Liberalization and the poor
Economic liberalization,
when it was introduced in the late 1970s in Sri Lanka, was cited
as a panacea for all ills and a magic formula for success.
Thirty years down the road, we have experienced both the good
and the bad of economic liberalization.
Sri Lanka too was caught in a whirl of liberalization
sweeping the world at that time, where unbridled capitalism was
the order of the day. The private sector was duly (and
correctly) identified as the engine of growth, many State
enterprises were privatized, floodgates were opened to cheap
imports of almost everything to the detriment of local products
and many financial regulation were relaxed to the greatest
possible extent.
Now even the rich Western economies, leave alone Third World
economies, have realized the folly of following such economic
systems. The world’s closely-knit financial system has virtually
collapsed, wiping some countries off the economic map.
Nationalization, previously a dirty word in the West, is in
vogue as countries try to resurrect their moribund economies.
They may not use the same word, but State intervention is
increasingly being resorted to in the exercise of reviving
failed economies.
Indeed, all over the world it is the poor who had been the
hardest hit as a result of economic liberalization and the
consequent fall of economies. Now a leading economist has warned
that South Asia, which aspires to become an economic hub, needs
to be wary of the impact of liberalization on the poor.
Liberalization could result in medium to long term
unemployment in certain uncompetitive sectors says Executive
Director, IPS Dr. Saman Kalegama. It is thus important to strike
a compromise between the medium term hazards of increased
unemployment as well as the longer term benefits of increased
competitiveness.
Compromise is the key word in economic regulation. South
Asian countries have been accused of over regulating their
economies, but events elsewhere demonstrate that a measure of
regulation is essential for the healthy growth of an economy.
The financial authorities need not go to extremes, but there has
to be a balance in order to safeguard the marginalized sections
of society.
States cannot abandon welfare and subsidy measures at once.
They have a social obligation to fulfill. For example, total
liberalization of the health sector would be a major blow for
the poorer segments of society.
The ideal scenario is to be able to reap the benefits of
economic liberalization while minimizing any harmful effects.
True, the long term objective should be minimizing the rich-poor
gap in society but the under privileged segments must be
protected during that process.
Colombo’s TB shame
Another World
Tuberculosis Day (March 24) has come and gone, this time with
the slogan ‘I am stopping TB’ but the dreaded disease shows no
sign of disappearing soon here or anywhere else in the world.
The statistics from the World Health Organization are alarming -
one person somewhere in the world is infected with the TB
bacilli every second while nearly one third of the world’s
population has the bacilli, though only a certain percentage
develop full-blown symptoms.
One would think that such diseases are not reported from
Colombo, which has the best health facilities in the country and
a relatively knowledgeable population with easy access to media.
Unfortunately, the biggest number of TB deaths is reported
from the capital and its environs. Twenty percent of the
country’s TB patients are from Colombo. This is another one of
Colombo’s dark secrets, as the city already leads in terms of
underworld murders, other crime, accidents and many other
diseases.
Several reasons could be attributed to this development. TB
is spread mainly through the air and the high population in the
city (think crowded offices, buses, roads) is ideal for the
bacilli to move from person to person. Diseases thrive in
Colombo’s polluted and squalid conditions. Most persons in the
City lead very busy lives and tend to dismiss early symptoms of
TB as a minor cough or affliction.
In the end, there are many unnecessary deaths in Colombo
alone as a result of TB, which is a preventable and controllable
disease. This is a waste of precious lives. The media should be
used extensively to spread the message that early checks can
control TB. Skin or blood testing for TB is simple and effective
and medication (a long course of antibiotics) is widely
available. Vaccination (BCG) is another effective strategy,
though there is no 100 percent guarantee that a vaccinated
person would not get TB.
In the case of Colombo, City Fathers, health authorities and
residents’ representatives must get together to devise ways and
means of addressing concerns such as TB and dengue which are a
blot on a city that aspires to become a leading economic hub in
the region. |