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Sunday, 8 September 2002  
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Business leaders... where do you stand?

by AMRIT MUTTUKUMARU

'Sri Lanka First' is a formation of key business sections with the major objective of ostensibly bringing about the peaceful resolution of the ethnic crisis and the resultant war through negotiation. Regrettably, their approach to date towards resolving this complex issue has lacked the required commitment, sacrifice and professionalism. They have never taken a specific stand on any of the contentious issues, be it the ethnic crisis or good governance.

The activities of 'Sri Lanka First' have to date been confined to the mere 'joining of hands' for a few minutes on one day - 19th September 2001 by a self-proclaimed million persons (possibly largely composed of garment factory employees) for 'peace' and at least two lavish advertising campaigns with one of them reportedly costing Rs. 20 million. Similarly, their only other foray into social issues was largely limited to another ineffective media blitz almost at the tail-end of the run-up to the December 2001 general elections, 'appealing' to all candidates to 'refrain' from violence. We are not aware how many more millions this exercise has cost. This was apart from their claimed 'face to face' meetings and letters to political leaders, the IGP and the Commissioner of Elections.

This is the sum total of the 'pressure' which was supposed to usher in ethnic peace and free and fair elections.

Specific stand

The question is, how far are people willing to go to have real peace? What we would like to hear are specific proposals of 'Sri Lanka First' for a negotiated settlement inclusive of their specific stand on contentious issues.

It is this that will strengthen the hand of the government and instill confidence among potential donors and investors vis-…-vis the seriousness of leaders of civil society.

Apart from this, other issues such as political stability, good governance, law and order as well as having in place checks and balances to ensure good corporate governance will be of interest to serious investors - unless of course we are looking for highly speculative 'hot' money from dubious sources. Very sadly our business community has largely never demonstrated serious interest in such issues.

The UNF government too in spite of all the media hype about the peace process has never articulated their specific proposals to resolve the intractable ethnic issue either in opposition or in government. In fact, the manifestos of both major parties the PA and UNP were extremely vague in this respect.

If the government is sincere and professional in bringing about a realistic solution, it is amazing that they continue to bypass a population that is supposed to be 90% literate by not educating them through a multi-media communication strategy on the salient causes, features and implications of the ethnic crisis while also articulating on the specifics at least in general terms of a solution, since this is the only insurance and bulwark for a genuine negotiated settlement unlike unprincipled political horse trading. If the government is unwilling to undertake this, it is the duty of civil society led by the business and professional community to effectively pressurize them. If this too does not work, surely the private sector which is supposed to be the 'engine of growth' should carry out such a campaign themselves. This should go well beyond their previous superficial advertising campaigns. It is obvious that this task cannot be executed unless they 'stick out their necks' with specific positions and proposals even on contentious issues. Resources for such a venture would be available as a result of the international goodwill.

Similar pressure should be brought to bear even in respect of the required bipartisan consensus at least between the two major southern parties- the UNP and PA. The absence of this has the potential to once again stymie the peace initiative.

From the time of the conclusion of the general elections and the ascendancy to office of the new UNF government 9 months ago, 'Sri Lanka First' has virtually gone into slumber consistent with the behavioural pattern of our business sector who are highly dependent on state patronage in spite of so many critical issues of governance needing to be addressed. Even in regard to the ethnic crisis, they are content to leave things most dangerously in the hands of our essentially self serving politicians who have been described by a political analyst " as not having even the conscience of the common prostitute". It is to such people that the leaders of our business and professional community pay obeisance for political favours.

Whenever there are contentious issues and controversy not only with reference to the ethnic crisis but also on issues of governance involving the two major political parties that alternate in government, our business community and professionals go into hibernation. The only exception to this have been a spate of letters to the government on limited issues by a chamber leader virtually on the eve of giving up office! After all, what is needed is to apply sustained and decisive pressure on our self serving politicians. This has never happened.

Commitment

Sri Lanka's business community is noted for its virtual disengagement from national issues or at best a rare superficial token response. Even on the relatively simple issue of the de-proscription of the LTTE, there is a reluctance to take a clear stand. When this is the case, what chance is there for them to articulate their position on contentious issues such as unit of devolution, extent of devolution and interim administration?

Even in regard to critical issues on governance, there is deafening silence on matters such as- non-accountability in spite of alleged horrible abuse of power and corruption backed by ample documentary evidence , undue delay in the appointment of the independent commissions by the 'Constitutional Council'(CC) which itself has been subverted by not only politicians making all appointments but also by virtually all appointees being drawn from the legal profession, the unacceptable demand for 'immunity' by the CC, the obnoxious presidential immunity, critical bills fundamentally affecting the manner in which we will be governed being presented to parliament virtually in the absence of any public debate and the whopping 62 ministerial appointments expected to be further increased- the PA equivalent was 79.

Apart from all this, when the searchlight is turned inwards, the picture in terms of corporate governance is very bleak indeed. After all, the last thing our largely mediocre, small trader mentality, state 'hand out' dependent, 'tender' driven and 'conflict of interest' ridden corporate sector demands is a level playing field with checks and balances to prevent abuses. A shocking feature of this is the impunity surrounding it. This can readily be amply substantiated.

Hence, there is no way in which at present our private sector can be given the arduous task of managing sensitive infrastructure such as water, power, energy, road, shipping, air transport, ports etc. since they just do not have the capability for such a venture apart from the absence of the required checks and balances to prevent abuses. We even do not have at least one regionally recognized business and technology institute, let alone a world class institution with internationally recognized personnel.

This does nothing to improve the competencies of our private sector. For example, Sri Lanka has possibly the lowest productivity in Asia in the much hyped garment 'industry'. When this is the reality, how can we competently handle sensitive management and technology savvy infrastructure?

What is strongly objected to is not globalisation and privatization per se, but its mindless application carte blanche due to external pressures and in the absence of the required checks and balances to prevent abuses. Have we learnt nothing in the past 25 years since liberalization commenced in the post 1977 era? Is it not a fact that almost all privatisations in this country have been dogged by scandal and largely not beneficial to the national interest and the consumer? Is it also not a fact that many of them have resulted in a public monopoly being converted into a private monopoly where the people of the country are worse off? Have we learnt nothing from the tragic experiences of other countries which followed the dictates of the Bretton Woods twins, Argentina being the latest casualty in a long list? Why is 'Sri Lanka First' silent on such issue? Does this not contradict their objective of promoting the national interest?

As pointed out by this writer in an earlier article, "the vigilance and assertiveness of civil society is the lubricant that oils the wheels of a vibrant democracy. It is in the absence of this that irresponsible governance and inequity thrives. This has so far been the tragedy of Sri Lanka...". In this connection, it has also been pointed out by this writer in previous articles that in the context of the universally assigned role to the private sector as the 'engine of growth' it is this key component of civil society composed of our businessmen and professionals that have the countervailing clout and wherewithal to stand up to our politicians in the national interest. It was also observed that, "on the contrary, it is tragic that by their acts of omission and commission, their stance can even largely be construed as servile".

Even the limited 'development' work being undertaken in the north is reportedly tainted by alleged corruption and abuse of power. This includes port development and road construction. One also hopes that the mistakes made in the rest of the country will not be repeated in the north and east. This includes the breathtaking beaches especially in the east which must not be ruined similar to what has taken place particularly in the south of the country. These should be developed to cater to the more affluent segment and certainly not the mass tourist market.

HNB-Pathum Udanaya2002

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