Features
The United States and social democracy
by Kumar David
The Scandinavian countries are held up as models of social democracy. The distribution of wealth and after-tax income is more egalitarian than elsewhere, freedom of expression, the press and religious rights are not restricted, the people choose their governments at free and fair elections and there is uninhibited licence in sex related frolics. Conversely, purist-leftists point out that the “economic system” throughout Scandinavia is capitalist; big enterprises and the commanding heights of industry and commerce are the property of a shy bourgeoisie. Production, reproduction and appropriation of surplus value conform to textbook definitions of capitalism. Both sides of have their point, but Scandinavia is not my topic today, it is the United States not so much for its intrinsic interest but because change there will inevitably spark global trends.
My friends Marjorie and Geoffrey in Orange County, California, are to all appearances fit, able and charming people. They down their beers, puff on their cigarettes, go for walks, drive two nice big SUVs and run a small business. But they collect social disability cheques of $600 a month each for some invisible frailty and their case is typical of maybe millions of others. Likewise the current labour shortage in the US is in part a constructed malaise. Small businesses cannot attract employees. People find it better to stay at home and collect unemployment benefits while others will only accept part-time jobs. You can get more by filing for part-time unemployment benefits and getting paid for half-day’s work. Small businesses say the problem is acute.
The shopping carts at Walmart, Cusco, Vons and such supermarkets are full to the brim and queues at checkout counters are long and slow. Some of this is thanks to huge Covid-relief monies pumped into personal bank accounts in recent months and therefore atypical. But obesity has been bursting at the seams for three decades. The point is that there is trickle down of material wealth to low-income classes in the US. This of course is not socialism but it keeps the wolf of revolution at bay. Still it’s an odd version of capitalism if you go by the classics. Sure, brash billionaires, coarse captains of giant technology companies and cigar chomping industrialists garner big profits and avoid tax using Pandora’s Box havens. America being what it is, matters soft and genteel in Scandinavia are loud and brash. It would be absurd to say that the same degree of income equity prevails in the US as in Scandinavia. Still the material lives of the four lowest (lower 80%) of the American income quintiles is not pitiable and not too far from Scandinavian averages.
Data for three countries a few years ago (comparative ratios have hardly changed):
In the Pie-chart of US GNP one might for simplicity imagine that federal and state government expenditure (16.6%) is spent mostly on the people (Medicare, social services, education and unemployment benefits) while conversely the 17.7% private domestic investment belongs to the rich (stock-market, new enterprises, grand houses). The big slice (68.5%) is consumption. One can conjecture (a bit risky but let me take the risk) that half of this is spent by the lower two-thirds of society and the other half by the top one-third. How much grand-crux wines can the rich consume and how many first-class air-tickets relish? Unless my guesswork is way out of order this means that 51% (16.6 + half of 68.5) is consumed by the lower two-thirds of society. What I am saying is that despite income inequality, the redistributive outcome of taxation and government support (above all health care) defuses pressure. [To pre-empt nit-pickers I need to admit that sales tax is carried mainly by the yako-classes and income tax is part paid by middle and lower-middle classes. Furthermore, government expenditure includes the likes of defence which hardly benefits the daily life of ordinary people].
Pie-chart
Bar-chart 1 shows household income spread. This is not Scandinavian social democracy but neither is it grotesque inequality which will incite the masses to pour out on the streets pitchfork in hand. American capitalism keeps yakos in line by dishing out a share of the pie while ours do it by intoning hela jathika abimane.
Bar-chart 1
This is not to deny that the filthy rich are getting richer at everyone else’s expense – I have no quarrel with Thomas Piketty. Bar chart 2 shows that the top-5% of income “earners” have hogged the largest part of the gains in the last three decades. Nevertheless this has to be taken in the context of a general upward swing of median US household income in the last half-century, see Graph. This is partly because the global hegemony of the US dollar, abominations like the Vietnam War and stooge Latin American dictators for much of the Twentieth Century. All this allowed imperialist and neo-liberal transfer of value created elsewhere in the world to the US. Nevertheless being rich does contribute to social complacency and cools the ardour of the poorer classes.
