14 December 2023 12:00 am Views - 2845
We will operate an economy based on three pillars- production growth, economic expansion, and public participation
We believe in a uniquely Sri Lankan economic model based on socialist principles
It is important to bear in mind that Sri Lanka cannot develop disregarding its ties with India, the closest neighbour and the regional powerhouse
The real crisis is more serious than the one being painted by the government through the media loyal to it
We don’t believe in the total state role in business operations such as the management of estates, mines etc
The National People’s Power (NPP) believes in economic policy formulation by the government. For the expansion of GDP, we will act with the participation of the state, the state- private sector partnership, the private sector alone and cooperatives as and when necessary. We have to adopt the best possible approach
Excerpts:
Q:What is your party’s stand on the current debt crisis and the Extended Fund facility with the International Monetary Fund (IMF)?
As everyone else does, we also see this as a rigorous economic crisis. The real crisis is more serious than the one being painted by the government through the media loyal to it. Sharmini Coorey, Former Director, Institute of Capacity Development of the IMF, explained in clear cut terms the depth of the economic crisis before the Central Bank officials recently. According to her, even if we implemented the IMF prescription in its entirety with debt restructuring and maintaining a primary surplus of 2.5% of the Gross Domestic Product (GDP), our debt burden will reduce only to 95 percent of GDP by 2032. Normally, in an emerging economy, it is only 65 percent of GDP. In India, it is 55 percent. As such, we, on the instruction of international organizations supportive of us, believe in the expansion of the size of our GDP. That is to increase production. Up until 1975, for 30 years in the post-World War II period, a state–controlled economic model was experimented in the world. It was the same in countries such as The Soviet Russia and the United States of America. Afterwards, the neo-liberal economic model emerged reducing the role of the state in the economy and allowing the private sector to take over. As with Sri Lanka, this model has not yielded as President Ranil Wickremesinghe himself admitted in his budget speech. The National People’s Power (NPP) believes in economic policy formulation by the government. For the expansion of GDP, we will act with the participation of the state, the state- private sector partnership, the private sector alone and cooperatives as and when necessary. We have to adopt the best possible approach. We don’t believe in the total state role in business operations such as the management of estates, mines etc. We are ready to handle the economy with any sector that is competent. Still, the state does planning and supervision, and will ensure that people benefit in the end.
Q:Is that a social –market economic model in which the state plays a role similar to that of a referee in a football match?
The economic model adopted by Soviet Russia and East European countries in the post-World War II was called socialist or social-market economy. To counter it, the capitalist camp introduced a social-market economy. The market is relevant to any economy. There is a Chinese saying ‘every economy has a market, and every market has an economy’. Rather than nomenclature, what is more important is the concept here. We will operate an economy based on three pillars- production growth, economic expansion, and public participation. It is themed ‘a wealthy country with wealthy people’. Liberal capitalism can create wealthy countries, but not wealthy people.
Q:What are the specific roles of government in each sector such as agriculture and education?
Policy formulation is the number one. Secondly, the government has to intervene in varying degrees in each sector to ensure benefits to people and make sure that they are protected from vulnerabilities. In the energy sector, we believe that the government has to have the majority stake. It does not mean that the government is responsible for importing, distributing and pumping fuel. Yet, the government should have the authority to regulate the energy sector because otherwise one big businessman, company or another country can politically influence our country. The government should also have a stake in the regulation of the financial market.
Q:As for education, your party has been opposed to private universities. Today, the number of students seeking education in the private sector has increased. A lot of students go abroad for studies. What is your policy on private investments in the education sector?
Some elements try to project the NPP as a socialist party hell-bent on having only the state sector education system. Existence of a fee-levying education system is not the yardstick to be used in the definition of an economic model. For example, people are charged for education in China. During the time of ex- Chinese President Hu Jintao, private education was started. In Vietnam, people are charged for education in some cases. Still, these countries are ruled by the communist governments. In Finland, education is free up to basic degree level. Education is free to some extent in France.
In our plan, we lay emphasis on human resources development. Education is key. According to the UNDP report on multi-dimensional vulnerabilities, 65 percent of people are in the risk group. It is bound to increase to 80 percent. The World Bank says 90 percent of people have exhausted their deposits or curtailed expenses for education and all. The World Food Programme (WFP) says one –third of people suffer from nutrient-deficiencies. In such a context, the government should have the dominant role in the education sector. That is to iron out disparities.
