Economic athletism - Twelve pick ups for Sri Lanka

Rohantha N.A. Athukorala

“What is required now is to focus on economic reforms and structural changes that can be activated so that we can move Sri Lanka’s rating in the World Competitiveness ranking from the 107th position to be in the first 30.”

Last week one of the all time greats of karate, the three times European champion Sensei Allan Campbell came down to Sri Lanka. Some of us were privileged to be trained by him. One statement made by him that struck me was “The day you stop challenging your mind and body is the day you will begin to die.”

In simple words, what he meant was intellectually stretching your mind such as solving tough problems at work and in sports, stretching yourself physically was

 the best way of keeping yourself healthy. Thereafter, Sensei Campbell mentioned that irrespective of the age of a person one must engage in this challenging attitude on a daily basis so that it becomes a way of life so that income or geographic locations does not matter. It becomes systemic. It was an interesting concept.

Being a sports enthusiast, I felt this concept one can also be extended to economic athletism. This is where one takes the learning’s from the sports field and relates it to the economics of a country. The best parallel that I can take is the memorable 2004 Greek Olympics and linking this to the everyday life of economics in Sri Lanka. Let me see how far I can stretch my mind on this challenge.

Greek crisis

From a business and economic sense the Greek Olympics costs dearly to the Government due to poor planning and excessive spending. Initial cost estimate was at $5.6 billion. Then it became $ 8.3 billion and finally the bill was a staggering $12.5 billion. Ticket sales exceeded $ 5.3 million but this was not adequate to cover the costs incurred even with the sponsorship earnings. The games created a fiscal dent to the economy that even shaved off almost 2 percentage points of the GDP of Europe. Some say that this was the beginning of the current economic crisis in Greece that has spread to the total of Europe.

Current debt of Greece is at a staggering $ 423 billion and is 120 percent of the GDP which is an alarming situation that any country can walk into. Which is why ‘projects’ like the Olympics, needs to be managed with strong financial regulation especially due to global financial issues of the world. In simple words Greece undertook a developmental agenda by agreeing to host the Olympics without having the adequate financial planning. This is one reason that has resulted in the country becoming debt laden apart from the increased public sector salaries.

China was smart in 2008

On the other hand China handled the Beijing Olympics very smartly. They injected over 40 billion dollars but it was with a very structured financial model to cater to the emerging urban population of 570 million. The Chinese cashed on the Olympics to drive constructions like the Birds Nests stadium but it was designed in a way that it became a part of a University geographical ‘area’ post the event. Hence the Chinese used the Olympics Games to add value to the country than being an economic drain like what happened in Greece in 2004.

While being critical on the Greek Olympics and how it has created an economic crisis there are many pick ups on its economic athletism displayed to the world.

Economic Athletism Lesson 1: US Dream 100m Relay quartet humiliated.

The 2004 US Olympic team had three 100m finalists, including the 100m Olympic Gold medallist, 200m Gold medallist and the great Maurice Green in the team. Victory was imminent even before the 4 X 100m relay began. All eyes were on the star-studded US dream team. However, the victory podium had the UNKNOWN British team being awarded the Gold Medal. The reason for the humiliating defeat was the brilliant team effort in the baton changes of the British team.

Implication to Sri Lankan economy:

When selecting people for Boards of Directors in the Government or private sector, pick a team based on their skill rather than their reputation or stature in society. Logic being, what is required now post the war is cutting edge decisions that are out of the box and aggressive than the run of the mill work ethic.

As I sit on many Government ministry boards, I can see this change hands on in the public sector which is fast changing. Some top corporate Chairman coming into the public sector boards consolidates this new approach of making Sri Lanka competitive. Sri Lanka needs to sustain this trend by providing the freedom to implement change.

Economic Athletism Lesson 2: Gold Medal after eight years .

The metric mile better known as 1500m is a blue ribbon event in the world of athletics. In 1986, Hicham El Guerrouj was 400m into the finish, he tripped and crashed out of the LA Olympics. In 2000 Sydney Olympics, the Kenyan Noah Ngeny sensationally beat him in the same event.

