Political maturity, governance and economic upturn

The government’s national development strategy received a massive boost with International Monetary Fund (IMF) clearing the release of the second tranche worth USD 322 million of its overall US$ 2.6 billion Stand-By Arrangement.
The benefit for Sri Lanka and its government is two-pronged. Besides the assistance to avert an economic slowdown and support resettlement and reconstruction in the North, the IMF’s acceptance of the government’s pledge to address humanitarian issues and its programme of development would augur well for the country’s international presence and place, especially in light of the European Union forum on GSP Plus come January. What we need now is a cohesive process to convert and capitalise on this morale and national victory to further the benefits of peace and development.
Though the Government originally said it doesn’t need IMF support and thereafter did a u-turn, the facility could also be termed a sizeable victory for the government in its run up to elections.
In clearing its release, the agency has paid significant attention to how economic empowerment would uplift and help build confidence amongst ground communities – the people of Sri Lanka. The IMF in its statement and in a letter to Human Rights Watch – who labeled the proposed package a “reward for bad behaviour’ – said the government of Sri Lanka has committed to creating a safe environment for liberated persons and the reconstruction of basic infrastructure. The government in its discourse with the IMF has agreed to resettle 70 per cent of displaced persons by the end of this year. The agency will also provide necessary guidance for the revitalisation of the national economy, and this includes steps to reduce and restructure defence expenditure.
In a time of doubt and concern with questions of human rights and deficit spending, the IMF facility could well be viewed as another opening offered by the donor community to help bring Sri Lanka out of its development and political mire. The funds will help accelerate ongoing development programmes in the liberated North, which would help strengthen the lives and confidence levels of people. But again, Sri Lanka must be mindful of its dismal history of development assistance expenditure. Corruption and mismanagement have plagued the progress and length of programmes, which have compelled donor nations and agencies to review their extent of support. Governments and non-state establishments have paid constant lip-service to the fundamental of governance and accountability and how such execution is imperative for the benefit of our nation and public. We must now put past that era of puppetry and fanciful expression and look instead at action to instill lost confidence amongst public and our development partners here and overseas. Governance must not be restricted to mere paper; it is in real a simple practice of identifying a fit want and a cost, and addressing the issue in an approved and transparent manner. How difficult can that be? It is not terrorism that always hinders the wheel of progression but the resolve and intent of people, and it is here we would display our will or weakness for maturity.
Sri Lanka must also exercise caution with its fiscal measures, as untargeted development expense coupled with economic expansion through lax policy could foster bubbles by forcing people to do something with money – either spend it, or invest. We must also embark on a programme of public education; a process to develop government and private spend. The country must also get its governance right with a national minded politics.
Amidst the sense of success, both government and public prepare for the fury of trade union action. With discord over the issue of salary discrepancies, the confusion and chaos was evident on the streets and the coming days or weeks no doubt would stand imperative for the wheels of life and economy. What must be for a climate for development, what must be for a development mindset? What must be for a progressive people and leadership? The elections may tell…