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Is Dr. N.M. Perera’s solution for the 1970-1975 economic crisis, the answer to today’s?

17 Aug 2021

BY Prof. Tissa Vitarana Sri Lanka’s economy is facing a deep economic crisis. But it is not alone in this situation; the whole world is in a crisis. It is a systemic crisis that affects every country periodically, to a greater or lesser extent, at intervals of eight to 10 years. These have led to much suffering for the people, and the process of emerging from them is very slow and painful. This is an inherent feature of the capitalist economic system. Capitalism developed in the womb of feudalism in Europe, leading to revolutionary upheavals like those of the French Revolution and the Cromwellian (a reference to Oliver Cromwell, who, as the then commander-in-chief led the armies of the Parliament of England) Revolution in England. But in the countries of the third world like Sri Lanka or India, capitalism did not arise from within, but were introduced from capitalist countries like Britain to exploit our human and material resources and markets, using the local (comprador) capitalist class, led by parties like the United National Party (UNP) in Sri Lanka.  Dr. Nanayakkarapathirage Martin Perera and emerging young intellectuals like Dr. Colvin Reginald de Silva, Ranaweera Appuhamilage Leslie Herbert Gunawardana, Don Philip Rupasinghe Gunawardena, and Dr. Sugiswara Abeywardena Wickramasinghe, when they were abroad, recognised that this colonial subjugation would lead to perpetual poverty for the vast majority of the Sri Lankan people. A true understanding of the nature of capitalism and imperialism was achieved through a study of Marxism (a reference to philosopher Karl Heinrich Marx). They became Marxist revolutionaries, committed to the defeat of capitalism and its replacement by socialism, globally, and thereby in Sri Lanka as well. Dr. N.M. Perera obtained a bachelor of science degree, a doctoral degree, and a doctor of science degree from the prestigious London School of Economics of the London University. He was a favourite pupil of the legendary economist and political theorist Prof. Harold Joseph Laski – who was also an Advisor to the Labour Party – who said that Dr. Perera had all the qualities needed to be an English Chancellor of the Exchequer (a Finance Minister). Following Dr. Perera’s return to Sri Lanka and his performance here, Sir Ivor Jennings, who was then the Vice Chancellor of the only University of Ceylon, said that he had all the qualities required of a Labour Prime Minister in Britain. Instead of rising to great heights serving the British empire that ruled the world, Dr. Perera chose to serve the people of Sri Lanka by fighting to win independence from the British. When Dr. Perera and these Leftist leaders returned to Sri Lanka (Ceylon), they helped form the Suriya Mal Movement to save the people whom the British rulers allowed to suffer from malaria without medicine and food. Dr. Perera was referred to as “parippu (dhal) mahaththaya”, as he supplied these needs, climbing steep hills by foot – as there were few roads – despite the presence of leeches and snakes.  In 1935, they (Dr. Perera, Dr. de Silva, D.P.R. Gunawardena, Dr. Wickramasinghe, and R.A.L.H. Gunawardana) formed the Lanka Sama Samaja Party (LSSP). They devoted all their energy and income, day and night, to fight for the rights of our people against the British rulers and their local agents. Their main objective was winning complete independence (unlike the Dominion status that was given by the British to Ceylonese Premier D.S. Senanayake and the UNP in 1948 to continue their exploitation here). Complete independence was finally achieved in 1972, overcoming UNP resistance through the Republican Constitution drafted by Dr. de Silva, and with the latter and Dr. Perera as Ministers in the Coalition Government led by then Prime Minister Sirimavo Bandaranaike. This was 22 years after India, as UNP and Tamil National Alliance (TNA) resistance had to be overcome. The second objective was to overcome poverty and injustice, and narrow the rich minority/poor majority gap by establishing a society with social equity, a “sama samajaya”. In Sri Lanka, like in the whole world, the rich poor gap is widening, and society is becoming more unstable. With the global capitalist crisis, the fall of the US and western economies, and the rise of China purely by trade (without any imperialist conquests), the US is now gearing for a war to lift its economy which depends on arms sales, as it produces 60% of the global supply. The aim is also to achieve regime change in China. The LSSP also fought for 22 other demands and won many of them – free education, free health, the eight-hour working day, overtime payment, pension, employees provident fund (EPF), and other rights. While doing all of this, Dr. Perera found the time to attain many achievements: Parliamentarian for Ruwanwella and Yatiyantota, the Opposition Leader, the Finance Minister, a Co-Convener of the global Group of 77 ministers of Economics, the Colombo Mayor, and the LSSP Leader from its inception up to his death. As an economist and political scientist, he wrote copiously, and as a popular speaker in Parliament, and public meetings, he went to all parts of the country and the world. He was a good sportsman and captained Ananda College in cricket. But among his many achievements, perhaps the most valuable is his overcoming the 1970/1975 economic crisis in Sri Lanka. The crisis was a result of the adverse trade balance due to the policies of the 1965/1970 UNP Government that wasted our limited foreign exchange (forex) on the import of luxury goods as well as local products, hitting our farmers and small and medium enterprises (SMEs), to get commissions for the UNP. On top of this, he was faced with the global capitalist downturn, the rise in the price of fossil fuels by seven times due to the actions of the Organisation of the Petroleum Exporting Countries (OPEC). Fertiliser prices rose by 422% in 1974. The world faced the worst drought for about 30 years during this period and food prices soared, with thousands dying in various parts of the world from starvation but no one died in Sri Lanka. The price of rice rose by 60% (from 35 to 56 pounds per ton), flour by 65%, and sugar by 323%. The prices of food items have not gone up internationally on a similar scale today. It is far lower. The local market price has gone up due to massive profiteering by middlemen in Sri Lanka, especially millers and traders. Further, the farmers are in the grip of money lenders as they are in a state of chronic debt. Dr. Perera took measures to relieve rural debt. All essentials were supplied through a ration card at low prices through the co-operative system that was functioning well. Producers and consumer co-operatives dealt with each other, getting rid of profiteering by middlemen (traders, millers, etc.) in the process. We can gain by following Dr. Perera’s policies to tide over the present crisis. (The writer is a virologist, Government Parliamentarian, the Committee on Public Accounts Chairman, and the LSSP General Secretary)


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