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Monday Dec 23, 2024
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The present Government is certainly changing pillows to cure headaches as we have seen so many chairs shifted in cabinet within a short three-year period of Sirisena/Ranil Government resulting in lethargy across the Government. Changing the cabinet alone in fact doesn’t solve the problems of a country at it amounts to ‘spitting in the wind’ as things go haywire and will not solve the present Government’s problems over the next 12 months before it switches to national election mode.
It is strange that Prime Minister Ranil Wickremesinghe, an experienced leader, has not understood that the problem lies with the economic management and communication. Whilst I do not intend to discuss communication in this article, let’s rationalise economic management.
The heart of economic management comes from the Ministry of Finance and the treasury department. It is a well-known secret that the three budgets brought by the Yahapalana Government have utterly failed due to non-action of the policies, whilst it must be acknowledged that most policies themselves and policy statements have been good. But delivery has been pathetic to say the least.
The secret that is a non-secret
If one analyses the success stories of governments we had, they came through the intervention and a strong man at the Ministry of Finance who would have command over the line ministries. Remember the President Premadasa era, it was R. Paskaralingam (known as Paski) the treasury secretary who was the empowered strong man that executed policy and reforms that saw new energy even whilst the country was grappling with a war. Even today and in 2002 Wickremesinghe relies on Paskaralingam to help him drive the economy, but the difference is Paskaralingam as an advisor has no teeth to do what he wants to do, and the public sector really doesn’t worry on what he says as they are not accountable to him. Hence in short, good advice is good, just like Prof. Ricardo Hausmann of Harvard University giving the best advice, but getting it done in the ground level and sustaining the same is another ball game. Then came Dr. P.B. Jayasundara, (known as PBJ) another public official who has a good head on his shoulders and guts to drive policy although some political leaders after winning the war misused him for the wrong reason that saw his exit with somewhat of a disgrace. But credit must be given to him as even though the policy may be right or wrong of the then government, he did the job connecting government ministries; one must understand that even the war would have not been won in 2009 if the Finance Ministry did not provide the funds at the correct time and managed the macro environment. It was post 2009 that the then government went into family business and ruined the economy and Dr. PBJ too.
Both Dr. Jayasundara and Paskaralingam understood economics and were quick and pragmatic decision makers. The rest of the line ministry secretaries were answerable to them and there was follow up and accountability. There was a close dialogue with the private sector and both as finance secretaries had the intervention and the power to execute. This sentiment would be confirmed by any private sector organisation if you ask one of them.
Comparing to this today under ‘Yahapalanaya’ (YP) sadly the treasury secretary is hardly seen actively engaging issues and hardly talks to the private sector or line ministries with authority, he seems to be not even having the clout over the line ministries.
Instead the Prime Minister had a Cabinet Committee on Economic Management (CCEM) which is now dismantled in theory and the President creates a new National Economic Council (NEC) to solve problems of the country and then rotates the cabinet just to fool the people. Treasury officials are/were just members of these committees and in reality, lack of leadership at treasury is taking the country and its reform agenda nowhere but probably down the hill.
Whilst directions and decisions are discussed at NEC, now it seems that action is limited as these committees are not the best way for finance and administration of a country to go down across the government institutions. Economic management should come under a strong government official at the Finance Ministry, who could command the rest of the ministry secretaries. Both Paski and Dr. PBJ knew this and were good at this.
Another way of putting it is Field Marshal Sarath Fonseka won the military battle by first fixing internal discipline and proper command structure with authority in the Sri Lanka army not by the advice of the Security Council. If the Government understands this simple management practice, then only we will see a win in the economic front too. Hope this is understood by the two leaders that the problem is at the Finance Ministry, and the problem should be fixed fast along with Minister Mangala Samaraweera. Otherwise Good Luck YP!
Ex Treasury Official
