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| Premadasa
Commemoration Lecture The Premadasa vision on national development By K. H. J. Wijayadasa We are meeting at a time when anything and everything that is praiseworthy and laudable about President Premadasa has been made to appear topsyturvy by his political opponents. A concerted effort is being made not only to devalue his intellectual prowess and yeoman services to the nation but also to demonize him in the most heinous manner. The opportunities we have, to put the record right, are few and far between. Those who licked his boots for all kinds of favours when he was all powerful are nowhere in the scene today, they have decamped unceremoniously. It is said that evil spreads when good men do not speak. Therefore, it is the bounden duty of those of us who know the truth to refute the barrage of false allegations and misinformation. If not the evil that is being propagated will turn into gospel in no time. In this context, I would like to congratulate "The Premadasa Centre" for coming forward to put the record right even in a small way. The subject assigned to me is "The Premadass Vision in National Development." In dealing with this subject I will be deviating from the usual narrative style of presentation. Instead, I will be making a thematic presentation based on published speeches and writings of President Premadasa. I have chosen this methodology for two good reasons. Firstly, when I do so, no one will be able to accuse me of fabricating fiction. Secondly, it would provide me with the opportunity of comparing and contrasting his words against his deeds. President Premadasa was no ordinary leader. He was a computer operated human dynamo. In his preface to the publication "The Premadasa Philosophy" published by the Premadasa Centre, Mr. Ranil Wickremasinghe, Leader of Opposition has described President Premadasa as a philosopher-politician, a thinker and above all an extraordinary man. Let me quote. "He was extraordinary in the social obstacles he faced and triumphed over. He was extraordinary in the extent of the creative and constructive work he was able to do. He was extraordinary in the range and richness of his thinking." Thinking behind the
vision His modus operandi was to unleash the latent forces of human energy and ingenuity through moral and economic empowerment of the people. First was moral empowerment in order to inculcate self confidence in the people; to invoke self reliance and thereafter to move in the direction of self sufficiency through the optimum utilization of local resources. This was followed by Janasaviya (the Poverty Alleviation Programme); a massive programme for economic empowerment of the people by investing in the people through nutritional support and the infusion of much needed capital. His plans and programmes attracted mass support because they were realistic and implementable. National development
strategy The wide ranging and over arching character of the development programmes launched by President Premadasa reflects his maturity of judgement and the deep understanding of the psyche of the Sri Lankan masses. The major programmes implemented in chronological order since 1977 were; Housing Development, Village Reawakening, Social Infrastructure Development, Environmental Protection and Management, Poverty Alleviation and Administrative Restructuring. However, for sake of brevity, I will be confining myself in this address to Environment, Housing, Village Development, and Poverty Alleviation. As early as 1st August 1979, addressing the commonwealth Heads of Government meeting in Lusaka President Premadasa set out the goals of development. He said that; "The experience of the past years has served to create a broad consensus about the goals for the future. It is that the development effort should be directed towards the twin objectives of rapid growth and the reduction of the number of people living in absolute poverty." (Page 29 of Time for Action; elected speeches of President Premadasa; 1980). President Premadasa was the first national leader who recognized the tremendous potentialities of the human being. In his address at the 9th Anniversary of the Village Reawakening Movement held at Kataragama on the 23rd of June 1987, he said that; "Human resources are our greatest wealth. The key to our success has been the harnessing of the full potential of the human being. Through the Million Houses Programme we have been able to uleash the hitherto dormant forces of human creativity and ingenuity. We were never disheartened or defeated by the lack of resources. When the human being is made the primary resource latent creativity and energies are released from within. Capital, technology, skills and finance become secondary considerations." (Page 45 of Peace and Prosperity; selected speeches of President Premadasa; 1988). Addressing the 11th Session of the United Nations Commission on Human Settlements (UNCHS) held in New Delhi on the 6th of April 1988, he said that "development is not a privilege; it is a human right." In advancing the cause of national development there was no Sri Lankan leader other than President Premadasa who had placed utmost confidence in the traditional wisdom, indigenous knowledge and the unfailing resilience of the ordinary masses. In his address on the occasion of the inauguration of the Janasaviya Trust Fund (JTF) held at the BMICH in Colombo on the 25th of May 1991, he said; "We must never forget one basic truth of development, knowledge of files, institutions and bureaucracies is no substitute for the wisdom of the people."Administrative restructuring is an essential prerequisite of good governance. No development programme could succeed without the backing afforded by good governance. Addressing the 125th Anniversary celebrations of the Colombo Municipal Council he said; "It is abundantly evident that old ways of administration do not work. The choice is clear. Either we continue the old ways and collapse or we restructure through a new approach and survive. We must renew what is meaningful and forward looking. We must discard what has retarded progress. Environmentally sound
and sustainable development He firmly subscribed to the view that the key to environmentally sound and sustainable development is the management of the environment and its resources on a sustainable basis. Still for all he was not prepared to sacrifice the improvement of the quality of life of the people through accelerated economic development for the sake of resource conservation per se. He had made it abundantly clear that the concept of sustainable development is firmly rooted in the principle that environmental protection and economic development are indivisible, interdependent and mutually supportive. Addressing the First Ministerial Meeting on Environment and Development in Asia and the Pacific held in Bangkok on the 11th of February, 1985 he said that; "There is increasing realization that development and environment are interdependent and that long term development can only be achieved through sound environmental management." (Page 12 of Let Us Face the Challenge; Selected Speeches of President Premadasa; 1985). Addressing the First Governing Council Meeting of the South Asia Cooperative Environment Programme held in Colombo on the 27th of January 1983 President Premadasa emphasized that sustainable development cannot be achieved through the application of imported development models. Let me quote. "In our attempts to achieve the objective of sustainable development, we may have to abandon the imported development models. There is an urgent need to search for alternative development models. We have to base these new models on concepts such as self reliance, popular participation and utilization of local resources. What we need is firmly balanced development which makes optimum use of limited resources." (Page 116 of Glory of Reawakening; Selected Speeches of President Premadasa; 1983). In 1978 he launched a massive environmental crusade which created the legal and institutional framework for Sri Lanka's onward march to the goal of sustainable development. He spearheaded the movement for the establishment of the Central eEnvironmental Authority at the national level and the South Asia Co-operative Environment Programme at the regional level. He provided leadership for the formulation of sustainable development policies and introduced laws and regulations for Environmental Impact Assessment (EIA) Pollution Control and Integration of Environment and Development. He wanted priority attention paid to the creation of environmental awareness at all