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Seeing the market through the spectre

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By Panduka Karunanayake

Leftist ideologues like to create an image of ‘the market’ as a terrible place, like how grown-ups frighten children with their ghost stories. The market is portrayed as a ruthless, heartless machine that thrives on unfairness and corruption, crushing the poor and fattening the rich. It must have become easier to create this image after the Soviet bloc fell in the 1990s and China emerged out of communism soon afterwards, because after that people quickly forgot that socialist and communist economies too have markets – even markets every bit as ruthless, heartless, unfair and corrupt as any capitalist market. Today, these ideologues can write as if the market and capitalism are synonyms. Everything ‘un-socialist’ can be easily ‘explained away’ by saying that it ‘promotes marketisation’.

No amount of argument or explanation would change these ideologues’ minds – after all, an ideologue is a person who pursues an ideology in an inflexible manner. But let me set out some related matters, for the benefit of the rest of us.

Emergence and evolution of the market

Markets have probably existed throughout human existence, because human beings are social animals that thrive on social interaction. There is an illuminating passage in Charles Darwin’s book The Voyage of the Beagle, where he described an encounter with the inhabitants of Tierra del Fuego in South America, who were ‘primitive’ hunter-gatherers and nomads with no previous encounter with civilisation:

“Some of the Feugians plainly showed that they had a fair notion of barter. I gave one man a large nail (a most valuable present) without making any signs for a return; but he immediately picked out two fish, and handed them up on the point of his spear. If any present was designed for one canoe, and it fell near another, it was invariably given to the right owner.”

This passage shows that they were well-versed in the moral principles – such as free choice, trust, fairness and reciprocity – associated with exchange of goods and services that form the basis of the functioning market.

The market became prominent after the emergence of agriculture about 10,000 year ago. Agriculture enabled farmers to produce a food surplus, which then enabled the rest of the villagers to work on other crafts – promoting division of labour and specialisation. This created an overall increase in the quality of the villagers’ lives, because they now had a wider variety of produce to consume. Villagers now depended on each other more, for the produce they wished to consume. As the village increased in size and complexity, a place where producers and consumers could meet, to exchange goods and services, became a necessity. In the physical realm this was the marketplace, and in the conceptual realm it was the market. Initially, exchange occurred through the barter system without a medium of exchange, but the invention of money made it easier.

But until industrialisation, this market was small and sluggish. It produced very little, compared to today. Most of what a village produced was consumed within it, and only a tiny proportion of it left the village, to be consumed by outsiders – the market was still not much more than the marketplace.

Reason for smallness

The reason for this smallness was not entirely because there were no industrial factories. The villagers could have produced more if they wanted to, but they didn’t, because they saw that any extra produce created problems. There were difficulties with storing it, protecting it, preserving it or transporting it elswhere, and in any event the lords could easily expropriate it under the feudalistic modes of production. Items that were considered luxury items were an exception; they were carried to distant destinations by camel, caravan or boat.

But starting in the eighteenth century, industrialisation changed all that. Factories produced large quantities of produce (or ‘commodities’) cheaply, and the market expanded to distribute a much larger variety and quantity of goods much more widely. Specialisation became the norm and a necessity. The crucial factor that made all this possible was probably the improvement in transport. Look at your lunch plate today, and try to figure out from where and how far each of the food items on it – not to mention the plate itself or the energy for the fire that cooked your lunch – have come from.

Today, production and consumption are almost totally separated from each other (with a few exceptions, like farmers who sell their produce by the roadside in front of their homes, and ‘factory outlets’). It is the market that enables this to happen. The market, which is no longer simply the marketplace, gives us access to a bewildering variety of goods and services, thereby enabling us – even the poorest amongst us – to enjoy a greater choice and higher quality of life, compared to pre-industrial times. The healthcare and education that even the poorest amongst us enjoy would not reach them if not for the market.

As an example, let us take soap. Until industrialisation this was a luxury item that only the elite enjoyed. In Roman times, even the elite cleaned themselves mostly by simply immersing themselves in their baths and rubbing off dirt; indeed, using soap would have made the bath too disgusting to get into. Soap was available only to those in the very highest echelons of society. The masses were ‘dirty’ and their skin was infested with scabies, pediculosis and lice, and they commonly suffered diseases like impetigo and erysipelas – they lacked even the water necessary to wash themselves (especially hot water in cold climates). But today, soap is so ubiquitous that we take it for granted – it was industrialisation that enabled its cheap mass production and the market that enabled its wide distribution.

Value of simple things

The real value of something as simple as soap was driven home powerfully to me in the aftermath of the 2004 tsunami, when people had lost everything and were accommodated in make-shift camps. What did they ask for, from the donors and volunteers who went to help them? First, they asked for food, water and certain medicines. A few days later, they began asking for soap, a change of clothing and sanitary pads: after three or four days, they were itching and suffering with fungal skin infections. That was an unfortunate re-enactment and reminder of the pre-industrial life of the masses. I remembered how a textbook of public health that I had read a few decades earlier had cleverly classified infectious diseases according to whether they were prevented by soap and water, clean drinking water, safe food, and so on. The post-tsunami experience showed me the sagacity of that – and the value of the ubiquitous soap, industrialisation and the market.

