-By B.A.Kader (Kader Master) Part 02
(Lanka-e-News -22.April.2025, 8.15 PM) This is the story of how Singapore Island, a small city-state with a population of about 5.8 million and a land area of only 719 square kilometres—roughly 1/9 the size of Sri Lanka and almost the size of the Colombo district—,became one of the richest countries in the world and known as "the miracle of Asia."
Sixty years ago, when Singapore gained independence in 1965—17 years after Sri Lanka—it was an island with no natural resources to call its own, it was regarded as a far cry from both Sri Lanka and the industrialized world. Originally inspiring to become a Ceylon (now Sri Lanka), it quickly gained prominence to the point where Deng Xiaoping, one of the architects of modern China, adopted several of Singapore's policies to shape China into what it is today. Lee Kuan Yew, Singapore's founding father, is credited with enabling the country's prosperity.
Indeed, its advantageous geographic location for international trade made it ideal for its fast development, but this is not the only factor for its success; many other islands, like Sri Lanka and the Maldives, also benefit from a similar position but were unable to follow such a successful path. Its success can be attributed in large part to its diplomatic use of its advantageous location for economic growth, effective management of the difficult neighbourhood, and superpowers vying for dominance in that region.
Early on, Singapore had been plagued by a chronic housing shortage and limited educational opportunities, prompted the government to give public construction and educational infrastructure top priority. In Parallel it produced a society that was more orderly than its neighbours and free from ethnic conflict or an oppressive and corrupt elite and gave investors the confidence to make long term investments. All these elements combined created a stable environment that soon paid off.
When tax and regulatory incentives were added, it quickly became an investor-friendly place where a foreigner could start a company in three hours. The city quickly became a hub for the service industry, and some of the largest industries in the country, including banking, electronics, and shipbuilding, started to flourish after large banks, consulting firms, and insurance providers quickly relocated there.
By the late 1970s and early 80s, within a decade of its independence, Singapore was a manufacturing giant in South East Asia, becoming one of the first countries to become industrialized along with the other 3 “AsianTigers”, in what was largely a rural Asia.
The first lesson Sri Lanka can learn from Singapore is how to diplomatically manage the difficult neighbourhood and navigate the challenges posed by the superpowers vying for dominance in that strategically important region.
The second lesson that Sri Lanka should take away from Singapore's success is the role of the state played in establishing the robust institutions, necessary infrastructure and rule of law.
The third lesson Sri Lanka can take from Singapore is to establish an equitable environment for various ethnic groups, allowing them to collaboratively participate in the country's progress. This involves addressing and removing the elements that lead to ethnic tensions and hinder development—a crucial lesson that Lee Kuan Yew gained from witnessing the divided Sri Lanka under SWRD Bandaranayake.
Lee Kuan Yew told an audience of college students in 2013:
"We have had, since 1965, an undivided society, solidly behind a meritocratic system, pushing for higher standards of education, higher standards of performance, and meritocratic at every level,"
It encapsulates the key to Singapore's success. While there are several aspects of Singapore's system that can be criticized, the three lessons mentioned above are essential for achieving effective development.
What path should Sri Lanka take to achieve this goal, drawing lessons from the success stories of China and Singapore in light of the current global economic trends?
A sustainable development strategy should prioritize a people-centered approach focusing on the meeting both the basic and modern needs (this includes needs related to emotional, cultural, educational, recreational, and community life) of current and future generations, preserving resources for future generations, safeguarding the environment in the process.
Sri Lanka needs to implement a sound policy for economic development, along with short-term, mid-term, and long-term strategies to overcome its economic challenges. The following eight factors are interconnected and essential components of this approach.
Political Stability
Political stability signifies a government’s persistent state devoid of unrest, conflict, or sudden shifts, creating a reliable atmosphere for both citizens and investors. The attainment and preservation of political stability depend on sound governance, robust institutions, and a dedication to uphold the rule of law and democratic values.
To achieve this Sri Lanka should mainly:
Get the foreign policy right.
Achieve a balance in ethnic relations. In a country like Sri Lanka, where ethnic conflict resulted in three decades of war, this is a matter that must be treated with utmost seriousness. I will share my perspective on this topic in a future article.
Ensure that all section of people can voluntarily engage in a democratic framework for economic development and governance, facilitating their involvement in decision-making processes and ensuring they receive their fair share
Establishing appropriate institutional frameworks and enhancing their efficiency, along with enacting and enforcing essential laws to create an orderly society.
The issue at hand is whether we can revamp the outdated and corrupt state apparatus simply by changing or tightening a few screws. Even if the government enacts the best laws and establishes appealing institutions, relying on a corrupt bureaucracy for implementation is akin to expecting donkeys to catch snakes.
Take the example of the police department, which has an acting IGP appointed by the NPP government. The new administration has filled many key positions within the police force. Despite this, suspended IGP Desabandu Tennekoon evaded arrest for 20 days, even with an open arrest warrant issued by the court, until he finally surrendered arriving in a luxury Benz. He is now out on bail. This episode highlights the significant challenges the government is facing, indicating a possible covert campaign of sabotage against it and its struggle to retain control over state power. It underlines the clear distinction between government and state.
