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The Right Way to do the Eastern Container Project

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by Kumar David

The fracas about the Eastern Container Terminal is mostly if not entirely political; concerns re finance, technology and traffic, in so far as the spat in the public domain is concerned, are not of substance. The scuffle is twofold – domestic nationalist ideology and Lanka’s positioning in geopolitics. In the domestic arena it is all about Indian participation, and the principal protagonist is Sinhala Nationalism. There is subliminal ideological aversion in the Sinhala nationalist mind to things Indian. This is not the place to explore why; whether Raja Raja Cholan, domestic antagonisms, or Tamil Nadu’s 60 million, lie at the root of the antipathy is a topic for another day. My only assertion today is that there is a gut distaste of India in the nationalist psyche. The point is that a pathological driver in the ECT standoff is Indian involvement irrespective of its suitability or otherwise. It lubricates the spleen of monk and laity alike and affects decrees of policy bosses.

The other input which I take as given, is that there is strategic tension in this region between China on one side and the Quad (India-US-Japan-Australia) on the other. Foreign Minister Colambage as reported on the front page of the Island of 28 Jan, when asked whether US, India, Japan and Australia would take a common stand against Sri Lanka on accountability, dismissed the possibility. “Sri Lanka is important to them” he said, while describing them favourably as four pillars of a Quadrangular security alliance. Hmm how will Beijing look at this jelly-fishy flopping? Exploring the good and bad of Chinese Belt & Road billions, versus capitalist liberal-democracy, will take me to far afield today.

There are four options on the table, everything else is simply variation on one of these themes.

 

Option 1:

Implementing the project as a consortium arrangement where Japan and India are the key players. Perhaps Japan will invest/loan $500 million, perhaps the Adani Group (India’s country’s largest port developer and operator) will manage operations, and perhaps an agency of the government of Sri Lanka will take a stake. I will mention variants anon.

 

Option 2:

China takes the leadership role in the project, most likely within the umbrella of the Belt & Road programme. Many variations are possible – Hambantota or Norochcholi style where China finances and builds and Lanka operates and repays debt, or in addition to this operates the project for an agreed number of years, or a third variant is where China lends capital and it is up Lanka to construct, operate, make a profit and repay.

 

Option 3:

This is what hard nationalist have wet dreams about; raise every kopek in the domestic market, have a love fest with the trade unions, borrow within this framework. Essentially, a Lankan conceived, financed, constructed and operated eastern harbour terminal.

 

Option 4:

Do bugger-all; forget about ECT; live without it; which may be where Lanka will end up given the pluripotent cock-up that is now unfolding on all sides.

These options have been discussed ad nauseam in press and TV and readers I think are fed up with saturation coverage. So I will go directly to what should be done. a) The China option – Option 2 should be discarded. I am not anti-China, not but we are already hugely indebted to China and debt repayment schedules to the PRC are hefty (about $2 billion a year for the next four years). We should put no more eggs in that basket. b) Lanka must play the non-alignment game to full advantage; pan-whoring is the way to go. How well Nehru, Nkrumah, Sukarno and SWRD-Mrs B played that game. Beggars must choose wisely and position their begging bowls judiciously. The ECT is the point to switch our tender maidenly virtues to course correction away from Chinese totalitarians to rapacious raiders from the capitalist powers. The forces behind Option 3 are powerful; unions, monks and nationalists who can bring GR, MR and SLPP to their knees. In any case it’s appropriate that domestic funds, whether from entities such as the EPF, the Lankan capitalist class or trade unions take a stake, Why not? And it this may set a model for financing development in a future where we are less broke. c) Option 4 is out of the question unless Lanka is to crawl into a cave.

