Moragoda's nostrum from the rostrum
There I was, on a brief visit to Colombo, switching channels to
catch something interesting on any of the country's multiplicity
of TV stations that have done much for quantity but little for quality,
when I espied what I thought was the visage of Economic Reforms
Minister Milinda Moragoda.
Other people
you simply see. But those like Minister Moragoda, who was quite
happy to hand over the world to US hegemony, you espy. I was not
wrong. There he was caught in an oval frame, looking like a hasty
cross-pollination between Rodin's "Thinker" and actor
Telly Savalas as the programme titled "In Black and White"
went on to, what in retrospect appeared, a much-needed station break.
Like a moth
inexorably drawn to a bright light, I watched with increasing interest
as Minister Moragoda expounded on economics-theory and practice-
as that poor soul called an interviewer looked on with mounting
fascination and bewilderment. Unfortunately I tuned in after the
programme had started and so missed the name of the interviewer
who seemed more like a dubious appendage whose only purpose was
to dutifully toss some pre-arranged questions in what sounded sometimes
like incomplete sentences.
It seemed to
epitomise the tragedy of much of Sri Lankan television today, especially
English programmes where highly over-rated 'interviewers' ask half-baked
or inane questions that allow an interminable soliloquy, leaving
Hamlet still in the starting blocks, ghost or no ghost.
So it was with
Moragoda's monologues that took the viewer through a gamut of situations
such as the printing of money and the impact of increased money
supply, fighting inflation, supply and demand, supply side economics,
free market policies, social policies and what not. As though disgorging
a whole text-book on economics was not enough, he threw the entire
caboodle of economic theorists and miracle workers at us from Keynes
and Ludwig Erhard to Hayek.
Just in case
somebody would accuse him of his penchant for free market policies
he managed to get Lenin into the act reminding me of the late Mervyn
de Silva's acid comment about a Trotskyist that a little Lenin was
a dangerous thing. George W Bush that great friend of Sri Lanka
(it is not too late for him to discover where on earth it is) promised
the Iraqi people shock and awe.
Leave alone
the Iraqis, Minister Moragoda was providing both in good measure.
If the interviewer looked on blankly as though coming out of an
anaesthetic, I was transported back to my fresher year at Peradeniya
where Prof Das Gupta was trying to instil the basic principles of
economics into 200 or more wandering minds at the Arts Theatre.
But the real economics -- about dwindling money supply, inflationary
spirals and deficit budgeting -- was learnt at the nearby central
canteen, not in lecture rooms of universities.
Not all the
lectures on economics and Asian economics I listened to at the University
of Hawaii had answers to a simple question: how to make 10 Sterling
Pounds obtained after much haggling with a tight-fisted Central
Bank practising exchange control, go further than the distance from
Colombo to Honolulu.
The moral of
the story is this. All these economic theories are fine. But societies
and people do not necessarily act as theorists and academics expect
them to do. Minister Moragoda might theorise till he is blue in
the face about supply and demand. But as one acquainted with the
business world , he is surely aware that artificial shortages of
goods are created by producers and manufacturers to heighten demand
and inflate prices.
What of all
those factors that have been carefully kept out of Moragoda's calculations,
such as bribery and corruption at political and official level that
often make nonsense of economic theory and nicely worked out equations?
That bribery
and corruption are major factors in the social and economic life
of this country and that they seem to worsen with each passing month,
are truisms. The fact that these are facts of everyday life is bad
enough. What is worse is that the government, of which Moragoda
is a key element, prefers to act like the three proverbial monkeys,
which see no evil, hear no evil and speak no evil.
Only last week
the state-controlled Daily News published a front page splash which
said Sri Lanka had surprised the Asian region and the international
community by not endorsing the Asia Pacific Action Plan to fight
corruption which is part of an Asian Development Bank and Organisation
for Economic Co-operation and Development (OECD) initiative.
While 21 countries
have endorsed it including our neighbours, Sri Lanka remains conspicuous
by its silence. That is not all. While some 130 countries will sign
the UN Convention on anti-corruption, Sri Lanka is once more fighting
shy of doing so.
Despite official reminders to Sri Lanka to participate in drafting
the convention, we have kept our fingers clean and possibly several
wallets filled.
And this is
the UNP, the main constituent of this government that spoke vociferously
on election platforms about its determination to wipe out corruption.
Moragoda said there are certain activities better performed by the
private sector than government. Privatisation, one of the neo-liberal
economic policies that Moragoda and others pay pooja to, of course,
leads to corruption as state assets are sold for a song, especially
to favoured businessmen.
By whom, to
whom, what and where are well known to the public. Corruption is
not restricted to the political establishment. Bureaucracies and
banking circles have been guilty, too, as Moragoda must surely know.
The Economic Reforms Minister claimed that some services should
be provided by the state. The UN declaration of November 2002 held
that access to clean water is a fundamental right.
Yet the World
Bank-formulated water privatisation policy treats water as a commodity
and many countries have been coerced into it. Surely as one interested
in economic reform, Moragoda cannot be unaware of what happened
in Cochabamba, Bolivia where the cost of water increased by some
300%, around 25% of the income of the poor, and even the collection
of rain water at home was a crime.
Is Sri Lanka
to be the next victim of the false prophets from Washington who
are worshipped with great reverence? Studies by the Public Services
International's Research Unit of the University of Greenwich revealed
how corruption is an issue in water privatisation by multinational
companies in developing countries
Today multinationals control 70% of the global water business.
Experience
of water privatisation in Argentina, Bolivia, Puerto Rico and elsewhere
and energy privatisation in India's Maharashtra State and California
have belied the arguments of greater efficiency and lower prices.
Moragoda's
economic nostrums from the rostrum don't hold much water, not even
privatised water. And we haven't even dealt with other inequities
of the globalised world such as the free movement of capital and
what I might call the "Soros factor".
Moragoda sees
everything "In Black and White". It is generally a sign
of intellectual obtuseness when people see only the blacks and whites
and not the shades of grey in between. |