In his book The Third Wave, Alvin Toffler compared a modern-day market to an efficient telephone exchange or switchboard. A switchboard connects thousands of senders and recipients accurately and enables messages to be sent across to their intended destinations – like producers, consumers, and goods and services in the market. Like telephone messages, goods and services are produced, sent across and consumed according to need and availability: demand and supply.

Such a market cannot exist on its own. It needs inputs from important sectors in society, such as law and order (which upholds the right to private property, prevents or punishes theft, and arbitrates when there are contractual disagreements), education (which creates an educated and trained workforce, not only for manufacture but also for distribution), communication, energy, transport, ports, etc. Such external supports have existed not only in capitalist markets but also in pre-capitalist and socialist markets. These supports are provided because everybody realises that markets are useful to everyone, especially when the population expands and the demand for commodities increases.

So, to say that something should be abhorred because it promotes ‘marketisation’ is disingenuous.

Organising the market

Markets can be organised in various ways. It helps to think of these as lying on a spectrum ranging from capitalism to communism, which are the extreme forms at the two ends. In-between, there are lots of compromises, combinations or ‘middle ways’. For instance, the current Chineses model is sometimes called state capitalism – a good example of a middle way.

But the natural form of the market that emerged spontaneously was the free market: a market where no authority-imposed restrictions or controls, nor introduced any encouragements or inducements. The activities in the free market merely recognised the concepts of private property and voluntary exchange, and operated on demand and supply. That was all.

Opponents

Throughout this time, the free market has had many opponents who have tried to impose limits or controls to it. Division of labour and specialisation were resisted – by the cultural elite who tried to maintain the status quo in society, such as the caste system in ancient society and feudal-peasant relations in medieval times. During industrialisation when factories came up, that was resisted too – by guildsmen who felt that their business was threatened, and those like the Luddites who felt threatened by the new manufacturing technology. Karl Marx proposed that private property, including ‘the means of production’, should be taken over by the state and brought under its control.

Some of the concepts that they used against the growth of the free market were traditional values such as loyalty and caste-based duties (especially upheld by the cultural elite), simplicity in life and charity as well as opposition to ‘ursury’ and banks (especially the clergy), and equality. It is only now, after centuries of change, that words like ‘industry’ (which initially meant industriousness), ‘entrepreneurship’ and ‘individualism’ have emerged as ‘good words’, to create an environment conducive to a free market. Charles Dickens’ novel Martin Chuzzlewit nicely captured the mood of the era when industrialisation was struggling to emerge through the feudal society, by portraying the struggle of a typical ‘upstart’ who had to go to America to make a fresh start.

According to Stephen Fry, even today, the typical British comedy mostly parodies the upstart’s ineptness (“celebrate failure”), whereas the typical American comedy glorifies the industrious entrepreneur or smart-aleck (“life is improvable”). When we read comments about the market, we must take care to ‘read’ this subtext too.

Inequality

Ironically, inequality had previously been tolerated and even celebrated, as long as the only inequality was between the elite and the masses – the masses were ‘equal’ in their poverty and the elite were rich by birthright. But after industrialisation, the moment the masses gradually became enriched and a middle class emerged, inequality became a big social issue. When a part of the masses remained poor and another part became better-off, socialism was born. Different segments of the masses quickly became each other’s enemies – thanks to socialism. It was an example of applying the brakes even before the vehicle had started to move in earnest. They were ennobled by socialism’s new words, like ‘fraternity’ and ‘equality’ – which basically meant, ‘Those who are not poor like you are not one of you, and have no right to be rich if you too cannot be rich’.

But while the leaders of socialism may have harboured such beliefs, their proletariat comrades had simpler minds. In his book The Road to Wigan Pier written after World War One, George Orwell, himself a socialist, reflecting on the tensions and contradictions in English society as it grappled with this new-found inequality and ‘class struggle’, wrote:

“To the ordinary working man, the sort you would meet in any pub on Saturday night, Socialism does not mean much more than better wages and shorter hours and nobody bossing you about….[No] genuine working man grasps the deeper implications of Socialism. Often, in my opinion, he is a truer Socialist than the orthodox Marxist, because he does remember what the other so often forgets, that Socialism means justice and common decency….His vision of the Socialist future is a vision of present society with the worst abuses left out, and with interest centring round the same things as at present – family life, the pub, football, and local politics.”

Orwell’s main message was that any effort to ‘improve’ society, by whatever name, that had lost touch with the common man was bound to deteriorate into a fascism. The remainder of the twentieth century proved him right.

Today, Orwell’s England has come through quite nicely in spite of the disintegration of the British Empire soon afterwards, and shows none of the class struggle and poverty Orwell’s and Dickens’ books have recorded. So, should we champion an equality of the poor, or should we patiently work towards a gradually enriching society with a tolerable level of inequality?

Necessary controls

At the same time, it is also advisable to control some forms of exchange in the market. For instance, if a country considers that it is necessary to ensure food security through its own, local cultivation of important crops, it is wise to put in place some safeguards to protect local agriculture from the adverse effects of competition from imported foods, at least for important foods. Even advanced capitalist countries like USA and Japan do this (for wheat and rice, respectively).

