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Editorial

Free-market and socialism

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Friday 16th April, 2021

Former Finance Minister and newsmaker, Ronnie de Mel, has attracted media attention, again, at the age of 96. He is reported to have said, during a recent conversation with Opposition Leader Sajith Premadasa, that the Sri Lankan economy should be repositioned with a tilt towards socialism. He has also stressed the need for equitable growth, and other such pro-poor measures in keeping with the tenets of Buddhism.

It is being argued in some quarters that de Mel, who presented 11 budgets consecutively under the better-dead-than-red J. R. Jayewardene government, has faced about, but going by what he is heard saying in a video clip of the aforesaid conversation, which is accessible on the Internet, one can see that he only opines how capitalism can emerge stronger and remain relevant, especially in this country. Speaking boastfully about the epochal economic change the country underwent in 1977, he says there is a pressing need for another such momentous event for the Sri Lankan economy to come out of the doldrums.

Ironically, there was no love lost between de Mel and the late President Ranasinghe Premadasa, while they were in the JRJ government as the Finance Minister and the Prime Minister respectively, but the former is now of the view that the latter’s son, Sajith, is the only hope for the country!

We had two epoch-defining elections as regards the national economy. In 1970, the SLFP-led United Front (UF) government, which secured a two-thirds majority in Parliament, adopted a statist approach to economic management and threw in its lot with the socialist bloc in a bipolar world. It took things to an extreme in experimenting with its autochthonous politico-economic model. The state’s vise-like grip on the economy retarded the growth of the private sector much to the resentment of the capitalist bloc. Many arguments have been put forth in defence of this kind of state control over the economy, stringent regulations, etc., under that regime; they are not without merit, but the UF government became hugely unpopular, as a result. In 1977, the UNP, made a stunning comeback and formed a government with a five-sixths majority in the House with de Mel as the Finance Minister and upended the UF’s economy policies, triggering an open-market tsunami as it were; that revolutionary change led to the evisceration of many vital state institutions. Both regimes failed to maintain a balance, and their economic reforms, therefore, did not yield the desired benefits for the country. If only they had heeded the classical, oxymoronic adage, festina lente (‘make haste slowly’).

Those who expected capitalism to flourish following the collapse of the Soviet Union (1991) only cherished a delusion. Capitalism has been in crisis; this situation is mostly due to the fact that the capitalist state has to carry out two mutually contradictory functions—accumulation and legitimisation. The process of legitimisation basically requires maintaining social harmony, which cannot be achieved unless the ill-effects of the unbridled capital accumulation are mitigated for the benefit of the ordinary people. Hence attempts by the capitalist state to give its policies a socialist flavour with social welfare and pro-poor schemes. (The JRJ government went so far as to call this country a ‘Democratic Socialist Republic’, in the Constitution it introduced. (Emphasis added.) It is against this backdrop that former Finance Minister de Mel’s aforesaid advice to the Opposition leader should be viewed.

Besides, critics of capitalism inform us that the current free-market model has led to a triple crisis for capitalism—financial instability, lack of environmental sustainability and political unpopularity. “Adapt or perish, now as ever, is nature’s inexorable imperative,” H. G. Wells has said. This aphorism applies to economic models as well. Even the US has had to make dramatic course corrections over the decades. Some of these measures run counter to its unsolicited advice to the rest of the world; Washington opted for a massive bailout package to save the American banks, etc., during the 2008 financial meltdown, which marked a turning point in capitalism and modern economic theories. The Occupy Wall Street movement, which emerged in 2011, was another manifestation of the crisis of the capitalist state; the protesters who took to the streets were young Americans enraged by intolerable economic inequalities.

President Donald Trump had no qualms about openly practising protectionism to boost the US industries at the expense of other nations, especially China, through controversial tariff hikes. His successor, Joe Biden continues with, more or less, the same policy. All US Presidents have been closet protectionists.

Biden has recently got a 1.9-trillion-dollar stimulus package approved by the Congress to jump-start the economy, facilitate the ongoing Covid-19 vaccination drive, and grant relief to the pandemic-hit Americans. These measures are part of the legitimisation process aimed at bringing about social harmony.

One can only hope that the present-day political leaders and economic policymakers will take note of the fact that one of the main architects of the Sri Lankan version of market economy has owned that things are far from copacetic for capitalism in its present form; the key takeaway for the incumbent government from de Mel’s advice to Sajith, in our book, is the need to ensure equitable growth, which, however, is not attainable through occasional cash handouts and politically-motivated poverty alleviation projects.



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Editorial

Democracy in danger

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Monday 30th January, 2023

Those who are all out to scuttle the local government elections (LG) scheduled to be held on 09 March have got down and dirty. Having failed to intimidate the Election Commission (EC) into postponing elections, they are now trying to scare the members thereof into resigning as part of their strategy to delay the mini polls. Their desperation knows no bounds and they will baulk at nothing.

