India prioritizes rural spending, healthcare in budget as election looms

A farmer brushes his teeth with a neem twig in his vegetable field in Kolkata, India, February 1, 2018. REUTERS/Rupak De Chowdhuri

Manoj Kumar, Suvashree Choudhury-JANUARY 31, 2018 

NEW DELHI (Reuters) - Eyeing an election next year, India’s government announced massive spending for rural areas and projected economic growth above 8 percent in an annual budget on Thursday that won broad approval from economists, though bond and share markets fell.

Delivering the government’s last full annual budget before a general election to be held by May next year, Finance Minister Arun Jaitley also announced plans for “the world’s largest government funded health care program”, saying it would cover some 500 million of the country’s poorest people.

He went on to declare intentions to merge three public sector insurance companies and to list the new entity.

Spending in fiscal 2018/19 was projected to increase by 13.2 percent from the current year ending in March, with about three-fifths allocated to better infrastructure in the countryside, where two-thirds of India’s 1.3 billion people live.

“This budget is farmer friendly, common citizen friendly, business environment friendly and development friendly. It will add to ease of living,” Prime Minister Narendra Modi told state-run Doordarshan Television.

Allocating 14.34 trillion Indian rupees ($225.5 billion) for rural infrastructure, Jaitley said the spending should create and new businesses, build new roads, housing, sanitation, and electrification in villages.

The finance minister later told Doordarshan that the largesse was nothing to do with winning votes for Modi’s nationalist Bharatiya Janata Party (BJP).

Analysts thought otherwise.

“It looks like that the BJP is aiming to shore up support among rural voters, there’ve been plenty of measures announced to boost the rural economy,” said Shilan Shah, India economist, at Capital Economics in Singapore. “It was no surprise to us that they relaxed the deficit targets.”.

The budget targeted a fiscal deficit of 3.3 percent of GDP in 2018/19, compared with expectations for a deficit of 3.2 percent.

 

The 2018/19 deficit target marks some slippage from a previous target of 3.0 percent for the year, and investors were also unnerved by the disclosure that this year’s deficit was likely to come in at 3.5 percent, much higher than expected.

Unlike the bond market, analysts were unalarmed.

Joy Rankothge, vice president at Moody’s Investors Service, said the budget remained broadly in line with the government’s fiscal consolidation path, and reinforced the credit rating agency’s rationale for awarding India last November its first rating upgrade in 14 years.

The deficit numbers were too high for bond investors’ taste as yields for India’s benchmark 10-year bond rose as much as 17 basis points.

A previously buoyant share market also retreated following the imposition of a new tax on long term gains from stocks, though healthcare shares rose thanks to the new health insurance program.

Slideshow (3 Images)/

Jaitley cut corporate tax for small firms from 30 percent to 25, but ignored pleas from big companies that had sought a similar reduction to make them competitive with the rest of Asia.

To fund some of the spending, he set a target to raise 800 billion rupees next fiscal year from asset sales, after saying revenue from stake sales this year will reach a record 1 trillion rupees.

The government has already begun the process to sell stakes in two dozen state companies, including flag carrier Air India.

Rahul Gandhi, leader of the main opposition Congress party,

said the BJP government was continuing to make empty promises.



The government’s botched roll out of a nationwide goods and service tax (GST) in 2017, and a shock move to ban high value currency notes in late 2016 were partly to blame for economic growth falling to 6.7 percent in the current fiscal year - the slowest in three years.

“Four years gone, fancy schemes with no matching budgets, four years gone, no jobs for our youth,” Gandhi said in a Twitter post.

WEAKER MARKETS

Economists were, however, in broad agreement that the budget should help foster economic growth. A economic survey released by the government earlier this week trumpeted expectations that India would soon become the world’s fastest growing major economy.

Jaitley forecast the economy would grow 7.2 percent in 2018/19 and soon accelerate above 8 percent, the level needed to generate enough jobs for the hundreds of thousands of young people entering the labor market each year.

Already tentative signs of a recovery have emerged.

Prospects of improving corporate earnings have sent shares to a series of record highs. The broader NSE index .NSEI gained 4.7 percent in January - its best monthly performance since October.

Still, the government desperately needs banks to start lending again to kickstart private investment, and last year it announced an off-budget scheme to inject 2.11 trillion Indian rupees ($33 billion) into its state-run lenders.

The surge in world crude prices, and inflation running at a 17-month high of 5.21 percent and way above the central bank’s 4 percent target were other reasons for caution, but analysts tended toward the positive.

“All-in-all, it was a business-as-usual budget for India and a great one for Bharat (rural India),” Amar Ambani, partner and head of research at IIFL in Mumbai said. “The government did what it thought necessary to boost revenue, revive growth and get election-ready.”

($1 = 64.0450 Indian rupees)

Juggling Jobs and Overworked Doctors

ByTiana Mendis-2018-01-31

In their over enthusiasm to prescribe medication and sometimes overload patients with unnecessary drugs, doctors the world over have been accused of having unholy partnerships with pharmaceutical companies - an accusation which is vehemently denied by both parties. A couple of years ago, the Government and the Health Ministry tried to take measures to prevent medical practitioners from prescribing drugs with brand names. In fact there is this practice of prescribing generic names even in advanced countries like the UK; so why not Sri Lanka
However, the pharmaceutical companies came out fighting tooth and nail and doctors too joined in, saying that if they were to assure the healing of their patients, they needed to have confidence in the drugs they prescribed and therefore the necessity of the brand name.

