Opinion
Import substitution in Covid-infested Neoliberal World
Covid-19, which has taught many a lesson to the rich and the mighty, is causing unparalleled turmoil in the neoliberal economies of the world. It has made governments and economists think of alternatives to the market driven dependent economies that most poor countries practice or are forced to practice. Sri Lanka too is trying its hand with options like export control, import substitution, taxation, protective tariffs, etc. Most countries are forced into it due to the disruption of several aspects of the system, such as foreign exchange earning capacity, international transport, and local export oriented industry. Sri Lanka is faced with considerable decline in its main sources of foreign exchange, such as foreign employment, tourism and garments. The foreign exchange thus earned are, in the main, spent to import food items, textile, medicines, fertilizer, etc., that could be locally produced. Is there any logic in advocating the continuation of this policy – Covid or no Covid?
Yet there are people including parliamentary bigwigs, who criticize the present government policy of controlling imports and attempting import substitution. They say such policy would antagonize Western countries who buy our products, like tea and rubber. Yes, it would make them angry but then that is how they pursue and perpetuate the practice of neoliberalism and exploitation of our resources. They say Western countries would stop extending preferential treatment and favourable terms to us in trade. Yes, they may do that but we must know that these are only tools they use to trap us into their system of neocolonialist exploitation. These people who talk like this in parliament must be tools of the neocolonialists.
It may be worthwhile to look at other countries which had adopted import substitution, in the past as well as recently and see how they have fared in their effort. This concept and policy could be traced back to the 18th Century German economist Friedrich List who proposed a “National System” of political economy where tariffs were to be imposed on imported goods while free trade would operate for local products. Later in the 1950s and 60s the Global South, particularly Latin America, adopted this policy and came to be known as Import Substitution Industrialization (ISI). ISI is based on the premise that a country should attempt to reduce its foreign dependency through local production. It envisaged industrialization of production for greater efficiency and mass production. Most of the Latin American countries, like Brazil, Mexico, Argentina, Ecuador, Honduras employed this system, the larger countries with big populations were benefited to a greater degree than smaller countries.
African Socialism, which started about the same time with leaders like Kwome Nkrumah of Ghana and Julius Nyerere of Tanzania giving it leadership, took up ISI as its economic policy. These movements were socialist and nationalist and naturally anti-west and the Western powers did not view these developments kindly. In the 1980s with the fall of the Soviet Union, and the IMF and the World Bank gaining immense ground, the Global South abandoned ISI policy and turned to the West and again became the servant of neoliberalism.
However, there is a country which recently adopted these ISI measures with great success. Russia has managed to save several billions of Dollars by vigorously following ISI policies in the industrial sector, mostly in the areas of agriculture, automotive, chemical, pharmaceutical, aviation, etc. In 1914, their cost of food imports was 60 billion dollars, it was brought down to 20 Bn by 2018, in 2012 the pharmaceutical industry was negligible and by 2017 it has developed into a 50 Bn industry. These achievements were mainly due to subsidization of vital industries, import restriction by heavy taxation and other protective trade policies.
There may be lessons for Sri Lanka from what has taken place in the above mentioned countries. First and foremost the essential food items that could be produced here should not be imported and everything required for this endevour such as land, water, seeds, fertilizer, machinery should be made available. Every effort should be made to manufacture locally these things necessary to achieve self-sufficiency in food. If we are self sufficient in food, medicine, clothes and housing we need not be afraid of economic warfare that imperialists resort to when they want us to do their bidding. We must get assistance from friendly countries like China and Russia to achieve self-sufficiency in essential items and not for mammoth projects that politicians think would enhance their image.
As mentioned above, ISI policies employed for heavy industrial development had succeeded in large countries like Brazil, Mexico and Argentina but in smaller countries like Ecuador and Honduras such attempts at industrialization had failed. This was the experience in Africa too. Development of one industry at the expense of others or one crop like tea for instance could also lead to failure.
Therefore Sri Lanka must not go for heavy industries. First it must achieve self sufficiency in food and other essentials. Later it could start small machinery like power looms, electrical and electronic items. Industrialization should be at the manageable level of agriculture, clothes and such items and perhaps not heavy industries like automobiles, etc. The threat posed by Covid-19 must be converted into an opportunity and made full use of to make the country’s economy and politics independent of external factors.
N. A. de S. Amaratunga
by Sudharman Siripala
Sri Lanka is grappling with the increasing threat of climate change, which has led to unpredictable weather patterns. The country faces a dangerous combination of flooding in some regions and water shortages in others, a situation exacerbated by shifting rainfall patterns. Rivers originating in the Central Hills, such as the Mahaweli, Kalu, and Kelani, flow through much of the country, but these water sources are not being distributed evenly. Districts like Monaragala and Hambantota, located in the dry zone, are experiencing severe water shortages. To address this challenge, experts suggest the development of an interconnected river system to harness excess water during floods and redirect it to drier areas, ensuring a year-round water supply for agriculture and daily use.
Global Case Studies in River Management
Several countries facing similar water-related challenges have implemented successful water management systems that Sri Lanka could adapt to its unique circumstances:
The Netherlands – Room for the River Programme
The Netherlands, a country prone to flooding, widened its rivers and relocated dikes to create floodplains. This approach allows rivers to overflow without damaging urban areas, while preserving water flow and natural habitats. Sri Lanka could apply this concept by designating specific riverbank areas for temporary flood storage.
China – South-North Water Transfer Project
China’s massive project channels excess water from the flood-prone Yangtze River to drier northern regions. This system of canals and reservoirs could inspire Sri Lanka to divert water from rivers in the Central Hills to drier areas in the south and east.