The EC members who have been threatened with death to resign from their posts are S. B. Divaratne, M. M. Mohamed and K. P. P. Pathirana. P. S. M. Charles has already tendered her resignation letter. It is obvious that someone is trying to render the EC incapable of having quorate meetings by causing three or more of its five members to resign. It is hoped that the EC members will be given maximum possible security so that they will be able to carry out their duties without fearing for their safety.

Ironically, those who resorted to mindless violence to disrupt elections in the late 1980s are currently at the forefront of a campaign to safeguard the people’s franchise and some of their political rivals who dared protect democracy by holding elections and participating therein during that time are all out to sabotage polls. The JVP attacked the public officials who were on election duty during its second uprising (1987-89) and some of them were gunned down. The intrepid voters who defied the JVP’s order to boycott elections during the reign of southern terror were also attacked. Some of them died violent deaths at the hands of the JVP sparrow units, which terrorised the country. The then UNP governments held elections, which they rigged and won, and the current SLPP leaders who were in the Opposition at the time took part in those electoral contests courageously despite threats to their lives. Today, there has been a role reversal! The JVP is threatening to take to the streets if elections are postponed, and the UNP and the SLPP are trying every trick in the book to delay the polls.

The act of threatening EC members, or anyone else for that matter, with death, is a serious criminal offence, which must be treated as such. The caller who issued death threats to EC officials must be traced, brought here, made to reveal who his handler is and prosecuted forthwith.

Nobody should be considered guilty until proven innocent, but it is only natural that as for the threats to the EC members, fingers are pointed at the government, which is doing everything in its power to delay the LG polls for fear of losing them. The SLPP and the UNP have no one but themselves to blame; he that has an ill name is half-hanged, as a popular saying goes. All other political parties including the dissident SLPP constituents are keen to face an election at this juncture, when the public is resentful and the government’s approval ratings are extremely low. The worst times for the country are the best times for the Opposition both politically and electorally. The only way the SLPP-UNP administration could clear its name, if at all, is to ensure that the person who is threatening the EC members is brought to justice immediately. It will not be difficult to trace the caller if he or she has no links to the ruling coalition. Even Sri Lanka’s Napoleon of Crime, Makandure Madush, was arrested in Dubai, and extradited. So, it will be child’s play for the Sri Lankan police and their UAE counterparts backed by Interpol to arrest the caller.

Those who fear elections will not spare any institution in their efforts to postpone polls. There have been situations where repressive governments targeted even the judiciary to further their interests. The stoning of the houses of the Supreme Court judges, in 1983, following their historic judgement in a fundamental rights petition filed by Vivienne Goonewardene against the Police is a case in point. The Mahinda Rajapaksa government went so far as to ‘impeach’ Chief Justice Dr. Shirani Bandaranayake, whom it considered an obstacle in its path. It removed her from office in the most despicable manner. Today, the SLPP and the UNP are savouring power together.

It goes without saying that the ruling alliance, which poses a serious threat to democracy, has to be tamed, and the best way to achieve this end is to ensure that the LG polls are held as scheduled and the people given an opportunity to subject the government to an electoral shock.

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Editorial

Confusion confounded

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Whether the announced local elections will be held as scheduled on March 9 remains a question that is wide open. The confusion became more confounded last week with the resignation from the Elections Commission of Mrs. P.S.M. Charles and speculation that its chairman, Attorney Nimal Punchihewa, would also resign. This was subsequently denied by Punchihewa himself but that is not the end of the story. The new Constitutional Council, meeting for the first time with the Speaker in the chair ex-officio decided to reconstitute all the so-called Independent Commissions mandated by the Constitution. This, of course includes the Elections Commission and raises the question of how any changes in its composition can affect the local elections for which nominations have concluded and a date set.

Former Elections Commissioner Mahinda Deshapriya, who enjoyed wide visibility during his tenure, went on record after Charles’ resignation saying that it will not affect the working of the five-member commission with a quorum defined as three. With four members still in office, the number necessary to make up a quorum is available. When the election day itself was decided, only three members were physically present at the meeting and the consent of the two absent member had been obtained, Punchihewa has said. This has not been denied. But the state-controlled Daily News, in its lead story last Tuesday, quoted Dr. Prathiba Mahanamahewa, a former chairman of the Sri Lanka Human Rights Council, saying that the date of the election must be gazetted in terms of the election law and no gazette had been issued. The date had merely been announced through the media and this was insufficient, he had said.

We do not know whether he was right or not at the time he made the remark or whether there was a subsequent gazette as is probable. Mahanamahewa is on further record saying the names of all five members of the Election Commission were on the gazette calling for nominations and it must be similar with regard to setting a date for the poll. However that be, many would wonder why Mrs. Charles who, having known that the Elections Commission itself was in a “state of flux” (if we may borrow Mahanamahewa’s language), chose to resign at this moment. She, as the country at large well knew that as the Constitutional Council had been constituted, all the Independent Commissions (there are eight of them including the Elections Commission, Human Rights Commission, Police Commission, Public Service Commission etc.) will be reconstituted. So what was the hurry to resign? The terms of all five members of the Elections Commission will soon come to an end.

