Emulate China’s long-term vision

Dr. Mathu H. Liyanage

It’s great news that the Government has signed six pacts with China covering economic and technical cooperation, development of highways and maritime ports including the second phase of the Hambantota Port development project.

It has also signed seven agreements with the Indian Government to boost its socio-economic, legal, women empowerment, power and transport aspects.

China has, since 2006, given Sri Lanka $3.04 billion as financial assistance to implement the Katunayaka Expressway, the extension of the railway line from Matara to Kataragama, the Norochcholai coal power plant, the Hambantota Port development project, and set up the Centre for Performing Arts in Colombo.

India, on the other hand, has offered $800 million credit to rebuild the rail line in Sri Lanka’s North, Matara-Colombo rail line, repair the Palaly Airport, the Kankesanturai harbour and the Duraiappah Stadium, and to put up a cultural centre in Jaffna.

On top of these significant events comes the advice of Dr. Mahathir bin Mohamad, Malaysia’s former Prime Minister. Being one of the longest-serving leaders in Asia, he said not to rely on foreign borrowings but to encourage foreigners to invest in Sri Lanka and look up to emerging countries in Asia as a model to base its economic development programs. During his tenure of office, he converted Malaysia into a regional high-tech financial and telecommunication hub through his Keynesian-influenced economic policies. It’s no wonder that the per capita income had risen from $450 to $9000 at the time he resigned from the post in 2003.

The United States, which is successfully making a transition from industrial to a knowledge-based economy, is by far the largest economy in the world today.

As analysts show, China has seized the second place and it is predicted to overtake US in a couple of decades.

The success of China as the emerging economic giant of the Asian region is mainly due to People’s Republic of China former President Jiang Zemin (1993-2003) and his predecessors.

Under their leadership, China had sustained an average of eight percent GDP growth annually, achieving the highest rate of per capita economic growth in major world economies mainly as a result of the continued process of transition to a market economy. President Hu Jintao tightened up the economy loosened by the previous administration.

It is clear that China’s strength is mainly due to its determination to take a broader view above the horizons permitted by electoral cycles and, in the case of Sri Lanka, by the Constitution as well.

At least the Presidency should continue to hold sway to achieve tangible results till the holder of the position is rejected by the people and not by the Constitution as it stands today. The current two six-year terms is indeed a misnomer and acts as a deterrent to the rapid progress of the country.