Transparency
This writer is not trying to imply that all medical practitioners are corrupt, although one could generalize by saying that there are many bad apples in the barrel. The fact that, becoming a doctor these days is more exclusive than inclusive; as we can see from the ongoing fracas between the Government and the GMOA. The GMOA's rather drastic stand against private medical education is proof enough that the healthcare business is seriously turning into a mafia. If any profession needs transparency, more than others, it is certainly the medical sector. But patients are not being made aware and whether will ever be remains a big question, because politics also plays its own part. The GMOA therefore, may yet get its way, even if it is to the detriment of the greater part of our society.
Yes, any profession needs regulation, but something that works better than rules and policing are market forces. However, the manner in which students are selected for this hallowed profession seems rather homogenous or even incestuous by nature. The Z score on which much emphasis is placed in choosing A Level science students to State medical universities is marginalising students with higher scores and replacing them with low result students from so called underprivileged areas, all in the name of levelling the playing field socially.

Be that as it may, it is clearly important that market forces are given a chance to play in this area and the only way to do it is to open it up more and thereby reduce the doctor patient ratio to healthy levels. For healthcare indices to reach better levels, patients need to spend more time with doctors and this cannot be done when the country's doctor patient ratio is said to be approximately 1 is to 2,000. With approximately 1000 doctors entering the field every year, the quality of medical treatment is poor in this country and that is why it is not surprising that a visit to a hospital to meet a doctor is a generally a long wait, which sometimes means doctors seeing patients well past midnight.
Drug interactions

Why do you need to have more time with your doctor? This writer would like to give this example. When prescribing medicines to a patient, do they have time to ask about what other medications the patient takes. When pharmacies distribute, non over the counter, drugs to self-prescribing patients, there could be a huge clash in the medication taken.

For example, tablets containing Vildagliptin, used as a combination treatment for diabetes type II or prescribed to patients who cannot tolerate metformin, whilst being a wonder drug for diabetes has side effects that the patient should be made aware of. Common ones are that of dizziness and certain reactions with other anti-diabetes medicines. Vildagliptin should not be used in people who are hypersensitive, patients associated with liver problems or children under the age of 18. Dose adjustments are also necessary for those having serious renal problems. Metformin on the other hand may have side effects that are specific to manufacturers but the more common effects in its generic form are abdominal discomfort, cough or hoarseness, decreased in appetite, diarrhoea, fast or shallow breathing, fever or chills, general feeling of discomfort, lower back or side pain, muscle pain or cramping, painful or difficult urination and drowsiness.

What about cholesterol reducing statins? These come with a number of side effects out of which the more common include headache, difficulty in sleeping, skin flushing, muscle aches, drowsiness, dizziness, nausea or vomiting, abdominal cramping or pain, bloating or gas, diarrhoea, constipation and rash. Statins also carry warnings of memory loss, mental confusion, high blood sugar, and type 2 Diabetes as possible side effects. They may also interact with other medications taken.

There is also research on natural medicines such as ginger which is a known as a cure for many ailments, but may interfere with the dosage of insulin taken by diabetic patients because the spice is said to have propensities to increase the release of insulin in blood. The examples given here are but few, but there are so many others, especially when it comes to drugs prescribed for respiratory problems and a number of other conditions such as ADHD, Irritable Bowel Syndrome and the list is long.

How much of this information filter down to patients, do doctors have the time to discuss how prescription drugs work and the dangers of self medication, in an environment where prescription drugs can be got over the counter and where pharmacies not adhering to the rules.

What standards are being implemented to ensure that drugs introduced by pharmaceutical companies provide the full picture to doctors and ensure that doctors are wholly conversant with the side effects of the drugs they are prescribing. For example, if anyone goes to the doctor with the common flu the first thing most OPD doctors do is prescribe the highest dosage of antibiotics whether it is for an adult or child.

According to the Centre for Disease Control & Prevention (CDC), a staggering 30 per cent of antibiotics or medications given to patients to kill bacterial infections, prescribed more than 154 million times every year in the US alone, are unnecessary. Some reports even say that number is more accurately 50 per cent, which is a statistic that should make us all take pause.

Why? Because there are many consequences in taking antibiotics, especially when you don't really need them. For starters, using too many antibiotics has caused an epidemic of antibiotic-resistant infections. Bugs like MRSA — bacteria that resists many common antibiotics, are spreading like never before, in part, because of our overuse of antibiotics. There are also many direct side effects to antibiotic use. According to reports, many die each year from severe diarrhoea caused by these drugs, and many more have irreversible damage to skin, nerves and tendons apart from affecting their immune systems.

Ignorance
One of the reasons for this is that most doctors themselves are not aware of these side effects because they simply do not have the time to read the fine print and why so, one may ask.

The reason is it is humanly impossible to handle two jobs (Government hospitals during the day and hundreds of patients in private hospitals at night); where can they find the time or work up the inclination? If the GMOA was really concerned about the health care people in this country receive, should they be more aware of the ground situation and work on preventive measures. But this cannot be done because where health care and doctors are concerned we are in a seller's market. We have an under supply of doctors, and patients have to accept this substandard service.

In order to improve healthcare, policy makers need to target the area in which we produce more doctors. Yes, standards are necessary in seeing that the ones we produce are of a high quality, but then, that is the easiest part. Regulators and examiners are outside parties who can easily judge the levels of students coming from private institutions.

If having good facilities for clinical experience is a problem, the private sector could certainly do better than the Government in this area. What this country needs most importantly is to focus on priority and the elected Government understands this situation and thus the decision to go into non-state medical education, but not everybody seems to understand this solution, especially those who should - the GMOA.

tianamendis1@gmail.com

Continued military presence prevents use of 'released' Myliddy TB hospital

31Jan 2018

Sri Lankan military personnel continue to be seen in significant numbers around Myliddy TB hospital which was recently 'released' by the army.

The continued military presence has prevented the hospital from being renovated and being used as a public hospital, locals said. 

