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Speech by Minister for Economic Reforms, Science & Technology; Deputy Minister of Policy Development and Implementation Milinda Moragoda at the Appropriation Bill 2002 - Committee Stage, Ministry of Policy Development and Implementation recently.

Today we are in the business of nation building. This UNF Government under the Leadership of the Prime Minister is, for the first time in many years, taking a comprehensive and non-partisan approach to rebuilding our country. Of creating something knew and exciting that can give all our people hope.

For nearly twenty years, we have suffered from a war that has blighted our people and divided a society that was once close, leaving us in the back water of development. A permanent peace is not yet with us, but there is optimism and a willingness, that did not exist earlier, to search for solutions. No one knows what the future holds, but even the ceasefire has given us the chance to reflect about the world around us and to better comprehend what we as a nation have been missing.

Upon taking office, the Prime Minister reformulated and placed the Ministry of Policy Development and Implementation under his own leadership. By doing this, he has created the lens by which we can look into the future and discover the type of country and society we wish to build.

At first sight, it may appear that the Ministry has a rather eclectic structure. After all, the Ministry's activities encompasses policy development, national planning, and coordination of foreign assistance. In addition, the Ministry oversees the National Development Trust Fund--earlier known as the Janasaviya Trust Fund-which was originally developed under President Premadasa. The Ministry also oversees the Institute for Policy Studies, the newly created National Youth Corps and the NGO Secretariat. At the same time, it plays the pivotal role in coordinating policy, as well as monitoring and reviewing the progress of all development work undertaken by the Government.

Demonstrate

A closer examination will reveal the true nature of the work of the Ministry. The Ministry should not be regarded as a mere think-tank that develops ideas for others to implement. There is a vital difference-- for the underlying premise of its work is to combine the key elements of a modern government including accountability to the people, and to then aim to mould a more cohesive and open society in which all Sri Lankans will have an equal opportunity of realising their full potential.

Perhaps a closer look at some aspects of the Ministry will help to demonstrate what I mean. For instance, let us take policy development. Policy development will play an important role in setting the vision for transforming Sri Lanka into a productive and technologically advanced society, fit to compete with the rest of the world. This will take into consideration the social dimensions of development including the examination of the plight of economically disadvantaged members of our society and will seek to create a more fair and equitable system.

Then, there is the partnership development component of the Ministry's activities. This encompasses the relationship between government, civic society, and those who help us to build our society, the Non Governmental Organisations. This third element will help us repair the tears in the fabric of our society created by the war a result of the mistrust and the suspicion that has arisen on all sides as a result of the conflict.

The principal interface for the policy development related work of the Ministry will be overseen by the Policy Development Committee, which was recently appointed by the Prime Minister. This committee consists of competent and experienced personalities from government, the private sector and academia. The Prime Minister has also appointed a series of committees under the Policy Development Committee to assist it to carry out their mandate in a speedy, expeditious and practical manner. The mission objectives of the Policy Development Committee include:

To divice a strategy to achieve a GDP growth of 10% per annum for the next ten years starting from 2003. This is no mean feat in itself but a necessary objective if we are to catch up with all those countries that left us behind twenty years ago as our country sank into conflict.

Secondly, it has long been a dream of our Prime Minister who has visualized Sri Lanka as the next Singapore or Dubai, to build our country into the prime validation platform and logistical hub servicing the region. that, too, is an important aim of the Policy Development Committee and will entail building up our aviation, shipping and ports facilities. It also means creating a new human resources centre where the region will find the best there is to offer in terms of financial services, information technology, management and administration skills, value-added agriculture and manufacturing.

Opportunities

This is possible because given the right opportunities, Sri Lankans can out perform the best in the world. Just look at those who have left Sri Lanka and established themselves in other countries. Many are top businessmen, bankers and scientists. Our hope is that as they see the new Sri Lanka emerging that they will come back to their home country and help us to build a world class country.

But we should not stop there. We should welcome the best in the world to Sri Lanka from wherever they may come. We need to have the confidence in ourselves that we can welcome any other national and find them a role in our companies and institutions. Another aim of the committee is to create a regional financial services hub here in Sri Lanka. The work is ongoing in this respect. It includes identifying areas of deregulation in financial services, creating the right environment for overseas institutions to set up here and developing the infrastructure that will entice the best financial brains to relocate and work here.

