Thursday, June 10, 2010

Will state capitalism be a solution to global crisis of the capitalism?

(June 10, 2010, Colombo - Lanka PolityWe reproduce this column written by Dr. Wickramabahu Karunarathna to LakbimaNews since it is one of the very rare occasions the leftist activists of Sri Lanka attempt to address the core political issues rather than the day to day economic struggles.

As far as we have understood, Dr. Wickramabahu seems to say that state regulation of the capitalist system will be inadequate to overcome the global economic crisis. He does not provide a clear answer regarding solution though he implies socialism will be inevitable. After all, socialism is yet to be defined in the modern context, as we perceive, the veteran Marxist can clear the issue if we are wrong.

On the other hand, is state control of the capitalist economy so new? Capitalism thrived through national states and even in the age of global capitalism, the state control is still predominant even in the developed countries although it is theoretically expected the market will regulate the system itself.

More or less, the extreme control of the market by state through price control, prohibitive tariffs, tax reliefs and state enterprises has become Sri Lanka's present day practice. The government is trying on one hand to liberalize market more through Comprehensive Economic Partnership Agreement with India while it is trying to accumulate a bigger share of capital through measures like acquiring the stake of Emirates of Sri Lankan airline on the other hand. It can be an innovative move of the economic pundits of the unconventional Rajapaksa regime. Who knows what miracle they will perform? They are the people who crushed the elusive Tamil Tigers in a war that no one expected would be able to be so blatant and disregarding of human rights.

The global crisis, which we are experiencing right now is the deepest and the most widespread crisis, since the 1930s by any reckoning. It has changed the attitude of pundits of global capital. The glory days of free market are gone with the crisis. Then, we were told by writers, artists and academics that “Greed or desire is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.” In fact the founder of modern psychology, Freud saw all human behaviour as motivated by drives or instincts, which in turn are the neurological representations of physical needs. On the one hand these instincts perpetuate the life of the individual, and on the other the life of the species. Thus he became a guru for those who wanted the free market economy to rule the human life. Many have accepted the idea that humans are just naked apes and the man is just a hunter. Market is the modern hunting ground. However, all these optimistic Neanderthal thinking has been slowly abandoned for more realistic ways for capitalism. It is the path of compromise and social peace.


Desire dominated
New thinkers promoted by the International Monetary Fund, now argue that it is wrong to forget the institutional foundations of markets and to equate the free market with unregulated markets. Furthermore, they argue that whatever market monitoring that was there, was insufficient to guard against opportunistic behaviour, of unregulated, profit-seeking individuals taking risks by which they stand to benefit and others to lose. In other words man has to come out of desire dominated thinking, to care for others. Big banks and multinational companies too should remould their ethical frameworks. All this time the global capital arranged its affairs with least regard for ethical structures put forward by Mohamed, Jesus or Buddha. Of course the system preached that it is involved in a messianic mission to save religion from blood thirsty terrorists. But within the market mechanism there was scant regard for ethical thinking. Now the global capital is searching for truth and benevolence.


In an earlier analysis of the global crisis Daron Acemoglu, one of the new IMF thinkers, states: “A deep and important contribution of the discipline of economics is the insight that greed is neither good nor bad in the abstract. When channelled into profit-maximizing, competitive, and innovative behaviour under the auspices of sound laws and regulations, greed can act as the engine of innovation and economic growth. But when unchecked by the appropriate institutions and regulations, it will degenerate into rent-seeking, corruption, and crime.” I am glad to hear that the beast has to be controlled! However, the position today is that the desire is natural and it is the duty of the society to control. I thought Buddha said more or less the same thing. According to him the desire makes the human, an alienated person. The determination of desire by care will remove this alienation. The path for that nirvana is the collective, democratic praxis; the path of sanga. No, I am wrong; capitalism even with state control cannot get that far.


State capitalism
So we are in the middle of state capitalism as a temporary way out of this debacle of cyclic crisis. In spite of new terminology and man made confusion, the global system has entered the stage of state capitalism. I have nothing more to add than to quote from one of my teachers Fredric Engels. “In any case, with trusts or without, the official representative of capitalist society - the state - will ultimately have to undertake the direction of production. But, the transformation - either into joint-stock companies and trusts, or into State-ownership - does not do away with the capitalistic nature of the productive forces. ... It is, rather, brought to a head. But, brought to a head, it topples over. State-ownership of the productive forces is not the solution of the conflict, but concealed within it are the technical conditions that form the elements of that solution.”