Bar-chart 2
I have inflicted quite enough statistical injury and economic boredom on you for one Sunday. I move on by asserting that American democracy, battered though it has been in recent years by the far-right and by Trump’s antics, is durable. The power of the anti-vaccination lobby, though cerebrally retarded in the eyes of outsiders is grassroots, albeit cretin, populism in the terrain of America’s anything-goes democracy. Another example is that Black Rights Matter mobilisation in response to racist police brutality, actually consists of a majority of white marchers. The jealous independence of the judiciary is legendary. Determination to exert constitutional rights, despite grotesque displays like the freedom to run amok with guns, the right to infect others with Covid and such manifestations thought crazy elsewhere, are muscular exertions of spirited populism which would have had regimes reach for the machine gun in third world countries. For better for worse American populism is loud, brash and vibrant; it is not staid Scandinavia.
Graph
Lest you imagine I am composing a panegyric I must recount the grotesque underside of America, the hundreds of thousands of homeless street sleepers. Los Angeles has over 25,000 and New York even more; every big city has hundreds, some thousands. It is something you will not see in any European city or China, Korea or Hong Kong – perhaps a few psychologically disturbed people but not on a mass scale. Those who know Bombay or Calcutta are familiar with what I am saying on a much larger scale. But America is super rich so why you will ask aren’t a few thousand housing blocks being constructed, why is the state not funding a social welfare department? Honestly, I don’t know the answer. And the huge prison population – that’s a sign of social sickness.
I also have a grouse which is personal. The spread of political correctness in priggish sections of society and in main-stream media is tiresome. I suggest that red-blooded persons ignore it and speak and act like normal humans. Some persons we are reminded are lesbian, homo, bi, auto or omnisexual, but what’s the need to insert sympathetic references to this at every turn of dialogue? Don’t retch but the latest 007 has become a pansy. And if you want to give the American accent a slip, welcome to the club.
But come on, this is all trivial stuff.
The unschooled and the intellectually handicapped imagine that socialism is only about rescuing the poor from material hardship, to hell with political and democratic rights. This twist gained currency because the great revolutions of the Twentieth Century were in dirt poor countries and the revolutionary state was compelled to prioritise “bread, land and peace” and to repel foreign aggressors. Fair enough, but states so conceived unavoidably turned out to be caricatures of socialism – say the USSR, China and Cuba. True they fed the masses but that’s only half the game, and indeed some capitalist ones have done well too – Japan, South Korea, Singapore and the Chinese province of Taiwan. You don’t need to consult the classics to be familiar with the axiom that socialism asserts it is a higher form of civilisation. Readers I am sure are familiar with “The freedom of each ensures the freedom of all”; “Necessity is blind until it becomes conscious”; “The human being is in the most literal sense a political animal”, and such aphorisms. Socialism sans democracy is an oxymoron.
You will appreciate where I am going. Socialism is not about bread alone but also about cognizance and liberty. But first I have more to say about bread in the United States. The Biden Administration, driven by the left-wing of the Democratic Party, is pushing the$3.5 trillion Build Back Better Act spending plan. Add to this the $1 trillion infrastructure bill already approved and it becomes a humongous $4.5 trillion programme. To give you an idea, of scale, the US spent $13 billion (about $ 160 billion in today’s money) on the Marshal Plan, an economic recovery programmes for Western Europe after World War II. The proposals American progressives are pushing is an order of magnitude larger in substance and in trickle down money. Republicans, big business and about 1,500 paid Congressional lobbyists are fighting it tooth and nail.
My conclusion is straightforward. It is easier for the United Sates to move towards socialism than for any other country including China. Regimes with a bogus ‘Democratic Socialist’ tag on their brand name are a hoax. America and China are the only countries which can serve as global prototypes. But since it is a truism that Socialism can only flourish on a world scale that means, right now, it’s Hobson’s choice. I am no starry-eyed dreamer unaware of the pernicious extension of the by no means forever bygone Cold War, nor the menace of another conceivable Hot War. The world is replete with dangerous neo-fascists; Trump has plenty of company. My purpose in this essay, nevertheless, is to remind readers of dimensions of this story other than the trite. I am confident that democracy will not die in the US short of civil war. It’s impossible to reverse history against mighty odds and proto-fascism will be destroyed in such a civil war. Hence, I have no option but to differ from my carousing buddy Vijaya Chandrasoma – “How Democracies Die”, Sunday Island 17 October – about the impending death of democracy in America. VC is familiar with Mark Twain’s quip re exaggerated announcements of his demise.