levels of society. He emphasized the need to eliminate the root causes of environmental degradation such as poverty, population pressure, illiteracy and over-consumption. He was responsible for replacing the then existing sectorial and institutional approach to Environmental Capacity Building (ECB) with an integrated and holistic approach giving pride of place to policy reforms. Housing development In 1977 Sri Lanka's population was around 13 million and the demand for housing was 3 1/2 million units. There were a little over 2 1/2 million housing units in the country of which nearly 1/2 million were sub-standard units consisting of rural huts and urban slums and shanties -Therefore, the backlog in housing was 1 1/2 million units plus an annual requirement of a further 200,000 units. The housing policy at the time was for the state to build and distribute. President Premadasa in his enthusiasm started experimenting with the Electoral Housing Programme of 5, 10, 15, 20, and 25 houses per electorate per year from 1978 to 1982 under the provider based Hundred Thousand Houses Programme. The first major shift from provider bases housing to the support-based million Houses Programme took place in 1983. Methodologically the transition was from state and bureaucracy dominated direct construction and aided self help housing to poor people designing, constructing and managing their own housing development with critical imputes being provided by the state. He also had a target of 1000 Model Villages under the Village Reawakening Movement or Gam Udawa dispersed throughout the length and breadth of the country. They were meant to provide motivation, training the example to achieve the desired spread effect as well as the multiplier effect. As the movement gathered momentum housing and village development became an ideology as well as a way of life. Addressing the ILO Tripartite Roundtable on Workers Housing on 16th Mach, 1987, he said that; "Shelter is not charity. It is a necessity. Shelter must liberate; not suffocate. Shelter programmes must create hope in dwellings; not allow people to dwell in hope. Shelter must mobilize the social dynamic against the dynamite in society." His greatest contribution to the world community was the internationalization of his crusade to provide shelter for all by the year 2000. The declaration by the United Nations that the year 1987 shall be the International Year of Shelter for the Homeless was indeed the moment of crowning glory for him. In his historic address at the special session of the United Nations on Shelter for the Homeless on the 12th of October 1987 he said that; "It is now increasingly evident that shelter can become a new organizing principle for development. In a short span of time housing has become both a catalyst and a stimulus. In housing the millions our motto is minimum intervention by the state and maximum participation of the people. Our end objective is the creation of a house owning democracy in Sri Lanka." Page 31 of Peace and Prosperity; Selected Speeches of President Premadasa; 1988). In housing and village reawakening his greatest achievement was the denationalization of housing development and its transformation into a people's movement. Addressing the Second Congress of Local Authorities for Development of Human Settlements in Asia and the Pacific held in Nagoya, Japan on the 21st of July, 1987 he said that "Housing has become a people's movement. The family takes all the decisions regarding design and building. The family assumes full responsibility for production as well. The Million Houses Programme marks a fundamental reversal of roles between government and community. The State has joined the process of the people instead of inviting the people to join a process of the State." (Page 133 of Peace and Prosperity; Selected Speeches of President Premadasa; 1988). Village reawakening Addressing the 9th Anniversary of the Village Reawakening Movement held in Kataragama on the 23rd of June 1987 he described housing and village development as a moral crusade. "Through village reawakening we are not only building houses, we are building the moral strength of our people. In this process we are laying a firm foundation for prosperity and for posterity. Self confidence, self respect and self reliance are the corner stones of our moral crusade. We are trying to make our people stand on their own feet." (Page 47 of Peace of Prosperity; Selected Speeches of President Premadasa; 1988). It will be appropriate to place on record that President Jayewardene in his message to "Udagam Udanaya" the 9th Anniversary Souvenir of Gam Udawa 1987 paid a glowing tribute to the achievements of the Village Reawakening Movement. He said that; "The Model Village Development Programme which attempts to introduce a new development strategy views development and growth as a reawakening process. Our villages despite their material poverty collectively hold the strength and resources needed for the future development of our country. In addition to harnessing the latent potential and the resources in our villages, the movement also attempts to give the process of development a desirable dimension with its emphasis on self reliance, participation of the people and strengthening of their social values. I note with great satisfaction the achievements of the Village Reawakening Movement." The motto of his Village Reawakening Movement was "Gama Hada Rata Hadmu;" National Development Through Village Development." Housing by itself is a sectoral activity. However, by combining housing with village development he was able to give a new meaning and direction to the traditional concept of shelter encompassing total human and materialistic development. His goal of Shelter for All by the Year 2000 was not mere rhetoric but a realistic and achievable target. His Million Houses and One and a Half Million Houses Programmes coupled with village reawakening bear ample testimony to the advances made in achieving this goal. Today, five years after his demise there is no visible progress in the direction of Shelter for All by the Year 2000 on the ground; instead we are building huge mansions and castles in the air!! Poverty alleviation In his address to Parliament on the 24th of September, 1991, he said that; "To ensure that the growth process has social depth and spread my Government will forge ahead with the Poverty Alleviation Programme. The beneficiaries of the programme must become part of the productive system and part of the market for goods and services." Explaining the progress made during the first two years of operation of Janasaviya he said that; "Hon Members are aware that 155,700 families in Round One of Janasaviya complete 24 months of intensive nurturing at the end of September 1991. Thereafter, they shed all dependence on grant support. Progress has been better than expected. 55 percent are earning stable incomes of over Rs. 1,500 a month. 32 percent are earning between Rs. 1,000 and Rs. 1,500 a month. The residual 13 percent are yet to take off. The system of intensive care and support built up family by family, is being sustained and intensified. It is our endeavour to ensure that not a single family will have the need to go back for food stamp support." (Page 119 & 120 of Towards a New Economic and Social Order: Selected Speeches of President Premadasa; 1992). Speaking at the inauguration of the Janasaviya Trust Fund (JTF) at the BMICH in Colombo on the 25th April 1991, President Premadasa made it abundantly clear that the war against poverty can be won only through innovative thinking, fearless decision making and prompt action. He said that; "Poverty is the greatest social disease of many countries. It has reached epidemic proportions in much of the Third World. Epidemics are emergencies. Emergencies do not have the luxury of leisurely solution. Only when poverty is no more will we truly be a liberated society. The Janasaviya mix of support, investment incentives and development of skill is a window of opportunity." (Page 30 of Towards a New Economic and Social Order; Selected Speeches of President Premadasa; 1992). Looking back on the evolution of President Premadasa's thinking on national development through the process of self reliance and self development 1987 seems to be a landmark year. Addressing the 16th Congress of the International Union of Architects held in Brighton, U.K. on 14th July 1987 he said that; "The political will and the moral energy which provided considerable technical assistance for development is fading. Developing nations will have to find self help projects and technologies to regenerate the