Monday, June 07, 2010

Is China behind CEPA protests in Sri Lanka?

(June 07, 2010, Colombo - Lanka PolitySri Lankan President Mahinda Rajapaksa is to visit India since tomorrow and the bilateral talks are expected to focus Comprehensive Economic Partnership agreement (CEPA) that was supposed to be signed two years ago but stalled.

Two weeks back, several hundreds of protesters took to the streets against CEPA claiming it would hugely benefit the neighboring country by forcing the domestic industry into appalling risks. A high profile lobbying is underway against the trade pact which is yet to be made public.

Many highly educated, including doctors and engineers who were part of the recent protest along with businessmen expressed their fears that the island could be dominated by cheaper and skilled Indian services at the expense of the domestic industry.

However, Jose Roy writing to www.toboc.com says "this argument is unfounded as India’s educated unemployed were largely jobless because their reluctance to work for less or in remote places. Moreover, Sri Lanka being a country less than half the currency value of India would not have to panic about the products or services from India going cheap rather can ensure superior quality which could help the country build its economy on a firmer footing."

The Indo-Sri Lanka Free Trade Agreement (ISFTA) signed in 1998 and which is effective since March 1, 2000 has been able to boost trade between both nations significantly with near equal opportunity for the Sri Lankans. The ISFTA that is confined to the trading of only goods pushed country’s exports by manifold from $55.7mn in 2000 to $516.4mn in 2007. Interestingly, the part of the business community lobbying against the CEPA hail the ISFTA.

On the contrary, in 2002, the traded volume between China and Sri Lanka totalled about $350mn, of which China's exports accounted for $340mn providing room for Sri Lankan exports at about a meagre $10mn. Although Sino-Lankan trade witnessed tremendous growth over the years with bilateral trade crossing $2bn in 2009, imports from China remained predominately greater than the efflux. However, an anti-Chinese lobby is almost invisible possible because China is not involved in internal politics of Sri Lanka.

The conservatism of a part of Sri Lankan business community regarding CEPA is highly controversial. But the worst is Sri Lanka's leftist People's Liberation Front (JVP) and some other elements disgruntled due to the rise of Mahinda Rajapaksa through Sinhala nationalism in which they had kept all their eggs might try to rouse anti-Indian sentiments among the masses investing in CEPA protests.

These elements may use the opportunity for raising funds and mustering broad-based support for an anti-Indian campaign that may ultimately lead to a racist movement against any attempt to bring a solution for the ethnic problem through negotiations.

Frustration led them in previous occasions as well to similar disastrous racist tactics to grab power that caused havoc to entire nation. The JVP uprising between 1987-89 and the toppling of the democratically elected United National Party government through a premature election called manipulating draconian powers of the executive presidency they themselves despised in 2004 are examples. The damages incurred to the Sri Lankan polity in these vicious circles are immeasurable.

The business community members that protest the CEPA must be considerate of this kind of adverse effects of their protests that might ultimately lead to disastrous effects on the nation.

We, as leftists, do not believe in the conservatism in the name of safeguarding national states economies. It is the task of the capitalists to move in the path of market liberalization. Socialists must fight against the capitalist system for the rights of the down trodden masses. However, we believe that the forward march of the human socio-economic systems must not stop at nation state. Therefore, safeguarding national economies and state apparatuses should not be in the agendas of the leftists. Socialism, though not clearly defined, is an advanced social system, one beyond the fullest potentials of the capitalist system, that has nothing to share with the backward nation states.

CEPA is not leftists' subject. However, leftists must evaluate the situation vis-a-vis their aim of socialism. Socialism will be a reality only in a context labor has achieved the freedom of mobility that capitalism has already achieved.

Saturday, June 05, 2010

Lankan war was corporate one, says Arundhati Roy

(June 05, 2010, Colombo - Lanka PolityThe war in Sri Lanka was not just a war of the Sri Lankans against the Tamil people, according to writer-activist Arundhati Roy. "That was a corporate war. All the large Indian companies are now heading to Sri Lanka to make more money," Roy said on Friday. "The political parties of Tamil Nadu were the only ones who could have stopped the genocide in Sri Lanka, but they chose to stand by silently. A similar thing is happening in central India where tribals are resisting the takeover of natural resources by corporates."