Myliddy TB hospital has been under military occupation for 27 years. The mliitary had demolished and rebuilt parts of the hospital to make it into an army retreat. 

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29 December 2017 : No access to land for Keppapulavu residents despite military fanfare over release

Journey from nobodies to somebodies

Tuesday, January 30, 2018

Human rights movement refers to a nongovernmental social movement engaged in activism related to the issues of human rights. Today some believe that HR issues should be kept outside of politics; mainly left politics. However the foundations of the global human rights movement involve resistance to: colonialism, imperialism, slavery, racism, apartheid, patriarchy, and oppression of indigenous peoples. Clearly these subjects are closely related to the struggle of Samasamajism locally and internationally.

A key principle of the human rights movement is its appeal to universality: the idea that all human beings should struggle in solidarity for a common security and human values. This is exactly the basic Samasamajist principle. Due to the rise of Stalinism and association of communism in Russia and China with regimes without political freedom, there came a split between Samasamajism and human rights.

The activities of the International Federation for Human Rights (originally the International Labour Organization)—founded in France by the international labour movement in the 1920s—can be seen as a precursor to the modern movements. This organisation was quickly embraced by the United States and European powers. They wanted to show; at that stage, that Liberal democracy is the counter to the dictatorial ‘Communism’. Hence for them human rights is a way to counteract the Stalinist call for global solidarity among workers.

Samasamajism

Today we are living in the era of Samasamajism of Bernie Saunders and Jeremy Corbin. Western bourgeoisie has turned to fascistic leaders in order to escape the pressure of modern human rights agitation. Women today are in the forefront of the fight against human rights violations. Since the 1970s the human rights movement has played an increasingly important role on the international scene. Although government support for human rights decreased, international organisations increased in strength and number.

The present regime in Lanka, in its present form was able start up the economy which was on a standstill and will end up stabilizing it by showing budget surpluses by 2020, Prime Minister Ranil Wickremesinghe said recently.

“We did not take over a stable government but an economy which was on a standstill just like a power station with broken generators. Generator of the power station, which is called the economy, is development. This power station was on a standstill when we took over the government as the country was in a debt trap and as there were no investors. However we have managed to fuel this power plant with investments and by settling the debts. We will complete what we started and will end up showing a budget surplus by 2020,” the Prime Minister said.

Premier Wickremesinghe is perhaps trying to follow the example set by Mahathir Mohamed of Malaysia. In Malaysia too there were nationality conflicts, basically between Malays and Chinese. The constitution grants freedom of religion and makes Malaysia an officially secular state, while establishing Islam as the “religion of the Federation”.

New economic policy

According to the Population and Housing Census 2010 figures, nationality and religious beliefs correlate highly. Approximately 61.3% of the population practice Islam, 19.8% practice Buddhism, 9.2% Christianity, 6.3% Hinduism and 1.3% practice Confucianism, Taoism and other traditional Chinese religions. 0.7% declared no religion and the remaining 1.4% practiced other religions or did not provide any information. Sunni Islam of Shafi'i School of jurisprudence is the dominant branch of Islam in Malaysia, while 18% are nondenominational Muslims.

This strife culminated in the May 13 race riots in 1969. After the riots, the controversial New Economic Policy was launched by Prime Minister Tun Abdul Razak, trying to increase the share of the economy held by the Bumiputera. However under Prime Minister Mahathir Mohammad this nationality problem was controlled by expanding the power of the federation and secular nature of the constitution.

After the conclusion of this process there was a period of rapid economic growth and urbanization beginning in the 1980s. The economy shifted from being agriculturally based to one based more on manufacturing and industry. Numerous mega-projects were completed, such as the PETRONAS Towers, the North–South Expressway, the Multimedia Super Corridor, and the new federal administrative capital of Putrajaya. However, in the late 1990s the Asian financial crisis almost caused the collapse of the currency and the stock and property markets. Federation brought heightened tensions including a conflict with Indonesia as well continuous conflicts against the Communists in Borneo and the Malayan Peninsula.

Malaysian model

Hence if PM Wickremesinghe wants to follow the Malaysian model he has to expedite the work of constituent council and create united nation in Lanka. Malaysians improved rapidly the basic knowledge of English and empowered the people. This should be done in Lanka too, with an island wide campaign.

The premier said the previous government borrowed funds and constructed a port without ships and an airport without planes. “This is like mixing water with kerosene. However when we took over we managed to show an excess in primary accounts by making difficult decisions such as increasing VAT,” he said.

In addition his corporation with trade unions has won the support of Western world workers movement. On the other hand countries such as China, India and Japan had come to assist Lanka after the government signed an agreement with IMF. All these countries will not help Lanka if the agreement with IMF is abolished. In addition, it is necessary to settle the HR issues which are fundamental to a democratic society. 

Demons in Paradise: Memories of Sri Lanka's Civil War

A Tamil filmmaker living in Sri Lanka reflects upon the experience and impact of three decades of civil war.

31 Jan 2018

In 1983, Sri Lanka was torn apart by riots targeting the Tamil minority, sparking a war that lasted almost 30 years and left indelible scars on the country.

Filmmaker Jude Ratnam was five years old when he fled the Sinhalese-dominated south to go to the Tamil strongholds in the north by train. But there was no sanctuary to be found as the Tamil rebellion descended into deadly in-fighting between the Liberation Tigers of Tamil Eelam, known as the Tamil Tigers, and other factions.

Now, the return of Ratnam's ex-guerrilla uncle from overseas exile provides the occasion for a reopening of old wounds and an impassioned consideration of what went wrong.

For the first time, a Tamil filmmaker reflects upon the experience and impact of three decades of civil war from the inside.