Similarly, it would be prudent to protect certain crucial markets, such as the energy sector and ports. It is also important to ensure distribution of crucial goods & services (such as healthcare, basic education, basic housing, basic clothing, basic transport) for all members of society, with a view to protecting the poor who have limited purchasing power. This requires the institution of safety nets and price control. In this age of climate change, resource depletion and environmental degradation, nobody would argue against environmental protection, which naturally requires the imposition of certain restrictions on the free market. Finally, nobody would argue that sectors such as national defence and law & order should be floated in the free market. So markets do need judicious controls and regulation.

More than ‘free’

On the flip side, in some markets there are mechanisms created specifically to encourage a bigger flow of goods & services than what the natural, ‘free’ market would sustain. These include patent laws, laws restricting monopolies, bankruptcy laws, the financial and share market, and so on; some of them may be good, while others are not.

The market is then not merely a place of exchange; it is also a place to make massive profits, where the falling crumbs accumulate to produce huge volumes of ‘wealth’. There are those who would profit exactly from this, while such ‘wealth generation’ or ‘productivity’ brings no intrinsic value to society while needlessly destroying our environment and culture – this can then become the new status quo that these new elite wish to protect.

Conclusion

A free market would promote exchange of goods & services and increase the volume of exchange, and this in turn would increase employment, productivity, taxation and funds for welfare expenditure. Both restricting it and encouraging it, while sometimes necessary, must be done only cautiously. Naturally, therefore, both extremes – and their supportive ideologies – are not good. What we need to have is a ‘middle-way’ market that enables enough economic activity and protects the poor, while protecting the environment for future generations.

So, there is no need to fear the market. What we need to do is understand it, be able to predict its behaviour, and try to modify it so that it creates the benefits we need and avoids harm. The child must grow up, overcome the fear of ghosts and learn to deal with darkness. Disingenuous, sleight-of-hand arguments that promote the darkness are of no use, and their supportive ideologies can only lead to fascism – as the twentieth century amply taught us.

The writer teaches medicine in the University of Colombo (email:

panduka@clinmed.cmb.ac.lk). He acknowledges helpful comments from Professor Sirimal Abeyratne (Professor of Economics, University of Colombo) and Dr G. Usvatte-aratchi.



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Confessions of a global gypsy – Part 20

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A winning streak

By Dr. Chandana (Chandi) Jayawardena DPhil

President – Chandi J. Associates Inc. Consulting, Canada

Founder & Administrator – Global Hospitality Forum

Learning from the Past to Create a Bright Future

Last week, I was pleased to be invited by a newly established International Hotel School (IHS) Guild to talk on the above topic. IHS Guild organized their first webinar of a series on the day I celebrated my 50 years in the field of hospitality – on October 10, 2021. As their keynote speaker, I spoke about the vision, the mission and the passion needed. It was in relation to the how the IHS – the second oldest hotel school in Sri Lanka, was created within Mount Lavinia Hotel 30 years ago. As the hotel industry in Sri Lanka is planning to re-bounce and rebuild after the global pandemic, it is vital for industry leaders to learn from the past in becoming innovative leaders for the future.

Managing an Inn at age twenty

In 1974, my first management position fell on my lap when I was still a 24-year old third-year student at the Ceylon Hotel School (CHS). The company making the offer was very impressed with my experience in eight part-time positions within a short two and half years at CHS. Most of my peers interested in this position had only two or three part-time positions on their resumes. My focus on being ‘street smart’ by action learning at any job I could find rather than being ‘book smart’, finally paid dividends.

This company, with five boutique hotels (in Colombo, Kandy and Nuwara Eliya) – Yahala Group, offered me the post of the Resident Secretary of the Tropical Gardens Club & Inn in the most expensive location in Sri Lanka (Colombo Seven). I accepted the offer immediately. Every afternoon, soon after I finished my classes at CHS, I wore a tie and rushed to the this small 10-bedroom inn with a busy restaurant, bar and a club. Around 4:00 pm every weekday, I took over the keys and the entire operation from Mrs. S. Wijesinghe, the manageress.

I was paid only Rs. 200 a month. However, to the amazement of my batchmates I was provided with à la carte restaurant dining facilities and an air-conditioned room for overnight stay, on complimentary basis. Air-conditioning was a luxury in mid-1970s in Sri Lanka. Around midnight, I managed to do a little bit of studying for the forthcoming final examinations at CHS in my luxurious hotel bedroom, rather than in a crowded dormitory at the CHS hostel.

The manageress was an early bird. Every morning, I handed over the inn back to her and rushed to CHS. During the weekends I worked longer hours. I did not get many opportunities to practice my newly improved culinary skills but enjoyed being in charge of the inn during its busiest time of the day. I was the number two of the inn combined with duties of the duty manager and night manager. The employees respected me after I commenced mini sessions of service training. In my ninth part-time job I learnt how to lead a small team and keep them motivated.

Winning Big at Sports

In spite of my hectic schedule, I found time to continue practising Judo and Rugby Football. I was chosen to the five-member team of Colombo YMCA Judo club. After a hectic five-bout team event, we won the 1974 national Judo Championship in Sri Lanka.

For the third time, as the Tournament Secretary of the Nationalised Services Rugby Football Club I led the organizing of a 16-team seven-a-side tournament. CHS competed once again and won the championship for the first time. We played against strong teams with several top Sri Lanka national team players, such as Dan Ratnam (Captain of the Havelock Sports Club, fondly known as Havies Rugger team). Our hard work at early morning practices at the Galle Face Green and our youthful fitness were the key winning factors in our favour.

