Neoliberalism Vs The Nation & The State: The Real Culprits In Sri Lanka
In an article to Colombo Telegraph (20.11.2018), Dayan Jayatilleka has attempted to re-interpret the meaning of neoliberalism and exonerate several former Presidents from the responsibility of being champions of neoliberalism. While doing so, he has constructed an abstract contradiction (main fight in Sri Lanka) as between neoliberalism and the nation. It is not a sustainable proposition in the context of standard definitions of neoliberalism, facts relating to Sri Lanka’s politics or the relevant academic-policy discourse. 
Jayatilleka – whose controversial appointment to the diplomatic post in Moscow took place while President Sirisena was hatching the constitutional coup with Mahinda Rajapaksa against the incumbent government of Ranil Wickramasinghe – states that ‘Neoliberalism is not the capitalist market economy. Neoliberalism is not mere privatization –the crucial question being what is privatized and what is not. Neoliberalism is not the Open Economy. It is perfectly possible to practice an Open Economic policy, which is not neoliberal. This is what Presidents Premadasa and Rajapaksa did’ (Jayatilleka CT 20.11.2018). He further says Neoliberalism ‘cannot be understood as a checklist of economic policy measures such as privatization’ (CT 20.11.2018).
To the readers who are familiar with neoliberalism through academic learning, deep reading and reflection, these comments come as a surprise because they go against the current wisdom –even at its simplest form- on the subject. Jayatilleka’s views have the potential to mislead, especially the younger generation, who are in the process of learning about the economy, nation, state and similar topics as part of studying political science, political economy, sociology, international relations and the like. Though the author states that neoliberalism cannot be understood as a checklist, most commentators including well-known academics in the international arena use such checklists when discussing the topic (see examples given later in this article).
The views described in Jayatilleka’s article require critical scrutiny by fair-minded Sri Lankans and others concerned about the economic and social development policies adopted by governments since 1977, their impact on the society and social relations plus the crises in the economy and polity evident today as a result of competing and contradictory power relations in the body politic. Politicians and parties who held power in governments formed after 1977 by following neoliberalism while distorting it with state, party, ruling class and family interference – have brought about the economic crisis facing the nation today.
When a former academic and a self styled political scientist distorts an important concept like neoliberalism that has implications for the economy, policy, politics and society, it is far more important to understand what neoliberalism is before considering who is more neoliberal? It is also useful to examine the effects of neoliberalism, associated economic policies and state behaviour over the last 40 years rather than to debate, which President was more neoliberal, based on a distorted interpretation of the principal concept/ideology.
Most of us were not born yesterday. People have memories to understand that all Presidents and governments since 1977 facilitated neoliberal economic policies as the founding principle and guide for economic development while curtailing welfare benefits enjoyed by the people under Westminster system of governments that was in place since Sri Lanka gained independence from colonial rule though different kind of dependencies – both internal and external – developed later on.
What is neoliberalism?
According to Smith, Neoliberalism is an ‘ ideology and policy model that emphasizes the value of free market competition. …. it is most commonly associated with laissez-faire economics’. She says that ‘neoliberalism is often characterized in terms of its belief in sustained economic growth as the means to achieve human progress, its confidence in free markets as the most-efficient allocation of resources, its emphasis on minimal state intervention in economic and social affairs, and its commitment to the freedom of trade and capital’(N. Smith: accessed on 22.11.2018).
According to another source, ‘Neoliberalism supports fiscal austerity, deregulation, free trade, privatization and greatly reduced government spending. Neoliberlism is often associated with laissez-faire economics, a policy that prescribes a minimal amount of government interference in the economic issues of individuals and society. It is usually characterized by its belief that continued economic growth will lead to human progress, its confidence in free markets and emphases on limited state interference’ (Investopedia)