development process." (Page 16 of Peace and Prosperity; Selected Speeches of President Preamdasa; 1988). Shortly thereafter, addressing the United Nations in New York on the 12th of October 1987 he said that; "We must involve our people in the mental and physical dynamics of self development. If the disadvantaged nations of the world can create the necessary grassroots mobilization and maintain a sense of discipline in nation building; a large part of the global problems can be resolved. If the affluent nations of the world realize that the good life of plenty cannot be long sustained at the expense of mass deprivation, a new partnership for development can be forged." (Page 34 of Peace and Prosperity; Selected Speeches of President Premadasa; 1988). The World Bank has described Janasaviya as the first serious attempt by a developing country at addressing head on the issue of structural poverty. It was unique because it was cross sectoral and enveloped all sectors. It was aimed at making participatory development national policy and realizing it on the ground with all the necessary supportive elements. It marked the successful experimentation of a case of paradigm change from delivery to participation, spearheaded by the state. Learning from mistakes A somewhat justifiable criticism levelled against the Model Villages Programme is its failure to create the much publicized avenues of employment and income. Much more could have been done by way of stabilization of agriculture through irrigation improvement as well as home based self employment projects such as poultry and fish farming. There are some 10 or 12 gaping wounds left by way of unutilized or underutilized Gam Udawa exhibition sites each located on 40 to 50 acres of land. Today they resemble small ghost townships constructed at great cost complete with exhibition and office complexes together with infrastructure facilities such as roads, electricity, water supply, sewerage etc. The fixing of the Gam Udava Anniversary celebrations for 10 days commencing 23rd of June each year since 1978 whether coincidental or intentional came under severe criticism and even ridicule. This type of gimmick was fully exploited to their advantage by the political opponents and in the final analysis turned out to be counter productive. Some critics have pointed out that greater care should have been taken to plan and implement environmentally sound and sustainable projects. It is true that the unprecedented construction boom unleashed by the Housing and Urban Development Programmes had adverse environmental impacts on the environment such as through over exploitation of river sand, large scale extraction of clay for brick and tile making, extensive site clearing and levelling leading to soil erosion and indiscriminate removal of vegetation cover without much replacement by way of compensatory replanting. All these adverse impacts could have been eliminated or at least mitigated through the application of Environmental Impact Assessment (EIA). Even though EIA was made mandatory for all development projects by administrative decision with effect from 1st January 1984; enabling legislation and regulations for enforcement were not in place. The soil erosion caused by earth cuttings and site levelling could have been minimized if adequate safeguards had been taken for turfing, tree planting, provision of surface drainage, construction of retaining walls and use of temporary covers during the rainy season. Finally, I would like to reflect on some inconsistencies and shortcomings in the Janasaviya Poverty Alleviation Programme. One and a half million poverty stricken families or 7 million people living below the poverty line had high expectations because in the 1988 Election Manifesto they were promised a resource pool of Rs. 2,500 per month made up of a consumption component of Rs. 1,458 and an investment per savings complement of Rs. 1,042. The scheme was to be made operational throughout the island, in a phased manner, starting with the neediest of the needy. What happened in actual implementation is somewhat different; and naturally the poor were disillusioned. The disbursements were to be done in 11 rounds each round lasting two years and only 150,000 beneficiary families out of 1.5 million singled out for each round not on the basis of the poorest of the poor but all the poor in one selected AGA division per district. Theoretically some of the poorest of the poor would have had to wait for 20 years for the first instalment. The investment component of Rs. 25,000 was not available to the recipients at any stage for investment purposes. At the end of 2 years the recipients got a monthly interest component of Rs. 250 which was nothing more than a dole and that too without much buying power. Janasaviya could have been targeted better by choosing the families not on the basis of one AGA division per district but on this basis of targeting the poorest of the poor in all AGA divisions across the country. Conclusions Firstly, his life, thoughts and work bear testimony to the basic truth that if there is a will there is a way. He has proved conclusively that nothing is beyond the reach of the human endeavour. His stupendous success gives us the reassurance that for those with courage, grit and determination the climb to President's House even from the humblest of dwellings is after all not an impossibility. Secondly, his policies and strategies had mass appeal because they penetrated the very roots of society, and at the same time touched the hearts of the people. His vision on national development encompassed critical issues and laudable objectives such as poverty alleviation through sustainable human and economic development; shelter by the people, of the people and for the people; national development through village development; provision of basic needs such as clean water, healthy environment, education for all and moral and spiritual development of the people. He brought abut radical and fundamental changes in thinking, deciding and executing. He not only reached great heights but also set high standards, which cannot be surpassed that easily. Thirdly, in the line of illustrious and indefatigable leaders of the calibre of King Dutugemunu and King Parakramabahu, President Premadasa was an epoch maker (Yuga Purushaya). Such epoch makers reach certain critical milestones in a short period of twenty to thirty years; but their impact would last a couple of hundred years. Such impacts are quite often deep-rooted, economically stable and environmentally sound and sustainable. The fruits of labour of such great national leaders are often seen and felt long after their demise. This is quite evident when one looks at the dismal records of the present regime. The same old Premadasa programmes and projects are being continued under different names; Samurdhi for Janasaviya, Jana Udana for Gam Udawa, Presidential People's Service for Presidential Mobile Service, Jayabhoomi Deeds for Swarnabhoomi Deeds, Fifty Garment Factories for 200 Garment Factories, Six A-330 Air Buses for 3 A-340 Air Buses, and many more such bankruptcies! There is nothing new, innovative and exciting. As for President Premadasa he can rest in peace wherever he is resting because; imitation it is said, is the best form of flattery. Fourthly, the moral of the story is that we should be magnanimous enough to admit our mistakes and gracious enough to learn lessons from them. Some of these mistakes have been costly financially, environmentally, and politically. Many of these mistakes could have been avoided if proper technical and economic feasibility studies and EIAs were done before taking the plunge. But such studies were not attempted on the theory that they facilitated the bureaucratic stranglefold, caused delays in decision making and defeated the political objectives. Sometimes huge financial commitments were made without the knowledge and the consent of the Treasury and the formal approval of the Cabinet as witnessed in cases such as the free school uniforms and the free mid-day meal to school children. The intelligentsia of this country should realize before it is too late that what has been going on in this country for 50 years after independence in the name of democratic elections is a "Vote Auction." False election promises which are never meant to be honoured and some of which even highly developed countries cannot even dream of implementing; have become the order of the day. After serving 35 years in the highest echelons of the public service, I am still in search of answers to two questions. Why do the Sri Lankan voters succumb to false election promises at every successive elections? Why did our people light fire crackers throughout the country; even though many of them were beneficiaries of President Premadasa's programmes and projects; when the electronic media announced his gruesome assassination at 3.00 p.m. on the 1st of May, 1993? |