Hence my position is that the way forward is to blend of Options 1 and 4. Let me go a little further on this road and explore a feasible project model. The site (contingent land and sea) will remain state property. A Project Company will be established by the principal Japanese and Indian partners for the purposes of: raising capital – maybe $700 million, building the terminal facilities, operating the harbour, developing contacts with international shipping lines, generating a profit, servicing debts incurred in project construction and in say 30 years transferring ownership to a government entity at a price discounted at an agreed annual rate (say 2% to 3%). This is quite similar to the BOT (Build, Operate and Transfer) concept that has been very successfully used with power projects all over the world. There will have to be some differences; for example a local partner is desirable because unlike a power project a harbour interacts with thousands of workers every day. Even better would be if the offer made by the trade unions to provide part finance is taken up. Either would need local partners who can raise say $100 million (Rs 20 billion) as co-investment. An additional take on making ownership part domestic would be to list 10% to 20% as shares on the local stock-exchange.

I appreciate that the challenge is more complicated than a BOT power-project where the most complex tasks arise during project construction, thereafter dispatching electricity to the grid under the control and supervision of a centralised network operator are familiar in electricity supply systems. Making a port project operationally successful and profitable will be far more complex and require commercial and pricing ability, good international networking and management of labour. Handing the whole project over to a Japanese-Indian consortium for an annual rental of such and such an amount is straightforward. The developers will raise funds, service debt, operate the facilities and pay easy-picking rental to the state, but the fever of Sinhala nationalism and trade union restlessness make this difficult. I concede that dim witted military types who are in charge of everything under Gotabaya will find that approach comfortable; just sit on an armchair and function as rent collectors. However the lay of the current political landscape may make this lazy approach infeasible. I think the government will have to get off its indolent backside and work out a project plan that includes some complexity since to let the project die is objectionable waste of economic opportunity.

I do not propose to discuss the report of the Presidential Commission of Inquiry handed over last week, except to the extent that it may influence the Eastern Container project. A expose can be found in Colombo Telegraph at: https://www.colombotelegraph.com/index.php/full-text-of-the-leaked-report-war-criminals-murderers-and-fraudsters-exonerated-by-nandasenas-political-victimisation-commission/ The CT story alleges that the report is an attempt to “exonerate, white-wash and acquit without charge perpetrators of the most heinous crimes committed in Sri Lanka in the recent past and in many cases reward murderers, abductors, and money launderers with compensation by the state”. The report unanimously recommends that “indictments against every accused in emblematic cases highlighted by the UN be dismissed, indictments in currently active trials be quashed; that high military officers, sergeants and sailors charged with rape, kidnapping, extortion rackets, abduction and assaulted be acquitted and released”.

This commission from hell was chaired by disgraced retired Supreme Court Judge Upali Abeyratne and included retired Court of Appeal Judge Chandrasiri Jayathilake and former IGP Chandra Fernando. It was a Gota regime whitewash squad reflecting regime thoughts and desires. The release of this stinking report at this moment, the eve of the Geneva UNHRC meeting where a devastating attack on the Lankan Government by the UN High Commissioner pointing to escalation of punitive measures is feared, has detonated a bomb under the regime’s backside. The recommendations are music to the ears of Gota’s military junta and it is impossible for the regime to condemn the report as this would enrage chauvinists and monk-mobs. On the other hand the MR loyal political side is acutely embarrassed. In order to minimise a skewering at Geneva and reprisals from the West will the government assuage Western anger by handing over the Eastern Terminal project to the Japan-India consortium? I expect to see heightened tension in the government between the military (GR) and the political (MR) wings of state power in the coming months.



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What JVP-NPP needs to do to win

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A JVP protest

By Dr. DAYAN JAYATILLEKA

A young academic at the Open University writing on a popular website has recently defined the NPP project as ‘Left populist’, a term which is very familiar to us at least from the writings of Ernesto Laclau and Chantal Mouffe. He also mentions several parallels and precursors internationally.

As one who has been advocating a ‘left populist’ project for years, I am disinclined to nit-pick about whether or not the JVP-NPP fits the bill. At the moment and in its current incarnation, it is indeed the closest we have to a ‘left populist’ project. Its competitor the SJB, which its founder-leader identifies as social democratic, would be as approximate –and as loose– a fit for the labels ‘progressive populist’, ‘moderate populist’ or ‘populist centrist’, as the JVP-NPP is for ‘left populist’. But that’s the deck of cards we have.