Two weeks before the Greek Olympics, another Kenyan athlete, beat him at the Zurich games. When Hicham El Guerrouj came to the Greek Olympics many said he was destined never to win an Olympic medal.

However the gutty El Guerrouje judged the race and kept the pressure in the last 300m to secure a Gold. He went on to win not only the 1500m but also the 5000m. El Guerrouj later said “The victories in Greece wiped my eyes dry the tears of Atlanta and Sydney.”

Implication to Sri Lankan economy:

I would like to pick the Sri Lankan tea industry to draw a parallel as I sit on many policy making committees. For the last 16 years the industry has been battered with inconsistent policy and low investment on marketing and promotional spends, low value additions, no funds for re planting and to cap it minimum to zero research and development investment but the passionate tea industry did not give up hope and kept on struggling along.

The good news is that post the elections, the new leadership in the Plantation Ministry has created new hope. I can feel the vibes of very strong positiveness and vigour that has set in to the Industry.

With a new business model that is in the making, targeting two billion dollars in export revenue is not far away.

As at end Q1, we are already at a +47.2 percent growth in export value, which means that Sri Lanka is on its way towards this objective. Maybe making this industry a priority sector for resources, can help this battered industry and also help nation branding.

Economic Athletism Lesson 3: The Great Allen Johnson crashes out of 110 m hurdles.

The four times world champion and top favourite in the 110m hurdles- Allen Johnson of the U. S. was brimming with confidence at the starting blocks in the 2004 Olympics.

His bid to regain his Olympic title ended in disaster when he clipped two hurdles and crashed into the third which has happened only twice in his 13 year career.

He later said “Even with my experience I was nervous, given that people were expecting me to perform.”

The lesser-known Chinese athlete Liu Xiang went on to win the Gold, break the Olympic record and also equal the world record in the final.

Implication to Sri Lankan economy:

As I have been actively involved in the policy making of Sri Lanka’s economic growth agenda in the last five years in different capacities, I have witnessed an architecture of a home grown economic model that has been able to keep the Sri Lanka alive when most economies were crashing at negative growth such as US,UK, France, Malaysia etc.

However, just because the world is watching us post the war for robust economic growth similar to what Allen Johnson was up against, we do not have to emulate Singapore’s business model.

We must formulate our own home grown solution to spruce up GDP growth to achieve 7 percent plus growth.

Quarter 1 is already at 7.1 percent which is encouraging.

What is required now is to focus on economic reforms and structural changes that can be activated so that we can move Sri Lanka’s rating in the World Competitiveness ranking to be in the first 30.We will be just like the Chinese athlete Liu Xiang who came from behind to win.

Economic Athletism Lesson 4: Merley Ottey competes at 44 years /Catalina Ponor at 17 years.

One of the greatest women’s athletes Merley Ottey clocked a 11.24 seconds in the 100m for women at the age of 44 years, while the veteran male athlete Franke Fredricks ran a blistering 200m farewell Olympic Games run to be placed fourth with a time of 20.04 secs.

On the other end of the spectrum the picture perfect Catalina Ponor at the tender age of 17 years competed on an Aerobic Gymnastic routine to earn 9.75 to win three Olympic Golds. They proved to the world that age was not a barrier.

Implication to Sri Lankan economy:

Sri Lanka is now equipped with a strong second bench in the Parliament post the vibrant elections. They are young, business savvy and want to get ahead but, Sri Lanka needs to accept this new culture that is setting in. Even the current structure is very vibrant and hard working which means that a new productivity culture is in place.

What is required now is for Sri Lanka’s business sector to accept this new blood that has come into the system and support the administration to make the nessacery changes so that Sri Lanka can be competitive. If we do not make this transition Sri Lanka will lose this chance to grow.

Economic Athletism Lesson 5: Golden girl Isibayeva breaks pole vault world record

The height of the bar stood at 4.60 meters and was cleared by Svetlana Feofanova in her first attempt. Yelena Isibayeva, failed in the first and second attempts.