Our India Policy - Not In 'Shambles' By Mangala
Moonesinghe Common sense will show that one of the fundamental tenets of diplomacy is the strengthening of neighbourly relations by fostering goodwill among foreign leaders. During periods of harmonious relations between the political leaders of India and Sri Lanka several beneficial results ensued. Sri Lanka was able to settle the Indian Citizenship question, which remained a contentious issue for a considerable period of time. The protracted dispute over the ownership of Kachaitivu was agreed on the defined principles of international maritime laws. An undeniable factor in this expeditious settlement was the predominant personal equation between the Prime Ministers of India and Sri Lanka. In the nineteen eighties and early nineties Sri Lanka experienced a period of traumatic consequences due to the deterioration of the external policies of the two neighbouring States. One can call to mind a time when the Sri Lankan foreign minister had to twiddle his thumbs for weeks in New Delhi till he was granted an appointment with his counterpart, in contrast to the courtesies and hospitality extended to the present foreign minister of Sri Lanka. Now, there is a positive engagement in foreign policy. If our "Indian policy is in shambles", the Sri Lankan army could not have embarked on a successful offensive to retake the Jaffna peninsula and dislodge the LTTE which dominated the area for over a decade. During the entire campaign and up to date the Central Government of India, the Tamil Nadu Government and the Indian people have considered the episode an internal affair of Sri Lanka and not complained, protested or attempted intervention. On the contrary, if the externalities had been turbulent, it is doubtful if the military operations could have achieved its desired objectives. Mr. Godage then states," Jayalalitha Jayaram, the former Tamil Nadu Chief Minister, today wields immense power in Delhi ……. The present government depends for its very existence on her. She along with 27 MPs, including five ministers belonging to the five Tamil parties of Tamil Nadu have written to the prime minister requesting him to intervene in the Sri Lanka conflict to 'persuade' ( and after that God knows what other means they would adopt for they are already clandestinely assisting the LTTE) the Government of Sri Lanka to withdraw the army from the Tamil homeland". In Mr. Godage's statement there are two points of emphasis: That the BJP is totally dependent for its survival on Jayalalitha and will agree to all her demands. That the memorandum submitted to the Prime Minister contains a strong request by Jayalalitha and the AIADMK together with four other parties, urging the BJP to intervene in Sri Lanka. On point (a), I am referring to the current ground situation in Delhi by quoting the inputs from the daily newspapers here. The Sunday Pioneer of the 21st June carries the caption : 'BJP may recast political ties' and continues 'The growing distrust and acrimony between the AIADMK and the BJP might trigger a recast of political equations at the centre over the next few weeks.' The Statesman of the 19th June under the heading "Jaya cannot withdraw support : BJP". BJP mentions " on the face of the AIADMK's mounting pressure on the Centre …the BJP not only ruled out the possibility of conceding to the demands but also indicated that the Government 'would survive even if the AIADMK withdraws support'". The Pioneer of 22nd June under the caption, 'Article 356 can't be abused for centre's survival: Advani'," Union Home Minister L.K.Advani ruled out the imposition of Article 356 to dismiss any State Government to ensure the survival of the BJP led coalition." These excerpts clearly indicate a totally different picture from Mr. Godage's standpoint. On (b) I quote from sections of a report from The Hindu of the 13th June '98 as to the validity and effectiveness of the memorandum, the cohesiveness and the community of interest of the parties. " The draft was basically prepared by Dr.Ramdoss, who led the delegation to Delhi, but the AIADMK did some 'dilution' before seeking the signatures of the other allies…Until now, none of the major parties had anything to say on the situation in Sri Lanka. Indeed, the issue did not figure in the two executive committee meetings of the AIADMK in April and May….However, Ms. Jayalalitha chose not to lead the delegation, unlike in the case of issues such as Cauvery and Reservation….. Although Mr. Ramamurthy's name figured in the signatories list of the memorandum, he did not affix his signature on it". ((Mr.Ramamurthy is a Minister of the Government of India) Quoting from The Pioneer of the 17th June, "Union Minister for Petroleum and a staunch ally of AIADMK chief J. Jayalalitha, Mr. Ramamurthy expressed strong opposition to the memorandum submitted by other AIADMK allies regarding the Lankan issue. He said, "We intervened once and came a cropper." Mr. Godage further states, " It is not that they do not realize the same as requesting the Indian army to withdraw from Tamil Nadu. But in this instance they feel confident to make the demand because they do not consider Sri Lanka a sovereign nation. Our foreign minister and the adviser on foreign affairs to the President, have by their irresponsible statements conceded that our independence and our sovereignty is of a lesser class than that of India's. They feel therefore that they should have a right to lord over and dictate to us." Malini Parthasarathy's article in The Hindu of the13th June titled "An Unwarranted Provocation" quoted below should clearly answer the doubts about our sovereignty, and the effectiveness of our Indian policy. In this article referred above Malini Parthasarathy was very critical of the memorandum. I quote her, "Another disturbing aspect of this attempt to resurrect the Sri Lankan Tamil issue is the obvious ignorance of the nuances of the current political situation in Sri Lanka and the virtual paradigm shift that has taken place in the island's democratic politics over the last decade." "The memorandum reads like a document written in the early eighties. It speaks of a "genocidal war'', it is oblivious of the fact that issues such as "merger" and "homeland" are no longer being canvassed seriously by responsible politicians even amongst the Sri Lankan Tamil community who now recognize that the search for a political solution hinges on a more creative approach to devolution and federation. Secondly, the irresponsible suggestions made that the Government " sponsor a parliamentary delegation from Tamil Nadu to visit the Tamil homeland in Sri Lanka to assess the situation" and "persuade the Sri Lankan Government to withdraw all its armed forces from the Tami homeland" amount to blatant interference in the affairs of another soverign country…. "…..More importantly, the political space for external intervention, including a role on India's past has significantly shrunk. It is in this context that India's foreign policy in the last dew years has wisely avoided responding to the frequent appeals of the Sri Lankan Tamil political parties, notably the TULF, to adopt a more interventionist stance." I would also like to mention that a host of letters appeared in many of the newspapers, critical of the memorandum and reiterating the fact that Sri Lanka is a sovereign State and that no country can interfere in its sovereignty, without violating the accepted principles of international law. Besides these letters there were many articles and a number of editorials written in the same strain. Mr. Godage continues, " The demarche of the parliamentarians is a major diplomatic triumph for the LTTE. They have now won over Jayalalitha to their side". To contradict this statement I will site two news reports, (a) India Digest of 19th June: 'LTTE using Tamil Nadu as headquarters, says Jaya' (b)The Hindu of the 19th June : "Jayalalitha sees threat to national security" is the caption. The body of the report says that the AIDMK general secretary, Ms. Jayalalitha "quoting a Union Home Ministry report detailing LTTE activities in Tamil Nadu between 1996 to 1998 stated that there was a grave danger to national security because of the movement of LTTE militants in the State" In the face of these reports and the well known fact that Ms. Jayalalitha during her tenure