I was angered when the team captain and my friend, Neil Maurice nearly dropped me from the team for not attending some of the practice sessions. However, he was particularly pleased with my performance during our final match. After a 60-meter sprint, I scored an early try within minutes of the opening whistle. After we won the trophy, Neil gave me a big hug and said, “Machang, no hard feelings. We won mainly because of that first minute try by you.”

Getting Promoted to Havelock Tourinn

During my third month at Tropical Gardens Club & Inn, the company appointed a Group General Manager in charge of all five boutique hotels. Mr C. Nagendra was a Chartered Accountant returning to Sri Lanka after spending a long time in the UK. He immediately interviewed me and offered me a transfer and promotion. He transferred me to the company’s flagship hotel – Havelock Tourinn on Dickman’s Road, Colombo-4 as one of his two deputies. Mr. Nagendra made my job a full-time job and doubled my salary, to Rs. 400 a month. At that time, that was a very good salary for a 20-year old.

One of my batchmates, Hiran Seneviratne and I were both appointed Assistant Managers. Hiran was a smooth operator and was a friendly roommate at the CHS hostel. Hiran and I shared one office with Mr. Nagendra, who was familiarizing himself with hotel operations. He was a good administrator, but did not have experience in hotel operations. He kept on asking us operational questions and we learnt hotel accounting from him.

I looked after the kitchen, bar and the Flame Room Restaurant then famous for flambé dishes. I had a team of young, smart and English-fluent waiters who came from Colombo schools. I did some training sessions for them. In later years, most of them became good restaurant managers and food and beverage managers of top hotels in Sri Lanka and the Middle East. Hiran looked after the rest of the operations. In my tenth job at times, I also acted for the General Manager.

Graduating

I did well at the final examinations. CHS arranged a grand graduation ceremony at Hotel Samudra with Dr. N. M. Perera, the Minister of Finance, as the chief guest. Although it was a happy moment, I was saddened to leave the hostel and many friends at CHS. We were also getting ready to bid farewell to three of my batchmates who were awarded Carl Duisberg Society scholarships to undergo two years of postgraduate industrial training in West Germany. In addition, my friend, Neil Maurice decided to migrate to Australia soon after the graduation.

Our two junior batches at CHS organized a grand graduation ball event at the Colombo Holiday Inn. They followed the traditions we set during our time at CHS. Our memorable three years at CHS ended on a high note.

Career Planning – The Next Move?

Early hours of that morning, after the graduation ball, I went to my bedroom at Havelock Tourinn instead of my home which was a just a five-minute walk from the hotel. I did not fall asleep as I had a long thought about my next career move. I thought about the ten part-time jobs I held during my student years at CHS, and identified key lessons I learnt by doing or observing in each of those jobs:

1. Hotel Samdura – Following rules to avoid getting fired

2. Pegasus Reef Hotel – Win-win formula for successful buffet products

3. Mount Lavina Hyatt Hotel – Restaurant service and fair dealing with trade unions

4. Barberyn Reef Hotel – Analysing personalities of superiors and customers

5. Windmill Restaurant – Fast food operations

6. Hotel Ceylon InterContinental – Five-star banquet service

7. Lever Brothers – Staff canteen mass food production

8. Bentota Beach Hotel – Bar controls and kitchen operations

9. Tropical Gardens Club & Inn – Club management and staff training

10. Havelock Tourinn – Kitchen, food and beverage and general management.

At age 20, I was working as the Assistant Manager of a reputed hotel in Colombo with free board and lodging, and walking distance to my family home. It was also not far from my club (YMCA Judo Club) and many key venues for social activities in Colombo. This was somewhat a dream job for most young graduates of CHS. I was very comfortable at my current job, but settling in a comfort zone was short-sighted. There were many other key aspects of hotel operations I needed to get practical experience of. Therefore, I concluded that I needed to move.

In my opinion, kitchen operations is a weak aspect of most hotel managers/general managers. As a result, some executive chefs behaved with attitudes which undermined the hotels manager’s authority. At Havelock Tourinn I had three experienced chefs (including Mrs. Marie Nugapitiya who later became a Culinary Lecturer at CHS) reporting to me. I was not experienced enough in kitchen operations to supervise such qualified and experienced chefs who were also much senior to me in age.

I decided that before I became a hotel general manager, I must master kitchen management initially as a junior chef and then after a couple of years, as an executive chef. Although I loved Bentota Beach hotel, it did not have an opening there. Meanwhile, the largest hotel in Sri Lanka – Hotel Lanka Oberoi, in preparation to open in a few months’ time, had advertised many middle management operational job positions. A newspaper advertisement seeking suitably qualified applicants for the posts of chef de partie (station chef) caught my eye. That morning I posted my application to Hotel Lanka Oberoi. That was the first time I applied to a hotel position in writing.

Dr. Chandana (Chandi) Jayawardena

has been an Executive Chef, Food & Beverage Director, Hotel GM, MD, VP, President, Chairman, Professor, Dean, Leadership Coach and Consultant. He has published 21 text books. This weekly column narrates ‘fun’ stories from his 50-year career in South Asia, the Middle East, Europe, South America, the Caribbean and North America, and his travels to 98 countries and assignments in 44 countries.