The role of the government, therefore, goes beyond merely enacting laws and establishing essential institutions. It must also take the lead, guiding and democratically overseeing these entities at every level, and when needed, making decisive intervention.
Eradication of corrupt elite through peoples’ democracy, political will and clear direction
The NPP government came to power through the ballots of the people, not by capturing state power through a revolution. Thus, it must pursue a different approach for changing the system and managing state machinery. However, this process cannot be half-hearted, slow, or gradual. As Marx observed about the Paris Commune, the first socialist revolution was lost because the right moment was missed. Instead of imposing their will consistently, the communards preferred to negotiate with Versailles. The commune hoped that by compromising, they would avoid a slaughter thereby they brought a bloodbath upon themselves. This indecision, delay and hesitancy were significant factors in the downfall of the Paris Commune. Therefore, the government needs to learn from the mistake of the Paris Commune act faster before it is too late.
More importantly, the government's obligation to hold corrupt individuals accountable does not end with merely transferring case files to the attorney general's office and the judiciary, which were established by previous corrupt administrations. Additionally, the battle against corruption should extend beyond just the former political elite; it must encompass all corrupt officials, such as judges, attorney generals, military officers, police officers, and any high-ranking bureaucrats and corrupt businesspeople. In this effort, there should be zero tolerance for nepotism or favouritism.
Economic development should not be left to the mercy of corrupt corporates and business leaders under the guise of democracy.
Democracy is an essential element of development. However, its meaning and interpretation can vary significantly depending on one's class perspective. This was critiqued by Lenin, who challenged the liberal interpretation advocated by Karl Kautsky:
‘If we are not to mock at common sense and history, it is obvious that we cannot speak of “pure democracy” as long as different classes exist; we can only speak of class democracy…“Pure democracy” is the mendacious phrase of a liberal who wants to fool the workers……’ (V.I Lenin, The Proletarian Revolution and the Renegade Kautsky)
‘Bourgeois democracy, although a great historical advance in comparison with medievalism, always remains, and under capitalism is bound to remain, restricted, truncated, false and hypocritical, a paradise for the rich and a snare and deception for the exploited, for the poor. It is this truth, which forms a most essential part of Marx’s teaching’ (ibid)
Lenin advocated ‘proletarian democracy for the people’ in the context of the developed capitalist countries of his time, while Mao Zedong expanded upon this concept in relation to developing countries, introducing the notion of "People's Democracy" or "New Democracy”. Mao's framework clearly identified "the people" and "the enemy," excluding a small, pro-imperialist, corrupt capitalist class as enemies. At the same time, it recognized the progressive role of nationalist capitalists, who were considered part of "the people”.
In my view, we must support a "people's democracy" where people come first and industrialist like Dammika Perera can contribute to country’s economy, but cannot swindle the country as a tax evading Casino King, business leaders like Dudley Srisena can participate in the country’s development but should not operate as part of a paddy mafia. There is no room for tax evaders, bank loan defaulters, or mafias that control crucial sectors such as plantations, electricity supply, customs, and the import/export of specific goods and so on. We must also reject those who stash their ill-gotten gains in offshore accounts or invest them abroad.
Poverty alleviation.
One of the primary objectives of every people's government must be to eliminate poverty. This does not imply that while the economy is controlled by corporates, people live on handouts and state benefits, a troubling characteristic of liberal humanitarianism common in rich Western countries. Instead, to effectively combat poverty a people's government must establish targeted programs which focus on strategic initiatives that address poverty's root causes while also empowering disadvantaged populations.
Public - private relationship
The people's government should establish robust state-owned enterprises (SOEs), promote mixed-ownership businesses, and support domestic private enterprises while streamlining regulations and institutions to attract foreign investment. This approach aims to accelerate the development of a directed economy in a transparent way, eliminating opportunities for monopolies and unethical or corrupt practices.
Government’s Role
The government should take the driver seat in advancing the country on all fronts, rather than merely going along with the momentum as a fellow-traveller.
The people's government must adopt an uncompromising policy that protects the country's territorial integrity, including the sea and national security, as well as economic, energy, environmental, food, and cyber security. It must also guarantee that it will fulfil its responsibilities for the welfare of the populace by providing high-quality healthcare, modern education, advanced sanitation systems, transportation, postal, and telecommunication services.
The government needs to adopt a robust approach towards drug dealers and take all required steps to ensure that Sri Lanka does not become a hub for global drug trafficking.
Fostering national unity through consensus is cornerstone to a country's development. The government must acknowledge the rights of all distinct nationals of the country and guarantee their fair representation and participation at every level. Furthermore, it is essential to establish strong legislation aimed at combating discrimination and undue dominance, while promoting affirmative actions that assist marginalized groups, including the Veddas and other minority communities to catch up.
Vision
The people's government must establish a clear vision for the direction of the economic development, which should focus on a self-reliant market economy at this stage.
Link for Part 01 https://www.lankaenews.com/news/4373/en
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by (2025-04-22 14:48:11)
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