The Daily News interpreted Charles’ resignation as confirmation of “deep divisions” within the Elections Commission over several issues including the holding of the local elections. It must be remembered that Mrs. Charles is a very senior public official belonging to the special grade of the Sri Lanka Administrative Service. She has held high office including Governor of the Northern Province, Director General of Customs, GA Vavuniya when the LTTE held sway and Ministry Secretary. She is a serving SLAS officer. She has resigned in the context of a situation of a government appearing to be afraid, nay terrified, of holding the local elections in the present perilous country conditions. So who can be blamed for suspecting that here is an inspired resignation given that Mrs. Charles herself has publicly given no reasons for her exit.

In this context it may be useful to go back to fairly recent history to Mrs. Bandaranaike’s government of the 1970s when there was a conflict between the legislature and the judiciary. Justice Hector Deheragoda, sitting on the new Constitutional Court chaired by Justice T.S. Fernando along with Justice JAL Cooray resigned from the court then adjudicating on the new Press Council Bill, the first matter to be brought before it. The court was sitting in the then House of Representatives with Mr. Sam Wijesinha, the Clerk of the House, as its Registrar. When the proceedings were ongoing, there was a demand in the chamber of the House that the court should be evicted from its premises. Speaker Stanley Tillakaratne made a remark eliciting a response from Justice TS Fernando that interpretation of the Constitution was a matter for the court and not for the speaker. It was amid this furor that Justice Deheragoda tendered his resignation aborting the continuance of the proceedings.

The government keeps tub thumping that the local elections will cost ten billion rupees the country cannot afford in its current economic predicament. The opposition is brimming with confidence that the results of these elections will signal the end of what many in its ranks delight in calling the “Ranil – Rajapaksa” government. The matter is now before court and the last word will probably be its determination. The affidavit filed before court by the Secretary to the Ministry of Finance/Treasury clearly states the financial predicament the government is placed in. While the determination is awaited the angry debate in the political space on whether or not the elections will be held will continue. There is yet no clear sign of countrywide election activity though nominations have been filed by the mainstream and minor parties as well as independent groups. But ominous threats abound of what’s likely to happen if there is no election.

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Editorial

HRCSL in govt.’s crosshairs

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Saturday 28th January, 2023

The Human Rights Commission of Sri Lanka (HRCSL) has placed itself in the crosshairs of the government by carrying out its duties and functions conscientiously. Minister of Power and Energy Kanchana Wijesekera has claimed that his ministry is contemplating legal action against two HRCSL members for having allegedly pressured two of his ministry officials to agree to suspend power cuts until the conclusion of the ongoing GCE A/L examination. He says the two mandarins were threatened with imprisonment, and he has brought the matter to President Ranil Wickremesinghe’s attention and made a complaint to the Constitutional Council (CC).

Those who were present at the HRCSL meeting where an agreement was reached to suspend power cuts for the benefit of the students sitting the GCE A/L examination have said nobody was intimidated. Is the government trying to make a case for removing the HRCSL members.

There is reason to believe that the Power and Energy Ministry officials agreed to suspend power cuts at the aforesaid meeting but subsequently went back on their commitment because they incurred the wrath of the government for doing so. One may recall that in June 2022, the then Chairman of the Ceylon Electricity Board M. M. C. Ferdinando told the Committee on Public Enterprises that Indian Prime Minister Narendra Modi had pressured President Gotabaya Rajapaksa to award the Mannar wind power project contract to India’s Adani Group. Ferdinando said President Rajapaksa had, after a meeting, told him that the latter was under pressure from Modi to ensure that Adani clinched the deal. It was obvious that Ferdinando, an experienced public official, was telling the truth; he had no reason to lie. But he withdrew his statement and resigned when President Rajapaksa took exception to his claim. No action was taken against Ferdinando because the government did not want to open a can of worms. This is how most public officials react under political pressure.

The Rajapaksa-Wickremesinghe administration’s imperiousness knows no bounds. The Executive is doing everything in its power to keep all other institutions under its thumb. It has made a mockery of the Constitution by meddling with the independent commissions. President Wickremesinghe, who is the leader of the UNP, which is contesting the local government elections scheduled to be held in March, had a meeting with the members of the Election Commission (EC) and asked them to speak with one voice anent the announcement of the mini polls. The President cannot give such directions to the EC, especially when he/she happens to be a political party leader.

All Presidents save D. B. Wijetunga have bolstered the widely-held view that the executive presidency is a threat to democracy. All of them except Gotabaya secured the presidency while being members of Parliament and offered to strengthen the legislature and ensure the independence of the judiciary, but chose to undermine those two branches of government, and other vital state institutions to consolidate their hold on power.

The incumbent government also stands accused of trying to render the EC incapable of having quorate meetings by causing its members to resign as part of its strategy to postpone the local council polls. One EC member has already sent in her resignation letter. The newly-appointed CC has undertaken to reconstitute the independent commissions including the EC. Speculation is rife that the government is trying to have some pliable commissioners appointed so that it will be able to manipulate the EC.

It is hoped that all those who cherish democracy will unite to prevent the government from bulldozing the HRCSL and other independent commissions, which are the bulwarks against tyranny.

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