Bangladesh – River Interlinking Projects
Bangladesh has implemented river interlinking projects to redistribute water from flood-prone rivers, such as the Brahmaputra, to drier regions. Sri Lanka could link its major rivers like the Mahaweli and Kelani to smaller rivers in water-scarce districts to balance water distribution.
India – National River Linking Project
India’s National River Linking Project connects major rivers to manage both floods and droughts. Sri Lanka could use similar strategies, connecting rivers around the 500-foot contour line in the Central Hills to help distribute water more effectively.
United States – Mississippi River and Tributaries Project
The Mississippi River system combines levees, floodways, and diversion channels to manage flooding. Sri Lanka could adopt similar flood-control measures in vulnerable river basins such as the Kelani and Kalu.
Japan – Underground Reservoirs and Flood Channels
Japan’s G-Cans Project in Tokyo channels excess water into underground reservoirs to prevent urban flooding. A similar underground system could be implemented in Colombo and other flood-prone cities in Sri Lanka.
Singapore – Marina Barrage
Singapore’s Marina Barrage serves as both a flood control measure and a water supply resource. Sri Lanka could develop similar systems to control flooding in urban areas and ensure water availability during dry spells.
Thailand – Chao Phraya River Basin Management
Thailand uses diversion channels in the Chao Phraya River Basin to prevent flooding in Bangkok and direct water to agricultural areas. Sri Lanka could replicate this by creating diversion channels to supply water to its agricultural zones.
Actionable Solutions for Sri Lanka
Develop an Interconnected River System
Establish water diversion channels along the 300-500 meter contour lines of the Central Hills to capture excess rainfall during floods and redirect it to drier areas.
Build Reservoirs and Storage Tanks
Construct reservoirs to store diverted water, ensuring a steady supply for agriculture and domestic use. Sri Lanka has around 14,000 ancient tanks out of 30,000 that could be revitalized for this purpose.
Improve Urban Flood Defenses
Drawing inspiration from Japan and Singapore, build underground reservoirs and flood channels in cities like Colombo to mitigate urban flooding.
Strengthen Watershed Management
Restore natural floodplains and create wetlands to absorb excess rainwater, as seen in the Netherlands, helping to reduce flood risks.
Encourage Public-Private Partnerships
Foster collaboration between the public and private sectors to fund large-scale water management infrastructure, leveraging models from China and the United States.
Leverage Technology
Utilise modern forecasting and real-time water management systems, similar to those in Bangladesh and Thailand, to monitor water levels and manage river flows dynamically.
International Collaboration
Form partnerships with countries that have successfully implemented flood control and water management systems to share expertise and technology.
Sri Lanka’s dual challenges of flooding and water scarcity, compounded by climate change, require immediate action. By developing an interconnected river system and learning from successful global water management models, Sri Lanka can mitigate the effects of floods while ensuring a sustainable water supply for agriculture and daily life. It is crucial for the country to act now, as these solutions have the potential to transform Sri Lanka’s water management system for the better.
Sudharman Siripala Managing Director of Geoinformatics Group and a Registered Licensed Surveyor, specializes in geo-spatial applications. He also serves as a freelance value chain consultant for Vivonta Green Tech Consultants (www.vivonta.lk)
Some people have found fault with a female doctor for not coming forward to identify her rapist and help make him pay for his crime.
Do they not realise the emotional toll of facing her rapist again?
There should be a way for survivors to testify directly to the judge without enduring such distressing encounters. Making a victim relive her trauma in this manner is akin to subjecting her to the ordeal all over again.
A Ratnayake
Sri Lanka was once at an economically comparable level with some of the world’s most developed countries in the 19th century. However, despite our country’s potential, we are still striving to fully develop. Many people often blame politicians, government officers, or various sectors for the situation. However, I believe the root cause of these issues lies not in any individual or group, but in the lack of good attitudes within our society.
We are investing significant resources into our education system, which is funded by the taxes of hard- working citizens. However, when we examine the outcomes, we realise that the academic achievements of our graduates alone are not enough. There are instances where professionals, despite having the necessary qualifications, fail to uphold ethical standards. In some cases, this even results in malpractice or harmful actions that damage our country’s reputation and progress. This highlights the gap between academic success and real-world responsibilities.
The education system, which is currently focused on competitive exams and rote learning, does not emphasise the development of attitudes and character in students. While our students are academically capable, many lack the qualities required to contribute positively to society. This lack of focus on social values, such as patriotism, selflessness and respect for elders, is holding us back from achieving the level of progress we deserve.
To address these concerns, I wrote to His Excellency, the President of Sri Lanka, on 24th September 2024, proposing education reforms that emphasise not only academic qualifications but also attitudes, ethics, and social responsibility. I suggested a holistic approach to university admissions and government recruitment, incorporating moral integrity, character, and extracurricular involvement, key traits for fostering well- rounded, responsible citizens. More importantly, I strongly recommended introducing a compulsory school subject, with both theory and practical components, focused on attitude development, which would be evaluated in university admissions. Encouraging extracurricular participation alongside academics will help shape ethical and socially responsible individuals.
I am pleased to inform you that the President, recognising the importance of these reforms, has directed the relevant ministries (by a letter dated 24th October 2024) to explore integrating these ideas into the education system. This marks a crucial step in transforming the values and attitudes of our youth for the nation’s benefit.
However, meaningful change requires collective effort. Parents, teachers, students, and citizens all play a role in shaping Sri Lanka’s future. Together, we must instill responsibility, ethics, and patriotism in the next generation. I invite you to share your thoughts and suggestions on further enhancing the values and attitudes of our youth. Your feedback will be invaluable in building a brighter future for Sri Lanka, one driven not just by knowledge, but by integrity and character.
Dr. Mahesh Premarathna
Research Fellow, National Institute of Fundamental Studies, Sri Lanka Email: mahesh.pr@nifs.ac.lk
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