Financial Times

Closer economic ties with the US
It is clear that the UNF government is linking our economic future very closely with that of the United States. The pronouncements of our leaders and the positions taken by the government in international fora point to an unabashed support for the economic and trade policies pursued by Western industrial countries, led by the US.

In this the present government is following the policies pursued by some previous UNP governments just after Independence, as well as in the 1980s on the issue of the Falklands, where we supported the West and went against the positions taken by most of the Third World and the Non-Aligned Movement. Some of our policies such as that on the Falklands brought much embarrassment to the country.

The present government appears to be willing to risk earning the displeasure of other Third World countries in its support for the West, particularly the US. Consider Prime Minister Ranil Wickremesinghe's recent remarks at the United Nations, construed by many as justifying the US invasion of Iraq.

Although the PM has tried to soft peddle the issue, the fact remains that he need not have alluded to it at all, unless it was at the behest of the US, which has very few supporters for its invasion of Iraq and subsequent occupation.

The US is badly in need of public support for its actions and appears ready to bully and bribe small countries such as ours into making sympathetic noises. In return we can expect more US aid, both economic and military, the latter an urgent requirement given the growing strength of the LTTE and its intransigence at the peace talks.

Even the attempt to put forward Foreign Minister Tyronne Fernando as candidate for the post of UN secretary general is being interpreted in some quarters as being at the behest of the Americans who want a compliant secretary general since the present incumbent is not willing to play ball with the US.

Prior to the PM's controversial remarks, the Economic Reforms Minister Milinda Moragoda openly supported US hegemony in a speech he made in Hawaii while Trade Minister Ravi Karunanayake took the side of developed countries at the Cancun trade talks, which collapsed because the West refused to eliminate their protectionist policies.

Apparently, supporting the US and the West in general appears to be the price we have to pay for the so-called 'safety net' that is supposed to maintain the country's integrity in the event the Tigers go back to war, and for being eligible for those billions of dollars in aid.

The UNF government obviously believes that for strategic reasons it is in Sri Lanka's best interest to tie up with the Americans. We ought to bear in mind that in the game of international politics there are no permanent friends or interests, to use a hackneyed but nevertheless entirely valid, phrase.

It remains to be seen for how long the US remains the most powerful nation on Earth, although for the foreseeable future US power and hegemony over the world seems guaranteed, especially given its military and technological lead. The US is our biggest market for our most important industrial export - apparel. It also wields much clout in multi-lateral aid agencies.

We are also seeking to sign a free trade deal with the US - the first for a South Asian country. The government has to strike a delicate balance between the interests of other developing countries such as ours and pleasing the US, whose market and economic and military support we need. Whether it can maintain the right balance without jeopardising our relations with the Third World remains to be seen.

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