FILMMAKER'S VIEW

By Jude Ratnam

I had initially planned to make a film completely based on trains. I wanted to tie the history of the Sri Lankan railways with the history of the conflict and tell the story in a very didactic manner.

But as I progressed, I was drawn by the film to include my family and myself into the story that I was trying to tell. All of this happened in the most unexpected manner.

I never thought I'd film my uncle when he came down for my brother's wedding.

But when he told me how he had once cut the railways, I decided to take him back to this place and film him. There I came up with the whole idea of changing the clothes, which became a key motif in the film. This too happened quite naturally and there was no planning done to do it in this particular way.

READ MORE: Q&A: Sri Lanka's civil war through a Tamil lens

When I filmed my uncle for the first time I realised that I needed to dig deeper into the whole question of him becoming a militant, and that's what led the whole story in the direction of searching for the former Tamil fighters.

It was a tricky thing to do during the time of the previous regime which had just brutally crushed the Tamil rebellion.

So the facade of the train became a good camouflage when authorities asked for the filming scripts to be approved. I would tell the authorities I was making a love story on the train about two lovers who went towards the north from the south.

In order to get the location permits to take the former fighters back to the places where they had been fighting, I'd use the love story, telling the authorities that the lovers met in these locations.

I did constantly worry that the authorities might find out what we were filming. But having an all-Sinhala crew also helped me a great deal in having some protection to go on filming.

With regard to other characters in the film, other than my own family members, I was quite anxious that they'd pull out at any moment if they changed their minds. But when I think back about it today, I think they themselves wanted to be part of this process and that's why they took part in it.

It'll be a mistake to think that it was my convincing alone that brought these people in front of the camera. I guess I was just in the right place, at the right time with the camera.

Right along the process I was only telling myself to be conscious of the fact, never to intimidate the person in front of the camera to align with the notions I had about the conflict. I just wanted to allow them to feel free and act and say things as they occurred to them or as memory would re-emerge.

In this sense I would go one step further and say that it is not you who chooses the film, but rather the film that chooses you to express itself.

In other words, you just become a tool; but of course an active tool that is.

Demons in Paradise follows an ex-guerrilla fighter as he returns to Sri Lanka after the end of a brutal civil war [Screengrab/Al Jazeera]

Keppapilavu families continue protesting against land grabs 333 days on

31Jan 2018

Families protesting against the Sri Lankan military's occupation of land in Keppapilavu, Mullaitivu met with international representatives and human rights groups on Monday - day 333 of the protest. 

Visiting groups met with the families amid heightened police presence, and expressed support for their struggle for their land. 

The Sri Lankan government is under increasing pressure to expedite the release of land occupied by the armed forces in the North-East. 

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29 December 2017 : No access to land for Keppapulavu residents despite military fanfare over release

Enforced Disappearance Bill will be implemented soon

 

2018-01-31

The Government will implement the Enforced Disappearance Bill soon, Prime Minister Ranil Wickremesinghe said yesterday at an election rally in Vavuniya.

“The government has already got the Enforced Disappearance Bill approved and is now ready to implement it,” he said. “The Government is fully aware that justice has to be meted out to people in the North. We are also ready to empower the widows in the North who need help. We are also aware that the youth in the North wants employment and the government has a plan to fulfil that expectation."

Mr. Wickremesinghe who elaborated on the government's economic development plans for the North said a highway network would be constructed in the North. He said a highway will be constructed from Kandy to Trincomalee. He said a Singaporean company had consented to develop the Trincomalee Port.

“Areas around Trincomalee including Vavuniya will also be developed as a result of the development that will take place in Trincomalee. Field Marshal Sarath Fonseka will be in charge of the development work in Trincomalee. Minister Rishard Bathiudeen will be in charge of the development work in Wanni while Minister D.M. Swaminathan will be in charge of the development work in the North. An industrial zone will also be set up in Mankulum,” the Prime Minister said.

Minister Bathiudeen said the government-led by the UNP would do its utmost to develop villages through local bodies. (Yohan Perera, Priyantha Hewage and Sithum Chathuranga)

Lawyers for Democracy wants stakeholder in justice system in Sri Lanka to learn from Indian Judges; Urges frank discussion on lessons learnt from Corruption cases files against Chief Justice and a sitting Appeal Court judge

(Lanka-e-News - 01.Feb.2018, 1.45AM) The Lawyers for Democracy wish to express their admiration and appreciation for the action taken by the four Supreme Court judges in India last week, when they took the extraordinary step of holding a press conference to inform the public of irregularities that were happening in case administration in the Supreme Court of India under the leadership of the incumbent Chief Justice.

Indian judges took this extraordinary step after informing the Chief Justice that the traditional manner in which the Supreme Court procedures were followed was being flouted by recent actions by the Chief Justice. For example, cases were being fixed for hearing without following the traditional procedures that ensured transparency devoid of bias. The judges had first made their representations to the Chief Justice on these matters, seeking corrective measures. When that failed, the judges took upon themselves the responsibility of informing the public so that the public would do whatever possible to ensure that the best traditions of the administration of justice are preserved. The judges, at the press conference, pointed out that if the present transgressions continue, best practice standards would suffer and a degeneration of the system would take place over the coming years.

This extraordinary call for caution demonstrates the uncompromising attitude of Indian judges when it comes to the preservation of the traditions of the independence of judiciary. Instead of keeping silence and letting these transgressions continue, they took their obligations seriously and intervened with the view to informing the public so that the public could make informed interventions to ensure that those responsible for systems of administration preserve the best traditions, on which their own protection depends. This courageous and farsighted action needs to be reflected upon and the lessons of such great interventions should be learned by us in Sri Lanka too.