Still, the NPP does not stand in the way of people seeking private education over reasons such as lack of opportunities in the state universities despite having qualifications, the absence of desired courses at the state universities or being unwilling to study in the state sector. We won’t allow businessmen to exploit people in the education sector by putting up private universities or schools. The government is responsible for education in whatever manner.
There are around 15 private universities already in operation. Nothing will happen to them. We, as the government, will only regulate them. Also, we will expand education opportunities for people using tax revenue and private investments. We won’t eliminate the private sector from this field at all.
Q:The JVP has transformed a lot in its policies in this regard. Hasn’t it?
Anyway, it is natural for a socialist party to undergo changes in its strategies under evolving circumstances without compromising on the core principles. Nowhere in the world can one find specific models that outline how a socialist party runs a government. It all depends on the level of development, public cognition and global circumstances of any given country.
Q:Can you describe your economic model using any particular terminology?
Neoliberalism is a failure as accepted even by President Ranil Wickremesinghe who advocated it. The Socialist camp collapsed in the world. There are socialist governments in the world. Other than China and Vietnam, other countries are not on a sound footing. We believe in a uniquely Sri Lankan economic model based on socialist principles. That is to enhance production and ensure its equitable distribution.
Q:What is the country which is closest to you in terms of economic policy?
I don’t think such a model can be found anywhere in the world. In our policy, there are numerous features similar to the Indian economic model such as the development of small, medium industries, GDP boost through cooperative societies, taxation aimed at protecting local industries. Like in Vietnam, we have export-oriented policies targeting the markets in the United States and Europe. We have features similar to the Singaporean model in terms of development of the service sector. If you insist on asking the closest country to our policy, we can cite Vietnam which also underwent a similar phase in its history.
Q:What is your plan to attract Foreign Direct Investments (FDI)?
For that, not only foreign policy, but also economic and political policies are important. We need to follow a non-aligned foreign policy. It is a multi-polar world. The global clout of the United States and its currency is diminishing. Then, BRICS, as an organization, has evolved. They engage in a new economic journey building financial institutions running counter to the International Monetary Fund (IMF). At the latest BRICS summit, they wanted to expand it further. There is a conversation on a power bloc in the global south mightier than G7. The African Union is developing. They talk about a common currency. We need a non-aligned policy to deal with all.
However, it is important to bear in mind that Sri Lanka cannot develop disregarding its ties with India, the closest neighbour and the regional powerhouse. India is a country that can influence Sri Lanka in numerous ways. We will go for cordial relations. China is a key economic powerhouse in the world. It is located far from us, but we can get numerous economic benefits from it. We need to strike the right balance in ties with these countries.
We have failed to attract investment despite opening up the economy, setting up special economic zones and giving incentives. The reason is corruption. Nobody can run a factory due to the current high electricity and fuel prices. We can improve the Ease of Doing Business Index by rooting out corruption starting from the political level.
Q:Your party’s politburo member K.D. Lalkantha said the party is even ready for an armed struggle if the need arises. Do you still believe in your violent past?
In the latest opinion poll, JVP leader Anura Kumara Dissanayake is leading among all the prospective presidential candidates. Then, there is no need for us to take up arms once again. Are we mad to do it? We believe in capturing power through electoral politics. We need public support and international backing. If we win democratically, we can get support from both ends.
Q:Then, are you denying what he said?
In his remarks, there is scope for one to interpret it in that way. He said he was involved in the armed struggle in 1988/89. He said he will not shy away from such action if the need arises in the future. This is interpreted in this manner. We completely rule out an armed struggle.
Q:In your opinion is the 1988/89 struggle a past aberration?
Whether an armed uprising is good or bad depends on its end result. In China, the government was formed in 1949 through an armed struggle. The armed struggles resulted in power capture in Vietnam and the United States. If the struggle is won, it is hailed. If it is defeated, it is bashed.
Q:What is your view in retrospect of what you did?
We regret what happened at that time. We are shocked over what happened. We wish it did not happen. We wish our party was not banned. Whatever it is, we are shocked over what happened.
When we mobilise ex-military personnel politically, the government slanders us citing it as a move to launch another struggle.
Q:Did you reprimand Mr. Lalkantha over such remarks?
We discussed the matter internally. We resolved that we should not make any statement that leaves scope for any such interpretation hereafter.