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BOOK REVIEW
The achievement of NM
Dr. N.M. Perera’s Policies and Achievements as
Finance Minister:
Buddadasa HEWAVITHARANA
Review by Tissa VITARANA
REVIEW: As a result of Sri Lanka’s democratic systems of
government since 1931 it was possible for a Marxist political leader who
was also an eminent economist, trained at the London School of
Economists, like Dr. N.M. Perera to become the Finance Minister without
a social revolution taking place in the country.
We therefore in Sri Lanka had the unique experience of an attempt
being made within the capitalist framework to lift the country out of
poverty and on the road to economic development with social justice
applying socialist principles.
Dr. Buddhadasa Hewavitharana faithfully documents and analyzes that
five year period from 1970 to 1975 from the perspective of an economist
who was intimately concerned with the formulation and implementation of
Dr. N.M. Perera’s vision and policies.
The fact that Dr. Hewavitharana’s active involvement has enabled him
to give a comprehensive account of what transpired during that period
his training as a development economist of international standing has
enabled him to objectively analyze what took place.
As a result those events are placed in the perspective of the
development needs of our country taking into consideration the social
and political reality.
Therefore Dr. Hewavitharana’s book can be taken as an authentic
appraisal of a unique event, perhaps in the world, and also in our
country’s history. Dr. Hewavitharana initially brings out the balance of
payments crisis that confronted the country and also the internal
problems of low productivity of labour and social unrest in the context
of a consumerist society.
The failure of UNP policies to achieve development through the
private sector, both local and foreign, compelled Dr. N.M. Perera to
find ways and means of achieving economic development based on the state
sector.
His efforts to get the active cooperation of the employees, through
Employees Councils, and to increase productivity are described.
While curbing conspicuous consumptions he had to also place burdens
on all sectors of society. This was done so as to promote the local
production of essentials so that we could become self-sufficient.
At a time when import substitution development was in vogue in
developing countries throughout the world, the manner in which Dr. N.M.
Perera attempted to do this in a pragmatic manner to suit our conditions
is well described.
The various problems encountered both from within the government and
from outside are described. While some passing reference is made to the
increase in world prices of essentials and fuel, the magnitude of the
international food and oil crisis and its impact on Sri Lanka could have
been better emphasized.
Dr. N.M. Perera’s efforts to ensure that primary producers like Sri
Lanka got better prices in the world market by playing a key role in
setting up the Group of 77 Finance Minister’s Conference has not been
mentioned.
Despite these few omissions I must congratulate Dr. Hewavitharana for
producing an excellent and perceptive review of the policies and
achievements of Dr. N.M. Perera as Finance Minister.
This is recommended reading for all those concerned about Sri Lanka’s
lack of economic development and its problem of poverty.
Being presented in simple language without too much jargon the
average readers would find it an easy way to understand the complex
reality of that period and Dr. N.M. Perera’s valiant effort to place our
country on the road to meaningful economic development. |