Had there been similar interventions during such transgressions in recent decades, particularly during the administration of Chief Justice Sarath Nanda Silva, our own system would not have suffered the damage that it has unfortunately suffered. Courageous actions, internally and externally, to prevent any interference with the traditions that preserve the independence of judiciary, which win the confidence of the public, are at the very core of the preservation of the rule of law itself.

This great learning experience needs to become part of our own traditions. Debates and discussions on these issues in no way damage the image of the judiciary. Instead, it enhances the confidence of the people, as already demonstrated by the extraordinary support the four judges won from the Indian Bar and the Indian public. Therefore, measures such as contempt of court proceedings should never be used in order to prevent vital discussions on the preservation of the best traditions of the judiciary.

In Sri Lanka, we are now faced with a situation where a former Chief Justice (one time an Attorney General) and a serving Court of Appeal judge have been charged for corruption. We do not wish to comment on the merits of the case. Our purpose is to draw attention to the fact that two of the judges of the highest courts are facing charges with criminal violations, and how this relates to our institutional problems. The absolute integrity of those who sit in our highest courts is the last and final safeguard of the most important institution protecting the people: the judiciary. When extraordinary problems, such as those manifested in these charges, are brought to the surface, it should be a moment when all concerned with the administration of justice engage in serious reflections about the predicament of the system on which their own survival depends.

The survival of traditions protecting the administration of justices is necessary for the entire nation. Therefore, it is the right of the people of the nation to examine the circumstances under which such matters have become possible, examine the root causes of these problems and take immediate measures in order to ensure that correcting lasting actions are taken towards the restoration of the traditions that preserve the independence of judiciary.

Such a debate is now a dire need among the public as well as among the lawyers. A fearless but dignified bar is an essential element for the preservation of democratic traditions and the traditions protecting judiciary are at the core. If the lawyers keep silent when the very ground on which their own profession rests is uncertain, and perhaps suffer serious peril, their own capacity to engage in their profession with integrity will suffer greatly. If that happens, that’s a national tragedy.

Any attempt by an individual or an association (including the lawyers) challenging, except before a court of law, the authority of the CIOBAC will no doubt amount to an interface of the CIOBAC. What is required is a frank discussion on this case and not a challenge.

The democratic means by which such tragedies are prevented is eternal vigilance. Now the time has come to express our own capacity to keep a vigilant eye on our institutions and show that we do have the courage to intervene when interventions are necessary. Let us all emulate the great example set by the four judges of the Indian Supreme Court.

Conveners of Lawyers of Democracy

Mr.Lal Wijenayaka

Mr.K. S Ratnavel

Mr.Sunil Jayarathna

Mr.Sudath Neththasinghe

Mr.Harishke Samaranayake

Mr.J C Weliamuna

Mr.Prabodha Rathnayake

Towards a Social Democratic Policy Framework: Taking Democracy to the Economy and Society

by Laksiri Fernando-January 31, 2018, 10:14 pm 

"Democracy’s foundations remain weak and unstable as long as status inequalities contradict formal political equality." - Thomas Meyer (The Theory of Social Democracy)

The urgent need in Sri Lanka, given the present circumstances, is to move firmly and committedly towards social democracy. Simply said, social democracy is about extending democracy from the political to the economy and society. Do we have democracy? Formally speaking, we do have democracy in the political sphere since 1931 when the universal franchise and a legislative council were introduced to this country, yet deformed with imperfections and wilful assaults.

Extending Political Democracy

There is no question that political democracy should be extended and the infirmities should be addressed to call Sri Lanka a reliable liberal democratic system. The necessity for a New Constitution primarily emerges from this requirement, nevertheless overlapping with the need to extend democracy from the political to the economy and society.

As far as democracy is not extended to the economy and society, the infirmities in the political sphere would remain, whether at the national, the provincial or the local level. These are the three tiers of our political superstructure.

Although no one has paid much attention, the failure to resolve the ethnic question even after the 13th Amendment was largely due to this fact. This would remain primarily the same even if a new constitution is adopted and democracy is further extended to the provinces, without extending to the economic/social sphere. The present rift between the TNA and the EPRLF is probably symptomatic of this predicament. This does not mean that a new constitution is premature, but the country and even the new constitution should go beyond the political sphere to address democracy at the economic/social level.

It is a wrong notion to say that deepening democracy at the political level should be completed before extending democracy to the economic/social sphere. It has to be started here and now. Otherwise, under the given circumstances, what have been initiated since January 2015 would be in utter jeopardy.

A Historical Paradox

It is true that when you look at the history of democratic evolution, it started in the political sphere first and then only it became partially extended to the social sphere. This is the history of Western social democracy. The first wave was liberal democracy and the second one social democracy. However, the social democratic venture has encountered so many setbacks and difficulties in the period beginning neoliberalism. It is almost reversed in some countries. Only recently that there are new signs of its re-emergence. Jeremy Corbyn (Britain), Martin Schulz (Germany), Bill Shorten (Australia), Jacinda Arden (New Zealand) and Bernie Sanders (US) are much hope.

One may argue that countries like Russia or China had started the process in the reverse order, due to socialist revolutions. Russia in its efforts to venture into liberal democracy in recent decades, has jeopardised the social or socialist achievements. That is their present predicament. Even the liberal democracy installed is also not working properly. This highlights the difficult question of ‘balancing between the two.’

No country has so far found what could be the correct balance between political democracy and social democracy. Not even the Scandinavian countries. This can be one reason why China is venturing in rather a slow manner in the political direction. There are of course other factors involved, and ‘economic opening up’ has also damaged some of the social gains.

This is the main reason why any country, let alone Sri Lanka, should venture in this ‘combined or dual task’ in a paced manner. For example, if a party like the JVP manages to achieve a political revolution in the country, what would happen to political democracy? Whatever their good intensions, the result would be the curtailment of political democracy, if not a total disaster.

