by Laksiri Fernando
‘He
who sees dukkha sees also the arising
of dukkha, sees also the cessation of
dukkha, and sees also the path
leading to the cessation of dukkha.’ – The Buddha
The New Year is dawn with much
celebration. Millions of people celebrated in capital cities, but we should not
forget that millions of people also remained hungry on this day. What we see in
Sri Lanka and the world over is the primary necessity of addressing the
suffering (dukkha) of the poor, if we
wish to avoid injustice, instability and violence. If it is a ‘struggle,’ it is
a struggle primarily for economic justice, freedom from hunger and poverty,
better living standards and economic upliftment of the poor. All democratic
rights of the people should be defended in the process, because otherwise the
political initiatives would be grabbed by a small group of questionable people.
In Sri Lanka, there is no point in
rallying around Yahapalana (may I say) scoundrels again in the name of
democracy as they have already betrayed not only the economic rights of the
people but also much of the democratic rights. The task ahead is to find viable
alternatives. There are possibilities that the government going against the
media, journalists and independent and critical reporting in the coming future.
They are already threatening them as ‘Black Media.’
World Bank and the ‘international
community’ are undermining poverty in the world and in Sri Lanka. Sri Lankan
authorities, past and present, are playing the same music by propagating the
myth that they have reduced poverty from 22.7% to just 6.1% within ten years. Is
it a miracle or a myth?
International
Scene
The last year 2018 has seen dramatic
events world over. Most of the former neoliberal countries are crumbling due to
internal contradictions. They have still not been able to come out of the 2008
global financial crisis because of the fake nature of their capital markets and
equity/financial arrangements.
Donald Trump is threatening to close
down the US/Mexican border, after a government shutdown already affecting more
than 400,000 working people. US crisis will deepen in the future with
implications for many other countries. In France, although people for a while
thought that a ‘non-partisan’ person like Emmanuel Macron would address poor
people’s grievances, he has turned out to be much worse than previous
Presidents. His increase of fuel prices and mismanagement of the economy have generated
an unprecedented Yellow Vest movement.
European Union is in a major riddle and
Brexit is only the tip of the iceberg. Italy, Spain and Portugal are in the middle
of the crisis. More dramatic is the crisis in the British political system. ‘Deal
or no-deal’ conundrum with EU has created an extraordinary crisis in this
oldest Parliament in the world. Although a deal with the EU might appear a
rational path of exist, the British people have become extremely suspicious of external
actors, particularly of countries like Germany and France.
It is under such a context that Sri
Lanka is hilariously advocating ‘unmitigated free trade’ without any national
safeguards, under the dictates of the World Bank and the IMF.
Reasons
Underneath
What is behind all these unprecedented
happenings? Bloomberg reported that ‘unequal distribution of wealth has increased
in every region of the world from 2007 to 2016’ (22 September 2018). Most stark
is in the United States, and China not excluded due to rapid urbanization. More
recent information is given by Credit Suisse. The total size of the world
economy is around US $ 317 trillion with a growth rate of 4.6%. In 2017, the
world wealth increased by 14 trillion. But who gobbled this wealth?
There are two major contradictions. According
again to Credit Suisse, ‘North America and Europe together account for 60% of
total household wealth, but contain 17% of the world adult population.’ Is this
reasonable? What does the so-called ‘international community’ and human rights
NGOs say about this situation?
The second major contradiction is
internal to these and our countries. In the EU, the top 1% gobbles 12% percent
of all income, while the bottom 50% left with only 22%. If we count the bottom
10%, the share is around 2%. The situation is quite appalling not only in the
peripheral countries like Turkey, Portugal, Spain, Italy and Eastern European
partners, but also in the core countries like Germany, Britain and France. That
is why the Yellow Vests and Brexit activists are operating. In the US, the tope
1% gobbles 20% of the wealth while the bottom 50% left with only 20%. No need
to talk about the bottom 10%. No figure is suitable. US Gini coefficient is
very similar to Africa!
There is no question that income
inequalities are much wider (and even camouflaged!) in developing countries
including Sri Lanka. The highest number of billionaires are now present in
India. China is not so behind despite President Xi’s efforts to rectify the
economic imbalances on socialist lines.
What
about Sri Lanka?
Sri Lanka has become more and more a neo-colonial
country emulating Western countries and their dictates in the economy. This is
done under the pretext of globalization or fake ‘internationalism.’ The country
is rivalling in neoliberalism under the dictates of the IMF and the World Bank
while many of the Western countries themselves have abandoned it. Most of the
welfare safety nets for the poor and low income people are already disbanded
and the remaining safeguards are under threat directly and indirectly.
The public sector is neglected. For
example, a poor person still can go to a government dispensary or a hospital
but most of the medications have to be obtained from private pharmacies. Although
the school participation levels are satisfactory, the children in remote areas
do not have required facilities. Even in schools with facilities in urban
areas, children from low income or poor families find it difficult to cope for
the lack of financial background that the other children have.
