The Lord Buddha taught that personal change precedes world change, stating, 'Only a man himself can be master of himself: who else outside could be his master?' This principle applies to everyone, regardless of status or position.
by Mahinda Siriwardana
Editorial Note: This series is based on the keynote speech by the author, titled “Shaping the Future: Policies for Dynamic Growth towards Improving Social Protection and Well-being of the People,” delivered at the launch of Sri Lanka’s National Social Protection Policy on 16th August 2024.
Today, Sri Lanka has come to a decisive moment in its journey to crisis resolution and prosperity. In “Shaping the future: Policies for dynamic growth towards improving social protection and wellbeing of the people“, a carefully thought out, evidence based approach is essential. Although there are signs of positive economic activity emerging and reform efforts have started to bear fruit, it is critical to remain vigilant and fully committed to the reform agenda envisioned at the onset of the crisis. This is critical to ensure a sustainable economic recovery that is embodied by human wellbeing, ecological sustainability and social justice.
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The path ahead is not easy and will be full of obstacles. The country and the people should be vigilant of the developments and risks, both domestically and internationally. If we continue to implement rational, evidence-based policies, we as a country can strengthen resilience of the economy by rebuilding macroeconomic buffers, thereby setting the foundation to prosper in the coming years. If we ignore early warnings, and make drastic and irrational deviations from the policy framework, there will be serious negative consequences for the economy.
Going forward, the country needs a “Social Contract” for a long term vision that will be implemented with specific attention to periodic revisions required to suit emerging situations. It is important to have this type of a vision as the country has been battered due to short sighted, opportunistic and politically motivated policies implemented in the past.
In the meantime, there are voices raised for a systems change. A system change can be defined as “’shifting component parts of a system — and the pattern of interactions between these parts — to ultimately form a new system that behaves in a qualitatively different way’.
….We navigate interdependent webs of systems every day, all of which have complex interconnections and unique relationships. For example, a family, a community, a nation. Likewise, our transport system, food system and cities. Thinking systemically generally involves seeing the whole rather than just parts, seeing patterns of change rather than static snapshots, understanding key interconnections within a system and between systems, engaging different perspectives, constantly learning and adapting and probing assumptions.
….Changes in one system can cause unforeseen consequences in others. If we are to create a sustainable and just future for all, we must navigate these with a systems lens to fully grasp the complex dynamics….
….(For example) the latest science tells us that we must limit warming to 1.5 degrees C (2.7 degrees F) to prevent increasingly dangerous and irreversible climate change impacts. It also tells us that we must protect, sustainably manage and restore ecosystems, among other actions, to halt biodiversity loss as soon as possible. To achieve all this, we need fundamental change across nearly all major systems by 2030 — power, buildings, industry, transport, forests and land, and food and agriculture. Cross-cutting transformations of political, social, and economic systems must also occur to enable this and ensure the change is socially inclusive with equitable outcomes for all”.
The above quotations highlight the importance of having changes in all the related systems with cross-cutting transformations to achieve desired objectives and “ensure the change is socially inclusive with equitable outcomes for all”. Unfortunately, it is observed that there is a resistance to change in many areas in the society both among individuals and institutions. If someone is serious of a system change, it should begin from the individuals themselves, before asking others to change. The true change begins with an individual’s own conscious. The “Lord Buddha always emphasized on changing the self-first to bring about a change in the world. He said: “Only a man himself can be master of himself: who else outside could be his master?”. This should be applied to all individuals, regardless of their social strata or official positions.
There is a long and difficult journey ahead of us towards achieving higher economic growth, creating quality employment, and enhancing well-being of the people. In the past, we have attempted many short cuts, but these are no longer options. Considering the period between April 2022 and August 2024, an objective assessment of the evidence so far indicates that the reforms being implemented are working. This is not to say that the reforms are not associated with pain and economic stress for the citizenry. The people have gone through a tremendous pain and stress and it was because of their patience and tolerance that helped the country to stabilise within a relatively short period of time. However, the alternative to reform, the counter-factual referred to earlier, would have been a far worse outcome.
There have been various theories as to what caused the economic crisis, including the COVID-19 pandemic, ISB borrowings, the Debt Standstill policy. However, it is clear that the fundamental cause has been long standing macroeconomic vulnerabilities and domestic policy errors. There have also been various alternative proposals and theories as to how the country can recover without the citizens having to bear a burden. But, it is important to understand that measures such as asset recovery, collection of taxes in arrears, elimination of corruption, while all being essential actions, do not serve as an alternative to the macroeconomic reforms being implemented today. These are reforms that were known to all of us for years if not decades. But, these much needed reforms were delayed mainly due to a lack of political will. As I have indicated previously as well, in the past, and up to now, the present generation lived a better life by borrowings thereby sacrificing the lives of the future generations. However, it is critical to understand that now we have come to a situation where the present generation should make sacrifices for the betterment of the lives of the future generations.
Based on developments and the judgment based on my experience in dealing with the economic crisis, I see that the country is at another crossroad today, possibly the most critical cross-road yet. Over the last two years, the country has undergone necessary but painful macroeconomic reforms with the support and sacrifices of the people and assistance from the international community. Sri Lanka is gradually emerging from the crisis and eventually the country will be poised to rise strongly by exploiting its huge untapped potential. However, there are risks associated with any abrupt deviation from this knife-edged reform oriented growth path. So, we should all be very cautious and careful in navigating the very delicate situation in the Sri Lankan economy at present. In my view, the achievement of dynamic growth, which will ensure the social protection and well-being of the people in the generations to come, will depend on the measures to solidify the stability and the way we respond to the extremely challenging situation today. This is my message for all Sri Lankans to consider.
Concluded
K. M. Mahinda Siriwardana, Secretary to the Treasury and Ministry of Finance, Sri Lanka
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