This Ministry is also responsible for the co-ordination of all development assistance and foreign aid. Development assistance has traditionally formed an important component of Sri Lanka's financing profile - both in direct material terms and as a barometer of international support for our national development policies.

However, in recent years, Sri Lanka's absorption rate of foreign aid has been very low - in fact, it is one of the lowest in the world, which has created a credibility gap with the international donor community.

Proper co-ordination

These delays to aid implementation are largely due to bureaucratic and procedural delays and lack of co-ordination on the part of the Sri Lankan government. Most multilateral and bilateral donors have complained about these delays and the lack in co-ordination in this regard. In today's world of diminishing aid resources in which competition for these resources has become more fierce, it is important that we take heed of these understandable concerns. In order to ensure proper co-ordination and that Sri Lanka is able to obtain the optimum allocation and most beneficial and efficient utilisation of foreign aid, the Prime Minister decided to place the responsibility for foreign aid and external resources directly under his own Ministry of Policy Planning and Development.

Under his direct supervision, the Ministry will seek to build consensus, both internally and with the international donor community on a framework for Reconstruction, Rehabilitation and Reconciliation and a Poverty Reduction Strategy with a "growth" focus. In addition, the government hopes to explore the challenging possibility of moving from a Standby Facility to a Poverty Reduction and Growth Facility (PRGF) with the IMF towards the end of this year. Against this backup, the Ministry will assist the government to hold the long overdue Donor Forum under the leadership of the Prime Minister in the coming months.

Progress review

Furthermore, this Ministry will play a key role in establishing a dynamic economic environment which will help us to prosper as a nation. To support this work there will be a monitoring and progress review of line Ministries as well as the establishment of a National Operations Room along the lines of the Malaysian Model.

In addition, the Ministry will be the focal point for a competitiveness initiative, based on similar successful initiatives in other countries. As a direct result of this we expect to establish a Competitiveness Council in the near future.

Earlier, I mentioned the importance of helping the poor and less privileged citizens of our country. Although, the National Development Trust Fund has suffered in recent years, largely due to political reasons, it is our intention to re-examine and restructure it into something that once again addresses poverty alleviation effectively, complements other existing poverty alleviation programmes and provides micro credit facilities to the poor. The rejuvenated National Development Trust Fund will primarily work with community and people-based organisations to discharge its mandate.

However, a new flagship project falling under the Policy Development and Implementation Ministry is the creation and initial development of The National Youth Corps. The idea of a youth corps first surfaced in the 1999 Presidential Election Manifesto and it has long been the dream of the Prime Minister to help our young people.

Not just to give them the skills to prosper but to give them a greater understanding of the country in which they live and to help them become the citizens of tomorrow's Sri Lanka.

Latent talents

One of the great tragedies of Sri Lanka today is the high level of unemployment among our youth. For too long both politicians and the system have failed to meet the promise of our educated youth - their youthful energy and aspirations-an unforgivable waste of our nation's rich human resource potentia. In our new Sri Lanka we shall need to bring out their latent talents to shine through in order for them to excel and become the new leaders of the future.

This programme will help them. It will also help our poorer youth who in the past have lacked the opportunity to realise their true potential.

The primary objective of this Youth Corps will be to train these youth over a period of 18 months. To teach them essential skills for the modern world such as English and computer literacy. But it will also help to train young people in entrepreneurship and other skills that will assist them in entering today's competitive economy. Whether that be in agriculture, the arts or artisan skills this programme will help them find their niche and help them to develop.

Part of the activities of the Youth Corp will include sensitising our young people to respect and sustain the environment. Our country once so rich with the treasures of the past and the beauty of a largely unspoilt environment is under serious threat from pollution, deforestation and coastal erosion. The Youth Corp will also be harnessed to participate in environmental and conservation projects.

But there is another aspect to the Youth Corps. Over the past twenty years we have seen our country become increasingly divided by hate and misunderstanding. Our ethnic and religious divides have grown and our tolerance towards others has eroded.

If we are ever to rebuild our country then we have to re-instill understanding and rebuild that tolerance for which our ancestors were once so famous.