The points I seek to make are different, and may be said to boil down to a single theme or problematique.

Distorted Left Populism

My argument is that the JVP-NPP is as distant from ‘left populism’ globally as it was from ‘left revolutionism’ globally in an earlier incarnation. In both avatars, it is unique in its leftism but not in a positive or helpful way for its cause at any given time.

Mine is not intended as a damning indictment of the JVP-NPP. It is intended as a constructive criticism of a rectifiable error, the rectification of which is utterly urgent given the deadly threat posed by the Wickremesinghe administration and its project of dependent dictatorship.

The JVP-NPP has a structural absence that no ‘left populist’ enterprise, especially in Latin America, has ever had. It is an absence that has marked the JVP from its inception and has been carried over into the present NPP project.

It is not an absence unique to the JVP but figures more in Sri Lanka than it has almost anywhere else. I say this because the same ‘absence’ characterised the LTTE as well. In short, that factor or its radical absence has marred the anti-systemic forces of South and North on the island.

The homeland of left populism has been Latin America while its second home has been Southern Europe. With the exception of Greece, it may be said that ‘left populism’ has an Ibero-American or culturally Hispanic character, which some might trace to the ‘romanticism’ of that culture. But such considerations need not detain us here.

‘Left populism’ has had several identifiable sources and points of departure: the former guerrilla movements of the 1960s and 1970s; the non-guerrilla movements of resistance to dictatorships; parties and split-offs from parties of the Marxist left; left-oriented split-offs or the leftwing of broad flexible even centrist populist formations; leftwing experiments from within the militaries etc.

Populism, Pluralism & Unity

Despite this diversity, all experiments of a Left populist character in Latin America and Europe, have had one thing in common: various forms of unity – e.g., united fronts, blocs etc.—of political parties. I would take up far too much space if I were to list them, starting with the Frente Amplio (which means precisely ‘Broad Front’) initiated by the Tupamaros-MLN of Uruguay and containing the Uruguayan Communist party and headed by a military man, General Liber Seregni, in 1970. The Frente Amplio lasted through the decades of the darkest civil-military dictatorship up to the presidential electoral victories of Tabaré Vasquez and Mujica respectively. Another example would be El Salvador’s FMLN, which brought together several Marxist guerrilla movements into a single front under the stern insistence of Fidel Castro.

Though the roots of unity were back in the 1970s, the formula has only been strengthened in the 1990s and 21st century projects of Left populism. There is a theoretical-strategic logic for this. The polarisation of ‘us vs them’, the 99% vs. the 1%, the many not the few—in socioeconomic terms—is of course a hallmark of populism. But pro-NPP academics and ideologues are unaware of or omit its corollary everywhere from Uruguay to Greece and Spain. Namely, that socioeconomic ‘majoritarianism’ is not possible with a single party as agency.

When the JVP and the NPP have the same leader, and the JVP leader was the founder of the NPP, I cannot regard it as a truly autonomous project, but a party project. Left populism globally, from its inception right up to Lula last year, is predicated on the admission of political, not just social plurality, and the fact that socioeconomic, i.e., popular majoritarianism is possible only as a pluri-party united front, platform or bloc.

This recognition of the imperative of unity as necessitating a convergence of political fractions and currents; that unity is impossible as a function of a single political party; that authentic majoritarianism i.e., “us” is possible only if “we” converge and combine as an ensemble of our organic political agencies, is a structural feature of Left Populism.

It is radically absent in the JVP-NPP and has been so from the JVP’s founding in 1965. It was also true of the LTTE.

It is this insistence on political unipolarity (to put it diplomatically) or political monopoly (to put it bluntly) is a genetic defect of the JVP which has been carried over into the NPP project.

I do not say this to contest the leading role and the main role that the JVP has earned in any left populist project. I say it to draw the Gramscian distinction between ‘leadership’ and ‘domination’. Only ‘leadership’ can create consensus and popular consent; domination through monopoly cannot.

