Low hanging fruit for President and his 3-member cabinet

There are a multitude of agencies running from President downwards to Provincial, District, Local Authority, Divisional Secretary and Grama Niladhari Division level

Background

Before the Presidential election, there were ramifications, speculations and cautions expressed by several learned people who were not ready to adjust their mindset for a change. They casted doubts as to what a future AKD-led Government would do, if elected. The most repeated question was how would the Government find money to keep the pledges. The second question was how would the Government deal with the IMF. The third cynical question was how Thambuttegama Ranbanda’s Kolla would manage international affairs without competency in English.

Let me begin with the cynical question first. China and Japan are the second and the third largest economies in the world. Their leaders are not English competent. Russia is a world power that can stand up to the US. Putin hardly speaks English. Last Olympics was held in Paris where the French President made the opening day address in French. Finally, it’s no secret how Oxford Cambridge Sorbonne Harvard educated ladies and gentlemen took the country towards bankruptcy.

Coming to the question related to the IMF. The IMF was not created either by God or by nature. If Harry Dexter White and John Maynard Keynes were not concerned with reconstructing the international monetary system after World War II, for the benefit of lenders not for borrowers, there would not be an IMF. What our economists who are cleverer than White and Keynes would have then advocated? IMF is not a panacea for all misdemeanours, mess ups and sins committed by regimes since 4 February 1948. Really the question is not as to how the Government would deal with IMF; it is why Sri Lanka had to pay homage to IMF on 17 occasions.

Question related to money

Let us now turn to the question related to finding money to keep the pledges. What laymen understand and economists don’t is that everything is not money. Economics is not all about money. It’s only one component of many. Economic issues faced and solutions to them cannot be addressed only through money. What we have learned many years ago that inflation can be a ‘cost push’ is forgotten with aging and only remember the ‘demand pull’ caused by excess money supply.

We are fancy in talking about Monetary Policy and Fiscal Policy. We conveniently forget that the Economic Policy encompasses a wide range of measures, strategies, structural reforms and regulatory reforms in addition to Monetary Policy and Fiscal Policy.

Economics is a subject that deals with human beings and human behaviour. It is trying to explain why, when, and how consumers and producers (human beings) interact with each other. Supply and demand (The Market) is one of the basic and important concepts of economics. This is why late Prof. Indraratna used his forearms to demonstrate interaction of supply and demand to students of Colombo Chapter of University of Ceylon at Colombo Race Course Stadium in 1966.

Government interventions (Monetary and Fiscal Policy) and money are important in economic growth and development. But, one cannot ignore the importance of the interplay of other economic and noneconomic factors.

Abundance of resources and potentials

Sri Lanka is a country bestowed with an abundance of resources and potentials. It is at the centre of major sea routes connecting Asia to the rest of the world. The geographical location advantage enables the country to provide quick and efficient connectivity to global, regional and Indian sub-continent trade and shipping.

The island consists of flat to rolling coastal plains, with mountains. It has 103 rivers, 51 natural waterfalls, 45 estuaries, 40 lagoons, 61 wildlife sanctuaries, 22 national parks, seven nature reserves, one jungle corridor, 65 conservation forests, one national heritage wilderness area and a mangrove ecosystem spanning over 7,000 hectares. The climate is tropical and warm. Rainfall is fairly adequate.

The country owns a well-knitted infrastructure network and connectivity system. The road network consists of expressways, national roads, trunk roads, provincial roads, local and rural roads, flyovers, footpaths, bridges and culverts. One can reach any destination of the island within a matter of hours.

The Sri Lankan rail network is 1,508 km in broad gauge. Some of its routes are scenic, with the mainline passing (or crossing) waterfalls, mountains, tea estates, pine forests, bridges and peak stations.

The missing link – coordination

We have been sitting on and boasting about these opportunities and potentials but failed to convert them into economic fortunes; we have failed in attracting ships, Foreign Direct Investment and travelers. Why? It is not due to shortage of money or regulations or institutions. We are excessively equipped with laws/acts/ordinances/regulations and institutions. The missing link is ‘coordination’. The Government agencies do not talk to or consult with each other. Each agency is governed by its own act/ordinance, its own budget and its own staff. They do not see beyond their own turf. Government agencies do not see eye to eye with non government and private sector agencies. Inter agency as well as intra agency coordination is alien when it comes to work. Alas, coordination is very much in play when it comes to misdeeds, violation and corruption.

Government agencies such as BOI, SLTDA, EDB, IDB, Wild Life, Forest Conservation, Irrigation, Railway, etc. can get together and coordinate with the private sector, universities and NGOs and draw up programs to exploit the potentials and opportunities endowed. This will not cost money as all inputs, infrastructure, agencies, acts, regulations are already in place.