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CBK had an impulsive streak but was gracious in admitting mistakes

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Personality that was a unique amalgam of pride, humility, grace & inner toughness

From the memoirs of Chandra Wickremasinghe Retired Additional Secretary to the President

With President Chandrika Kumaratunge assuming office, there was once again a flurry of activity in the Presidential Secretariat and in the Ministries, as she was anxious to expeditiously push through various development programmes she had in mind. Although she did not believe in an overly centralized system of Presidential rule, she kept a close tab particularly on the major development projects and programmes of Ministries by having regular review meetings with them.

She was very sincere in her efforts to find an abiding solution to the ethnic problem. Her many overtures to Prabhakaran towards this end, proved futile and abortive as the latter continued playing his little games with her as he had done with her predecessors. With the late Lakshman Kadirgamar, the suave diplomat par excellence, at the helm of the Foreign Ministry, she pursued a highly urbane foreign policy aimed at winning over the neighbouring countries in Asia as well as the major powers in the West, and getting them to align with Sri Lanka in the bitter on-going battle with the LTTE terrorists. These sophisticated approaches in foreign relations enabled Sri Lanka to get the LTTE banned as a terrorist organization in many countries across the globe.

President Kumaratunge possessed a personality which reflected a rather unique amalgam of pride, humility, grace and inner toughness. Kusum Balapatambendi who succeeded Wijedasa as Secretary/President, was basically a clever political firefighter. Being a senior public servant and a smart lawyer to boot, he was able to hold the fort successfully assisting the President in her administrative duties as well as in the many political wrangles she had to settle.

President Kumaratunge had an excellent rapport with the officers who worked for her. There were times when she was needlessly and harshly critical of certain actions of her officials but she was quick to graciously relent when she realized that the concerned officials had acted only in her larger interests. I recall an incident which brings out in good measure the impulsive streak in her personality as well as her magnanimity in graciously admitting her mistakes. Those wielding power, are often inebriated by it and think they are infallible. She was, I must say, an exception in this regard.

It was an interesting little episode where she had dashed off a rather rude minute to me in Sinhala in a file (she had this habit of writing abrasive minutes to officers in Sinhala when she was angry) faulting me for some action I had allegedly not taken. It was a case where I had refrained from taking action as directed by her, for certain very valid reasons which I had pointed out to her in an earlier minute. Without looking at my earlier minute, she had impetuously dashed off this minute of her’s to me; I was naturally very angry, as the office staff too had seen her minute.

I telephoned Sarath Gonagala who had functioned as my Asst. Secy., before I, on my own initiative, sent him to the President to help her maintain her diary of appointments and to ensure that Ambassadors and other VIPs were not kept waiting unduly; (I must say that this attempt of mine proved an unmitigated failure as punctuality and the Lady President continued to remain enemies!) and conveyed to him what she had written on the minute sheet. I also told him that I would be sending a sharp rejoinder on a loose minute sheet which I wanted him to show the President and tear up before sending the file back to me.

Within two days Sarath G telephoned to say the Lady wanted to see me. When I entered her room, she was seated at the desk alone and asked me to take a seat. After a couple of minutes, she looked up and said quietly that she should not have written that minute to me, in reply to which I immediately said ‘of course you shouldn’t have as you had done so without seeing my earlier minute to you on the matter advising against your proposed action, pointing out that it was imprudent to do so as the media would have gone to town on the matter the next day’.

She then asked me “What shall I do?” I was so touched by her show of remorse and the disarming way she readily admitted her mistake that all the anger in me evaporated and I could only request her to send the file back to me. The particular file however, never came back. When I enquired from her about the file much later, she would only smile! I thought of referring to this incident as she was one President you could speak to candidly, on any matter- one to one, without running the grave risk of being misunderstood, with whatever other untoward consequences that may have followed.

Dhammika Amarasinghe and I who continued to function as Additional Secretaries to the President (as Neville Piyadigama had by then left the Presidential Secretariat to take charge of a Ministry), worked very conscientiously for her, with each of us overseeing about six Ministries from the Presidential Secretariat. She was quick and perceptive, sitting with us for long hours, going through our recommendations in detail and making her own additions and subtractions. It was indeed a pleasure working for her as she appreciated the work officers did for her.

The President who was acutely conscious of the need to plan to meet the energy shortages that were likely to occur in the future, was keen on expanding hydro power generation and exploring alternative source of energy like wind and solar power. I headed a delegation comprising senior CEB engineers to study BOT projects etc. in Pakistan and the Philippines in March 1995. One of the recommendation made by the delegation was to obtain the services of Dr. Tariq, the engineer in charge of the Tarbela Dam Project, to advice on the huge leakage of water at the Samanalawewa reservoir. Dr. Tariq visited S.L and made certain recommendations to the govt. which helped in reducing the leakage substantially.

In September 1996 Secretary President and I visited Islamabad to study that country’s success in the implementation of their BOO/BOT projects.

Presidential Committee on the alienation of State Land

Soon after President Kumarathunge assumed office, she appointed me to Chair a Presidential Committee to examine and recommend policies relating to the alienation of State Land. The Committee comprised seven Ministry Secretaries, the Chief Valuer, a representative of the Attorney General etc. When I showed her the names of the Secretaries who were to be members of the Committee, she picked out one name saying she did not want him to be on the Committee as she did not trust him. When I protested and said that the particular Secretary had to be on the Committee as land was a subject that came very much within his purview, she agreed after cautioning me to be careful with any proposals that would be made by him. The recommendations of this Committee were accepted by Govt. and were issued as circular instructions which are, I am happy to note, operative even today, apart from a few amendments made to adjust to changing times and circumstances.