A supermoon has lit up the sky across the world coinciding with a rare partial lunar eclipse.
The Moon could be seen to appear brighter and bigger on Tuesday night.
Supermoons happen when the Moon is at its closest point to Earth in its orbit.
A rare partial lunar eclipse – when the Earth’s shadow covers part of the Moon – also happened with about 4% of the Moon’s disc covered in darkness.
Over night from Tuesday into Wednesday, the partial lunar eclipse was visible across the globe – with some of the clearest sightings in the UK and the US.
In the UK it occurred between 01:40 BST and 05:47, reaching its peak at 03:44.
For those in the US, the eclipse is visible between 20:41 EST and 00:47 – or 22:44 at its maximum.
The eclipse was also visible in Latin America, Europe and Africa, as well as small parts of Asia and the Middle East .
This month’s full moon – known as the Harvest moon – is the second of four “supermoons” this year.
The next partial eclipse will be in August 2026, which will be special as around 96% of the Moon will be in shadow.
[BBC]
Ranil’s Theravada Alignment:
The Ranil’s manifesto claims that Sri Lanka became the “granary of the East” by adhering to Theravada economic policies, yet it does not explicitly define these policies. Instead, it contradicts this assertion by pointing out that Vietnam, a Mahayana Buddhist nation, followed Thailand’s lead. Despite Thailand’s traditional association with Theravada Buddhism, it adopted policies that resemble those of Mahayana-influenced countries like Japan. These policies, particularly in the tourism sector, introduced revolutionary changes that seem contrary to Theravada principles, further complicating the argument.
He also emphasized the relevance of Theravada Buddhism in addressing the challenges of a rapidly evolving world, driven by science and technology. Speaking virtually at the State Vesak Ceremony at Dharmaraja Piriven Viharaya, in Matale, on the 23 May 2024, he highlighted the need to preserve the core values of Theravada Buddhism and share its wisdom globally.
Buddhism, beyond its spiritual teachings, has deeply influenced socio-economic life across Asia. Theravada and Mahayana, the two main branches of Buddhism, offer contrasting views not only on religious practice but also on economic principles. Both schools emphasize ethical behaviour, compassion, and non-attachment to material possessions. However, their divergent philosophical outlooks lead to varying interpretations of economic activity, wealth accumulation, and societal roles.
Foundations of Economic Thought in Buddhism
The core teachings of Buddhism focus on the Middle Path, a balance between indulgence and asceticism, with the ultimate goal of reducing suffering (dukkha). These teachings shape both Theravada and Mahayana views on wealth and economics. Central to this framework is the Buddhist view of interdependence and the moral consequences of actions (karma). Economic activities, according to Buddhism, should align with ethical principles that promote collective well-being rather than personal greed.
Ranil cites the Samaññaphala Sutta to assert that in Theravada tradition, loans should be used for investments, not consumption. However, I could not find such a claim in the Samaññaphala Sutta (Fruits of the Contemplative Life, translated by Thanissaro Bhikkhu). Instead, according to the Singalovada Sutta, the Buddha taught that one should allocate only a quarter of their income for consumption, reinvest half of it to accumulate wealth, and reserve the remaining quarter for charity. Moreover, the Buddha emphasized, irrespective of Theravada or Mahayana, that failing to repay debts is a characteristic of an outcast (Wasalaya). This suggests that loans should be used for generating income to ensure repayment, rather than for daily consumption.
Theravada Economic Concepts
Theravada Buddhism, often regarded as more conservative and focused on individual liberation, emphasises personal responsibility in the accumulation and use of wealth. It is dominant in countries like Sri Lanka, Thailand, Myanmar, and Cambodia, where economic behaviours often reflect the ethical values promoted by the teachings.