of office and up to date has maintained an unbridled antipathy to the LTTE , she could not have been won over as claimed in the article. If the position taken in the article were left uncontradicted it would convey an incorrect impression of Jayalalitha's disposition towards the LTTE which is capable of creating an anti Jayalalitha wave in Sri Lanka. Mr. Godage further states, " The immediate question that arises is whether the Government was aware of the new coalition that was being established to support the LTTE - without actually identifying themselves with the LTTE of course. Obviously the Government did not know and did not take preventive action. That raises the question on the effectiveness of our High Commission in Delhi and of the Office in Madras. Their principal task is to keep the Government informed of developments and we were unable to take preventive action, then the High Commission and the ministry have failed in their duty." I wish to state that no new coalition supporting the LTTE has been formed. The MDMK and the PMK are the only two political parties in Tamil Nadu that have always held with the LTTE. They have seven members in the Lok Sabha as opposed to 545 who do not support the LTTE. Even in the Jayalalitha alliance of 39 members there are only seven who have consistently backed the LTTE. I wish to draw attention to the fact that on the day after the memorandum requesting intervention in Sri Lanka was handed over to the Prime Minister of India the BJP Government responded by extending the ban on the LTTE. The article then reads, " This is not the only instance of a diplomatic set back in recent days. The minister has been performing brilliantly, in projecting the image of the country and advocating the cause of the Government abroad. But he has come a cropper on international issues". I leave the informed public on the basis of information available to them at first hand to judge the validity of the above statements. I do not propose to comment in detail on the remainder of the article that smacks of a subjective appraisal of the foreign minister's actions. I also understand that none of the three countries India, Pakistan and China have expressed any discomfort with the foreign minister's recent visit to these countries. Meeting with the minister's counterparts and heads of state is to conduct open and free discussion and to clear any misunderstandings or misconceptions in the process. It would be churlish to hint that any disrespect was intended when the deputy minister of foreign affairs deputized for the minister to hand over the invitation to the King of Bhutan. Being a small country ourselves, it will necessarily follow that we take special care not to take short cuts on the basis of size. Perhaps if the minister were to be asked he would have offered the reason which prompted him to request his deputy to undertake the mission on his behalf. Incidentally the Government of Bhutan was informed by me as the accredited ambassador to Bhutan the reasons for the inability of the foreign minister to personally hand over the invitation. I have pointed out the inaccuracies, the unsubstantiated conclusions and other infirmities in the sections dealing with Indian policy. It therefore follows that the same criteria must be applied in an appraisal of the balance. Before I conclude I will focus on the accepted fact that there is now a foreign policy that is effective and has achieved for Sri Lanka a place amongst the community of nations. Before 1995 Sri Lanka was identified with human rights violations, it's adverse bias towards minorities and was looked upon by the international community as the outcaste nation. The LTTE was then viewed with both credibility and sympathy as a group that espoused the rights and interests of the Tamil community. The President's emancipated attitude towards the minorities, concern for human rights violations and peace, has changed the international community's perceptions towards Sri Lanka. They are now more sympathetic to the internal compulsions of finding a lasting solution to the ethnic divide. The LTTE's pre-eminent position as the representative of the Tamils has eroded, as its policies now do not converge on the urgent need of the Tamils who above all want peace and normalcy. Effective articulation and implementation of our policies by the foreign minister has also contributed to this changed environment. Today the United States has declared the LTTE a terrorist organization. Canada has prosecuted and convicted an LTTE activist for fund raising. Australia has refused permission for an LTTE sponsored conference to be hosted in the country. I am also informed that the government of the United Kingdom is in the process of preparing legislation to restrict the activities of the LTTE in the UK. An article on Sri Lanka that appeared in the Times of India on the 21st of June, written by Seema Guha states thus: " President Kumarantunga is a confident leader and does not get unnecessarily worried by such statements. She knows fully well that the international community is behind her in a way which would be the envy of past presidents of the country." It is not my habit to enter into polemical discussions of this nature. However I deemed it my duty that the facts be known of the healthy bilateral relations that exist between the two countries, India and Sri Lanka and the transformation that a focussed foreign policy has brought about in the perceptions of the international community. I am also writing this in recognition of the dedication and commitment of the personnel in the foreign ministry and missions abroad who have contributed to this improved profile. (The writer is Sri Lanka's High Commissioner to India). |
L E G A L W A T C H By Nayana The provincial council system has for the most part been an unwanted political and bureaucratic burden thrust on this country amidst unprecedented legal controversy and civil strife. It is not even functioning in that part of the country - the North-East - which it was chiefly designed to serve. Everywhere else it now looks set to become a political headache and a security nightmare. Yet provincial council elections may prove difficult to postpone due to a combination of constitutional entrenchment and government short-sightedness. The five year term of office of a provincial council is written into the Constitution following the Thirteenth Amendment. Article 154E states that: "A provincial council shall, unless sooner dissolved, continue for a period of five years from the date appointed for its first meeting and the expiration of the said period of five years shall operate as a dissolution of the council." Prima facie, any change to this position would, like any other amendment to the Constitution, require at least a two-thirds majority in Parliament. If the right to vote at a provincial council election is held to be part of the "sovereignty of the people" and the "franchise" within the meaning of Article 3 of the Constitution, then any interference with that right would require not only a special majority in Parliament but also a referendum. This would, of course, defeat the whole purpose of the amendment which is to avoid the hustings at this moment. On the other hand, it has been suggested that elections could be postponed under the Emergency. Even if this is possible, it would first require an Island-wide proclamation of a State of Emergency which is at present not in force in a number of districts such as Kalutara, Kandy, Ratnapura and Nuwara Eliya. However, legal opinion is divided as to whether emergency regulations made under the Public Security Ordinance can be used for extending the life of the provincial councils. Some, including Minister Batty Weerakoon maintain that regulations under the Public Security Ordinance cannot suspend a provision of the Constitution. Article 155, which is part of the original Constitution and pre-dates the Thirteenth Amendment, declares that emergency regulations made under the Public Security Ordinance can have the effect of overriding, amending or suspending the operation of any law "except the provisions of the Constitution". 13th