The simple truth is that however ‘left populist’ you think you are; no single party can be said to represent the people or even a majority – as distinct from a mere plurality– of the people. Furthermore, the people are not a unitary subject, and therefore cannot have a unitary leadership. This is the importance of Fidel Castro’s insistence to the Latin American Left of a ‘united command’ which brings together the diverse segments of the left by reflecting plurality.

Anyone who knows the history of Syriza and Podemos knows that they are not outcrops of some single party of long-standing but the result of an organic process of convergences of factions.

Had the JVP had a policy of united fronts – within the Southern left and with the Northern left– it would not have been as decisively defeated as it was in its two insurrections, and might have even succeeded in its second attempt. Though it has formed the NPP which has brought some significant success, it is still POLITICALLY sectarian in that it has no political alliances, partnerships, i.e., NO POLITICAL RELATIONSHIPS outside of itself.

I must emphasize that here I am not speaking of a bloc with the SJB, though it is most desirable, to be recommended, and if this were Latin America would definitely be on the agenda of discussion.

Post-Aragalaya Left

Let us speak frankly. The most important phenomenon of recent times (since the victorious end of the war) was the Aragalaya of last year. The JVP, especially its student front the SYU, participated in that massive uprising which dislodged President Gotabaya Rajapaksa, but it played a less decisive role in the Aragalaya than did the FSP and the IUSF which is close to it. This is by no means to say that the FSP led the Aragalaya, but to point out that it played a more decisive role – which included some mistakes– than did the JVP.

How then does one remain blind to the fact that the JVP-NPP’s ‘left populism’ does not include the FSP and by extension the IUSF? How can there be a ‘popular bloc’ – a key element of left populism—without the IUSF?

Given that Pubudu Jayagoda, Duminda Nagamuwa, Lahiru Weerasekara and Wasantha Mudalige are among the most successful public communicators today (especially on the left), what kind of ‘left’ is a ‘left populism’ devoid of their presence, participation and contribution?

What does it take to recognise that unity of some sort of these two streams of the Left could result in a most useful division of labour and a quantum leap in the hopes and morale of the increasingly left-oriented post-Aragalaya populace, especially the youth?

Surely the very sight of a platform with the leaders of the JVP-NPP and the FSP-IUSF (AKD and Kumar Gunaratnam, Eranga Gunasekara and Wasantha Mudalige, Wasantha Samarasinghe and Duminda Nagamuwa, Bimal Ratnayake and Pubudu Jayagoda) will take the Left populist project to the next level?

As a party the JVP from its birth, and by extension, the NPP today, have set aside one of the main weapons of leftist theory, strategy and political practice: the United Front. Lenin, Trotsky, Stalin, Dimitrov, Gramsci, Togliatti, Ho Chi Minh, Mao Zedong and Fidel Castro have founded and enriched this strategic concept.

It is difficult to accept that Rohana Wijeweera and Anura Kumara Dissanayake knew/know better than these giants, and that the JVP-NPP can dispense with this political sword and shield and yet prevail–or even survive the coming storm.

The JVP must present a LEFT option in the leadership of which is the major shareholder; not merely a JVP option or para-JVP option, which is what the NPP is. A credible, viable Left alternative cannot be reduced to a single party and its front/auxiliary; it cannot but be a United Left – a Left Front– alternative.

***********************

[Dr Dayan Jayatilleka is author of The Great Gramsci: Imagining an Alt-Left Project, in ‘On Public Imagination: A Political & Ethical Imperative’ eds Richard Falk et al, Routledge, New York, 2019.]

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Obtaining fresh mandate unavoidable requirement

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Protesters demanding local goverment elections

by Jehan Perera

The government’s plans for reviving the economy show signs of working out for the time being. The long-awaited IMF loan is about to be granted. This would enable the government to access other loans to tide over the current economic difficulties. The challenge will be to ensure that both the old loans and new ones will be repayable. To this end the government has begun to implement its new tax policy which increases the tax burden significantly on income earners who can barely make ends meet, even without the taxes, in the aftermath of the rise in price levels. The government is also giving signals that it plans to downsize the government bureaucracy and loss-making state enterprises. These are reforms that may be necessary to balance the budget, but they are not likely to gain the government the favour of the affected people. The World Bank has warned that many are at risk of falling back into poverty, with 40 percent of the population living on less than 225 rupees per person per day.