However, Ranil claims that Theravada economic policies are more export-oriented, but in reality, countries following Mahayana principles have been more successful in establishing export-driven economies. These Mahayana-influenced nations, such as Japan and China, have achieved greater success in building robust export-oriented systems compared to traditionally Theravada countries.
In Theravada Buddhism, the goal of life is personal enlightenment (Nirvana), and material wealth is seen as a potential obstacle if it leads to attachment. While wealth is not condemned, its mindful use is emphasized. Individuals are encouraged to follow “right livelihood,” engaging in ethical professions that do not harm others. Wealth is valued when used for virtuous purposes, such as supporting family, charity, and religious institutions. Generosity (Dana) is a key practice, believed to purify the mind and aid spiritual growth. Theravada also promotes social stability through wealth distribution, with the laity supporting the monastic community in exchange for spiritual guidance, fostering economic interdependence without excess materialism.
Mahayana Economic Concepts
Mahayana Buddhism, prominent in East Asia (China, Japan, Korea, Vietnam), offers a broader, more inclusive approach to spiritual practice. It emphasizes the Bodhisattva ideal, where individuals work not only for their own enlightenment but also for the liberation of all beings. This collective focus shapes economic views, promoting wealth as a tool for social responsibility and reducing suffering on a societal level. Wealth is seen positively if used altruistically, encouraging large-scale philanthropy, social welfare, and efforts to address inequality. Unlike Theravada’s focus on personal morality, Mahayana stresses compassionate action (karuna) and societal transformation to tackle the root causes of poverty and inequality.
Wealth, Ethics, and Capitalism
In both Theravada and Mahayana, wealth is viewed through an ethical lens, but with distinct approaches. Mahayana, with its broader focus on social responsibility, aligns more easily with modern economic systems like capitalism, viewing wealth creation as an opportunity for the greater good if guided by ethical principles. Theravada, on the other hand, takes a more cautious stance, promoting a simpler lifestyle and warning against excessive material accumulation. In Theravada societies, the monastic community (Sangha) provides a moral check on economic inequality. Mahayana’s emphasis on compassion has also led to socially conscious enterprises in East Asia, prioritizing sustainability, fair labour, and ethical products, reflecting the Bodhisattva ideal of using wealth for humanitarian purposes.
Ranil claims that Theravada economic policies are more export-oriented, but in reality, countries following Mahayana principles have been more successful in establishing export-driven economies. These Mahayana-influenced nations, such as Japan and China, have achieved greater success in building robust export-oriented systems compared to traditionally Theravada countries.
Sri Lanka, as a predominantly Theravada Buddhist country, has a long history of intertwining its religious principles with governance and economic policies. However, a critical examination reveals that the country’s modern economic policies, shaped by globalization and capitalism, increasingly diverge from traditional Theravada Buddhist concepts. While Sri Lankan society continues to emphasize Buddhist values in various aspects of life, its capitalistic economic structure suggests a closer alignment with the broader, more flexible economic interpretations found in Mahayana Buddhism.
Sri Lanka’s Capitalistic Economic Policies
Post-independence Sri Lanka has seen significant shifts in its economic policy, particularly following the liberalization of the economy in 1977. These changes introduced free-market principles, deregulation, and foreign direct investment, which moved the country toward a capitalist economic model. The focus shifted from self-sufficiency and state-controlled economic activities to embracing global trade, privatization, and open markets.
The rise of private enterprise, multinational corporations, and consumer culture indicates a move away from the traditional Theravada ethos of simplicity and non-attachment. In this context, the rapid urbanization, expansion of tourism, and increasing wealth inequality seem more aligned with capitalist values, where material success and profit maximization are prioritized over ethical considerations of wealth distribution
Closer Alignment to Mahayana Economic Principles
Sri Lanka’s capitalist policies reflect this Mahayana-like flexibility. Wealth accumulation, entrepreneurship, and international trade are embraced, but with a growing focus on corporate social responsibility (CSR) and philanthropy. Large corporations and wealthy individuals are often seen contributing to charitable causes, building schools, hospitals, and donating to religious institutions. These actions mirror the Mahayana ideal of using wealth for the greater good, though not necessarily limiting personal accumulation.