Amendment The relevant Article is 154J(1) which states that upon the making of a proclamation under the Public Security Ordinance "on the grounds that the maintenance of essential supplies and services is threatened by war or external aggression or armed rebellion, the President may give directions to any (provincial) Governor as to the manner in which the executive power exercisable by the Governor is to be exercised". However, even this will not help the Government, since the dissolution of the Council at the end of five years is automatic and does not depend on the exercise of executive power by the Governor (reference Article 154E quoted above). A further problem is the fact that the term of office of some councils has already lapsed. In legal terms one cannot extend the life of a body that is already defunct. The continuance of administration without an election in areas where the council’s term has lapsed would require a more far-reaching consitutional amendment, and this may be what the opposition UNP has in mind, judging by reports which suggest their insistence on a bi-partisan interim body to run the councils until elections can be held. This problem of timing is entirely due to the short-sightedness of the Government and its reluctance (in common with its predecessors) to take the parliamentary opposition and the country into its confidence on matters of national importance. The over-stretching of the security forces in the event of their having to supervise an election could surely have been foreseen several months ago, if not at the start of operation "Jayasikurui". Interim
Administration On the other hand, if provincial council elections have to go ahead, the responsible approach on the part of all political leaders should not be to stretch the security forces to breaking point or compromise military positions already gained, but to indicate firmly to their members and supporters by word and deed that acts of lawlessness will not be tolerated. The need for the kind of heavy security we see at elections time is not a normal part of the democratic process but the result of increasing disregard for the law by political elements. It is time for political leaders to take responsibility and do something positive to arrest this trend rather than placing increased burdens on the police and security forces. |
| Winds
of Change blow over Indonesia Habibie dead set on reforms By Dr. Stanley Kalpage The reform process Political parties, long banned, are forming; a few political prisoners have been released; the press is criticising freely; labour unions are emerging from underground; and a vigorous debate is taking place on how best to further promote democracy. When Habibie took power, he faced widespread scepticism about his commitment to reform, and many predicted his tenure would be short-lived. But he seems intent on seizing the initiative on the reform issue and in demonstrating to his critics that, while he may be a product of Suharto's authoritarian regime, he is willing to break with the past and usher in a more liberal, democratic political process. After some initial reluctance, Habibie has declared himself a transitional leader by scheduling a session of the People's Consultative Assembly for 22 December, 1999, to elect a new president and vice-president. Habibie's government is marked by greater transparency. While Suharto never called press conferences, Habibie talks often to Indonesian and foreign journalists. While Suharto only attended parliament on formal occasions, Habibie drops by to chat with faction leaders. And while Suharto never openly discussed the position of Indonesia's ethnic-Chinese minority, Habibie has gone out of his way to do so. Further, in a move to please the militant students, Habibie plans to meet the families of four students shot dead during a peaceful pro-reform demonstration in Jakarta weeks ago, and may award them the posthumous title of "Heroes of the Reformation." Most important of all, an assertive armed-forces commander, Gen. Wiranto, has pledged support for Habibie. In separate statements in early June, the general urged Indonesians to stop questioning Habibie's legitimacy and let the president get on with pushing through crucial political and economic reforms. Abri wants to adjust The army's role is enshrined in the constitutional doctrine known as "dual function," which allows serving military officers to hold key positions in government and parliament. But now, as Indonesia embarks on a new era of democracy after the fall of its long-time autocratic leader, Suharto, the armed forces are looking to reduce their active involvement in politics. Heeding popular demands for a more open political system - and perhaps taking a cue from militaries elsewhere around the region - Abri is preparing to assume a somewhat diminished profile in the new Indonesia. Golkar in the process
of upheaval Crucial issues about the democracy that virtually everyone now assumes is coming are already being hotly debated by intellectuals and senior officials in the government and military. The government-sponsored political party, Golkar, the political vehicle that Suharto used as his ruling instrument for most of the last 32 years is in the process of upheaval and change. With Suharto gone, Golkar is showing signs of splintering. A labour faction has announced plans to form a new Worker's Party, as has the Kosgoro faction, made up mostly of army veterans in private business. Former Golkar leaders know they face an uphill battle for public support. "Golkar is finished," said Yusuf Wanandi, the chairman of the Centre for Strategic and International Studies and a long-time Golkar member. Wanandi said he is exploring setting up a new party himself along with like-minded academics and intellectuals. The largest new political groups are growing out of Muslim organisations, and rival politicians say they could introduce religion into Indonesian politics for the first time in decades. The two largest Muslim organisations are the traditional Nahdlatul Ulama and its rival. Muhammadiyah, led by popular Muslim leader, Amien Rais. The spectre of having explicitly Muslim candidates in national elections is also prompting representatives of Indonesia's ethnic and religious minorities to consider political organisation. Corruption Habibie has resisted calls to examine how Suharto and his children amassed billions of dollars in wealth estimated at around $50 billion. Suharto clearly would want his children treated with dignity, but the groundswell of opinion is that the First Family should return its wealth to the people. The Indonesian people feel that the solution to corruption is open, accountable and democratic government. Economy The prospect of economic difficulties is daunting. It is not merely a matter of savings being wiped out, a currency in tatters, or unemployment beyond anything that few countries have known. More than that is the fear that 30 years of development - of what the World Bank said again was successful development - could simply be rolled back. Millions of Indonesians are sliding back into poverty. The US has promised support for the US$ 43 billion bail-out package led by the International Monetary Fund, but has cautioned at the same time that the country's future rested in its own hands. Ethnic Chinese Even less-wealthy Chinese are a target of resentment because they control much of the economic activity at local level. According to Pusat Data Business Indonesia, the Indonesian-Chinese own nine of the top 10 business groups in the country and control more than 80% of the assets in the top 300 groups, up from 74% in 1988. Of the country's top 15 taxpayers, 13 are ethnic Chinese. The other two are Suharto's sons, Bambang and Tommy. The Suharto family have a number of business alliances with Indonesian-Chinese interests. Both groups might find their positions considerably changed in a new Indonesia. The Suharto children are likely to emerge weaker from the current chaos: It will be difficult for them to strong-arm their way into business deals that, previously, they were able to clinch with their business cards, not cash. East Timor The Portuguese, the former colonial power which quit East Timor in 1975 has dismissed Habibie's offer as meaningless. Indonesia annexed East Timor a year later but the United Nations does not recognise Jakarta's sovereignty over it. Only a referendum on self-determination would settle the issue that has be devilled Indonesian foreign policy for over 20 years. Some analysts have suggested that the influential Catholic church in East Timor might be prepared to accept a form of autonomy so long as a referendum on the territory's future was held later. East Timor is not the only province in Indonesia's far flung territory that wants greater decentralisation of power. If the demands for secession succeed the world's fourth most populous country will move towards balkanisation. Reform Despite Habibie's efforts at reform, Indonesians worry they may get to little change, with a new president at the head of the old system, or too much, with an explosion of political parties but no effective government. They worry that democracy could unleash separatism, or ethnic intolerance, or Islamic fundamentalism. |
