five years of ‘yahapalana’. The latter ruined the economy and brought down the GDP from a healthy 5-6%, in 2014, to 1-2%, in 2019. It robbed its own bank, opened the doors to the West to interfere in our internal affairs, antagonised China, and adopted a pro-West policy — without receiving anything in return from the West. The pandemic has further destroyed the economy and now it is tottering with a minus GDP. If a man is dying of respiratory failure, due to Covid, he has to be given oxygen, via a ventilator, nothing else would work. Similarly, Sri Lanka needs substantial financial aid if it is to survive. We are fortunate in that now there is a choice of aid givers, there was a time when we had no choice but get into the aid trap of the Western powers, via Bretton Woods twins.

The ‘yahapalana’ government, in order to come out of its economic woes, almost signed the MCC, SOFA and ACSA agreements with the US, and the then Prime Minister wanted to sign them before the elections in 2019. The present government refused to sign the MCC but is being helped by China in a big way. Do we have a choice? Only alternative is to align with the US and sign the MCC. If ‘yahapalana’ had signed the ACSA, SOFA, and MCC Sri Lanka would have been in a situation where it could be converted into a military base at the whim of the US. ACSA and SOFA are designed to give the US military visa-less entry into Sri Lanka, and do as they please without coming under the jurisdiction of the country. MCC would have given them access to land and opened the doors for economic exploitation.

There seems to be a well-orchestrated opposition to the Chinese involvement in Sri Lanka. It is being said that the proposed Colombo Port City Commission would make the tiny piece of land, that has been reclaimed from the sea, a colony of the Chinese. If one compares the ACSA, SOFA, MCC combination with the Colombo Port City project, it would be like comparing a multi-barrel rocket launcher with a hand pistol. That is if what the detractors say about it is true. What is envisaged in the Bill to establish the Colombo Port City Commission is mainly facilitation of foreign direct investment into the project. For this purpose, most of the red tape involved in the approval of investment has been done away with, in order to expedite the process and avoid delay. The Commission would exercise the powers and functions of relevant regulatory authorities, such as the UDA, Municipal Council, etc. The Commission would also be granted exemption from the Inland Revenue Act, Betting and Gambling Act, Foreign Exchange Act and Customs Ordinance.

Constitutional experts, who made a mess of the 19th Amendment to the Constitution, have said the Colombo Port City Commission Bill is unconstitutional. Well that would be decided by the Supreme Court. However, from a layman’s point of view, the UDA and Municipality rules, for instance, are an impediment to rapid development and would discourage FDI. Similarly, tax concessions are a necessary evil to attract foreign investment. Whether a relaxation of these rules and regulations, within the confines of the Colombo Port City, would be a violation of the Constitution and the fundamental rights of the citizens, will have to be decided by the courts. Perhaps the courts may suggest necessary modifications to the Bill so that it conforms to the requirements of the Constitution. Of course, the people of Sri Lanka would want the CPC to come under the writ of the government and the law of the country. It is the responsibility of the Supreme Court to ensure that the Colombo Port City does not breach the sovereignty and independence of the people and the territorial integrity of the country.

If, on the other hand, investment does not flow into the CPC, all that effort and expense would be wasted, and what is worse Sri Lanka may not be able to recover from the economic abyss it has fallen into. The CPC is the only viable major project that we have at present, which has the potential to give a much-needed boost to the economy. We cannot do without foreign funds at this juncture, as our foreign debts are huge and we have to earn foreign exchange to service them. We cannot keep on taking loans to pay the existing loans, as successive governments have been doing. China has already given us a huge loan.

As Sri Lanka badly needs foreign aid, it has to make the correct choice in picking its aid givers. It must know that aid does not come without strings – there is nothing called a free lunch. It must look at the strings, how bad are they, how would it affect the people, the independence of the country and its resources. We must look at the aid giving profile of the major donors. Researchers, like Emma Mawdsley (2007), Mark Engler (2006), Susanne Soederberg (2004), have commented on the real intentions of the US in pushing countries to accept MCC on their terms. For instance Mawdsley says that the first five MCC compacts in Cape Verde, Honduras, Madagascar, and Georgia is using a new security development paradigm to legitimate more spending on “development” programmes, which are primarily intended to serve the interests of US consumers, manufacturers and investors, and that poverty reduction at best is a secondary objective. These researchers say that security improvement projects in recipient countries are really intended to serve US defence and military goals. Further, they reveal how the World Bank contrives to show bad business of these projects as good business.

Dreher A. et al (2017) in a study has found that Chinese aid was effective at producing economic growth in recipient countries. China’s aid during the period from 2000 to 2014 amounts to USD 350 billion (AidData 2017). One fifth of this had been outright grants. 45% of their aid goes to African countries which have benefited enormously from Chinese aid in recent times. For instance, Rwanda which was a country torn apart by a civil war, is now recording a GDP of 12 % and there is peace as well. Several African countries are recording similar growth rates with Chinese aid at present. Let me quote from the White Paper, China Foreign Aid (2014) “China adheres to the principle of not imposing any political conditions, not interfering in the internal affairs of the recipient countries and fully respecting their right to independently choosing their own paths and models of development. The basic principles China upholds in providing foreign assistance are mutual respect, equality, keeping promise, mutual benefits and win-win”

Could we say the same thing about the Western aid givers? They helped to bring ‘yahapalana’ into power but did not give a cent, though they grossly interfered in our internal affairs, going to the extent of meddling in constitution making. They wanted to punish the leaders and armed forces responsible for the victory in the war against the LTTE, based on unsubstantiated evidence. At present they are busy in the UNHRC gathering fabricated evidence in support of non-existent human right violations in Sri Lanka. Could we take the grave risk of accepting financial assistance from such donors? Do we have a choice in this matter, but turn to our good friend China in this hour of need?