He claims that many countries have succeeded by promoting private enterprises and that his Theravada economic system will be a much broader version of this. However, he does not clearly explain how this broader approach—typically associated with Mahayana tradition—aligns with Theravada principles. In fact, most of the economic concepts he references stem from Mahayana traditions. By invoking the term “Theravada,” he seems to be appealing to the Sri Lankan Buddhist community, assuming that people will be swayed by this rhetoric, much like they were with the Kelani River cobra myth and Safi’s allegations, which were sensationalized by certain media outlets.
Consumerism and Buddhist Values
Sri Lanka’s burgeoning consumer culture further highlights the tension between traditional Theravada values and the realities of a capitalist economy. The rise of consumerism, especially in urban centres, encourages material accumulation and status competition, which is antithetical to the Theravada emphasis on contentment and non-attachment. Advertising and media increasingly promote luxury goods and services, feeding a cycle of desire and consumption that stands in contrast to the Middle Path.
This mirrors trends seen in Mahayana Buddhist countries like Japan and China, where consumerism exists alongside Buddhist practice. In these countries, Buddhism has adapted to modern economic realities by focusing on charitable giving and social responsibility rather than strict asceticism.
Social Welfare and Wealth Redistribution
Sri Lanka’s current economic policies diverge from traditional Theravada Buddhism, which emphasizes wealth distribution through support for the Sangha and charitable acts. Instead, Sri Lanka has experienced growing inequality, with urban elites benefiting more from economic growth while rural and marginalized communities remain impoverished. In contrast, Mahayana Buddhism’s Bodhisattva ideal aligns with the state’s sporadic welfare programmes and redistributive policies, such as free education and healthcare. However, these programmes are often hindered by inefficiencies, corruption, and a capitalist system that prioritizes profit over equitable growth.
Conclusion
Ranil’s emphasis on aligning his policies with Theravada tradition appears to be more of a marketing gimmick or salesman’s puff—an overstated claim intended to persuade the predominantly Theravada Buddhist community, which believes that Theravada concepts are original Buddhism. This community has lost faith in his commitment to protecting Buddhism as required by the Constitution. By invoking Theravada values, he likely aims to regain their trust, despite the exaggeration or lack of doctrinal grounding in his statements.
by Lasanda Kurukulasuriya
National People’s Power presidential candidate Anura Kumara Dissanayake (AKD), on Sirasa TV’s Satana programme on Saturday (14) elaborated on aspects of the party’s policy statements that have been the subject of some controversy. Grilled by a panel of four journalists, he revealed details of some of the JVP-led alliance’s policies, and appeared to have somewhat revised others. On the subject of India’s stranglehold on Sri Lanka’s Power and Energy sector through agreements already entered into by government, AKD categorically declared that the Adani group’s controversial wind power projects in the North would be cancelled (Anivaarayenma meka cancel karanawa). This is an interesting development, considering that just seven months ago, in an interview on their return from a visit to India, the party suggested that India should have first call on tenders for major projects. In that interview with Sirasa, the JVP leader once known for an anti-Indian stance argued in a surprising turnaround, that projects would have to be ‘within NPP’s national policy framework’ but “within that, we should go for an agreement with India.” (The Island 15.04.24 – Is the JVP signalling left and turning right?)
In past months the NPP appears to have finetuned its campaign promises on how it proposes to fix a rotten political culture, by balancing an element continuity in policy with changes that would address needs of people hard-hit by the economic crisis. Among the key takeaways from the promised reforms under his presidency if elected, were, to put an end to political appointments, banish political protection of criminals, and remove Value Added Tax (VAT) from food as well as education and health related items. On the IMF agreement, he said their policy was not to exit it, but go forward with discussions on other ways of achieving its targets. There was no point in reaching targets on inflation, increased revenue, ratio of debt to GDP, etc., if the social impact was such that people suffered for lack of basic needs, he argued.
