Commitments of business collectives worthy of a leadership effort stretch!

Leaders of chambers and business collectives should in the current governance context, focus consistently on their agreed core commitments. They must ensure by constant vigilance that any withdrawal of, or gradual erosion of, hard earned legislative/regulatory or confirmed policy protection options are not lost or torn away from the private sector. This accountability requires pro-active and visionary leadership action on the part of the chamber leaders and their respective secretariats.

Most chambers would have an agreed set of core commitments under constant watchful eye and these may include:

1.Ensure peace and ethno religious harmony  throughout the country

2.Ensure upholding of free market policy commitments, encompassing trade, manufacture, services, financial markets and technology transfers

3.Ensure security,  rule of law and justice (including judicial independence) are cornerstones of governance

4.Ensure upholding of democratic freedoms, with emphasis on property rights, trade and services and commercial freedom

5.Ensure accountable, transparent good governance, with effective regulatory and independent public institutions supporting consistent and clear national policies effectively implemented with equity and fairness

6.Ensuring a free media and freedom of expression

7.Transparency,  right to information and anti corruption in governance

8.Ensuring effective labour markets supplied with adequate supply of capable human resources

9.Equitable national resource allocations ,leading to developing quality and productive infrastructure and efficient and effective service delivery

10.Supportive foreign policy and international relations

In addition to the above, the private sector following several years of effective advocacy and hard bargaining, has secured several legislative and other core policy commitments from the Executive, some of which are:

1.A commitment that white papers, and green papers will be published with regard to all new or amended policy, regulatory and legislative changes planned by the Executive; and, in any event that there will be adequate stakeholder discussion prior to implementation of all key new or amended policies, regulatory or legislative frameworks

2.Inflation , Interest rates and exchange rates will be maintained and managed bearing in mind the impact on the national competitiveness, productivity and enhancement of opportunities for sustainable and profitable private sector led growth

3.Taxation policy changes will be subject, where ever possible, to prior stakeholder discussions and the Executive will be mindful of opportunities for sustainable and profitable private sector led growth

4.Fiscal, monetary and balance of payments management will be efficient and effective and the Executive mindful of opportunities for sustainable and profitable private sector led growth though such management and policy framework consistently applied

5.The opportunities for effective and efficient public private partnerships options will be pursued by the Executive

It may now be an opportune time for a post audit by chamber leaders, to assess how well they have fared in serving their stakeholders in the above regard and to engage in a self critique and develop lessons learnt and agree future commitments; especially how stretched efforts can be the committed to by them collectively, in all areas determined to be of priority for private sector led sustainable growth.

Even before such a post audit and lessons learnt and way forward action are determined the chamber leaders and their supporting secretariats need to immediately address their responsibility and accountability by their stakeholders, in regard to the following core commitments covering hard won gains of the past, in ensuring that they are not lost in the immediate future due to ineffective actions or lack of timely strategic reviews/advocacy and action follow up, in the face of following challenges;

1.Attempts to legislate or commit to regulatory or policy directives or reforms thereof areas of strategic long term significance in economic and social sprees and in areas of operational freedoms and rights of the business sector in specific; and the society and citizens at large in general must be resisted. These attempts by the Executive, without adequate stakeholder awareness, publication of white/green papers, due professional analysis and public debate followed by effective advocacy and committed action in pursuit of good governance and best practices, must be challenged at all costs.

2.Attempts at changing critical good governance led legislation or regulatory frameworks previously adopted with the voice of the private sector being a critical component in that process must be also resisted, including changes to:

a.Fiscal Responsibilities Act

b.Public Utilities Commission of Sri Lanka Act

c.Monetary laws

d.Exchange control laws

e.Laws dealing with freedoms of trading and services locally and in export markets, including consumer affairs legislation

f.Money laundering laws

g.Board of Investment laws

h.Property rights linked laws

i.International trade and investments and international borrowings linked laws and, limits and guarantees

j.Laws and conventions guaranteeing investments against appropriation

3.Attempts at changing critical laws dealing with democratic and other rights and freedoms or applicable regulatory frameworks, previously adopted with the voice of the private sector being a critical component must also be resisted, including amendments to:

a.Constitutional provisions dealing with independent public institutions and fundamental rights and freedoms

b.Media freedom

c.Judicial independence

d.Right to information

4.Any attempts by paramilitary  or other groups to highjack law enforcement accountabilities must be challenged vigorously

5.Any attempts by any groups to incite violence and create ethno religious disharmony should also be challenged

6.The attempt to change the property and rights of local and foreign citizens and local and foreign investors by administrative means without proper laws in place must be resisted as this will lead to policy capture corruption

7.All attempted reforms that encourage policy capture led corruption must also be resisted

8.Reforms that may significantly impact on security and solvency of banking and finance sector including the State banks must be challenged

9.Reforms that may significantly impact on interest rates,  exchange rates and inflation must be accepted only following careful analysis and open intellectual debate

10.Reforms that may significantly impact on labour market freedoms must also be subjected to public awareness and comprehensive analysis and debate

11.Any significant risks arising from reforms that could lead to a financial or a monetary crisis, including a debt crisis, at a national or banking and finance sector must be promptly signalled and reviewed with independence and professionalism

As an immediate issue linked to above protection of business sector collectives’ core commitments, the joint chambers must form urgent issues task forces to examine and advice the chamber leaders and the secretariats on the following:

• The proposed reforms to the electricity pricing structure in order to make professional representations to the Public Utilities Commission of Sri Lanka, ensuring that the public and the business sector are not burdened with the costs of mismanagement, inefficiencies, political directives led subsidies and waivers, waste and corruption including  policy capture led corruption
• The planned urgent bills proposed to be adopted by the legislature, some of which are believed to impinge on constitutional provisions and may have significant national economic significance
• The national economic, business and citizens impact of the executive decisions linked to

Compulsory directed transfers to trade and services to Hambantota Port and Mattala Airport from Colombo Port and Katunayake Airport

Highway construction and expansion in preference to other transportation options including rail

• The national economic, business and citizens impact of any  executive decisions linked to State and private sector banks and financial institutions being promoted and incentivised to borrow in international markets in foreign currency
• Long-term implications on the national economy, business citizens of the recent issues connected with ‘Halal’ certification, ongoing hate campaign against some religious sectors and attempts at forming a para law enforcement arm linked to extremist religious groups.

 

(The writer is a good governance activist and a former Chairman of the Ceylon Chamber of Commerce.)