The Sunday Times Economic analysis
Putting economy in the forefront
By the Economist
For far too long there has not been an effective management of the economy.
It is time for the new government to place the economy as a priority, even
we would suggest, as a higher priority than the issue of peace. We say
so in spite of our recognition that peace is a sine qua non for rapid economic
growth. However to wait for peace to resuscitate the fallen economy would
The foremost reason why we place the economy first is that a real peace
settlement is a tortuous and uncertain path. It will take considerable
time, compromise and mature vision for the country's leaders to forge a
settlement. The LTTE in particular has shown a lack of compromise on the
impractical demand for a separate state, treacherous in its several previous
discussions, and find itself unable to work within the democratic framework
of the country.
In such an uncertain situation, the country cannot wait for a settlement
of the conflict to get the economy moving. The economy is in dire straits
and a considerable effort is needed for the reconstruction of the economy.
And it must be undertaken at once.
The strength of the economy itself will be a determining factor in the
peace settlement. A weak economy makes the government's capacity to fight
the war, as well as negotiate for peace, far more difficult. A position
of economic strength will make peace through a successful war far more
feasible. A weak economy will not only make the war effort less effective,
but its burdens far more difficult for the people to bear.
On the other hand, negotiations to end the war would also be vitiated
as the terrorists sensing the weakness of the government to pursue the
war effectively would demand more than what could possibly be conceded
by a democratic government. A government weakened in its war efforts by
the economic burdens and yet unable to go against the will of the majority,
would result in a stalemate.
The rationale for placing the economy at the forefront of the government's
agenda arises from the situation the country is in. We have had a year
of economic stagnation. All sectors of the economy have fared badly, most
of them registering a decline in production. Investors have lost confidence
and are pulling out. The public finances of the country are in a crisis
with a mounting deficit. And the global situation makes an export dependant
economy particularly vulnerable. In such an economic context the private
sector, that has been repeatedly dubbed as the engine of growth, would
require to be given assurances of the government's policy; the public would
require to be educated on the real economic situation and the difficulties
that lie ahead; public administration has to be strengthened and a new
discipline enforced, Fiscal discipline has to be clearly a foremost pre-requisite
for good economic management.
All these are indeed always difficult to effect in the Sri Lankan socio-political
context. It is particularly difficult at the present juncture, when the
economy is in a parlous state and a wrong impression of it being sound
has been created in the run-up to the election. Election promises would
be difficult to fulfil in the strained financial situation and the inhospitable
international economic backdrop.
Despite these difficulties there is no alternative to strong and purposeful
economic governance. That is what the new government and parliament must
provide. An economy first approach is essential to get the nation out of
a hopeless rut it has got into.
Without such an approach, the economy and the nation will surely fall
into an abyss from which it would be near impossible to pull itself up
for a long time.
Focus on Rights
By Kishali Pinto Jayawardene
The right to Franchise: Eschewing the cult of personality
There are those of us - even in the highest places and occupying the highest
offices in this land - who scoff at the right to franchise. For these personalities,
an almost total lack of any ethical sense of what is right and wrong is
masked by a thin veneer of what has been referred to as 'charismatic appeal',
a highly deceptive cult of personality which, unfortunately for this country,
numbers not only politicians in its ranks.
The right to franchise and its accompanying guarantees of accountability
on the part of our leaders and public officials are therefore to be contemptuously
shoved aside and replaced with buffoonery or savagery, as that particular
This has been the tragedy of Sri Lanka in recent times. That accountability,
in its manifest forms could have been co-opted by such individuals with
nary a whimper by those who should have- and could have - protested. That
we failed to see the dangers inherent in this cult of personality and indeed,
focus on the many times where the cult has split and shown expedient arrogance
beneath. That we failed to look beyond the personal to the system and ultimately
to the country and recognise the quick destruction of even the remnants
of what once made us proud to call ourselves Sri Lankans.
It is in this sense that Wednesday's elections is truly significant.
Despite the absence of a culture of protest in this country, the 2001 General
Elections demonstrated how a people can translate their protest to the
vote amidst unprecedented violence and intimidation. In the manner of their
doing, Wednesday's polls teaches many things, not only to our erstwhile
rulers who failed us so profoundly but to all those who believed that the
right to franchise of the people in this country existed only in the air.
It teaches, moreover, grave lessons to those of us who thought that the
people in this country had to be led in order to overthrow a government.