N. A. de S. AMARATUNGA



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Opinion

SL CRICKET SAVED BY THE PRESIDENT

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The President has taken the bold decision to get rid of the office bearers of Sri Lanka Cricket (SLC) and appoint an interim committee till such time suitable persons are elected to run the SLC. All Sri Lankan cricket lovers will applaud and endorse President Anura Kumara Dissanayake’s action as the SLC was one of the most corrupt sports organizations in Sri Lanka for a long time.

The office bearers had organized it in such a manner that no other persons could get elected to this den of thieves. They increased the number of clubs as members to collect their votes. Large amounts of funds were doled out to the clubs to which the office bearers belonged.

All cricket lovers would remember how when a previous Minister holding the Cabinet portfolio pertaining to sports tried to get rid of the corrupt officials which the then Parliament endorsed unanimously and how they manipulated to remain in power and get the President at that time to get rid of the Minister instead of the corrupt officials of the SLC.

They were able to get round the ICC too to get what they wanted. The Minister who was appointed in place of the ousted Minister fell into the pockets of the SLC officials and they continued happily thereafter. The Minister was happy and the corrupt officials were happy!

It is not only the elected officials who have to be removed. There are executive employees and other permanent employees who have to be relieved of their duties as otherwise they could get round the incoming officials, and the activities of the bandwagon could go on.

We would appreciate if the President and the Minister in charge would go the whole hog and relieve the SLC of all corrupt personnel so that Sri Lanka’s cricket could get back to its halcyon days again.

HM NISSANKA WARAKAULLE

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Has Malimawa govt. become Yahapalanaya II ?

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Malimawa government and Yahapalanaya are dissimilar in many respects, the most important being whilst Yahapalanaya had to manage with a balancing act in the parliament, Malimawa has the luxury of a massive parliamentary majority. However, they share one thing in common; the main plank for the election of both presidents Dissanayake and Sirisena was their solemn pledge for the eradication of corruption. It looks as if both have failed miserably, on that count!

It did not take very long for Yahapalanaya’s first act of corruption; the bond scam. COPE, headed by the veteran politician D E W Gunasekara, picked on this but to prevent the presentation of the report, Sirisena dissolved the parliament which was done at the request of the Prime Minister Ranil, to whom Sirisena was obliged for the unexpected bonanza of becoming president. This enabled the second bond scam to take place, also masterminded by Ranil’s friend Mahendran, imported from Singapore!

Malimawa convinced the voters that they are the only group that could get rid of the 76-year curse of corruption and made a multitude of promises, most of which are already broken! What is inexcusable is that, in a short space of time, they seem to have become as corrupt as any previous government and they seem to excel their predecessors in doling out excuses. Of course, they have a band of devoted social media influencers who are very adept at throwing mud at their opponents which they hope would help to cover up their sins. How long this strategy is going to work is anybody’s guess!

Some of these issues were addressed in an article, “Squeaky clean image of JVP in tatters” by Shamindra Ferdinando (The Island, 22 April). I hasten to add that, though some of his supporters are still trying to paint an honest image of AKD, he should be held responsible for many of these misdeeds and irresponsible acts.

One of the first acts of the newly elected president AKD was to appoint two retired police officers, who openly worked for the NPP through the Retired Police Collective, to top posts; Ravi Seneviratne as Secretary to the Ministry of Public Security and Shani Abeysekara as the Director of CID. Both of them held top jobs in the CID when the Easter Sunday attack took place and were blamed, by some, that they too failed to prevent this horrendous act of terrorism. In addition, there was a case against Seneviratne for causing accidents whilst under the influence and Abeysekara was exposed as a ’fixer’ by the infamous Ranjan Ramanayaka tapes. No one would have objected had they been appointed after their names were cleared but AKD’s rash decision to appoint them, disregarding all norms, clearly showed what his long-term strategy was. Was this not political corruption?

Now these two tainted officers are heading the search for the mastermind of the Easter Sunday attacks! Are they being used to divert attention away from Ibrahim’s family that was supposed to have funded the project? After all, Mohamed Ibrahim, the father, was on the national list of the JVP, and the two sons were the leading suicide bombers. It is a matter of great surprise that the Catholic church led by Cardinal Ranjith is not demanding the removal of these two officers from the investigation, who obviously have a conflict of interest. It becomes even more surprising when the demand is made for the Deputy Minister of Defence Aruna Jayasekara to resign, for the same reason; as well stated in the editorial, “Of masterminds” (The Island, 21 April).