The President’s Fund

President Kumaratunge further appointed me to manage the President’s Fund as Secretary to the Fund. I enjoyed this assignment which I did in addition to my work as Addnl. Secy. to the President. Personally, I found this work most satisfying as I was able to help poor patients suffering particularly from heart and kidney disease with money given from the Fund to undergo cardiac by-pass surgery/kidney transplantation, both in Sri Lanka and abroad. There were many other programmes initiated by President Kumaratunge viz. Presidential Scholarships awarded to promising poor students to pursue higher studies as well as scholarships awarded to public officers to pursue post graduate studies in fields which were considered to be of special relevance to the development needs of the country.

The allocations were generous, and often covered the full cost of by-pass surgery and kidney transplantation and the full cost of the scholarship awards, as the Fund at that stage was well endowed with regular income from the Development Lottery as well as from it’s other investments.

Distinct advantages in working for a President

There are distinct advantages working directly under the President of the country. One privilege I valued very much was that politicians, including Ministers did not interfere with your work and it was also easy to obtain the co-operation of Ministers and officials in the Ministries one oversaw from the President’s office. They were extremely wary in their dealings with you particularly during President Premadasa’s time. But all this came with the heavy responsibility of keeping a tab on anything untoward happening in the Ministries concerned which had to be reported fully to the President along with the detailed explanation given by the Secretary concerned.

President Premadasa in particular, was always watchful of any misdemeanors occurring in Ministries and would follow up on matters till they were rectified. President Kumaratunge did not interfere with the work of Ministers to that extent, but kept herself informed of progress made on development projects etc. at the regular meetings she had with particular Ministries.

When a President realizes that you are a conscientious worker who will work with dedication and integrity, you will be given numerous assignments to study problems and report on them, despite their being subjects falling at times, outside your officially assigned legitimate functions.

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Rice Genetic Improvement Odyssey of Past Centuries

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by M. P. Dhanapala

Former Director, Rice Research and Development Institute, Batalagoda

Email: maddumadhanapala@yahoo.com

History is important. It keeps you away from reinventing the wheel and repeating the mistakes already committed in the past. In history, there should not be hidden expressions to read between lines as “the ten giants of King Dutugamunu were fed with traditional rice,”concealing the details of what the others were eating and why they were not giants or that “we have been exporting rice during the past in such and such era” without disclosing the quantities and the recipient countries. For that matter if you go through the export details, we do export rice even now.

The green revolution was criticized as the contributing factor for the so called unidentified Kidney Disease of Unknown Origin (CKDu) which was reported primarily from the North Central Province. Whatever the causal factor of CKDu is, Norman Borlaug or his green revolution has nothing to do with the kidney disease or rice in Sri Lanka. It is true that his innovative ideology in wheat breeding induced the rice breeders worldwide to develop a physiologically efficient rice plant type by changing the plant stature and canopy characteristics. The Sri Lankan rice varieties were developed within the country, by the Sri Lankan scientists. It was an extension of the breeding process initiated by the British scientists during the colonial era. The progress of rice breeding from its inception by different generations will be unfolded in this write-up to judge the calculated decisions taken by the ancestral breeders to improve rice productivity in the country.

I would like to lay the baseline from a report published by Edward Elliott, a British Civil Servant in 1913. (Tropical Agriculturist, Vol. XLI, No. 6, Dec. 1913). He states that the forced labor (Rajakariya) that existed then was abolished in 1832. Subsequently, the communal cooperation system (Atththam) also ceased to exist gradually. These two incidents were cited as the major reasons for the neglect of irrigation structures and subsequent decline of rice production in the mid 19th Century. The annual rice production estimated for the period of 10 years ending in 1856 was 5.5 million bushels, the lowest in the recorded history.

Enacting the Paddy Ordinance in 1857 allowed voluntary restoration of old irrigation structures which eventually led to the gradual increase in the cultivated extent and the annual rice production. Estimated rice production data during this era and at the turn of the century are summarized in Table 1. The original data were in acres and bushels. The data were transformed into hectares and kilograms and tonnes assuming 20 kg as the bushel weight. The transformed data in Table 1 appear within parentheses.

See table 1.

Annual rice production statistics from the latter half of the 19th and early 20th Century (Elliot, 1913)

The rice production data above are estimates based on returns from paddy, probably grain tax, in the Government Blue Books. You may realize that these estimates are sometimes too high when actual data appear towards 1940s. However, at the turn of the 19th Century, the rice varieties were exclusively traditional types maintained by farmers and the Department of Agriculture was not established.

Many critics maintain that we had innumerable different varieties of rice in the past. The earliest recorded in the history was a collection of 300 rice varieties displayed by Nugawela Dissawe for the agri-horticultural exhibition held in 1902 (Molegoda, 1924) (Trop. Agric. XLII (4): 218-224.). This probably represented almost all the cultivars in the field during this period. This was the largest collection of rice varieties in the recorded history in Ceylon, leaving out the recent collections performed in the latter half of the 20th century. Molegoda explains very comprehensively the status of rice varieties and the procedure followed in naming them.

