Friday 7th August, 2020
It is all over bar the shouting. The SLPP was on course for a resounding victory, at the time of writing, according to the general election results that had come in. Its performance was much better than pre-polls surveys had predicted. The country needs a stable government capable of making tough decisions to revive the economy and safeguard national security among other things. A weak administration dependent on political crutches is not equal to that task. One can only hope that there will be an active Opposition to act as an effective countervailing force.
The new government to be formed will have to act with responsibility, and the onus is on President Gotabaya Rajapaksa to ensure that it does so. The SLPP has made known its intention to change the Constitution or at least scrap the 19th Amendment. What it is mulling over is the political version of a brain surgery, and it had better tread cautiously. The best way to amend the Constitution is to adopt a consensual approach. The government will be able to muster the support of more than two-thirds of the MPs for its project if a consensus thereon can be reached.
Speculation is rife in political circles that an attempt is likely to be made to introduce something similar to the 18th Amendment, which was a total disaster. The Constitution must not be amended or repealed according to the whims and fancies of politicians or for the benefit of their parties. That previous leaders sought to further their personal interests and acted out of expediency and not principle is the reason why the present Constitution has become a real mess.
Ambitious politicians who have lost their seats must be eyeing the National List (NL) to creep into Parliament through the backdoor. The NL was introduced to enable distinguished citizens averse to active politics to enter Parliament and be of some service to the public. This mechanism was blatantly abused, in 2015, as never before, to bring in defeated candidates as MPs, and, worse, some of them were even appointed to the Cabinet. This practice, which is antithetical to democracy, must end forthwith, and only those named as NL candidates and presented to the public before the election should be appointed to Parliament. All the political parties that secure NL slots must desist from polluting Parliament again.
Polls observers inform us that as much as Rs. 77 million has been spent on electing a single MP. It costs the taxpayer at least Rs. 16 million a day to maintain Parliament. The cost of maintaining MPs has to be reduced drastically. Now that the government has imposed a blanket ban on imports to save foreign exchange, the duty-free vehicle scheme and concessionary loans for MPs must be suspended immediately. While on the hustings, all candidates had us believe that they were willing even to lay down their lives for the sake of the country. Having talked the talk, the newly elected MPs will have to walk the walk.
The country is in dire financial straits and finds it difficult to service debt, and President Rajapaksa should give serious thought to launching an austerity drive. A rupee saved is a rupee earned. The Swedish model is ideal for Sri Lanka. The President himself leads a very simple life without being a burden on the public, and, therefore, there is no reason why he cannot ask others to follow suit. The salary of a Swedish MP (a member of Riksdag) is only twice that of an elementary school teacher. MPs are not given official vehicles and have to travel in buses and trains. Only the Prime Minister can use an official car. As for accommodation, the Swedish Parliament provides its members with small apartments, where they themselves have to do household chores. They are not entitled to personal staff. Ministers are not considered demigods and have to maintain transparency and accountability in all transactions. One may recall that in 1995 Deputy Prime Minister Mona Sahlin lost her ministerial post as she was found to have used her official credit card to buy nappies for her baby.
Crises are the crucibles wherein real leaders are forged. One does not have to wield power to become a true leader; even Opposition politicians can provide leadership to the people in troubled times. An opportunity has presented itself for them to do so.
The finger on the spot
A television interviewer last week asked Fisheries Minister Douglas Devananda what is to be done when a robber enters your home? Is he not to be chased off? The program in which the minister appeared was dealing with the long festering problem of a South Indian fisheries fleet brazenly crossing the International Maritime Boundary (IBM) and entering Sri Lanka waters. These illegal fishermen are not just poaching in our waters. They engage in bottom trawling, using large vessels with powerful engines, destroying the marine environment and seriously eroding the replenishment capacity of this country’s fish stock, a process affecting the livelihood of our fishermen in the short, medium and long term.
The minister responded with a question of his own. What do you do when the robber is armed?, he countered. Devananda put his finger on the spot; perhaps not literally in that the Indian fishing fleet routinely crossing the IBM is not armed to its teeth though its quite probable that there are a gun or two in individual trawlers or boats. What he was in effect saying is that the poachers are backed by the might of India and there is very little that we can do about it. What the minister said evoked painful memories of Operation Vadamarachchi of May and June 1987 when the Sri Lankan forces were on the verge of defeating the Tamil Tigers waging war on the Lankan state.
What did India do? Alleging that the people living in the war-wracked area were starving, several Hercules transport planes escorted by Mirage jet fighters intruded into this country’s sovereign airspace for a claimed “humanitarian operation” – the infamous parippu drop as we came to know it. The signal was unmistakably clear. Either halt the military operation or face the consequences. That would be an Indian invasion of this country. Then President J.R. Jayewardene, fighting an insurrection in the South and a civil war in the North was in a tight bind from which there was no escape. The rest is history. The Indo – Lanka Agreement between Jayewardene and Prime Minister Rajiv Gandhi of India was signed and the so-called Indian Peace Keeping Force (IPKF) followed. But there was no disarming of the LTTE as promised. Thanks to what India did then, the civil war raged till 2009 when the Tigers were eventually defeated.