The first act of the new parliament was to elect ‘Dr’ Ranwala as the speaker and pretty soon his doctorate was challenged. He stepped down to look for the certificate, which he is still looking for! Though some of the ministers too have admitted that Ranwala may not have a PhD, AKD seems silent. When Ranwala was involved in an RTA, police had run out of breathalyser tubes and blood was taken after a safe period had elapsed. Why has AKD no guts to sack him?

Episode of the release of 323 containers, without the mandatory inspections, seems to be receding to the past and the long-awaited report may be gathering dust in the president’s office! It is very likely due to political intervention and we probably will never know who benefitted.

A minister, who claimed that he is living on his wife’s salary and on the generosity of the party faithfuls, seems to have been able to build a three-storey house in a suburb of Colombo. He claims that when he made that statement, his father was alive but has since died and he has inherited everything as he is the only son! What a shame that Marxists do not believe in sharing the family wealth with sisters? Though the opposite may be true, his explanation that he was able to build a house in Colombo by selling the land in Anuradhapura rings hollow!

The worst of all was the coal scam which would have long lasting consequences on our economy. I do not have to go into details as much has been written about this but wish to point out AKD’s role. In spite of ex-minister Kumara Jayakody being indicted by CIABOC, AKD continued to give unstinted support till it became pretty obvious that he had to go. In fact, he is being charged with an offence which was committed whilst he was serving the Ceylon Fertilizer Company which was under the purview of, guess who? AKD when he was the Minister of Agriculture.

Devastating report from the Auditor General,before Jayakody’s resignation, would not have happened if AKD had his way. He attempted a number of times to get one of his henchmen appointed to this coveted post, overlooking those experienced officers in the department. AKD’s political machinations were thwarted thanks to the integrity of some members of the Constitution Council. If not for them, AKD’s nominee would have been in post and, perhaps, his friend Jayakody would still be the minister.

Malimawa seems to have beaten Yahapalanaya rather than being the second!

By Dr Upul Wijayawardhana

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Pot calling the kettle black?

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Doctor Upul Wijayawardhana (eminent physician), posed a riddle for us. He wrote about that island Sri Lanka as ‘ this little dot in the ocean’ when deriding the remark of President Dissanayake who had said that Sri Lanka was a hunduva , a term that indicated a small volume: me hunduve inna puluvan da? (Can you live in this restricted space?) Most sensible people, even uneducated, judge that the volume of a little drop (of whatever) is smaller than that of a hunduva; so is weight. When the learned doctor emphatically maintains ‘….we are not a hunduva’ but ‘… a little dot in the ocean…’, is the pot calling the kettle black or worse?

Physically and population wise, Sri Lanka is neither ‘a little dot’ nor ‘a hunduva. This is all in the rich imaginations of Dissanayake and Wijayawardhana. I once counted that there were more than 50 members of the UN who were smaller than Sri Lanka in physical and population size. England was a sizeable island with a small population in the northwest corner of Europe in late 18th century when it began to become what China, with 1.3 billion people and jutting out to the Pacific, is now. From about 1850, when the population of Great Britain was about 20 million, less than that of Sri Lanka in 2026, it ruled more than half the world. Besides, do not forget Vanuatu, Kiribati, Cook Islands, Antigua and Barbuda, Barbados, Lesotho and New Zealand (who habitually beats us at cricket). New Zealand with 5 million population played against 1.5 billion population India (1:300) for the T20 cricket championship a few weeks ago. I quietly wished New Zealand would win; so much for crap about dots in the Indian Ocean or the south Pacific.

Dr. Wijayawardhana also wrote about history and about ‘The achievements of Hunduwa’. The massive reservoirs and extensive irrigation systems in rajarata and ruhuna as well as the stupa are indeed tremendous works of irrigation and bear witness to superior ingenuity and organising ability, for the time they were built. They compare very well among structures elsewhere in the ancient world. Terms like ‘granary of the East’ must be taken with more than a grain of salt. Facile use of such terms does not take account of whatever shreds of evidence there is of adversity in those times. Monsoon Asia over the ages has more or less regularly suffered from floods, droughts and consequent famines. The last dire famine was in Bengal in 1944. The irrigation works in Lanka were a magnificent response to those phenomena. The modern response has been scientific agriculture making India a major grain exporter, from near famine conditions in 1973-74. Recall Indira Gandhi’s garibi hatao (eliminate poverty) speech to the General Assembly of the UN, that year.

The bhikkhu who wrote down the tripitaka in aluvihara did so because there was the threat of a severe famine in the course of which learned bhikkhu might have come to harm. Buddhist thought over centuries had been passed from generation to generation vocally (saamici patipanno bhagavato savaka (listener) sangho) and the departure from that tradition must have required a major threat of famine. There are stories of bhikkhu from Lanka fleeing from dire straits. In the same vein, while the mahavamsa speaks of kings and their valiant deeds, there is little account of the large mass of little people who lived then. Sensible teaching of the history of a people must include the history of as much of the people as possible and some idea of the history of other peoples in comparable times to avoid feeling dangerously smug and arrogant, which we have seen many times over.

Usvatte-aratchi

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