Sri Lanka is boasted to be a middle
income country (lower) now with a $ 90 billion economy and a per capita income
over $ 4,000. However, the income gaps have increased even under the present
calculations and estimates. Incomes shared by top 10% exceeds 32% and the
lowest 10% is left with only 2%. These are 2012 statistics (Index Mundi) without
much change or much worsening trends. When it comes to the top 20%, they hold
almost 50% of the national income, while the bottom 20% having only 5%. Is this
reasonable? Or can we just blame the poor for their laziness or Karma for the
situation? Or are their structural and policy reasons, national and
international, for the prevailing conditions of poverty and income disparities?
Reginal disparities of income are also
alarming. Districts of Mullaitivu, Kilinochchi, Moneragala, Mannar, and Batticaloa
are in the bottom of the pale. Some of these districts are minority districts
severely affected by the war. However, the World Bank, IMF, Asian Development Bank
and the likeminded organizations praise Sri Lanka for reducing poverty over the
years.
Absurdity
of Official Poverty Count?
According to the government of Sri Lanka
and the World Bank, a ‘miracle’ has happened within ten years between 2002 and
2012! The policy think tanks like the IPS also have not questioned it. The
following is what a great economic expert of the World Bank, David Newhouse,
says in March 2017.
“Excluding the Northern and Eastern provinces, headcount poverty fell
from 22.7 percent to 6.1 percent between 2002 and 2012/13. In that same period,
extreme poverty in Sri Lanka decreased from 13 percent to less than 3 percent
in 2012/13— lower than many of Sri Lanka’s neighbours, other post-conflict
countries, and other comparable countries.” (‘Understanding Poverty in Sri
Lanka,’ 2 March 2017).
Can you believe it? Reducing poverty by
17% percent in ten years would be a miracle in any country. I was in the
country mostly between these years. There was no such a miracle except relative
growth and expansion of the rich and the upper middle classes. I was visiting the
country again in July/August 2018. What I have seen is increased poverty in
Colombo.
All these absurdities are based on the
absurd calculation of the Official Poverty Line (OPL). According to the
technical notes of the Census and Statistics Department a person requires a
minimum of 2030 kilocalories per day. [i] That
is correct or even high. Then they have calculated the minimum expenditure
required by a person to fulfil this target during a month since 2002.[ii]
This is the absurdity. In 2002 it was Rs. 1423 and by November 2018, it was Rs.
4707. This is the OPL and this means what a person requires to achieve 2030
kilocalories per day is just Rs. 157!
It may be possible that people who have
less than Rs. 4707 per month income might be less than 6 percent of the
population. Even this can be doubtful now given their professional expertise!
However, they have not explained at all in the technical notes or elsewhere how
a person can have 2030 kilocalories for Rs 157 per day, let alone other basic
needs!
Need
for New Thinking
Neglect of the poor and poverty is a
global trend and a problem. This neglect originates from the international
monitory and economic organizations themselves who dictate terms to developing
and still poor countries. No need to talk about the rich countries or their
‘international community.’ For over three decades, the World Bank calculated
the poverty line as $ 1.20 per day grossly underestimating the suffering
(dukkha) of the people without a universal basic income (UBI). Then in 2015 after
thirty years it was raised to $ 1.90 per day and now says even under that, there
are over 800 million people in the world below that poverty line. It is still a
gross underestimation. It is not clear whether they have done a kilojoule
calculation like our officials!
What is unjust in the world is not mere
poverty, however you calculate it. Vast economic disparities are unjustifiable.
These disparities have been increasing in Sri Lanka over the years and have
come to an unbearable position. This may not be due to any rich person’s or
business company’s direct fault, but for structural and policy failures for
which the politicians are responsible.
At Ratmalana, where I was staying during
the last visit, there was a vast difference between the two sides of the Galle
road. On the sea side, mainly the poor and the workers live, struggling to make
their ends meet. On the land side, there was a thriving upper middle class,
with high walls, modern luxury vehicles and CCTV cameras for security purposes.
Attached is a picture of a poor beggar sleeping at a roadside.
Poor beggar at a roadside. Picture by LF
The beggar population has increased
exponentially during the last couple of years. There can be some fraudulent
people exploiting the situation, but the prevailing prejudices against beggars are
completely unwarranted. I even wondered what the charity organizations were doing
under the circumstances?
In
Conclusion:
- There is a pressing
need in the country to bring economic and social rights of the people to the
forefront of human rights campaigns. Apparently, these are neglected aspects
among the foreign funded human rights NGOs, except a few.
- The current demand of
the estate workers to raise their daily wage to Rs. 1,000 is absolutely a justified
demand. All concerned people should unconditionally support it.
- I have previously
written about a Universal Basic Income (UBI) for all deserving. It can be in
the range of Rs 10,000. The bottom 20% of the population should be entitled to
it, and any democratic government should be able to deliver it.
- Political democracy
should be accompanied by economic democracy. Good governance should be
established in the economy as well.
[i] http://www.statistics.gov.lk/poverty/monthly_poverty/Technical_Note_based_HIES2016.pdf
[ii] www.statistics.gov.lk/poverty/monthly_poverty/index.htm
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