Roy was speaking at a Convention on Operation Green Hunt and Genocidal attack on tribals by Indian State' organised in the city on Friday by the Federation Against Internal Repression. She said the resistance in central India was a fight against injustice and not a rebellion against the state as the government says it is. "The government is on the side of the corporates who want to take over the lands, forests, rivers, the traditional homes of the tribals. Operation Green Hunt follows the Bush doctrine of you are with us, or against us," she said. "Anyone who resists this corporate takeover, whether Gandhian, tribal or Maoist, is branded a terrorist," she said.

Turning her attention to the environmental impact of development, she said there was no ecological way to mine bauxite. "You can never mine bauxite and then turn it into aluminium without destroying the ecological balance of the mountains. The tribals have lived in harmony with the forests and nature for centuries," she said.

For over five years, some of the poorest, most marginalised people in the country have held off some of the world's largest multi-national corporations, she said, referring to tribals and adivasis across the country. "Every institution in this country has been corrupted but the spirit of our people remains strong," she said.

The people's struggles were not against democracy but the ways in which the mechanisms of democracy function. "You're a Gandhian if you protest on the road, and a Maoist if you resist in the forest. How can someone without food go on a hunger strike? To do Gandhian resistance, you need an audience, and there is no audience in the forest," she said.

-Times of India

Thursday, June 03, 2010

Whose success is IIFA? Sri Lanka government or Tamil nationalist lobby?


They will miss photo opportunity
with many Bollywood stars
(June 03, 2010, Colombo - Lanka PolityEleventh ceremony of Indian International Film Academy Award (ITFA), the Indian equivalent of the Oscars, is to be held in Sri Lanka since today.

However, the event in Colombo is similar to a wedding without bride and bridegroom, when paraphrased according to Sinhala folklore.

Many of the Bollywood super stars have boycotted the awards ceremony although they have used other words to describe their absence.  With this, inevitably marred by politics, the 11th IIFA has become the most controversial awards ceremony of entire world in the recent history.

Selecting Colombo as the venue for IIFA was initially a success to the Sri Lankan government. Sri Lanka had hoped to repair its battered international image and revive its tourist industry by hosting the IIFA. Indian government assisted Sri Lankan authorities to sort out the matter as a goodwill gesture to help the nation trying to mark its presence emerging from the debris of three decade war.

But since the venue was announced in April, the Tamil nationalist lobby in South India made the event a success for them using it to raise voice against Sri Lanka government over the woes of the Tamils battered by war in the northern and eastern parts of the island reinforcing the war crime charges haunting intermittently against Mahinda Rajapaksa regime in international politics.

Top Bollywood stars that have pulled out from the IIFA 2010 are too shiny to be absent and the ceremony sans them will definitely be less glamorous posing a threat to the organizers that the event can be an economical loss.

Most damaging of all is the apparent withdrawal of Amitabh Bachchan, the IIFA’s brand ambassador and patriarch of Bollywood’s first family, who met Sri Lanka’s President, Mahinda Rajapaksa, in Colombo in April to help promote the event.

Although the “Big B” has yet to officially announce his absence, industry sources say he will not attend the ceremony for the first time in several years following protests from Tamil groups outside his residence in Mumbai.

His latest postings on his blog and on Twitter say that he is busy shooting an advertisement to promote tourism in the Indian state of Gujarat.

His son, Abhishek Bachchan, and daughter-in-law, Aishwarya Rai, will also be absent officially because they are tied up with promoting their forthcoming film Raavan, according to Indian media reports.

Mani Ratnam, the director refused to show the film in Colombo parallel to the ceremony citing its production work is not yet finished. But, it is well known that Mani, a Tamil, is willingly or unwillingly giving in to the Tamil nationalist lobby.

Eventually, Raavan, the pre-historic king of Lanka who abducted Sita will surrender and play in Rama's side.

Shah Rukh Khan who had been due to captain a team in a celebrity cricket match in Colombo announced his absence in a recent posting on Twitter, saying: “…dont think i will be able to come for iifa..too much work here, will miss Colombo.”

Two people were killed when a Khan concert in Colombo was bombed in 2004, and he vowed at the time that he would not visit Sri Lanka again.

