17.2.2008
By K T Rajasingham
JVP
Leader Talks about Inequality, Economy, Government and
the Private Sectors
JVP
leader Somawansa expressed his views on the economic situation
and its inherent bias towards inequality, the role of
the government and the private sectors, when continuing
his dialogue with the Asian Tribune. The disparities between
income groups, provinces and district were also discussed.
Here is the interview with Somawansa Amerasinghe
K.T.Rajasingham:
You said that you wanted to say something about the economic
side? What is that you want to talk about?
Somawansa
Amerasinghe: I want to tell you about the real cause of
this national question. It depends on the economy and
should be handled. How the economic situation of the country
and its inequalities contribute to accelerate the different
ethnic communities. We have so many problems that are
the mother of the entire crisis. Economic crisis is the
cause of so many others.
K.T.Rajasingham:
In our constitution we have never given prominence to
issues regarding the economy of our country? That is the
most important defect that we are having at present.
Somawansa
Amerasinghe: Exactly.
K.T.Rajasingham:
We should have a constitution which has to say that everyone
should have equal economic opportunity and that should
be guaranteed by the constitution. Any politician who
comes to power should ensure that each citizen of the
country is given equal economic opportunity and provided
facilitate all their basic essential requirements?
.
Somawansa Amerasinghe: Yes, inequalities must be eradicated.
Not only between the communities or between people, but
also among the provinces and it is clear that there are
so many regional disparities in the country.
K.T.Rajasingham:
Here the economic policy I spoke of was inequality between
man and man. Everyone should have a job; everyone should
have a roof over his / her head. Kindly understand that
these are not communist policies.
Somawansa
Amerasinghe: No, no, these are not at all communist policies.
These are basic social requirements.
K.T.Rajasingham:
Social requirements of human beings should also be considered
as basic human rights problem.
Somawansa
Amerasinghe: Yes, exactly. Now differentiate how things
are in Sri Lanka… poverty, what is poverty? Not
being able to meet basic needs, food, clothing, shelter,
primary education, and health care, due to what? Due to
lack of equal opportunity. As you know Western Province
is the leading province that is eating up much of the
GDP. So there are differences between provinces. So less
than 50 percent of the GDP is invested in other provinces.
K.T.Rajasingham:
Nearly 50 percent of the GDP is spend in Colombo and balance
is invested in the other 8 provinces of the country?
Somawansa
Amerasinghe: Yes, the 8 provinces, for example, Uva province….
K.T.Rajasingham:
Uva province that is in the south-east of the country?
Somawansa
Amerasinghe: Yes, they spend only less the 2.5 % of the
GDP. Then comes Eastern province, if I remember correctly,
so it is very clear that there are disparities among the
provinces.
Today
12.5% of the people are living in cattle and dog houses.
K.T.Rajasingham:
Like cattle herd they live in something above their head
to be called houses? More or less they don’t have
houses?
Somawansa
Amerasinghe: Not like herds, but we cannot define them
as houses, yes, 25 % of population lack electricity. 5%
of the population does not even have toilets.
K.T.Rajasingham:
Water and drinking facilities?
Somawansa
Amerasinghe: I do not remember how many percentages have
running water…maybe about 30%. And now, in 2006
nearly 60% of the population was below the poverty line
with less than 2 USD per day.
K.T.Rajasingham:
Their daily income is less than 2USD per day?
Somawansa
Amerasinghe: Yes, that is the picture and so inequalities
and poverty affect developments of the country. The causes
of inequalities are regressive taxes, taxation; there
is no income support for the poor people who are below
the poverty line and no social welfare. As I said earlier,
regional disparities between the provinces and between
the districts are acute. These are some of the defects
and are due to bad government and lack of good governance
and corruption. Corruption accounts for 10% of the GDP.
K.T.Rajasingham:
Corruption, the money lost due to bribery and corruption
amounts to 10% of the GDP?
Somawansa
Amerasinghe: Yes, that means if we invest that money that
will give us 2% growth in addition, every year we are
losing 2% of additional economic growth.
K.T.Rajasingham:
By this 10% of this corruption? If this money is used
properly there will be additional 2% growth?
Somawansa
Amerasinghe: Yes. There is another problem, imperfect
market which leads to the fact that some people are not
treated as equal. Once the market is imperfect that is
due to inequalities in power and wealth, again leading
to unequal opportunities.
K.T.Rajasingham:
But you have not defined by what you mean by imperfect
market?
Somawansa
Amerasinghe: Imperfect market means some people are powerful
and wealthy. These people are in the market and they enjoy
privileges. Others do not.
K.T.Rajasingham:
That is what you meant by imperfect market? Also I want
to ask you what contribution you expect from the private
sector.
Somawansa
Amerasinghe: Private sector? Our policies regarding private
sector? They are the people who contribute a lot. Now
they provide more than, I think, they provide jobs in
greater number than the government sector.
K.T.Rajasingham:
I want to also ask you whether you are going introduce
the policy of nationalization, which has already been
proved as a failure?
Somawansa
Amerasinghe: No, the thing is this we will encourage the
private sector, the state sector and the private sector
should go hand in hand with the state sector.
K.T.Rajasingham:
The next thing is that there should be less government,
the government should only govern and not involve in other
matters such as running businesses, administering business
concerns?
Somawansa
Amerasinghe: I don’t agree completely because government
has an important rule to see that both the state sector
and Private sectors functions smoothly
K.T.Rajasingham:
You don’t have a state sector; the state sector
has been brought into being by the nationalization of
large business organizations. Now there is nothing else
when you give all back?
Somawansa
Amerasinghe: No still the railway is state owned, the
buses are state owned, the schools and electricity are
state owned. Post offices are run by the government. Postal
department is there.
K.T.Rajasingham:
These are some of the essential services?
Somawansa
Amerasinghe: Both sectors are there, these sectors have
to be encouraged, you will see that these two sectors
are running efficiently. So for us health sector is very
important. We are not going to privatize any, for example,
distribution of petroleum products we are against. We
sold one third of the petrol stations to India.
Courtesy - Asian
Tribune