The problem for the government is that the economic policies, required to stabilize the economy, are not popular ones. They are also politically difficult ones. The failure to analyse the past does not help us to ascertain reasons for our failures and also avoids taking action against those who had misused, or damaged, the system unfairly. The costs of this economic restructuring, to make the country financially viable, is falling heavily, if not disproportionately, on those who are middle class and below. Fixed income earners are particularly affected as they bear a double burden in being taxed at higher levels, at a time when the cost of living has soared. Unlike those in the business sector, and independent professionals, who can pass on cost increases to their clients, those in fixed incomes find it impossible to make ends meet. Emigration statistics show that over 1.2 million people, or five percent of the population, left the country, for foreign employment, last year.

The economic hardships, experienced by the people, has led to the mobilization of traditional trade unions and professionals’ organisations. They are all up in arms against the government’s income generation, at their expense. Last week’s strike, described as a token strike, was successful in that it evoked a conciliatory response from the government. Many workers did not keep away from work, perhaps due to the apprehension that they might not only lose their jobs, but also their properties, as threatened by one government member, who is close to the President. There was a precedent for this in 1981 when the government warned striking workers that they would be sacked. The government carried out its threat and over 40,000 government officials lost their jobs. They and their families were condemned to a long time in penury. The rest of society went along with the repression as the government was one with an overwhelming mandate from the people.

TEMPORARY RESPITE

The striking unions have explained their decision to temporarily discontinue their strike action due to President Ranil Wickremesinghe’s willingness to reconsider their economic grievances. More than 40 trade unions, in several sectors, joined the strike. They explained they had been compelled to resort to strike action as there was no positive response from the government to their demands. Due to the strike, services such as health, posts, and railways were affected. Workers in other sectors, including education, port, power, water supply, petroleum, road development, and banking services, also joined the strike. The striking unions have said they would take up the President’s offer to discuss their concerns with the government and temporarily called a halt to their strike action. This would give the government an opportunity to rethink its strategy. Unlike the government in 1981 this one has no popular mandate. In the aftermath of the protest movement, it has only a legal mandate.

So far, the government has been unyielding in the face of public discontent. Public protests have been suppressed. Protest leaders have been arrested and price and tax hikes have gone ahead as planned. The government has been justifying the rigid positions it has been taking on the basis of its prioritization of economic recovery for which both political stability and financial resources are necessary. However, by refusing to heed public opinion the government has been putting itself on a course of confrontation with organized forces, be they trade unions or political parties. The severity of the economic burden, placed on the larger section of society, even as other sectors of society appear to be relatively unaffected, creates a perception of injustice that needs to be mitigated. Engaging in discussion with the trade unions and reconsidering its approach to those who have been involved in public protests could be peace making gestures in the current situation.

On the other hand, exacerbating the political crisis is the government’s continuing refusal to hold the local government elections, as scheduled, on two occasions now by the Elections Commission and demanded by law. The government’s stance is even in contradiction to the Supreme Court’s directives that the government should release the financial resources necessary for the purpose leading to an ever-widening opposition to it. The government’s determination to thwart the local government elections stems from its pragmatic concerns regarding its ability to fare well at them. Public opinion polls show the government parties obtaining much lower support than the opposition parties. Except for the President, the rest of the government consists of the same political parties and government members that faced the wrath of the people’s movement a year ago and had to resign in ignominy.

PRESIDENT’S OPTIONS

The government’s response to the pressures it is under has been to repress the protest movement through police action that is especially intolerant of street protests. It has also put pressure on state institutions to conform to its will, regardless of the law. The decisions of the Election Commission to set dates for the local government elections have been disregarded once, and the elections now appear to have to be postponed yet again. The government is also defying summons upon its ministers by the Human Rights Commission which has been acting independently to hold the government to account to the best extent it can. The government’s refusal to abide by the judicial decision not to block financial resources for election purposes is a blow to the rule of law that will be to the longer-term detriment of the country. These are all negative trends that are recipes for future strife and lawlessness. These would have long term and unexpected implications not to the best for the development of the country or its values.