Therefore it is not through ‘revolution’ that social democracy or socialism should be achieved, but through democratic means and channels. Would this mean a postponement of the task or delaying tactics? It should not be the case. If the political leaders, the political parties and the people at large have a good grasp of the situation, the combined task cannot be a difficult venture.

Our Circumstances

Sri Lanka is in a best position to achieve social democracy without abandoning the liberal democratic gains. It is on the basis of the achievements in liberal democracy in the 1930s (universal franchise, legislative council and political parties) that the country could move towards some social welfare measure in the 1940s, free education being the cornerstone.

This was the same after independence, although the erosion or lack of ‘liberal values’ in the cultural/ethnic sphere resulted in major disasters. Given the colonial influence in the country, nationalism is a natural outcome. Even otherwise, some patriotism is necessary in any country. However, there was/is no need for ethno-nationalism, if the country was/is firmly grounded on a social democratic or liberal ideology. This is an area where the combination is necessary. This is a task for enlightened political parties. We should not unnecessarily be limited to the ‘Left’ parties, which have unfortunately become small groups.

Moving towards social democracy is largely an economic matter. Do we have such conditions? International experiences have shown that ‘free market’ or ‘free trade’ is not necessarily an impediment in building social democracy. What is detrimental is its extreme form or ‘neo-liberalism’ which opposes or neglects the role of the state. Particularly in a developing country, there are vast areas that cannot be covered by the private sector or the market.

Even otherwise, there are areas which should best be managed not by ‘profits’ but by values. Health and education are two such areas. Social security is obviously another. There are other areas where the state intervention or welfare is necessary for social justice. These are some basic premises of social democracy. Even for economic growth, ‘Two Engines’ of the public-private partnership might be the best. This partnership (PPP) however should not mean that the state assisting some business ventures as mostly happening today in Sri Lanka through political connections.

There is no economic rule that makes state enterprises necessarily unproductive. That depends on the management model that they employ and mostly it is a result of political influence and interference. The role of the state is important in building social democracy. However, it should be a more enlightened, corruption-free and politically and ethnically impartial state.

There can be an argument that social democracy cannot properly be built in a poor country. There can be some truth in it. However, Sri Lanka is not such a poor country. It has come to the lower middle income level today.

Development Prospects

There are prospects of further economic development in Sri Lanka. It is already a$ 85 billion economy. Given the size of the country, its location, population and educational standards, there cannot be much difficulty indeveloping it properly, if a ‘Two-Engine Growth’ model is adopted and proper national planning is ensured. There is enough room for both the private sector and the state sector. What should be avoided is unnecessary competition and overlap, except in the case of agreed public-private-partnership (PPP).

For example, Dr Neville Fernando should not have been allowed or encouraged to start a medical college. University education should be in the public sector. It is understandable that his love and expertise is in the field of medical science. It was not his mistake. He should have been promoted to invest in producing medical equipment or medicines, or invest completely in a different field. What might be necessary is rationally demarcated areas for the private and the public sector.

Sri Lanka requires a well-planned economic development and not ad hoc decisions. For example, instead of a Megapolis in the Western Province, the country needs Smart Cities, surrounded by Happy Villages in all provinces. The disparities between provinces have enlarged because of ad hoc and arbitrary decisions. While the free market is allowed and encouraged, the infrastructure planning should be by the state.

Sri Lanka requires her own ‘Belt and Road’ initiative mainly inside the country in a planned manner. Chinese assistance or input might be useful in this respect even to extend that into ‘Air.’ It is not possible to anticipate a major export growth without developing the country’s infrastructure. Both should go hand in hand like in China. The past infrastructure and other developments have been confined to the Western and the Southern province for political reasons. It is this ‘Western’ development that has created immense disparities in the country which urgently requires a new policy orientation towards social democracy.

Urgent Need

Gini Coefficient (GC) is the reliable method of gauging a country’s income and economic disparities. It is calculated between 0 and 1 or 1 and 100. It is always better to use the latter (percentages) as it is easy for the public to comprehend. In such an index, 1 percent is perfect equality and 100 percent is complete inequality. Our authorities also should use this calculation or convert the present decimal data in that way for the public to understand.

It is practically impossible or quite ‘utopian’ to have perfect equality. It is also not necessary. However, through moderate social democratic polices there were countries who even achieved the GC below 20 percent in the past.This is not the case at present given the pressures of ‘neoliberalism.’ However, still some countries (Finland, Iceland, Sweden, Denmark) maintain a percentage below 30, along with some former Eastern European socialist countries. In the case of Australia, the present GC is around 32.30 percent.

It is quite disturbing to note that social inequalities have widened in Sri Lanka during the last three decades. The following are the available overall GC figures for Sri Lanka: 1985 - 32.50; 1990 - 32,50; 1995 - 35.40; 2002 - 41.00; 2005 - 40.30; 2010 - 36.40; 2015 - 39.20. There are all indications that the index is above 40 percent today. This was the case even before, when it was calculated for the monthly expenditure of households. The GC is highest in the urban sector, compared to the rural and the estate sector. Sri Lanka’s overall GC is even higher than India.

It is true that when a country attempts to develop its economy rapidly,under present circumstances, the inequalities would widen or the GC would go up. This happened even in the case of China. However, during the last decade, it has been brought down from 50 percent to 45 percent. There is more to be done in China in this respect.

The latest household statistics reveal that the income gaps in the country have widened. The bottom 20 percent is left with only 4.8 percent of the national income while the top 20 percent entertaining 50.8 percent of the whole. This also means that 80 percent of the population shares only 48.2 percent of the total income.

