Australia as a Model for Sri Lanka

DR. SIRI GAMAGE-June 17, 2018

Sri Lankan immigrants to Australia, and sometimes visitors, consider Australia as a model that can be adopted for fundamental reforms in Sri Lanka (see Dr. Harsha Weerasinghe - A Good Australian Down Under, The Island 26.04.2018). This view comes up in private conversations more than in the public debate. It is often based on comparisons of governance, service provision, rule of law, cleanliness, orderly behaviour, functioning systems and institutions, norms and manners. Commendable aspects in the broader community, such as voluntarism in disaster and emergency management, respect for privacy, egalitarianism, openness, non-interference in private life also contribute to forming such a view. Equal opportunities existing in many fields for individuals to progress in life in terms of education, employment and wealth creation - if they have the desire and motive -are other aspects worth noting (though structural barriers still exist for Aborigines, immigrants, ethnic minorities, women, those from rural and regional areas, and those in Lower Socio-economic groups). Before arriving at such a view where Australia is cited as a model that Sri Lanka can adopt, we need to explore some fundamental aspects of both societies carefully.

Both Australia and Sri Lanka have majorities in power i.e. Anglo Australians mostly born in the country in Australia, and Sinhalese in Sri Lanka. Approximately their proportions come to about 75% of the population. English is the official language in Australia. As Australia has a significant non-English speaking background population, translation services are available in government departments, hospitals and other important institutions that provide various services. In Sri Lanka, there are three official languages – Sinhala, Tamil and English. Australia is run with a Westminster style government. However, the country is divided into five States and a couple of territories. There is a Federal Government based in Canberra and State governments in Sydney (New South Wales), Brisbane (Queensland), Melbourne (Victoria), Perth (Western Australia), and Adelaide (South Australia). Thus, the country has a federal system of government. Leaders of State governments and territories plus the federal government meet annually to sort out governance issues such as the distribution of GST (broad based tax) income. State governments have control over education, policing, land, hospitals, fire service etc. The head of state in Australia is the Queen whose representative is the Governor. The governor performs constitutional duties and ceremonial roles. For example, when there is a new cabinet, members have to be sworn in before the Governor. Federal government provides annual grants to state governments. However, state governments also levy indirect taxes, e.g. car registration, stamp duty for property transactions, fire levy. Federal government is in charge of collecting personal taxes and the indirect tax called the GST which is 10%. When people buy goods, and services this is added to the bill.

Sri Lanka has a Presidential cum parliamentary system of governance since 1978. The President is elected directly in a separate election whereas the Prime Minister is selected by the MPS elected via the parliamentary election. Additionally, Sri Lanka has 9 Provincial Councils. Each Council has a chief minister and a Council of Ministers. In each province, there is a Governor appointed by the President. Central government provides grants to Provincial Councils, but the latter has revenue collection measures of its own too. In Australia, state elections are won by different parties such as Liberal (sometimes with the support of National Party) or Labour. There are situations when the federal parliamentary power is held by the liberal (and national) parties, power in some state governments is held by the Labour Party. Nonetheless, functioning of the governments continue in an orderly manner.

Australia is a pleasant country to live. There is order in public life, people generally follow rules, respect each other, rules are applied equally irrespective of the status of a person, services are available with not much hassle, and people generally look after their own affairs without bothering others. In times of distress, those around generally come to assistance. The emergency services are well organised. If someone gets sick an ambulance can be called and within a reasonable time it arrives whether one is poor or rich (private medical funds pay for this service for their members). Those in low income or destitute categories are provided with a reasonable living allowance by the Federal government. This depends on one’s age, employment status, health and disability, whether single or having a family etc. When a society has order applicable to all, people have the ability to plan their activities with predictability.

There is competition in the corporate sector. Thus, when an individual wants to get access to utilities such as telecommunication, water, electricity, they can access the better deals. To monitor the behaviour of companies there are various monitoring mechanisms e.g. Dept. of fair trading, competition commission. Consumers can take complaints to the Ombudsmen in each industry also. However, we have to understand that Australia is a high taxing country. Services are provided by the Federal and State governments from the taxes and levies collected from the people themselves.

As a developed country, Australia is not generally reliant on foreign aid. Instead it provides foreign aid to less developed countries. However, there is this myth among people, particularly those who do not pay taxes that the government is like Santa Claus handing various handouts. One can’t blame them. It is only those who pay taxes who feel the pain. A University lecturer with an annual salary of $90,000 -100,000, usually pay between $25000 -30000 personal income tax to the government (some work-related deductions are possible). The more one earns the more one pays tax. When a person transfers his properties to family members, they have to pay stamp duty to the State government. If one lives in an apartment, there are multiple payments one has to pay in addition to the mortgage payment. This includes strata fees, water levy, Local Council rates, electricity, and gas. The list goes on.

However, many migrants, especially doctors and other professionals who came to Australia from Sri Lanka and other countries decades ago, have been able to accumulate sufficient wealth enabling them and their children to enjoy a higher level of life that is not open to many middle and working-class families. While such professionals with more than adequate wealth are able to enjoy an upper-class lifestyle with corresponding trappings of high life and culture, many of those in the middle to working class categories struggle to make ends meet, as they have to juggle between the income they get from work and outgoings including for children’s education, housing, medical and so on. It is only later in their lives that they are able to lead a restful life, if their children also do well in education and work. Many don’t enjoy such rest and comfort as children grow up according to the city based Australian way of life, which is basically a consumerist lifestyle. Some children start living their own life and neglect parents, whereas the majority I must say, still care and respect their parents, as they have grown up in an environment nurtured by religious and cultural values and norms of parents.

As such, it is risky to make simple comparisons and ask Why Sri Lanka can’t adopt the Australian system or the model? Beneath the beauty that we see in Australia, there are significant social and economic inequalities affecting the minorities, those in lower socio-economic groups, rural and regional areas, big cities, with disabilities and impediments etc. It is true that the State (both federal and State level) looks after those who are at the bottom layers of the socio-economic hierarchy. Nonetheless, the globalised economy and free market policies have only benefitted some and not all. Rich gets rich. Poor gets poor. A few in between move upward; and many move downward also.

Australia benefitted from the mining boom for a decade or more as the prices for coal, Iron ore and other minerals in the global market, particularly in China, were high. Large numbers of people from the cities, and even abroad, found lucrative jobs in remote areas where the multinational operations for mining etc. took place. Since the collapse of this market and income to the government by way of taxes, Australia has been struggling to generate alternative sources of work and income. One of the strategies adopted is to bring in close to 200,000 skilled immigrants annually and a large number of temporary skilled workers as well. They make a significant contribution to the economy. When an immigrant family arrives, they become consumers for goods and services. This is good for the corporate sector and finally the government.

As Australian population is becoming aged, the country needs more people not only to boost the economy but also to undertake various roles in hospitals, aged care facilities, transport, call centres, and other service outlets. Thus, one can see many from Asian countries working as nurses, age care workers, child care workers, and more. Exports to China and other Asian countries from Australia, including agricultural and animals continue. However, Australia has developed service industries such as in education to compliment the agricultural and animal trade (beef, pork, poultry and fish). Such industries are drawing billions of dollars to the country annually.