Financial Times

The need for peaceful coexistence
The business community has again called for a bipartisan approach to the peace effort. The call came from the chairman of the Ceylon Chamber of Commerce, Tilak de Zoysa, at its annual general meeting.

He used the occasion to warn that the consequences would be disastrous for the country if President Chandrika Kumaratunga and Prime Minister Ranil Wickremesinghe do not adopt a common or less antagonistic approach to the efforts to solve the ethnic problem.

The inability of these two leaders to adopt a bipartisan approach to the most crucial problem facing the country, and one that will decide its fate, is frightening. It also has all sorts of repercussions not the least of which is that such attitudes undermine investor confidence.

But the business community's latest call is likely to fall on deaf years, if one is to go by past experience. It was only in May that this same business community got very agitated about the dispute over the Development Lottery. Then, the Joint Business Forum, or JBIZ, the apex body that represents all the major business and trade chambers and employer organisations in the country, summoned an emergency meeting to announce their concern over the impasse created by the dispute.

De Zoysa said the private sector remained concerned that months of talks between the Tigers and the government with the mediation of the international community had still not been successful.

He did acknowledge that there were initial signs of a "peace dividend" in the form of growing business confidence and increasing consumer confidence and the revival of the economy and enhanced trade between North and South.

It is true that GDP growth rates are on the rise, companies are reporting impressive results, the stock market is booming, inflation and interest rates are coming down, and the exchange rate against the dollar seems to have stabilised to some extent. Foreign reserves are also improving with an inflow of foreign funds.

But serious problems remain. Another major power crunch looms on the not-too-distant horizon. This government, just like the previous one, continues to drag its feet on low cost power plants such as coal.

The stock market boom has most likely enriched those already rich while many small investors appear to have burnt their fingers through unwise investments.
De Zoysa also drew attention to the deteriorating law and order situation: "Law and order is essential not only to create a macro environment conducive to economic growth but to improve enforceability of contracts, transparency of transactions and efficiency of operations."

The misdeeds of ministers and the government's apparent inability or unwillingness to do anything to rein in their excesses, as well as those of their offspring is also very worrying. This kind of behaviour too undermines investor confidence.
De Zoysa also warned against too much openness when even developed countries protect vital industries or sectors of the economy such as farmers.

He called for a mix of liberal and "selectively protectionist" policies, pointing out that many advanced economies took a similar route in their early years of development.
The private sector has every right to call on our national leaders to put aside petty political differences and work together to save this country. After all, it is they who have been given the responsibility of driving economic growth.

They stand to lose a lot of money if the peace effort fails. The private sector can act as a kind of "third force" to bring the two main parties, and their leaders, together in an arrangement that another writer, in an article called 'The private side of the private sector' elsewhere in this section, describes as 'peaceful coexistence.' The inability to do so would only help those who want to divide the country.

One thing is also very clear. LTTE leader Velupillai Prabhakaran is not the main stumbling block towards peace. It's the UNP and the SLFP. When one party in power proposes a solution, the other opposes - for the sake of opposing. When the turn comes for the opposition party to serve in power, the roles are reversed.

This country will find peace only if and when the parties set aside their petty differences and come together on this national issue. Are we asking too much?

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