Essential Features

Bringing down social inequalities or GC is only one aspect of social democracy. Major reasons for the existing social inequalities are the illicit economy, illegitimate money making, tax evasion, and deficiencies in tax policies favouring the superrich. Others are (1) the underdevelopment in agriculture and the rural sector in general (2) pervasive underemployment in marginal sectors and in the government services and (3) the underutilization of labour/entrepreneurship of youth and women.

This means while the rich are given a free hand in profit and money making, the poor are underutilized in gainful employment/enterprises through neglect.

The objective of social democracy is to construct reasonably a prosperous economy and a society with social justice and human rights in all spheres of economic, social, political, cultural and civil rights. There is an urgent need to develop policy guidelines in all these areas giving priority to public education, public health, social security (unemployment, age, disability), women and child welfare and many others.

While social security in certain areas (i.e. unemployment) might be considered a ‘makeshift’ arrangement, the primary effort should be to engage all able citizens in productive employment and enterprises. Social democracy is not mere ‘welfare state’ to mean welfare dependency or handouts. While there are rights, there are duties and responsibilities. Social democracy is a social movement to voluntarily mobilize human efforts in building a socialist society. Such a movement or policies could only be built through a committed leadership, a party/parties, elected representatives, intellectual involvement and popular participation.

Social democracy is also about taking democracy into the micro level of the individual, family, neighbourhood, school, factory/office, political party and into the political culture and the social value system. Even it should apply in religious organizations (temple, mosque and church). Most important might be at this juncture is initiating a broad discussion in developing such an ideology, perspective and a policy framework taking forward the existing understanding of social democracy.

The Political Tug-O-War In Sri Lanka Is Cockeyed & Absurd: Only Ranil Talks Of Economic Goals

By Shyamon Jayasinghe – JayasingheFebruary 1, 2018

The electorate has to crowd around these useless and headless blokes and swell their meetings in order to collect the morsels of food and drink and dole-outs from the ill-gotten money of the political class that rules.

The discourse is: “dooshanaya! dooshanaya!dooshanaya!” What a bloody harangue! It bores me to anything short of death. Maitripala Sirisena has nothing to pronounce except cry, “dooshanaya.” He is the new swordsman against dooshanaya and he talks as though dooshanaya is something new in his four decades of political experience and, therefore, intolerable. The JVP cannot be a Third Force as long as it talks only about dooshanaya; it cannot offer any positive program for the economic upliftment of the country. Its vast energy wasted for the dooshanaya  critique only goes to help one of the  two competing mainstream parties to garner more votes against the other. This is the crisis of the JVP.

Of course, the main proponents of dooshanaya – the Rajapaksa clan – is also vociferously attacking the ruling party of this disease and comically trying to wash their hands off their ten year-old dooshanaya circus.

 

This is the outcome when a whole political class of a country walks and talks in a realm of reality different and irrelevant to the needs of the people. The electorate has to crowd around these useless and headless blokes and swell their meetings in order to collect the morsels of food and drink and dole-outs from the ill-gotten money of the political class. 

The media simply follows the political class-looking for opportunities to survive. One never observes any printed or online media  that tries to balance the imbalance and put things in perspective. They take some side or the other in the dooshanaya Vs dooshanaya battle.

This is current Sri Lanka’s plight. The only political leader talking and walking the economy is Prime minister Ranil Wickremesinghe. I will not be doing my duty as a writer if I do not point out this exception  to the rule. The reason is that the exception, at least, should be mentioned in order to try and encourage a solitary example to spread at least to the level of a forming a critical mass.

I remember reading Nobel laureate in economics, Gunnar Myrdal, arguing that in Third World countries bribery and corruption acts as the lubricant to propel the economic engine in Third World countries.

Sri Lanka has  two key problems and dooshanaya isn’t one of them. The first issue is the urgent need to overhaul the economy and restructure it from its current profile of a debt economy where debt drives it, to an export-led economy. The second is reconciliation. Let’ talk her about economics.

 

We have to increase exports and, with that, direct foreign investment if we are to grow our economy. Economic growth means the increase in the capacity of an economy to produce goods and services within a specific period of time. It represents the longterm expansion of capacity of an economy and such expansion has been measured by the GNP.

It is only with such an expansion that the needs of the public can be met – the needs for employment, need for increase in the per capital income of the individual so that the latter can do his own, the need for public hard infrastructure and soft infrastructure, needs in public health, in education and, generally of the need for the betterment and prosperity of the average household. The rational economic cake must be big enough for the state to distribute its largesse equitably and in the right direction.

Economic growth will  stimulate government finances by enhancing tax revenues. This is how the public needs can be met. An economy snowballs this way into higher and higher growth as capital accumulates both in the treasury of the government and the coffers of the private entrepreneur. It is encouraging to hear the Finance Minister labelling his budges as the entrepreneurs’ budget. 

Entrepreneurs are the agents that drive an economy; not beggars. Not political thugs

Here, in Australia, the economy has grown considerably and successively over the last twenty-five years and see what amount of public needs are being met! How the disabled and the vulnerable in society are cared for! In Scandinavian countries the situation is even better. The whole Western World is ahead because of economic growth. Is there any point demanding a government to do anything for the people when the national economy-cake is so small? In these Western lands it is the private sector that has been the active dynamo of growth. Profit incentives act as the primary motivating force.

Successive governments since 1956 ruined the path of private enterprise by taking over every business enterprise that came their way. The SLFP has been the principal offender having been the party that sucked into a creed of populism. Keep giving free as much as possible -everything under the sun. That everything must be budgeted for isn’t the concern. Take-over and give. Mrs B famously said she would bring rice from even the moon and distribute free to the people. We used to go to the co-op, carrying our bags and collect free rice. People began believing that any government is possessed of a magic money-delivering kapruka or tree to give very dash thing fee like this. Hence, demanding and protesting is the only thing for the public to do.