This country’s predicament over the rape of our marine resources, grievously affecting the livelihoods of our fishermen eking out a precarious livelihood, and also endangering the very existence of the fisheries industry in the North of this country, is very similar to the parippu drop of not so long ago.
During the decades of the war, the imperatives of fighting the separatist-terrorists required long periods where our fishermen were banned from venturing out to deep sea. They were confined to a coastal fishery and this left expanses of our territorial waters wide open to Indian fishermen to exploit. Those years and what happened then deeply ingrained in the Indians the conviction that they could fish as they like, wherever they would, regardless of the International Maritime Boundary and the Law of the Sea. There were rich picking to be had and the opportunity was seized.
After the war ended and normalcy – or at least some semblance of it – was restored, there was no keeping the Indian fishermen, often manning trawlers owned by Tamil Nadu politicians and their patrons, to their side of the IBM. For several long years efforts at resolving this problem have been made. There have been some placatory noises from the Indians but little attempt, leave alone a serious effort, to tackle this issue. Contacts have been made at the highest levels of government and all they have produced are platitudes about adopting a “humanitarian approach” to the problem. The humanitarianism is all about allowing Indian fishermen to enhance their livelihood, never mind the super profits made by capitalist politically-backed trawler-owners hiring those fishermen to crew their vessels. Nary a word about our own fishermen, long left to fend for themselves as best as they can while the Indians rob what is rightfully theirs.
No end to this situation is in sight. There are occasional reports of poachers and their vessels taken to custody by the Sri Lanka Navy. More often than not, after a little fuss, bother and diplomatic niceties, the fishermen and (emphasis ours) their craft are returned so that they can poach another day. Earlier this year there was was an incident when an Indian fishing vessel poaching in Lankan waters reacted aggressively to a naval craft attempting to arrest it. This resulted in the sinking of the trawler and the death of one of its crewmen. Predictably there was a blaze of publicity and protest in the Tamil Nadu press about the Sri Lanka Navy killing Indian fishermen. Such incidents are clear indications of the sensitivity of the problem at hand. We have to live with the reality that we cannot wield the big stick to protect what is ours. But the government is under pressure from fishermen North and South to do something about it. Devananda has talked about issuing passes for a limited number of Indian fishing vessels, excluding big trawlers, to enter our waters.
But as one northern politician said in a television program, 500 will come if 50 passes are issued. Indian fishery interests are saying “why exclude the trawlers?” In any case do we have the capacity (or the political will) to effectively police our waters, protect the interests of our fishermen and the sustainability of our marine resources against a monster predator from across the Palk Strait? D we always have to bow down to Big Brother?
SL in vortex of despair
Saturday 17th April, 2021
The Colombo Port City Economic Commission Bill has run into stiff resistance. The proposed law, which has even led to dissension within the ranks of the SLPP, is fraught with the danger of Sri Lanka being left with no control over the Colombo Port City, legal experts warn, insisting that the Bill has to be approved by the people at a referendum in addition to being passed with a two-thirds majority in Parliament to become law.
The Opposition has got something to hold onto. Besides political parties, several key organisations including the Bar Association of Sri Lanka have come forward to move the Supreme Court against the controversial Bill. This is a worrisome proposition for the government, which has many other problems to contend with.
External pressure is also mounting on the government over the Chinese project. The US has already said the Colombo Port City may end up being a money-laundering haven. The US, India and other enemies of China are shedding copious tears for Sri Lanka’s sovereignty, which, they say, China is subjugating to its economic and geo-strategic interests. But is China alone in doing so? India has been furthering its interests at the expense of Sri Lanka; it has even had the latter’s Constitution forcibly amended and Provincial Councils set up. Sri Lanka cannot even protect its territorial waters against rapacious Indian poachers; under pressure from New Delhi, it has to release the culprits taken into custody.
It is only natural that India and the US have not taken kindly to the mega Chinese ventures in Sri Lanka. But if they and/or the other partners of the strategic alliance they represent had cared to help this country instead of bullying it, China would not have been able to consolidate its position here.
The US and India stand accused of having had a hand in the 2015 regime change in this country. In fact, Prime Minister Mahinda Rajapaksa has publicly stated India’s spy agency, RAW, was instrumental in ousting him as the President in 2015. India and the US may have expected the yahapalana government to get tough with China and scrap the Port City project. They were disappointed when that administration, having initially suspended the project, allowed the Chinese to build their artificial island bigger, on a 99-year lease, and, worse, leased the Hambantota Port to China for 99 years. The yahapalana regime received no financial assistance from its foreign well-wishers and, out of sheer desperation, banked on Chinese support like its predecessor.
The Bill at issue, if enacted, would turn the Port City into part of China’s territory in all but name, according to legal experts. Dr. Jayampathy Wickramaratne, PC, critically examines the Bill, in his column published on this page today. SLPP MP and former Justice Minister Wijeyadasa Rajapakshe has said what the proposed law seeks to achieve will be worse than the Hambantota Port deal. There arguments are compelling. It, however, needs to be added that if Sri Lanka had given in to US pressure and signed the MCC compact complete with SOFA (Status of Forces Agreement), etc., in return for USD 450 million from Washington, it would have faced a far worse situation.