| 'Sandeshaya' act with responsibility: BBC From Sujeeva Nivunhella —
London Corr Q: Sri Lankan government reimposed censorship on military news. But your 'Sandeshaya' programme broadcast military news live to Sri Lanka every day. Don't you think that is irresponsible. A: We don't do anything outside the Sri Lankan law. We have been broadcasting our programme on Short Wave Band. Since last year we have a contract between BBC and SLBC. So SLBC relay our programme live. Still people can tune to our programme on Short Wave Band. I don't think we are irresponsible. If we are lying that is irresponsible. We don't do that. We don't do anything against the PA constitution. Journalists cannot go to the war front. They are not allowed. Therefore, being an unbiased media institution we have to air the views of both the government and the LTTE. It is the listeners' duty to find out the truth out of that. Q: Don't you think when there is a censorship and you transmit uncensored military news it will help the enemy? A: I don't think so. Recently there was an article in the 'Sunday Times' about some Mortar Detective Devisors bought by the Sri Lankan Army. That news was taken from the 'Tamil Internet'. So the truth is rather we get news from the enemy than we provide with them news. Q: Some journalist say, since 'Sandeshaya' broadcasts uncensored military news there is no validity of the censorship. A: It is only 'The island' newspaper that complained of our programme being transmitted via SLBC. Journalists should be happy that somebody is able to give uncensored news to the people. Q: What 'The island' meant was, since you are relaying uncensored military news, the governments censorship is a joke. A: No. No. That is not correct. What 'The Island' wanted was to stop our programme from being transmitted via SLBC and have a full censorship. Q: Major General Jaliya Nammuni, the Competent Authority, has requested the SLBC to stop your programme. Isn't it? A: No. He has not asked them to stop our programme. I spoke to both the Chairman and the General Manager. He has only sent them a note asking them to investigate this issue. Q: Although you say you are unbiased, some people are accusing that your programme is a pro-LTTE one. A: This is a common accusation. If you are not pro-government, they say you are pro-LTTE. Any paper, radio or television institution is accused of being for pro this or pro that. It is difficult to stop these accusations. Q: Some people say, Vasantha Raja still runs the show from behind the screen. Is there any truth in it? A: I have not seen Vasantha Raja for quite some time. Since he resigned from the SLRC only once he visited us. For the last few years, I might have spoken to him over the phone about four times. He being the editor of the 'Tamil Guardian' some times we meet at meetings. No outsider can influence BBC media principles. Even I cannot take any decision outside the BBC principles. Only connection is, his ex-wife ((Indra Ramanayake) works here. Unless Indra is a LTTE spokeswoman we cannot sack her just because her ex-husband is with the LTTE. We have no legal right to do that. Vasantha Raja is only an ex-producer of the BBC Sinhala Service. |
| Asian money crisis — A conspiracy? by A. Kandappah The booming economy of the Asian "Tigers" from the mid-80s received praise of the high-profile economists in the World Bank, where they (WB) even brought out a publication titled "EAST ASIAN MIRACLE" pontificating to all developing Central Bankers to follow — implying the Asian tigers have reaped massive benefits by following the Bank's advise in meeting all economic fundamentals and suggesting there can be only one direction the economies of these Asian Tigers will go into the new millennium — up. The captains of industry all over the world led by US Presidents Bush and Clinton, no doubt going by the advise of their own economic czars, convinced the region for dynamic development in the next few decades will be Asia, encouraged investments there. Naturally, very large investments flowed into South Asia and to markets where the superficial climate looked attractive and capital account convertibility freely permitted. We lesser mortals in the poor developing countries watched and clapped our hands because the wise and the mighty have spoken and, after all, Asia is going to benefit and some crumbs are likely to fall our way. Unfortunately, this was not to be. Early this year the incredible domino-like fall of currencies of South Korea, Indonesia, Thailand, Malysia, the Phillipines left these countries a gasping for breath with many regimes tottering. The Indonesian strong-man was forced down after 32 years in power. Food riots are taking place in many parts of the vast Indonesian Archipelago. The fate of many other leaders in the region is in the balance. Among the many theories floating is one of a long-planned conspiracy by financial pirates. Malaysian Prime Minister Mahathir named some leading figures in the global financial market as responsible for destabilising the currencies of Asia. Some third world economists have dubbed the current financial scene in Asia as "Casino Capitalism" and warned their governments of the dangers ahead. Conquest of nations by armed power used to be the order of the day in the centuries gone by followed by the power of the gun accompanied by bell, book and candle. Will the new millenniums cause the down-fall of individual nations by a more sophisticated and fanciful form of economic subjugation? Has the coming of the hi-fi technological revolution accelerated this subtle form of imperialism? How did countries with high savings, impressive GDP, low interest rates get into trouble? How did the new power-house South Korea — said to be 11th largest economy in the world and admitted to the OECD — the Club of the exclusive rich industrial nations — come by its present fate where the country is tottering under mass lay-offs? What indeed happened to the economies of Thailand, Indonesia, Malaysia, Phillipines — all of whose onward economic march looked un-stoppable only late last year? These are questions that will engage a variety of interesting answers and theories. The following table will illustrate the serious levels to which some of these currencies have dropped within the last one year, threatening the sociopolitical harmony in their countries. The worst affected were Thailand, Indonesia and South Korea — whose partial recovery came by an IMF bail-out of a reported US$118 billion. The first two had flawed very much in their over ambitious real estate programmes. This gives rise to another important question. It is customary for lenders of even sums as low as US$1 million to ask for various feasibility studies from recognised financial advisory houses before the money is approved. Here studies are carefully gone into by high profile economists in the lending institutions before their sanction is obtained. One can understand a few real estate projects going sour for domestic reasons. But how did almost the entire real estate markets in these two countries — plus Malyasia, Phillipines et al. fail almost at the sometime in a near clock-work precision? Were they encouraged with these massive loans in the beginning with some sinister sources with the knowledge they are bound to get into trouble later — leaving the stock-markets in these countries easy prey? In fact, this is exactly what happened. What were blue-chips income of these countries were available for a song after April '98. Was this part of a larger cabal by a new breed of financial pirates? A conservative estimate by the London "Economist" (March 1998) states over US$600 billion — said to be 2/5th of the region's GDP — has been wiped out of the stock-market. If there is indeed a conspiracy then whosoever was behind it made the killing of all time. It is well to note with the arrival of the ultra-modern gadgetry of the revolutionary information technology industry currency trading, stock market gambling et al is estimated to be about US$2 trillion (million times million) moving almost in the speed of light around the world daily making it roughly US$600 trillion per year (based on 300 working days). Estimates of the world GDP is around US$27 trillion and a world trade of US$11 trillion currently. Therefore, it would appear there is a tremendous gap between the real economy and the speculative economy of the world — leaving an endless playing field for currency speculators for manoeuvring without any control whatsoever.