The country ran broke and this is how the debt economy was born. It is critical for our nation’s survival to rectify this situation and revolutionise the country’s economy. The introduction of liberalised trading and the open economy in 1977 was one of our best economic decisions of our recent past. So were the Free Trade Zones to attract foreign direct investment-done at the same time.

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Why my vote is for Ranil’s host?

2018-02-01

With another election on the cards, the daggers are drawn with accusations going to and fro, hither and thither. The former ruler who suffers from selective amnesia about his past record is at it again, playing to the gallery, waving both arms and shouting himself hoarse. Attempts are also being made to blame the PM for the recent disgraceful behaviour in Parliament. This is, as is usual with the JO and others who do this, just another slanderous fabrication. 

We all know who started the fracas leading to fisticuffs. It was none other than a famed long jumper who had done it before when he was on the other side. He is certainly more famed for brawn rather than being a mental heavyweight! A certain speech made by him when a Minister is still talked about for the many gaffes he made. It is a disgrace that we as taxpayers have to fund our lawmakers who behave in this fashion. The Prime Minister of the country was on his feet, making a statement on the Bond issue, on which many unfounded accusations were thrown at him. Instead of listening, they shouted names at him. We all know about the billions of loss to the country due to the corruption of the former regime and their extravagance of spending state money to enhance their personal glory. This led to the PM who is human and not a God and MP’s returning the insults; he did not resort to fisticuffs, which in earlier times led to some dying after heart attacks due to such assaults. 

Second line of the UNP consists of a group of educated qualified young men/women, who are capable of holding their own in any assembly anywhere in the world. No other party in our country has that advantage

Objects were even thrown at the PM, after which began the violence bringing this most august assembly, the Parliament of Sri Lanka to become like an unruly marketplace. One young MP collapsed. Is this the kind of behaviour for our youth to witness? It should have been controlled as it began and the situation brought under control by those who have the authority to do so. Nothing has even been done about Weerawansa who threatened to set fire to Parliament, thereby inciting others to do so.  

The second line of the UNP consists of a group of educated qualified young men and women, who are capable of holding their own in any assembly anywhere in the world. No other party in our country has that advantage. This is entirely due to Ranil WIckremesinghe who was responsible for this. Some parties only have jokers who cannot discipline their children, teach them right from wrong, instil the right values and principles in them to keep them from adhering to the rules of the land leading breakaway political groups. Other candidates riding piggyback on ancestor’s names are disgracing those ancestors by doing pole-vaults from party to party. I was very impressed when I met some young people contesting the forthcoming local government election for the UNP the other day. Among them were young Shavil Bandaranayake Kariyawasam, son of impeached Shirani Bandaranayake, Duminda Attygalle, Dilshan Jayasinghe and some female candidates.  

At long last women are getting a better chance of being involved in decision making with the representation of women increased to 25 %. This was the brainchild of the PM, who at the initial meeting in 2015 to discuss this with a committee of women, hand-wrote the entire document himself as his brain invariably works ten times faster than most others. Particularly those who are suffering from selective amnesia and those who project themselves as great intellectuals.Due to this we have formidable groups of women contesting from most major parties. 

UNP list is led by Rosy Senanayake, who has proved her capabilities in her role as UNICEF Ambassador, High Commissioner in Malaysia and as a Minister

The UNP list is led by Rosy Senanayake, who has proved her capabilities in her role as UNICEF Ambassador, High Commissioner in Malaysia and as a Minister. I saw all this for myself as I accompanied her to Jaffna and other places when among her first projects were the presentation of a nutritional pack worth Rs. 20,000 to pregnant mothers.This is still being done.Under this regime the Ministers of Finance, Health, Housing, Prison Reforms, Rehabilitation and Reconstruction and Education have done yeoman service. Salaries of government servants were increased, schoolchildren get insurance, medicines at a discount, there is an increased intake of students to universities, the Mahapola allowance has been increased, there have been several housing projects all over the country and in the North which suffered long and silently during those miserable war-torn years, land which rightfully belonged to the people and were taken away has been returned to them. 
Medicines have been reduced in price,stents and lens for cataracts are free, an urgent need for an ambulance service all over the country has been established saving many lives,model villages have been started. The PM worked hard at getting back GSP. There are still a few among us, with an IQ probably below Zero who talk about the former ruler’s sibling glorifying Colombo. This was a just a face lift where it shows, the side roads inside which were still full of potholes are only being attended to now. This facelift also caused the bigger tragedy of Meetotamulla, when people during that regime were shot when they protested. 

Here again the PM and Ministers concerned have solved the problem. They listened to the people’s woes and acted on them. Was there ever a Bond Commission in spite of all the  accusations when the former regime was in power. Have people forgotten the white van syndrome where anyone who dared to question or protest was killed or just disappeared leaving spouses and families distraught and in great distress. Previously although the UNP controlled the Municipal Council, they were given step-motherly treatment by the central government for 25 years. This time round there is a concrete plan for Colombo to make it a city that we will be proud to live in.   

I was happy the other day when talking to some people to hear some comments which I quote below. A lady who I asked to vote for the UNP said. ‘All my life, my three prime loyalties have been to my old school, Bishops College, my church, the Anglican Church and my party the UNP. I will never change’. Another gentleman who is well known his expertise in finance and accountancy  said ‘I only have faith in Ranil who can strengthen our economy’. Still another when I questioned why Ranil was singled out for unfair and slanderous attacks said. ‘Don’t you realize that they do this because he is the only challenge? Good thinking which I hope will inspire one and all to go the polls to cast their vote. Women and all must set aside their political differences, vote to have our first woman Mayor of Colombo.