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by Oscar E V Fernando

An average entrepreneur in Sri Lanka or as a matter of fact anywhere in the world has to borrow capital from a bank or elsewhere to set up business. There is no other way. Even if he were to do it on his own and dig harder for his larder, he will need to have savings or inherited wealth., which only a few would have. In this modern world or even any time we will never be able to raise ourselves up by tagging on to and pulling our own boot straps. Any reader may perhaps try it! It is a basic principle of Alcoholics Anonymous that an alcoholic must first admit that s/he is an alcoholic.

This is the first and the most difficult step on the road to recovery. In the same way, if a country, due to one reason or another has become bankrupt all citizens of that country must accept this basic fact and must be humble enough to stretch out that begging bowl, which Sri Lanka with regimes of different hues has been doing since Independence, wittingly or unwittingly. This time around it is nothing new. There is hardly any reason wasting our time trying to analyze as to why we have come to this position. Let us be pragmatic and prudently accept this. Some of us do not understand why people try to love their neighbours as themselves. They sniff a wolf in every nook and corner. Some even have nicknamed them as do-gooders.

Why waste time with the motives of these so-called do-gooders? Why don't Sri Lankans like the great neighbour India accept these goodies and beat them to it? Is it not an irony today that the descendants of that great Mahatma Gandhi who was thrown out from the first class compartment of the train that he was traveling in because of the colour of his skin differed from that of the rulers at the time, are today assisting those very countries with their skills in information technology and in other fields? They would have perhaps misplaced the lofty ideal of loving one's neighbour when they tried to civilize an already civilized nation. But the thought still remains lofty. What we, with the begging bowl should do, is to make best use of the goodies so given without suspecting motives. Is there any alternative, however hoarse some may shout?

Let us take one reason for the argument against obtaining this foreign aid, in that it is increasing the per capita international indebtedness.

This is a fact beyond doubt. What would happen to that person who borrowed capital from a bank with an anticipation of being a successful entrepreneur, but remained lethargic without matching the capital with production and income to settle the loan?

Obviously then s/he would have to take more loans and then some more loans to survive or become bankrupt. Today Sri Lanka is in this very same position. Why!?

Some of us know how past regimes of various hues utilized the foreign aid with the then existing economic structure run by state ventures whose only venture was to select lucrative tenders and were mostly non productive and ended up with massive losses. We also know how unutilized foreign aid had to be returned to the donor countries due to the lethargy of those responsible for its use. Take the case of subsidies given to the plantation sector made available due to foreign credit lines. Those responsible to administer this were statutory boards and corporations. Those who had to utilize these subsidies would only know the nightmares they underwent to obtain these subsidies from those officials who considered themselves tin pot representatives of the realm and with that illusive something needed to expedite matters.

By the time the subsidized manure arrives on the land the monsoons would have changed and the manure run too dry for proper usage. This is a stark fact that many planters would agree with, and this is just one aspect of the lethargy and corruption of state ventures. Is it to keep these despots on their lethargic and lucrative seats, to the very detriment of the consumers, that strikes are organized to prevent these ventures from being privatized?

Take the case of the Mahaweli Project lying fallow for a long time, the reason for which is best known to the voters of this land. Foreign aid just frittered away without matching production.

But, this time around the foreign aid so obtained is to be utilized to encourage the private sector that will be responsible for a matching increase in production and income to the country, and if these were to happen without the traditional political interference, the indebtedness accumulated up to now, and the indebtedness that would consequently increase, could be wiped out by leaps and bounds, so that future generations will not have to bear this indebtedness. If not, stagnation will continue and eventually we will not even have our self esteem to swallow our pride and stretch out the begging bowl so as to improve our lot, but wait for the goodies to fall as hand-outs. Do we need to witness another Ethiopia over here with all the natures bounty around us, but where only man is wile!

There is no going behind the fact that the private sector would have to be regularized by state mechanisms. Now, if all hues of politicians would realize this and join in the tide of private enterprise, even those against a private economy (for these clever people could ensure that there is no unbridled capitalism within a private sector economy) could contribute whilst being in a government that is for the private sector.

Unfortunately all politicians are not born to power, fame and good breeding and, fortunately for us we have two leaders, both with massive charismatic following, who are. Although both have been tainted with the broad brush of politics, the inborn traits should throw out at this confluence of destiny of the country, where both have been put together.

They both hold power that is the craving of those political associates near and dear to them. Politics can go the way of the sublime, the ridiculous and sublime again and it can also take the same course as in love and war! This is the time for the two of them to play the role of Pied Pipers and those others are sure to follow. Then what arguments will there be against foreign aid?

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