It is also reported that foreign exchange transactions of the real economies of the world is less than 3% of the total speculative foreign-exchange transactions in daily circulation in the thousands of new money markets world-wide. It was fearing potential reckless speculative currency transactions that the UNP's Human Development Report of 1994 suggested a marginal tax on these transactions. As to be expected the ultra-powerful "Casino Capitalists" would hear none of this. They have the means to meet any challenge from anywhere. Consider the case of one super-speculator who is said to have made over one billion Sterling pounds on exchange transactions in one sigly day. However, the experiences of the South Asian currency debacle will sooner than later compel governments in the region to come out with disciplinary instruments in the interest of the safety of their own economies. One way out suggested is the imposition of a 0.5 to 1% tax world-wide on these currency deals. If this idea gains ground, in addition to bringing invest revenues to the countries concerned, it will also bring into being a badly needed device to check casino type of gambling now ruling sway in the money markets of the world. From the Bretton-Woods Agreement immediately after the 2nd World War to about the mid-70s when the Nixon administration de-linked the Dollar from the Gold standard substantial swings in the value of major currencies was rare. However, since the US$ virtually established itself as the world's medium of exchange and allowed the dollar to float erratic exchange ratges became common — causing serious damage to the economy of many developing countries. In the past few decades more damage has been done to the enonomies of many countries by fluctuating exchange rates than any other. The demand made by J. M. Keynes fifty years ago for an international currency (bancor) needs to be reviewed today in the light of the confusion in currency markets. The freeing of exchange control globally and the coming into being of responsible money market institutions in the world in recency years is a welcome feature that can help the global economy to grow, allowing many countries to share in the wealth produced. But proper safe-guard mechanisms to protect markets against attacks by powerful vested interests must be brought in. Respected Sri Lankan economists whose contributions have engaged international acceptance have long called for such safety devices. South Asia has suffered enough for leaders in the SAARC region to individually and collectible re-examine the future of the stability of their own currencies so that what brought down the Asian Tigers does not drag countries of the ASSRC region along. Fortunately, for the region the in-built safety devices in our much maligned colonial-inspired bureaucracy appear to have saved the day for us — at least for the moment. A.
Kandappah |
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| Bribe - and you get a receipt for it Thalif Deen at the United
Nations Described as one of the world's most corrupt nations — Indonesia has undergone such drastic economic and political turmoil that its long-term effects could have a devastating impact on the already economically-troubled neighbouring Southeast Asian countries. The cynics have labelled Indonesia a "kleptocracy" — where leaders have enriched themselves by brazenly stealing from the people: a trait common in most Third World nations today, not excluding Sri Lanka. The New York times said last month that tourists arriving in Indonesia get a glimpse of the corruption the moment they step out of the Jakarta Airport. The taxi you hop in is owned by one of Suharto's sons, the toll road is owned by the daughter, and one of the hotels you check in is invariably owned by another son. Mafia The New York-based Forbes magazine lists Suharto as the world's sixth wealthiest person, with his family fortune estimated at over $30 billion: the average annual Gross Domestic product (GDP) of Bangladesh and more than twice that of Sri Lanka. Under pressure from the international community, Indonesia's new President B. J. Habibie is trying to make a clean break - but it may be a good try in a lost cause. In its annual rankings, the Berlin-based transparency International has retained at least three countries — Indonesia, Pakistan and Nigeria — among the world's top 10 corrupt nations, year in and year out. Last year's top 10 included Nigeria, Russia, Pakistan, Indonesia, India, China the Philippines, Thailand, South Korea and Malaysia. When Pakistan was downgraded from number one to number two in the annual rankings, the Pakistanis were overjoyed. The joke was that the Pakistanis had bribed their way to avoid the dubious distinction of heading the list. The Nigerian bribe obviously came a little too late. Mobutu A seemingly outraged Mobutu shouted back: "It's a lie. It's a lie "and then added with a straight face, "I am only the third richest." One of the more widely criculated stories in India is that of a business man who walks into the offices of a minister, furtively drops a wallet on the floor, then picks it up and exclaims; "Sir, I think I found your wallet with 50,000 rupees in it." The minister, without batting an eyelid, shoots back: "Oh yes, I lost a wallet, but there was 100,000 rupees in it." Conscious of the fact that the price of corruption comes out of the pockets of consumers, the United Nations, the World Bank and the Paris-based Organization for Economic Cooperation and Development (OECD) have intensified their efforts to root out bribery worldwide. The World Bank says that corruption is generally linked with activities of the state — in particular, its monopoly and its discretionary power — which provide a fertile ground for corruption. The argument that corruptionis mostly pervasive in developing nations was refuted at the UN Crime Congress in Cairo last year. "Corruption was not limited to third World countries but often had its roots in the entrepreneurial practices in liberal democracies," Antonio di Pietro, an Italian magistrate argued. "Corruption is like a coin," he said, "It has two sides: one side is the corruptor and the other the corrupted." Giving money as a bribe to a civil servant in a country in Africa by an entrepreneur in an advanced Industial country was the moral and ethical responsibility of liberal democracies, he said. He asked how it was that advanced countries never prosecuted such people but actually used them. A UN report released last year identified countries such as France, Britain, the US and Germany of also condoning bribery in granting huge contracts for infrastructure projects in their own countries. The United Nations has approved a declaration urging the 185 member states to criminalise all acts of bribery in international transactions and deny tax deductibility for bribes, as currently practised in some Western nations. The declaration includes a call for transparent accounting standards and practices, as well as codes of conduct prohibiting bribery or even so limiting bribes. The declaration also seeks accurate records of payments for transnational commercial activities and urges multilateral cooperation on criminal investigations relating to bribery. Under intense US pressure, the OECD — described as a club of industrial nations — committed its members to rewrite tax rules that for long have encouraged bribery of foreign officials. The new rules, when enacted, would make illegal pay offs ineligible for tax deductions. "This is a sea change, a very important step in breaking the international chain of corruption," says David Aaron, the US representative in OE CD. "It takes governments out of the business of subsidising corruption by giving tax breaks for bribery." Currently, the US is perhaps the only major Western nation that bars companies from paying bribes to foreign officials. Bribery has been declared a crime under the US Foreign Corrupt Practices Act of 1977. The US move to delegitimise bribery is being interpreted as an attempt to remove the "unfair" advantage most West European nations have over the US on international business deals. The Americans have been motivated by their own self-interest. "From April 1994 to May 1995, the US government learned of almost 100 cases in which foreign bribes undercut US firm's ability to win contracts valued at $45 million," says US Trade Representative Mickey Kantor. Washington, he said, wants "to level the playing field and make the rules fair by eliminating this pernicious practice." |
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