The hostility of the US and its allies has driven Sri Lanka into the arms of their mutual enemy, China. If the US and India had helped Sri Lanka rebuild its post-war economy and desisted from their human rights witch-hunt in Geneva, they would not have created conditions for Beijing to endear itself to Colombo in this manner.
If the US, etc., want to counter what they call Chinese expansionism, they have to win over the nations that are dependent on China for funds and protection. They must stop harassing these countries.
The enemies of China have warned Sri Lanka that it will become a Chinese colony, and they, too, would have to take part of the blame for such a fate ever befalling this country.
Free-market and socialism
Friday 16th April, 2021
Former Finance Minister and newsmaker, Ronnie de Mel, has attracted media attention, again, at the age of 96. He is reported to have said, during a recent conversation with Opposition Leader Sajith Premadasa, that the Sri Lankan economy should be repositioned with a tilt towards socialism. He has also stressed the need for equitable growth, and other such pro-poor measures in keeping with the tenets of Buddhism.
It is being argued in some quarters that de Mel, who presented 11 budgets consecutively under the better-dead-than-red J. R. Jayewardene government, has faced about, but going by what he is heard saying in a video clip of the aforesaid conversation, which is accessible on the Internet, one can see that he only opines how capitalism can emerge stronger and remain relevant, especially in this country. Speaking boastfully about the epochal economic change the country underwent in 1977, he says there is a pressing need for another such momentous event for the Sri Lankan economy to come out of the doldrums.
Ironically, there was no love lost between de Mel and the late President Ranasinghe Premadasa, while they were in the JRJ government as the Finance Minister and the Prime Minister respectively, but the former is now of the view that the latter’s son, Sajith, is the only hope for the country!
We had two epoch-defining elections as regards the national economy. In 1970, the SLFP-led United Front (UF) government, which secured a two-thirds majority in Parliament, adopted a statist approach to economic management and threw in its lot with the socialist bloc in a bipolar world. It took things to an extreme in experimenting with its autochthonous politico-economic model. The state’s vise-like grip on the economy retarded the growth of the private sector much to the resentment of the capitalist bloc. Many arguments have been put forth in defence of this kind of state control over the economy, stringent regulations, etc., under that regime; they are not without merit, but the UF government became hugely unpopular, as a result. In 1977, the UNP, made a stunning comeback and formed a government with a five-sixths majority in the House with de Mel as the Finance Minister and upended the UF’s economy policies, triggering an open-market tsunami as it were; that revolutionary change led to the evisceration of many vital state institutions. Both regimes failed to maintain a balance, and their economic reforms, therefore, did not yield the desired benefits for the country. If only they had heeded the classical, oxymoronic adage, festina lente (‘make haste slowly’).
Those who expected capitalism to flourish following the collapse of the Soviet Union (1991) only cherished a delusion. Capitalism has been in crisis; this situation is mostly due to the fact that the capitalist state has to carry out two mutually contradictory functions—accumulation and legitimisation. The process of legitimisation basically requires maintaining social harmony, which cannot be achieved unless the ill-effects of the unbridled capital accumulation are mitigated for the benefit of the ordinary people. Hence attempts by the capitalist state to give its policies a socialist flavour with social welfare and pro-poor schemes. (The JRJ government went so far as to call this country a ‘Democratic Socialist Republic’, in the Constitution it introduced. (Emphasis added.) It is against this backdrop that former Finance Minister de Mel’s aforesaid advice to the Opposition leader should be viewed.
Besides, critics of capitalism inform us that the current free-market model has led to a triple crisis for capitalism—financial instability, lack of environmental sustainability and political unpopularity. “Adapt or perish, now as ever, is nature’s inexorable imperative,” H. G. Wells has said. This aphorism applies to economic models as well. Even the US has had to make dramatic course corrections over the decades. Some of these measures run counter to its unsolicited advice to the rest of the world; Washington opted for a massive bailout package to save the American banks, etc., during the 2008 financial meltdown, which marked a turning point in capitalism and modern economic theories. The Occupy Wall Street movement, which emerged in 2011, was another manifestation of the crisis of the capitalist state; the protesters who took to the streets were young Americans enraged by intolerable economic inequalities.
President Donald Trump had no qualms about openly practising protectionism to boost the US industries at the expense of other nations, especially China, through controversial tariff hikes. His successor, Joe Biden continues with, more or less, the same policy. All US Presidents have been closet protectionists.
Biden has recently got a 1.9-trillion-dollar stimulus package approved by the Congress to jump-start the economy, facilitate the ongoing Covid-19 vaccination drive, and grant relief to the pandemic-hit Americans. These measures are part of the legitimisation process aimed at bringing about social harmony.
One can only hope that the present-day political leaders and economic policymakers will take note of the fact that one of the main architects of the Sri Lankan version of market economy has owned that things are far from copacetic for capitalism in its present form; the key takeaway for the incumbent government from de Mel’s advice to Sajith, in our book, is the need to ensure equitable growth, which, however, is not attainable through occasional cash handouts and politically-motivated poverty alleviation projects.
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