The present Janatha Vimukthi Peramuna (JVP) led National People’s Power (NPP) alliance contested the last General/Parliamentary Election as a Leftist, pro-people front and won a massive majority and formed the Government. This win was despite estimates that after its year in power, it would have achieved only about 10% of its promised programme. The Lanka Sama Samaja Party (LSSP) decided to refrain from any criticism for a year to give it time to commence its “Leftist programme”.
As a Leftist Party, we of the LSSP, expected the tax policy to be changed so the present indirect taxes, like Value Added Tax (VAT), would be removed altogether and the burden placed on all the people, especially the poor and the lower middle class, would end. The late Dr. N.M. Perera, the LSSP Leader, who was the Finance Minister in the Coalition Government of 1970-1975 led by Prime Minister Sirima Bandaranaike, did not place any indirect taxes on the people. Instead, Dr. Perera placed the tax burden only on those who could afford it, especially the super rich, by gradually raising the tax, step-wise, to an upper level of 70%. He not only overcame the periodic (about seven years) crisis of over-production, inherent in the capitalist system, which occurred in 1972-1973, but also two other major crises. One was the increase of the price of fossil fuel (petrol, etc.) by seven times in the world market, with the formation of the Organisation of the Petroleum Exporting Countries, and the other was food (flour) from British Pounds 37 per ton to over 600.
Dr. Perera overcame this triple crisis within one and a half years and established a stable economy by 1975 which the foreign direct investors also accepted. They then agreed to invest, but under two conditions: the removal of Dr. Perera from the Finance Minister post and the removal of the LSSP from the Government, because they opposed corruption and the exploitation of the workers. Bandaranaike did this in a roundabout manner but the promised FDI did not arrive, and it enabled the United National Party led by J.R. Jayewardene to gain a big victory in the 1977 General Election. The country returned to pro-capitalist and pro-imperialist policies. But, Dr. Colvin R. de Silva of the LSSP was able to, as the Plantations Minister, end the British ownership of the plantation economy through the State Plantation Corporation and to gain full Independence through the Republican Constitution. Leslie Goonewardene of the LSSP, as the Transport Minister, was able to break the private monopoly of bus and road transport by establishing the Ceylon Transport Board. The LSSP pressure promoted the development of value added industries locally, like the Tyre Corporation, through ex-LSSPer, Industries Minister, T.B. Subasinghe.
As the Science and Technology Minister from the LSSP, I developed a programme to promote micro/small/medium enterprises and industries throughout the country. I set up one centre with five staff, led by a science graduate in each of the 341 administrative divisions, called a Vidatha Resource Centre. In about 200 of them, nearly 35,000 entrepreneurs developed sustainable projects, which gave jobs to three to ten persons each. I am happy to state that those exporting their products sustainably have just topped the 1,000 mark. This programme has fallen off in the last few years due to a lack of funds and bureaucratic support. I hoped that it would be picked up with the JVP-NPP Government, but, there is no evidence of that yet. The same can be said of the hi-tech centres like the Sri Lanka Institute of Nanotechnology. Scientific technologies like organic farming have not succeeded due to poor planning and execution and this continues with the present regime as well.
But perhaps, the most unpardonable fault is the wrong attitude to the very important areas of food and medicine. A study done about two years ago by a highly respected research institute showed that 63% of families, especially in rural areas, were living below the poverty line. Many of these families were unable to have three meals a day. The chronic malnutrition level was 14.3%. The impression is that the situation has got worse. There is no evidence of a plan to change this situation. Efforts are being made to achieve food self-sufficiency, which is a good thing, but they do not appear to be adequate.
The shortage of imported medicines and the high prices are a problem. It is sad to see that more than 40% of the Essential Medicine List prepared by Prof. Senaka Bibile, which has now been updated, is not available in the Government hospitals. They are available in the private pharmacies, but, at high prices that the poor patients cannot afford. The attendance at the Government clinics is going down because of this and the patients on chronic medication are falling ill and even dying. This must not be allowed to continue.
While the Government is to be congratulated on its anti-corruption drive, action must be taken to overcome bureaucratic lethargy and waste as was done during Dr. Perera’s time. The cooperative movement should be revived as it played a big part when Dr. Perera brought down the price of essential goods. The Food Control Department must be revived if the high prices due to exploitation by middlemen is to be eliminated.
The objective of independence and self-sufficiency is being defeated by the alliances that are being forged with the United States of America (USA) and India. These are not for promoting trade, but for military purposes. Sri Lanka must remain neutral and non-aligned and have good relations with all nations, to safeguard its hard won full independence and sovereignty that the LSSP made a major contribution to achieve. The military memorandum of understanding with the USA is a partnership that will put an end to our sovereignty and place us into their camp as a colony. The dangerous Status of Forces Agreement (SOFA) and the Millennium Challenge Corporation (MCC) Agreements will be implemented. This will have an adverse effect on our good relationship with China, Vietnam, Cuba, etc., which we need to cooperate with in the interest of our neutrality. There is no need to sacrifice our full independence to be under obligation to the USA to become a military base for their support. It is more important to establish a strong South Asian regional alliance both militarily and economically. Let us have regional unity on the basis of equality, without leaving room for being divided and being ruled by any super power. While we extend our fullest support for the Palestinian people who are being subject to one of the most inhuman and cruel genocides in the history of the world, we must not allow the USA-led international community to repeat their genocide of Gaza here. If necessary to defend Sri Lanka from being forced to take the place of the Diego Garcia island as the main servicing centre for the USA and United Kingdom ships in the Indian Ocean, now that the International Court of Justice has ordered its return to the Mauritius, we may have to join the Global South led by China to defeat the Imperialist-led Global North in its design to implement the MCC and SOFA Agreements in Sri Lanka and make our plight worse than a colony.
The writer is an LSSPer and the former Science and Technology Minister
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The views and opinions expressed in this column are those of the author, and do not necessarily reflect those of this publication