There are indications that President Wickremesinghe is cognizant of the precariousness of the situation. The accumulation of pressures needs to be avoided, be it for gas at homes or issues in the country. As an experienced political leader, student of international politics, he would be aware of the dangers posed by precipitating a clash involving the three branches of government. A confrontation with the judiciary, or a negation of its decisions, would erode the confidence in the entire legal system. It would damage the confidence of investors and the international community alike in the stability of the polity and its commitment to the rule of law. The public exhortations of the US ambassador with regard to the need to conduct the local government elections would have driven this point home.

It is also likely that the US position on the importance of holding elections on time is also held by the other Western countries and Japan. Sri Lanka is dependent on these countries, still the wealthiest in the world, for its economic sustenance, trade and aid, in the form of concessional financing and benefits, such as the GSP Plus tariff concession. Therefore, the pressures coming from both the ground level in the country and the international community, may push the government in the direction of elections and seeking a mandate from the people. Strengthening the legitimacy of the government to govern effectively and engage in problem solving in the national interest requires an electoral mandate. The mandate sought may not be at the local government level, where public opinion polls show the government at its weakest, but at the national level which the President can exercise at his discretion.

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Sing-along… Down Memory Lane

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Sing-alongs have turned out to be hugely popular, in the local showbiz scene, and, I would say, it’s mainly because they are family events, and also the opportunity given to guests to shine, in the vocal spotlight, for a minute, or two!

I first experienced a sing-along when I was invited to check out the famous Rhythm World Dance School sing-along evening.

It was, indeed, something different, with Sohan & The X-Periments doing the needful, and, today, Sohan and his outfit are considered the No.1 band for sing-along events.

Melantha Perera: President of Moratuwa Arts Forum

I’m told that the first ever sing-along concert, in Sri Lanka, was held on 27th April, 1997, and it was called Down Memory Lane (DML), presented by the Moratuwa Arts Forum (MAF),

The year 2023 is a landmark year for the MAF and, I’m informed, they will be celebrating their Silver Jubilee with a memorable concert, on 29th April, 2023, at the Grand Bolgoda Resort, Moratuwa.

Due to the Covid pandemic, their sing-along series had to be cancelled, as well as their planned concert for 2019. However, the organisers say the delayed 25th Jubilee Celebration concert is poised to be a thriller, scheduled to be held on 29th April, 2023.

During the past 25 years, 18 DML concerts had been held, and the 25th Jubilee Celebration concert will be the 19th in the series.

Famous, and much-loved, ‘golden oldies’, will be sung by the audience of music lovers, at this two and a half hours programme.

Down Memory Lane was the brainchild of musician Priya Peiris, (of ‘Cock-a-Doodle-Do’ fame) and the MAF became the pioneers of sing-along concerts in Sri Lanka.

The repertoire of songs for the 25th Jubilee Celebration concert will include a vast selection of international favourites, Cowboy and old American Plantation hits, Calypsos, Negro Spirituals, everybody’s favourites, from the ’60s and ’70s era, Sinhala evergreens, etc.

Down Memory Lane

 

Fun time for the audience Down Memory Lane

Singers from the Moratuwa Arts Forum will be on stage to urge the audience to sing. The band Echo Steel will provide the musical accompaniment for the audience to join in the singing, supported by Brian Coorey, the left handed electric bass guitarist, and Ramany Soysa on grand piano.

The organisers say that every participant will get a free songbook. There would also be a raffle draw, with several prizes to be won,

Arun Dias Bandaranaike will be the master of ceremonies.

President of the Moratuwa Arts Forum, Melantha Perera, back from Australia, after a successful tour, says: “All music lovers, especially Golden Oldies enthusiasts, are cordially invited to come with their families, and friends, to have an enjoyable evening, and to experience heartwarming fellowship and bonhomie.”

Further details could be obtained from MAF Treasurer, Laksiri Fernando (077 376 22 75).

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