Born into a humble family in the rural village of Thambuttegama in the Anuradhapura district, Dissanayake’s early life and political roots reflect his deep connection to Sri Lanka’s working class.
by Ruwantissa Abeyratne
“ I meant what I said and said what I meant. An elephant is faithful one hundred percent.” ~ From Horton Hatches the Egg by Dr. Seuss
The Story of Sri Lanka Best Told
Horton Hatches the Egg is a classic children’s book by Dr. Seuss, first published in 1940. It tells the story of Horton the Elephant, who takes on the task of hatching an egg left by Mayzie, a lazy bird who abandons her responsibility to go on a long vacation. Despite numerous challenges, Horton remains committed to sitting on the egg until it finally hatches. The story carries a strong morale and lesson about responsibility, loyalty, perseverance, and the value of keeping promises. The egg in the story symbolizes potential and innocence, while Mayzie represents irresponsibility and selfishness. In contrast, Horton stands as a symbol of moral integrity, compassion, and unwavering determination.
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| Anura Kumara Dissanayake, presidential candidate of opposition political party National People’s Power speaks to Associated Press in Colombo, Sri Lanka, Monday, Aug. 26, 2024. (AP Photo/Eranga Jayawardena) |
Allegorically, Horton in this story could be a certain person by the name of Anura Kumara. As for who Mayzie was, it can be anyone’s guess.
The Background
On 21 September the people of Sri Lanka went to the polls to elect its ninth executive president. The three main candidates were incumbent president Ranil Wickremasinghe; Sajith Premadasa; and Anura Kumara Dissanayake. Dissanayake, the leader of the Janatha Vimukthi Peramuna (JVP) and its broader coalition, the National People’s Power (NPP), was elected as Sri Lanka’s president in a decisive election following the country’s devastating economic crisis. Securing nearly 42% of the popular vote, Dissanayake outpaced his nearest rival, Sajith Premadasa, who garnered only 23%, while the incumbent president, Ranil Wickremesinghe, trailed behind with just 16%. This election marks a significant political shift in Sri Lanka, where economic collapse, widespread corruption, and deep social divisions have left the nation in turmoil. Dissanayake’s rise to power, built on promises of economic reforms and social justice, comes at a time when the country urgently needs a leader capable of navigating these intertwined crises.
Born into a humble family in the rural village of Thambuttegama in the Anuradhapura district, Dissanayake’s early life and political roots reflect his deep connection to Sri Lanka’s working class. He was the first in his family to attend university, studying physical science at the University of Kelaniya after leaving the University of Peradeniya due to threats during the JVP’s 1987-1989 armed insurrection. He emerged as a key figure within the JVP, steadily rising through its ranks to lead the party by 2014. Dissanayake is known for his firm opposition to IMF-imposed austerity measures, advocating for renegotiations to reduce burdensome taxes and eliminate VAT on essential goods, while championing increased social welfare and reforms that support businesses. As president, he inherits a deeply fractured nation where addressing systemic corruption, alleviating the economic crisis, and bridging socio-political divisions will be paramount. It becomes immediately clear that in order to steer Sri Lanka toward recovery, Dissanayake should prioritize transparent governance, foster national unity, and ensure sustainable economic reforms that prioritize the needs of the most vulnerable.
Some Academic Reminiscences
Throughout history, nations burdened by debt and marked by political division have often struggled to provide their citizens with essential services, including food, healthcare, and education. In such situations, prominent economists like John Kenneth Galbraith, Jeffrey Sachs, Paul Krugman, and others have developed strategies to assist these countries in recovering from their crises. These proposals, devised in response to various economic downturns, whether in developing or developed nations, typically revolve around achieving a balance between economic stabilization and social equity, reforming political institutions, and promoting sustainable long-term growth.
Galbraith, a leading Keynesian economist, argued that government intervention is crucial in addressing economic crises and inequality. Galbraith contended that the state has a fundamental responsibility to protect its citizens, especially in times of economic distress, as market forces alone cannot effectively allocate resources to meet the needs of the population, particularly the most vulnerable. In his opinion, countries that are unable to provide basic necessities must invest in public services such as education, healthcare, and social safety nets. He viewed these investments not only as a moral duty but also as an economic imperative, given that healthier and better-educated populations contribute more to long-term economic stability.
Galbraith advocated for progressive taxation, where wealthier individuals contribute more to the public good, to fund social programs and reduce inequality. Additionally, he proposed that governments reprioritize national spending by cutting back on non-essential areas, such as military expenditures, and redirecting resources toward social welfare. In nations facing political division, Galbraith emphasized the importance of building consensus and involving the public in economic decision-making. He believed that addressing the needs of the majority would allow governments to gain the legitimacy required to implement difficult reforms, an approach he promoted in his work with post-war European economies, where collaborative efforts between governments, labor groups, and industries helped achieve social welfare and political stability.
Jeffrey Sachs is widely recognized for advising countries transitioning from socialist to market economies in the 1990s, particularly in Eastern Europe and the former Soviet Union. His approach, known as “shock therapy,” entailed rapid economic liberalization, including the deregulation of prices, privatization of state-owned enterprises, and integration into global markets. Sachs argued that countries weighed down by debt and inefficiency needed immediate, radical reforms to stabilize their economies. However, his legacy is contentious. While his strategy proved effective in Poland, critics claim that in other countries, such as Russia, it resulted in social upheaval, increased poverty, and the entrenchment of oligarchic structures.