Energy sovereignty
Responding to a journalist’s question on how he proposed to address the threat to energy sovereignty posed by deals entered into with India’s Adani group, the JVP/NPP leader went into some detail on the dubious nature of the agreement. Power generated by Adani’s (500MW) wind power plants in Mannar and Pooneryn would be sold to Sri Lanka for 8.2 US cents per unit (kilo watt hour), while a bid from a local producer for a much smaller 50MW wind power plant in the same vicinity, around the same time, had offered a rate of 4.2 US cents per unit. There is something wrong here and we will definitely cancel this agreement, he said. Going further, he referred to the incongruity of India’s suggestion that Sri Lanka would be able to sell any surplus power that is generated, to India. (This was suggested by Indian National Security Advisor Ajit Doval in talks with officials during his recent visit to Sri Lanka.) AKD claimed that India (while selling power to Sri Lanka at 8.2 US cents per unit) planned to buy any surplus of that same power, from Sri Lanka, at just 3.8 US cents per unit! Reference was also made to Bangladesh, whose new interim government is questioning the terms under which an Adani owned company in India is selling power to Bangladesh.
Dissanayake said that Indian companies would want an explanation from their government as to why Adani was given preference for the Mannar wind power project. However, he did not refer to Sri Lankan companies’ questioning of government on unsolicited proposals and bidding processes. This is at a time when local renewable energy producers are up in arms over step-motherly treatment. He said power generation could be opened up to the private sector, but that transmission and distribution should be controlled by the state. While the recently passed controversial Electricity (Amendment) Act was not specifically mentioned, it would seem that it would need to be repealed or amended under such a policy.
AKD also commented on the Trincomalee Oil Tank Farm, in response to a question relating to ‘something signed by the President,’ on it. (‘Further development of the Oil Tank Farms’ was part of an MoU exchanged last year in India, by President Ranil Wickremesinghe with Indian PM Narendra Modi, on projects in the Trincomalee District.) Dissanayake said his party agreed with some of the conditions but rejected others.
The topic of the oil tanks was not brought up by India he said, but by him, in talks at the Indian High Commission in Colombo. A government under him would use between 8 to 16 tanks for fuel distribution in the North and East, and this would be a big saving when compared to the cost of transporting it from Colombo. The rest could be developed as a joint venture between Sri Lanka and India. He said it was ok to have an oil pipeline connecting Sri Lanka and India (one of the projects agreed on in the MoUs signed in Delhi). He referred to a new refinery to be handled by the Ceylon Petroleum Company (CPC) or a local company, noting that these were complex tasks. “Our location is good for a fuel hub” he said.
Asked about the Indo-Lanka Peace Agreement (of 1987), he said the joint development of the Trincomalee Oil Tank Farm became a condition in it against a backdrop of Indian concerns over pro-US moves by the government at the time. Former President J. R. Jayewardene had allowed a Voice of America broadcasting station there, etc. The global balance of power is different now he said, and the US enters the picture having accepted India’s primacy in the region. Dissanayake said they were well aware of geopolitical developments and big power rivalry in the region.
Crime and politics
In relation to crime, a journalist referred to the raft of killings in broad daylight by gunmen using T56 rifles, witnessed in the streets ‘like a movie,’ not long ago. He noted that there was no IGP at present. Since the election was called, there have been no killings and no more talk of the underworld. Was it because politicians were busy with election work, he quipped. AKD in his response went on to list the names of notorious underworld characters, describing the power they wielded during the rule of presidents of the day, from JR to CBK to ‘the Rajapaksas.’ “Is this not political protection?” he asked. When narcotics are seized, the vehicles in which they are being transported are found to belong to politicians. Vowing to bust the nexus between politicians and organised crime, he said under his government no child will become a victim of drugs. We may be ‘small people’ but “we owe nothing, and fear nothing” (Api nayath ne, bayath ne)
No jumbo Cabinet
A JVP/NPP government’s Cabinet would be limited to 25 ministers, Dissanayake said. The number of deputy ministers would probably exceed that number, but there would be no ‘state ministers.’ The current ministers and state ministers enjoyed the same benefits, the only difference being that state ministers did not attend Cabinet meetings, he said. Asked about ‘Advisors to the President’ he said the maximum number of appointments would be 15.
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