For what happened on Wednesday came from the hearts of the common people,
not so much our intellectuals. It came despite significant failings on
the part of public officials responsible for the conducting of elections,
who should have acted with greater courage. This is where the real distinction
lies between the elections this month and the many that have gone before.
The people saw fit to take their future into their own hands and pray to
the heavens above that, this time at least, it would work out better than
the monumental failures of the past. In so doing, a salutary warning was
posed not only to those displaced from the seats of government but also
those succeeding to the same.
The following months will see Sri Lanka's 12th Parliament coming into
being and we hope, with it, some genuine law making. Its predecessor, for
the period of the one year that it remained - and that too, barely- in
office, saw the rather obvious predictions coming true, an "almost hung"
Parliament and the country on the road to that most extreme of happenings
under Proportional Representation (PR), a fragmentation of the party system
and shifting coalition governments. This had its own dynamics.
Writing immediately after the forming of the parliamentary assembly
last year, this column observed that the 11th Parliament will subject the
Peoples Alliance Government and its President to a crucially demanding
test of statesmanship which would determine the electoral future of the
Peoples Alliance in this country. In observing thus, this column was not
talking of Draft Constitutions being brought in haste before confused parliamentarians
or a subverted judiciary or of politically opportunistic Bills like the
Bill for electoral reform that was attempted to be brought in before the
life of the 10th Parliament expired.
Opposition within and without Parliament stymied both pieces of legislation.
Instead, what the Peoples Alliance and its leader Chandrika Kumaratunga
was called upon to do was establish a new political culture, which, it
had become clear, by that time, was imperative before any sustained initiative
could have been taken on the North East conflict. Part of this culture
was the establishing, on a clear political consensus and as a matter of
priority, a strong Constitutional Council controlling appointments to high
posts, an Elections Commission with extensive powers and its parallel Public
Service Commission and Judicial Service Commission. Laws promoting an independent
and responsible media culture were also called for. Above all, the people
needed to see positive moves by the legislature to lift this country out
of its deeply frightening environment of election violence and a complete
eradication of the "Wayamba" precedent. An essential part of this process
was to ensure that the government strip immunity from all those responsible
for blatant election malpractices in Kandy. As the year progressed however,
the 11th Parliament turned out to be the most farcical in the legislative
history of this country. While the uncomfortable legislative presence of
radical minority parties like the JVP resulted in a far less complacent
law making, what we had was not a new political culture but political dialogues
gradually deteriorating to unprecedented levels of brutality. A disastrously
arrogant style of governance by the Kumaratunga administration soon propelled
the dissolving of an unruly House scarcely before its time was up. Events
consequently proved that the mouse that was brought out by the JVP called
the 17th Amendment, despite the heavy labour preceding its passing, was
woefully deficient in all that it professed to achieve, even if it had
operated at its peak. We had therefore a December election that far surpassed
last year's election in its brutality but a peoples' vote that astoundingly
gave cause to hope again.
For Sri Lanka's 12th Parliament, the composition of which shows the
system of Proportional Representation working at its most benign, the priorities
that should have been addressed by its predecessor, still remain urgent
concerns. They need to be brought about however by a thoughtful legislative
process and not by confrontational political reasoning. Additionally, we
need to see a complete overhauling of the current electoral system and
electoral laws. More than ever, Wednesday's polls saw the emphasis on preferences
together with the absence of an obligation to submit statements of expenditure
(found in the earlier election laws) all adding up to making financial
extravaganza the determinant for capturing the vote.
In the face of these flamboyantly extravagant election campaigns carried
out by most candidates, this week's elections demonstrated a clear need
to enforce a ceiling on election expenditure. Current election laws in
Sri Lanka do not regulate the amounts spent on canvassing and campaign
excepting in specified contexts such as where such expenditures are termed
an offence or a corrupt or illegal practice. Equally, well thought out
amendments to the elections laws are necessary to prohibit the use of both
the private and the public electronic media in a manner that favours one
party over another. The misuse of the state media in favour of the Peoples
Alliance in these elections was blatant and as some quip, was perhaps largely
responsible for the overwhelming defeat that the government suffered.
For now, December, 2001 sees our proving - and in the nick of time -
that we are not quite beyond the pale and that there are some shreds of
sanity still left in us as a people. We now have a President and a Prime
Minister of different political colours. Regardless, the mandate that the
people have given to both of them this Wednesday to set right this tortured
country is quite clear. We look to them for its fulfilment.