There are a multitude of agencies running from President downwards to Provincial, District, Local Authority, Divisional Secretary and Grama Niladhari Division level. There are coordinating committees at each level. They are dedicated not for discussion on coordination of development work but for the politician to inquire about providing some facility to one of his/her clients.

Fragmented value chain in agriculture

The AKD government introduced a fertiliser subsidy to paddy farmers. This move was applauded by everyone including the Election Commission, farmers and those who voted for NPP and not. But, agriculture is not fertiliser alone. The farmer needs quality seed paddy, right technology, advice, pesticide and weedicide, etc. prior to the harvest and post harvest facilities such as drying, storage, transport, packing, milling and disposing. The paddy value chain runs from farm to plate. It involves disorganised dependent small paddy farmers to well-organised capitalist rice miller and a host of different government agencies. But the agriculture value chain is fragmented. The value chain players do not meet. They do not consult each other. They are all independent self decision makers.

Once I inquired from a senior officer of the Agriculture Department what arrangements are in place to transmit the research output (extension) to the farmer? His prompt response was Research is with us the centre and the extension is devolved to the Provincial Councils. I asked aren’t the officers at both levels colleagues and working together before the devolution. He treated me with a sweet smile. On another occasion I inquired from a senior officer in the Ministry of Agriculture regarding sales of paddy. His rude response was don’t you know that this Ministry is responsible only up to the harvest and sales is a subject assigned to the Ministry of Trade?

I urge the Minister, “Please do not let the Secretary and his officials of the Ministry of Agriculture hold press conferences and fall into complacency. Direct him to draw up a monitorable well coordinated interagency program covering the whole process from farm to plate to avoid the farmer at one end and the consumer at the other end start agitating on the street.

Research, technology and development

Another area where coordination is absent is Research, Technology and Training. There are specialised research institutes for each crop. There are 16 state universities and institutes and centres affiliated to them with research facilities. There are a host of organisations established and dedicated to conduct, promote, facilitate, administrate, coordinate, fund and transfer knowledge and technology.

Industrial Technology Institute, The Institution of Engineers, Sri Lanka Association for the Advancement of Science, NIBM-Limkokwing National Innovation Center, National Science Foundation, National Innovation Agency, National Intellectual Property Office, Arthur C. Clarke Institute for Modern Technologies, National Aquatic Resources Research and Development Agency, Sri Lanka Institute of Nanotechnology, Sri Lanka Institute of Biotechnology Ltd., Gem and Jewellery Research and Training Institute, The National Registry of Scientific equipment, Department of Technical Education and Training and National Research Council, are only a few.

Then the Organisation of Professional Associations (OPA) is the only one of its kind in the whole of South East Asia. Its membership comprises 52 professional associations representing 32 professions in Sri Lanka.

Most of them are located in and around Colombo 7. Once late Prof. Buddhadasa Hewavitharana told me, “Chandre, Vidya Mawatha in Colombo 7 is a galactic belt for research, innovation and technology.”

Most of them are public funded organisations but serving the least to the public. Public does not even know of their existence. There is no mechanism to coordinate their activities and transfer the knowledge to the technology hungry farmer and the industry. These organisations complain that there is no adequate public fund for research. The public which funds and expects to be benefitted by the research also complain that they have no access to research output. There is agitation at both ends again caused by the absence of coordination. Over to you Minister of Science and Technology.

Lower Malwathu Oya multi-sector development

The Malwathu Oya is the second largest river basin and one of the largest and intensively cultivated small tank cascade systems in Anuradhapura district. Action was initiated to implement Lower Malwathu Oya Multi-sector Development in 2019. The then Minister of Irrigation, P. Harrison stated that the lower Malwathu Oya reservoir construction work had been at a standstill due to lack of finances and tugs o’ war between stakeholders. In other words he referred to the absence of coordination.

The project covers irrigation, drinking water, hydroelectricity, solar power, tourism, flood mitigation, inland fisheries, aquatic resources, resettlement, lift irrigation, reforestation, new town, improving forests/wildlife Reserves, enhancing the movement of wild animals, internal road network, archaeological conservation, and of course agriculture (food crops, cash crops, high valued crops).

A multi agency committee consisting of representatives of the Ministry of Irrigation, Departments of Irrigation, National Planning, External Resources, Agriculture, Prime Minister’s Office, Ceylon Electricity Board, Sustainable Energy Authority, National Water Supply and Drainage Board was formed.

Chinese company has expressed its interest to partner with the implementation of the project sharing 70% of the cost and to submit a comprehensive technical proposal.

This project is not taking off not due to lack of funds but coordination.

I have shared a bit of my experience on the damage that can be caused on and inhibit the progress of development work by lack of coordination. Establishing and strengthening the coordination between inter agency and intra agency players is one among the low hanging fruits available to the Government and a response to those who worry about money alone.

(The writer is former Secretary of Ministry of Plan Implementation. He can be reached on [email protected].)