The rice cultivation at the beginning of 20th century was entirely organic manure dependent. The farmers then were apparently more competent in traditional methods of rice cultivation. The most striking feature during this era was that the average yields were below one ton/ha (<20 bu/ac) even in the best productive year, 1903 (Table 1).

In 1914, an encouraging note on Extension of Paddy Cultivation by A. W. Beven (Trop. Agric. XLIII (6): 421-424.) appears with the suggestion of seed selection to improve rice yields. He states that in the year 1913 the yield estimate of 9,622,320 bushels was too high a target, i.e.14.2 bu/ac (0.71 t/ha), for the cultivated extent of 671,711ac (271,827ha), but suggests that with seed selection accompanied by proper land preparation, manuring and transplanting, the yields could be increased up to 25 bu/ac (1.25t/ha). This suggestion was at the inception of the Department of Agriculture which was established in 1912.

The earliest record on rice varietal improvement dates back to seed selection in 1914 by Dr. Lock at Peradeniya. This was done more or less parallel with the establishment of Johannsen’s pure line theory (1903). In the literature, Dr. Lock’s improved Hatial (a seven month variety) appears from time to time as a standard variety in yield tests.

The next most important step was the pure-line selection. Initially, three Economic Botanists, F. Summers (1921), R.O. Iliffe (1922), L. Lord (1927) and at latter stages Paddy Officer G.V. Wickremasekera were involved in the selection of pure- lines (Trop. Agric. LVIII (2): 67-70; Trop. Agric. LXVIII (5): 309-318). Pure-line selection exploited heterogeneity within the farmer maintained traditional rice cultivars. Each cultivar composed of different types within it. As a result, individual plant selection within cultivars produced progenies with better genetic potential, but resembling the mother plant selected; they bred true to type as rice is an obligate inbreeder. This was the essence of pure-line theory established by Johannsen (1903).

Pure-line selection was initiated with a representative collection of traditional varieties. The most popular varieties were included in the process. Pure-line selection was done at two major locations, Mahailluppallama and Peradeniya. Subsequently, selection was regionalized to accommodate regionally adapted varieties in the process. The best isolated progenies were tested at 19 test locations in different agro-ecological regions for adaptability, prior to recommendation. The best adapted pure-lines (21 lines – Table 2) were identified for purity maintenance at four different paddy stations – Ambalantota (nine lines), Mahailluppallama (eight lines), Madampe (two lines) and Batalagoda (two lines). Further multiplication of seeds was done in government farms under the supervision of Agricultural Officers and distributed as seed paddy for cultivation (Trop. Agric. CIV (2): 97-98.).

See table 2.

Pure-line varieties identified for cultivation (Extract from Amended Departmental Circular No. 156 – Trop. Agric. CIV (2): 97-98.)

While the pure-line selection process was on, Joachim (1927) (Trop. Agric. LXIX 137) warned that the sustenance of increased yields by cultivation of high yielding pure-lines has to be met with liberal manuring. However, despite of all these attempts during the two decades from 1920s, the paddy yields were not substantially increased (Table 3). Rice yield data presented in Table 3 shows lower values compared to yield estimates from Government Blue Books presented in Table 1. The data in Table 3 being more reliable, the Table 1 data could be overestimates.

However, the majority of the harvested rice crop in the 1940s could be from potentially better pure-line selections, but the yields were much below the anticipated levels. The total production was around 15 million bushels (0.3 m tons) and yields stagnated at around 14 bu/ac (0.7 t/ha).

The Draft Scheme for Development of the Paddy Industry in Ceylon drawn in 1945 (Trop. Agric. CI (3) 191-195) begins with the statement that only a third of the annual requirement is met by the local rice production.

The balance was imported; the population was less than seven million during that period and the paddy cultivation was done organically with the best adapted pure-lines of traditional cultivars, though it failed to deliver what was intended.

The importance of inorganic (chemical) fertilizer was felt during this period as the only option to improve paddy yields further. Use of sodium nitrate (Na NO3) as the source of nitrogen (N) was attempted in rice prior to 1905 based on American experience in soybean cultivation, but nitrite (NO2) toxicity under reduced conditions in submerged paddy soils prohibited its use. Superiority of NH4 form of N was demonstrated by Nagaoka (1905) and Daikuhara and Imaseki (1907). However, the application of N promoted vegetative growth in pure-lines derived from traditional rice varieties causing premature lodging. Furthermore, two fungal diseases, blast and brown spot, became prominent. Around this period some introduced varieties were tested without much success. Among them, Ptb 16 from Pathambi, India, popularly called Riyan wee, with long panicles and slender grains (Buriyani rice) became popular, but self sufficiency in rice appeared to be far away.

Transition to another phase in rice breeding began as the rice breeders over the world employed cross-bred populations to create genetic variability to bring together desirable characteristics of different rice cultivars to develop better varieties. Rice hybridization techniques were developed around early 1920s and a major break through in changing the plant-type was accomplished in Japan with the use of Jikkoku, a dwarf natural mutant of Japonica rice. The performance of Japonica varieties exhibited substantial improvement with this transition. Influenced by the Japanese experience, the Food and Agriculture Organization sponsored a cross breeding program of Japonica with Indica rices in Cuttak, India to change the Indica plant type too in this direction, but without success due to incompatibility between the two groups (Japonica and Indica) leading to grain sterility in subsequent generations.