Others likely to be absent include Katrina Kaif, Deepika Padukone, Ranbir Kapoor, Imran Khan and Aamir Khan, according to Indian media reports. Last minute attempts could be observed to prevent Salman Khan playing cricket in Sri Lanka in the cricket match of the cricketers and the film stars scheduled to play tomorrow at Sinhala Sports Club grounds.


Tamil film stars such as Rajnikanth, Kamal Haasan, Mani Ratnam, Vijay, Ajit and Surya are also thought to be staying away.

Namitha, a star of Tamil cinema, issued a statement saying she had turned down an invitation to perform at the ceremony. “How can I attend even after knowing the existing problem? It is the Tamil people who made me what I am today,” she said.


Some second tier stars, including Vivek Oberoi, have already arrived in Colombo for the event, including many of those nominated for awards. “Come to Colombo,” Mr Oberoi told reporters in Colombo today. “I don’t believe in boycotting the awards. Bollywood films are about building bridges, not putting up walls against people.”

Applying more pressure, the South Indian film industry bodies met hours ahead to reiterate their threat to prevent the release of films featuring actors and technicians who attend the awards ceremony in Colombo. “We expect the Bollywood film industry to respect the sentiments of Tamils and refrain from participating in the event,” said L. Suresh, secretary of the South India Film Chamber of Commerce.

The SIFCC is backed by the Film Employees Federation of South India, the Tamil Nadu Theatre-Owners Association and Tamil Nadu Producers’ Council.

South India is a big market for Bollywood after all than Sri Lanka where authorities have restricted the countrymen's access to Indian audio visual art.


Wednesday, June 02, 2010

Law makers worried as ordinary citizens hopeful with Sri Lanka's reduction of import duty on motor vehicles

(June 01, 2010, Colombo - Lanka PolityThe reduction of duties on motor vehicle imports has pushed the law makers of Sri Lanka to exhaustion, sources say. The axe came as most of them were preparing to import cars for reduced taxes. Earlier the MPs could import a car once in five years totally duty free but now the government has planned to impose a tax of around 15%.

it is open secret that most of the MPs either ruling party or opposition sell their vehicle permits to a handsome easy income that ran into several millions of rupees. With the reduction of taxes bt 50%, the MPs also lose half of their quick bucks from vehicle permits.

The government reduced the excise duty on imported vehicles by 50% and removed a 15 percent surcharge on all imports while reducing duty on electrical appliances since June 01.

With effect from yesterday, a car such as an Indian-made Maruti, which had attracted excise duties of up to 183% of its value, would now be charged a duty of 90%, Director General of Fiscal Policy S. R. Attygala said.

Cars attracted over 300% in excise duties, import duties, value added taxes, port and airport development levies and national security levies.

The government hopes the tax cuts will pick up the imports and help revive revenues which had suffered due to high taxes last year. The trend was out in the open in Colombo Bourse in which the share prices of companies importing motor vehicles were upbeat.

The finance ministry in a report issued under country's fiscal responsibility law in February said excise taxes on motor vehicles alone which had been 18 percent of the total in 2007 had fallen to 3 percent by 2009.

In 2007, the government had raised 17.4 billion rupees in motor vehicle excise duties. In 2008 car excise had fallen to 11.06 billion rupees and in 2009 to 3.25 billion rupees.

In November 2007 Sri Lanka had registered 26,100 new vehicles including 2,300 motor cars. In November 2008 only 20,500 vehicles were registered and car registrations had fallen to 965.

In November 2009 vehicle registrations had stabilized at 19,300 but cars had plummeted further to 329.

Sunday, May 30, 2010

How Sri Lanka President Mahinda Rajapaksa can stop war crime charges keep haunting

(May 30, Colombo - Lanka PolityIn a recent interview with Al Jazeera, Sri Lankan President Mahinda Rajapaksa displayed how weary he is over the allegations against his government regarding the war crimes during the war against the Liberation Tigers of Tamil Ealam (LTTE).

The President perturbed by the repeated questioning by Al Jazeera correspondent Fouziah Ibrahim, lost his temper and asked why Al Jazeera repeatedly harassed Sri Lanka with war crimes charges just because the country defeated terrorism, while sparing countries like the USA and Britain.

On May 27, Sri Lanka's Minister of External Affairs, G.L. Peiris, who was on a public relations tour through the United States, left a scheduled meeting with journalists at the National Press Club Thursday morning without speaking.