In response to these criticisms, Sachs later adapted his views, particularly when advising countries in Sub-Saharan Africa and Latin America. In his more recent work, Sachs has stressed the importance of poverty alleviation and sustainable development as the cornerstones of economic recovery. He argues that heavily indebted countries should focus on long-term investments in health, education, and infrastructure, which are essential for sustained growth. Sachs has been a strong proponent of debt relief for the world’s poorest nations, contending that insurmountable debt obligations hinder growth. He called for international cooperation to restructure or forgive unsustainable debt, enabling governments to reallocate funds toward essential services for their citizens. His advocacy contributed to initiatives like the Highly Indebted Poor Countries (HIPC) program, which provided debt relief to numerous developing countries.
Sachs also emphasized the importance of improving governance and reducing corruption. He argued that political instability and corruption are significant contributors to both economic collapse and the inability of governments to provide basic services. Sachs maintained that transparency, adherence to the rule of law, and accountable governance are critical to ensuring that economic reforms benefit the broader population, rather than a select few.
Paul Krugman has been a vocal critic of austerity measures, which involve the reduction of government spending in an effort to balance budgets during economic downturns. According to Krugman, austerity exacerbates poverty and inequality by cutting essential services at a time when citizens are most vulnerable. Instead, he advocates for counter-cyclical spending, which calls for governments to increase spending during economic recessions to stimulate demand and provide relief to struggling citizens.
Krugman’s arguments became particularly relevant during the European debt crisis in the late 2000s and early 2010s. Countries such as Greece, Spain, and Portugal, which were deeply in debt, were compelled by international lenders to adopt stringent austerity measures as a precondition for receiving financial assistance. These policies resulted in widespread unemployment, significant reductions in healthcare and education spending, and substantial cuts to pensions and public-sector wages. Krugman contended that austerity was counterproductive, as it deepened the recession by reducing demand and exacerbating the very economic problems it sought to address.
In contrast, Krugman recommended that indebted countries focus on stimulating their economies through increased government spending on infrastructure projects and social welfare programs. This approach, he argued, would provide immediate relief to citizens while also fostering long-term productivity and job creation, ultimately allowing the economy to recover and reducing the need for future borrowing. Krugman also highlighted the importance of international organizations like the International Monetary Fund (IMF) and the European Central Bank in supporting struggling economies. He contended that these institutions should prioritize economic recovery over strict fiscal discipline.
Krugman further emphasized the need for protecting vulnerable populations in politically divided countries. He argued that social safety nets are not only ethical but also critical to economic recovery, as they help prevent social unrest and political instability. For countries facing both economic collapse and political division, Krugman advocated for inclusive economic policies that benefit the majority of the population, as opposed to austerity measures that disproportionately harm the poor and middle class.
My Take
Not being an economist or political scientist, and worse, having been away from Sri Lanka, I can only theorize, and that too from an ivory tower. For all I know, I could be dead wrong in my perceptions of Sri Lanka’s current situation. To add to that I have absolutely no idea of the President’s plans and visions for the country. For all purposes therefore, this piece could turn out to be a result of the Dunning-Kruger effect in me on this subject. But I am at the core a wordsmith, and I have to give below my reminiscences.
In addition to the contributions of Galbraith, Sachs, and Krugman, other influential economists have provided significant insights into how nations burdened by debt and political division can recover. Joseph Stiglitz has highlighted the critical role of equitable economic growth, pointing out that income inequality is a key driver of both economic instability and political discord. Stiglitz advocates for policies such as progressive taxation, increased funding for education and healthcare, and the enhancement of labor rights to ensure that economic gains are shared by the broader population rather than concentrated among the wealthy elite.
Amartya Sen, a Nobel laureate, has underscored the central importance of human development in economic recovery. He contends that supplying basic needs like food, healthcare, and education is not only an ethical obligation but also a fundamental catalyst for economic growth. Sen argues that nations should focus on investing in human capital, as a well-educated and healthy population forms the foundation for long-term prosperity. Moreover, he emphasizes the significance of democracy and political freedoms in fostering development, asserting that transparent and accountable governments are more capable of addressing economic challenges and safeguarding the well-being of their citizens.
Building on the perspectives of these esteemed economists, several key recommendations become apparent for nations struggling with debt, political strife, and the inability to provide basic necessities. First, governments should place a strong emphasis on social welfare and human development, ensuring that all citizens have access to vital services like healthcare, education, and basic amenities. Achieving this requires not only internal policy changes but also support from the international community, particularly through debt relief and foreign aid.
Second, governments should refrain from implementing austerity measures that disproportionately affect the poor and middle class. Instead, they should focus on counter-cyclical spending, investing in infrastructure, job creation, and social safety nets. These initiatives not only provide immediate relief but also help lay the groundwork for long-term economic growth and stability.
Third, enhancing governance and combating corruption is critical to ensuring that economic reforms benefit the broader population. Transparent and accountable institutions are necessary to prevent the concentration of wealth and power among a select few, a situation that often worsens both economic inequality and political unrest.
Lastly, international organizations like the IMF and World Bank should prioritize economic recovery and social equity over strict budgetary constraints. By offering debt relief, financial aid, and technical expertise, these organizations can assist countries in stabilizing their economies while safeguarding their most vulnerable citizens.
In summary, the insights provided by the prominent economists offer valuable guidance for countries facing economic turmoil and political fragmentation. By focusing on social welfare, avoiding detrimental austerity policies, improving governance, and fostering international collaboration, these nations can make strides toward recovery and create a more equitable future for their people.
I guess, so can Sri Lanka. It seems to have everything to gain.
Dr. Abeyratne teaches aerospace law at McGill University. Among the numerous books he has published are Air Navigation Law (2012) and Aviation Safety Law and Regulation (to be published in 2023). He is a former Senior Legal Counsel at the International Civil Aviation Organization.
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