In Sri Lanka, the first paper on rice hybridization techniques was published in 1951 by J.J. Niles, an assistant in Economic Botany, guided by Prof. M. F. Chandraratne, the Economic Botanist (Trop. Agric. CVII (1):25-29.). Prof. Chandraratne was instrumental in initiation of rice hybridization. Simultaneously rice hybridization work began at the Dry Zone Agricultural Research Station at Mahailluppallama under the guidance of Dr. Ernest Abeyratne. The Central Rice Breeding Station, Batalagoda was established in 1952 and Dr. H. Weeraratne was transferred from Mahailluppallama to Batalagoda as the rice breeder with the hybrid populations already developed at Mahailluppallama.

Dr. Weeraratne, influenced by his superiors, Prof. Chandraratne and Dr. Abeyratne, continued rice hybridization to create genetic variability for selection. The hybridization techniques adopted by him were published in 1954 (Trop. Agric. CX (2) 93-97). Apparently, the labor intensive pedigree method was employed by Dr. Weeraratne to identify and fix desirable genotypes from segregating populations. And this was the beginning of the “H” series of varieties that revolutionized the rice sector in Sri Lanka. The letter “H” was used to imply that the varieties were of hybrid origin and were different from traditional varieties or pure-lines, but not to imply that they are hybrids.

Fig. 1,

The Central Rice Breeding Station, Batalagoda, Department of Agriculture

The first of the series, H4 (4.5 month, red bold), released in 1957, reached its peak popularity after a five year lapse of time and covered over 60% of the cultivated extent in Maha season, 62/63. The others in the series were H7 (3.5 month, white bold), H8 (4.5 month, white samba), H9 (5-6 month, white bold), H10 (3 month, red bold). Release of H varieties (1) minimized crop losses due to blast disease, (2) changed rice cropping pattern from single to double cropping, (3) use of N fertilizer increased by 350% due to their moderate response to fertilizer, (4) increased national yield level up to 3.5 t/ha (Senadhira et. al., Rice Symposium, Department of Agriculture, 1980). This effort, though appreciated widely, fell short of self sufficiency again.

The most controversial phase for the critics in rice breeding was initiated in mid 1960s, while “H” varieties were replacing the pure-lines and the traditional varieties from paddy fields. The International Rice Research Institute was established in 1960 and the plant physiologists conceptualized the plant type structure of rice to make it physiologically efficient. The development of “H” varieties (Old Improved Varieties) abruptly ended with these new innovations.

The breeders responsible for developing this new plant type in Sri Lanka, specifically the Bg varieties, were Dr. H. Weeraratne, Dr. N. Vignarajah, Dr. D. Senadhira and Mr. C.A. Sandanayake. None of them are among us any more. I joined the team in the late 1960s, at the tail end of H varieties and continued the process till the country reached the brim of self reliance in rice.

The Bg and other modern varieties are physiologically efficient. They are devoid of unproductive plant tissues and ineffective tillers. The plant structure is designed to reduce mutual shading of leaves and trap solar radiation effectively by every leaf in the canopy thus reducing the respiratory losses and promoting the net assimilation rate. They out yield traditional and H varieties at any level of soil fertility and show positive grain yield response to added fertilizer. They are lodging resistant and incorporated with resistance/tolerance to major pests and diseases prevalent in the country. More preciously, we have reversed the source-sink relationship of the rice plant to translocate photosynthates to produce more grains and less straw. The potential yield of improved varieties exceeds 6t/ha. All these traits listed above have been tested in controlled experiments in the field to confirm the superiority of new improved varieties. We reap around 4.5 tons/ha as our national average yield at present; the country is self sufficient in rice, the dream every political leader had since independence.

This in a nut shell is what the rice breeders have accomplished and for which they were given the title “Kumbandayas” in an article written apparently by a medical professional. The local rice scientists embark only on innovations backed by scientific facts. They do not have to exaggerate or lie. They know little more than those who seek cheap popularity by being critical about the accomplishments of rice scientists. This country needs people dedicated and confined to their respective professions allowing other professionals to play their own role. At any time rice breeders can take the country back to the traditional rice era if you want to begin all over again from the beginning. The traditional accessions are in long-term storage at the Plant Genetic Resource Center (PGRC), Gannoruwa, Department of Agriculture, and can be taken out for multiplication at any time as the seed samples are viable.

Now I repent why we produced rice with more grains and less straw. There appears to be unsatisfied demand for straw. I like to conclude this disclosure with a statement made by Dr. N. M. Perera at the University of Ceylon, Peradeniya in the mid 1960s. “Comrade, I can give you facts and figures, but I am sorry; I am unable to implant a brain in you”.

(The writer holds a Ph D, Genetics and Plant Breeding, North Dakota University, USA, 1990, M Sc., Plant Breeding, Saga University, Japan, 1978 and B sc. Agric. University of Ceylon, Sri-Lanka, 1968. He has served as Research Officer, Rice Breeding (1969 – 1995) Central Rice Breeding Station, Batalagoda, Director, Rice Research and Development Institute, (1996 – 2000), Batalagoda, Affiliate Scientist, International Rice Research Institute (2000 – 2003), Philippines and Technical Advisor, JICA,, Tsukuba International Center, (2004 – 2012), Japan)

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