It is learnt that he was advised not to meet media at the National Press Club that recently awarded the organization's 2009 International Freedom of the Press Award to slain Sri Lankan journalist Lasantha Wickramatunga, editor of the Sunday Leader.

Meanwhile, Amnesty international website says, "One year after Sri Lanka's civil war came to a bloody end, the evidence that both parties to the conflict committed serious human rights violations, including war crimes, continues to pile up. Amnesty International, Human Rights Watch, the International Crisis Group and the US State Department have compiled extensive reports on the human rights violations that were committed by both the Sri Lankan army and the armed Tamil Tigers. To date, not one single individual has been held accountable for the crimes committed."

During a talk at the Center for Strategic and International Studies (CSIS), Minister Pieris stubbornly refused to answer a question of a representative of an Amnesty International that questioned about the human rights impact of the most recent presidential commission of inquiry (established in 2006) into several high level human rights cases, including the execution style murder of 17 aid workers of the French organization Action Contre la Faim (ACF). The question was on how many individuals were actually tried as a consequence of the work of the commission, or why the findings that were sent to the President have not been made public to this day.

President Mahinda Rajapaksa has to understand that the pressure on his government over war crime charges will last until when or if he will change the sense of euphoria of his rule following war victory into a more down-to-earth policy especially towards Tamils.

Although he defeated the Tamil militancy in Sri Lankan soil, he is yet to apprehend the full potential of the powerful Tamil Diaspora which is far beyond his simplistic version of a people that want to extend their stay in green pastures of developed West as he suggested in the Al Jazeera interview.

The Tamil Diaspora is too well able to keep the fires of the campaigns on war crime charges against him burning within the framework of Western democracy subtly manipulating the numerous international human rights organizations and even the UN. No power has ever undermined the mandate of these organizations to appear for human rights and the Rajapaksa's are far inadequate to do so. The ability of the Tamil Diaspora to sustain the lobby is free from their internal divisions.

If he is unwilling to deal with the mighty Tamil Diaspora, what he can do to regain the due respect for his defeat of terrorism is to establish good relationship with at least the local Tamils whose lives are in complete disarray as a result of war. The President and his government are in the vision that rapid economic growth facilitated by infrastructure development and private sector engagement will demoralize the Tamil nationalist sentiments.

Even for this, he needs some kind of meaningful power sharing with the leaders of local Tamil community. The undeclared 'Give Nothing to Tamils' racist Sinhala chauvinist policy that is masterminded by the ultra nationalist elements in his government will not lead him anywhere.

Power sharing with Tamils is a taboo subject among many of the Sinhala nationalist elite. Rajapaksa is in a powerful position and he can break it, if the pragmatic leader, as identified by Velupillai Prabakaran in his Mahaviru speech in 2005, can see beyond his nose tip, the time is ripe for reforms since the Sinhala racists have lost to him.

Development plus power sharing will make him really closer with local Tamils, not in the superficialway of meeting and talking with them when he visits north and east, as he said to Al Jazeera.

This is the only way available for him to widen the gap between the local and Diaspora Tamils. Only then, he will be able to actually delegitimize the din of the war crime charges against him. Sheer rhetoric against Diaspora Tamils will lead him nowhere.


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Friday, May 28, 2010

Sri Lanka President's move to levy tax from MP's vehicle import permit is a sham

Hummer H2 off roader valued at over US$ 55,000
without duty in Sri Lanka for a VIP son
(May 28, Colombo - Lanka Polity)  Sri Lanka President has proposed to levy a tax of 18% to 20% from the parliamentarians privileged so far to import vehicles once in five years.

This proposal appears outwardly as a progressive move although it actually increases the amount of taxes the politicians can evade. On the other hand, it will also provide an argument for the rulers to rationalize increase of taxes.

The cabinet approved to increase the maximum value of a motor vehicle imported by MPs from $ 35,000 to $ 45,000.

An MP can import a vehicle that is close to the market value of Rs. 20 million in Sri Lanka. It is a public secret that many MPs sell the licence to import a vehicle tax free and pocket a handsome income scot-free.

Average citizens of Sri Lanka have to pay more than 100% tax for motor vehicles. In some instances the tax is close to 200%.

High taxes on buses cause lack of development in Sri Lanka's public transport.

White handkerchief marks protest against forcible cremation by the government of Sri Lanka

Sri Lankan civil society is silently but strongly marking their protest against the government's inhuman  forcible  cremation of a 20-da...