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The Government as the driver of Lanka's Growth Engine

Keynote address by D.E.W. Gunasekara

Minister of Constitutional Reform at a seminar held at the MARGA Institute on the SAARC Social Charter on august 5, 2004.

It is always a pleasure to come to the Marga Institute. I have been here before and have participated in very useful discussions. Today, I am very pleased to address a galaxy of distinguished academics, researchers and civil society representatives on the relevance of the SAARC Social Charter to the Government and the people of Sri Lanka.

It was at the Colombo Summit of the SAARC that the decision to formulate a Social Charter was taken. I am aware that in formulating the concept the Marga Institute lavishly contributed with its inputs, enhancing the quality of the Charter.

* * *

When the President signed the SAARC Social Charter in Islambab in January this year, she was in fact reiterating the Government's pledges to the people of Sri Lanka. It is contained in the UPFA "Rata Perata" programme.

That programme basically declared the Government's commitment, if elected, to democracy, pluralism, human rights, human security and dignity. It also made a commitment to achieve economic development with equity, so that all sections of our people enjoy its benefits by eliminating poverty.

The programme has special provisions in respect of women and children, youth and working people, covering many spheres as education, health, housing etc.

Above all, it holds pledges in respect of the path to peace and ethnic harmony. The commitment in the Rata Perata programme is being given concrete expression through the Government's recently adopted economic policy framework.

To my mind, such an approach to development is possible only if there is good governance. But good governance requires democracy, peace, rule of law and ethnic and religious harmony.

All these factors of development are symbiotically linked. The essence of good governance is participation, which involves the government, the private sector, NGO and civil society in particular, workers' organizations - the trade unions.

* * *


The people - they should be at the centre of growth plans

Two important pieces of legislation have been contemplated to give effect to those objectives. In the year 2000 draft constitution, which was aborted in Parliament, there were new and strengthened provisions in respect of human rights and fundamental freedom which were to be made justiciable. I can assure you that they all will be incorporated in a new constitution.

The draft Freedom of Access to Official Information Bill which was passed by the former Cabinet under the President's chairmanship is now on the agenda again. It is an important piece of legislation that will reinforce good governance by fostering a culture of transparency and accountability.

The Government's pledge to achieve economic development with equity in distribution received a massive endorsement by the people at the last election. The election results in India too appear to suggest that what the people need is not just economic growth, but equity in distribution so that they could also enjoy the benefits of such growth.

In India, the result was contrary to high GDP growth, Startling Stock - market indices, and in defiance of all predictions by speculators, soothsayers, astrologers etc. Unbridled faith in the market mechanism will not ensure such equity.

It is important, that while providing all the necessary incentives of the private sector to make its contribution, the government adopts and implements policies which could harness that contribution to the benefit of all, particularly the poor and the disadvantaged in society.

* * *

This is why the Government is laying stress on the development of national planning. Already steps have been taken to set up a National Council for Economic Development, comprising politicians, academics and professional experts.

We have often heard the statement that the private sector is the engine of growth. Perhaps that is true in the present context of globalization and the need to tap the potential of a market economy. However, the engine of growth needs an engine driver, otherwise the private sector will drift like a ship without a rudder. The engine driver is the Government.

It is the planning process which will indicate how the ship of development must move and how its various elements must be combined and steered in a way that there is optimal benefit to the people. It is the planning process that can give meaning to the spirit and essence of the SAARC Social Charter to which we are committed.

Who builds the infrastructure for the private sector? It is the Government. Can we conceive a Social Charter in a pure neo-liberal economy? Life has proved that it is not possible.

* * *

If the Government has to steer the ship of development, it is the public service that must handle the wheel. All the lofty ideals of the SAARC Social Charter will be confined to a string of words, if we cannot have an effective, efficient and people friendly administrative system.

The problems of the public service are many. In fact with a sense of responsibility as a member of the Government it is in state of crisis, which needs urgent reforms. I do not intend dwelling at length on these problems.

However, I wish to reiterate the position taken in the Rata Perata programme itself, that the Government will give priority attention to the improvement of the public service. The Cabinet approved recently the proposal made by the Prime Minister to revamp the Administrative Reforms Committee, which will function under his purview.

The Committee had its first meeting a few days ago which was addressed by the Prime Minister. I am sure that the Administrative Reforms Committee will not be a mere talk shop as it often happens with institutions of this type. Neither will it confine itself to writing of reports, which nobody reads.

A Directorate of Public Service Management Reforms has been established which will assist the Prime Minister to submit relevant Cabinet papers for decision, that will give effect to the deliberations of the Committee.

In fact, it was yesterday that the Minister of Public Administration and Home Affairs obtained the approval of the Cabinet for the abolition of outdated legacies of colonialism such as clerical service, typist service, shroff service. We shall be establishing a new junior management service incorporating all these services. It is a radical measure in administrative reforms.

While on the subject of administrative reforms, I would also like to touch on a related issue that has generated much controversy. This the plan to take in unemployed graduates to the ranks of the public service. There has been a certain amount of cynicism with regard to unemployed graduates.

Firstly, it is said they are not employable due to the poor quality training.

Secondly, there is supposed to be a mismatch between what they have learnt and the requirements of the economy. Thirdly, the public service is full and they must look for jobs in the private sector or in self-employment.

I think we need to look at the issue in terms of economic and social rights of these graduates which is a relevant issue in terms of the SAARC Social Charter. Here are young men and women, mostly coming from poor families in rural areas, some of whom have even pawned their little property to get a university degree to find a place in the sun.

Should we blame them for such aspirations? Need they be condemned to be engaged in only what their parents have been good at? If they have a right to seek a place in the sun, whose duty is it to give them a proper education? These are the cream of our secondary education system - just 2 per cent - who after entering the universities seem to lose their way.

Whose duty is it to put his right? If the education they receive is not good enough, can they be blamed for not looking for competitive jobs in the private sector? In any case, are there so many jobs in the private sector?

Certainly, if the economy is growing rapidly, the demand for educated people will grow and it will be just a case of fine-tuning the education system to meet that demand. But the economy is not growing fast enough. Thus the onus falls on the Government. It is necessary to empower the youth and make them move away from dependence to adult responsibility. We consider them as a "resource" and not as a "problem".

Recently Prime Minister launched a new Project "Maga Neguma" aimed at developing a 64000 Km. Feeder-roads net-work. This will empower the most disadvantaged and vulnerable segments of the society. This will have a big impact on the economy and on the society.

Each national state of SAARC is called upon to implement this Social Charter through an appropriate national mechanism. It needs a national plan of action.

I am certain that this Charter which is a right-based and a people-centered instrument will serve as a handbook for guidance to our policy - makers, planners, implementing agencies and civil society at large. The SAARC Heads of States through the Charter have affirmed that highest priority shall be accorded the alleviation of poverty in South Asia.

Seeking the advice of the Marga Institute on the implementation of the provisions of the Social Charter, I wind up.

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