Responsible citizens

We will seek to help our young people become enlightened and responsible citizens of a future united Sri Lanka. Imagine how much richer as a nation we will be when the fact that we are proud to be Sri Lankans means just as much to each of us as our individual ethnic and religious identities. When we appreciate rather than fear our diversity. That is why our Prime Minister is so keen to see young people from the North and East working on projects in the South and vice versa.

Let our youth see how little difference there is between us, how we share the same aspirations, hopes and dreams. Let our youth make new friends and let them understand the richness of our country created by the diversity of our society. The budget allows for an initial investment to begin developing the National Youth Corps during this year.

There are few other areas that I would like to touch upon that are covered by the Ministry. The first is the NGO Secretariat. As a country we have always been fortunate to have a strong non governmental sector - which often acts as the conscience of the Government.

Today, we are delighted to find many more NGOs willing and ready to help us implement our policies. They cover such diverse fields as community services, poverty alleviation, health care, environmental protection, and rehabilitation of Today, we are delighted to find many more NGOs willing and ready to help us implement our policies. They cover such diverse fields as community services, poverty alleviation, healthcare, environmental protection and rehabilitation of displaced persons.

Their work takes place throughout the island including in our poorest and most marginalised areas - in the North, South, East and West.

Though they are rarely acknowledged or even thanked for their work, to many of these NGOs, their greatest reward is seeing their work succeed, Regrettably, in the past the NGO relationship with government has not always been an easy one.

The government would like these NGOs - whether home grown or international, to know that we greatly appreciate their work and will offer them every assistance in the future in carrying out that work.

Mr. Speaker, in the modern world progress is continuous and relentless. Those who stop for a breather or who ever feel that their work is done will become yesterday's men and women. Sustained growth is vital.

That is why our country is such an exciting prospect for the future. Because our economy is yet to be moulded, we have more options available, and the flexibility to develop fast and overtake those longer established economies entrenched by the legacy of old structures.

But to do so, we have to be one step ahead of the rest of the world. We have to seek out new opportunities and take risks. We have almost unlimited resources in the ocean yet to be tapped; we have the chance to build a modern agricultural sector and to develop the most modern of tourist industries.

We can put in place a new education system that meets the needs of this century and create a health structure that provides for all our people. We have the chance to build a business sector that is flexible and modern.

But to do so requires us to think ahead all of the time.

That is why our Prime Minister is seeking to provide the Institute of Policy Studies with an expanded role. He would like this institute to help provide practical ideas in order for our country to move rapidly towards economic and social success.

Less a conceptual organisation and more of a 'think tank'. Looking ahead, laying out a road map and alternative strategies to meet possible challenges, threats and opportunities.

They must predict what their counterparts in other countries are likely to do and outmanoeuvre them. Their task will not be enviable. Because as soon as they have found one strategy to tackle one problem they will have to anticipate the next challenge and devise a new strategy to deal with that new scenario.

This government will give them the chance to become a leading regional think tank. The cross pollination of ideas in the Asian region will give Sri Lankans access to new thinking that may be more appropriate to our cultural context. We have the talent, now we want that talent to work for the good of our country.

Sustainable projects

In the ultimate analysis, the Prime Minister envisages the Ministry of Policy Development and Implementation to be the lead institution which will act as a platform for generating new ideas and concepts and shaping these into viable and sustainable projects.

Once crystallised, these projects in turn mayl be spun out into independent entities. In other words, the Ministry will play the pivotal role of principal mentor and catalyst to national development. In this context, the Prime Minister will add further responsibilities and functions to this ministry as development imperatives evolve.

Many people assume that policy development and implementation is a dry and highly theoretical subject. One that involves only high finance and heavy research. However, commercial competition and the building of a new economy are only one part of the equation.

Our Prime Minister, when forming this ministry founded it on a further premise. That people always come first.

That their interests are the government's interests. He understood that a successful country is as much about a contented and skilful people who can work unstymied towards meeting their hopes and aspirations - just as much as it is about high finance.

For in the words of the French philosopher, Jean-Paul Sartre, "Man is not the sum of what he has already, but rather the sum of what he does not yet have, or what he could have".

That is the aim of the Prime Minister in the new Ministry.

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