If she clears the 4.60m mark the three-time world champion and reigning world record holder will win Silver. She challenges the judges to raise the bar to 4.65m.

There is absolute pin drop silence as she had ONLY one jump left. Yelena Isibayeva focuses and drives for the vault and clears the bar.

She goes on to clear 4.75m, 4.85m and finally 4.91 to establish a new Olympic Record. A classic example of delivery under pressure.

Implication to Sri Lankan economy:

Sri Lanka displayed its strength by defeating one of the most ruthless terrorist organizations the LTTE in its own game with a head to head collision that has created new thinking globally of defeating terrorism in the world just like what Isabayeva did at the Greek Olympics.

What is required now is for us to get together and see how we can build the bridges with the diaspora so that we can re build the Vannni with their support.

The Bank of Ceylon loan scheme is an interesting financial instrument. Yes, we are under pressure, but I am sure we can deliver this expectation.

In fact we must, so that we do not allow the world to look down on us any more.

Economic Athletism Lesson 6: Justice Gatlin wins 100m Gold .

The hyperactive boy who used to jump off his parents’ TV set dressed in Batman cape went on to win the most prized catch of the Olympics- the 100m dash at a personal best timing of 9.85 seconds.

In 2001, he tested positive for amphetamines and was hit by a two-year ban, reduced to one year after he appealed on the grounds he required treatment for attention deficit disorder.

But as he roared across the finishing line, Gatling declared himself drug-free. “I feel I am a genuine and clean champion,” said Gatlin.

In every athletes career there are tragedies but Gatlin showed the world that he could run with a smiling face and not worry about anything in the past that worried him.

He left behind the reigning champion Maurice Green and one of the best fields of sprinters ever assembled for a 100m dash.

Six athletes in the final went under 10 seconds. Batman Justin Gatlin was the winner.

Implication to Sri Lankan economy:

Currently Sri Lanka is feeling the heat with a ballooning budget deficit and one sore thumb is the loss making ventures that account for 45 billion dollars. In fact it is shaving off 1 percent of GDP in Sri Lanka. CEB is in the red at 7.4 bn, SL Airlines at 12.2 bn, Mihin Air at 0.9 bn, SL postal service at 2.5 bn, SL Railways at 4.8 bn.

Hence, rather than getting into the mire by buying more entities such as Shell Gas a better option is to cut the budget deficit by privatizing the state owned enterprises.

Maybe we need to start with the money making ventures and then move to the more difficult loss making ones like Sri Lankan Airlines, CEB and the railways is my view. The Q1 fiscal deficit recording a 2.1 percent is encouraging but maintenance is key.

Economic Athletism Lesson 7: Irena Korzhanenko’s discus Gold stripped.

Revelation came just one day after the women’s discus final.

Gold winner, Irena Korzhanenko tested positive for banned steroid stanozolol.

It was the first time two track and field athletes were stripped of their medals for breaking doping rules.

Implication to Sri Lankan economy:

The implication to Sri Lanka is that we must strengthen the regulatory framework so that we make sure we do not allow Enrons to happen in Sri Lanka.

We must clear the deck on Golden Key. We must also not allow another mobile phone industry fiasco to happen in Sri Lanka as most companies are in the red due to poor regulation.

Another case in point is the privatized tea industry of Sri Lanka. In this case, the private sector has lost out on the deal while, the country has lost out in the long term due to poor regulatory action.

Sri Lanka must become sensitive to these issues especially in this day and age, where success is achieved at any cost by the private sector.

Economic Athletism Lesson 8: South African ‘own style’ world high jump champion

The two-time world champion Hestrie Cloete from South Africa did not win the Olympic Gold. But when the pressure was at its height, with 60,000 spectators shouting their hearts out, Cloete with absolute ruthless precision went through her ‘own style.’

She mentally went through the steps towards the bar before pacing for the real jump.

She won the Silver. But she proved to the world that she has her own style.

I will not change even under severe pressure” said Hestrie Cloete.

Implication to Sri Lankan economy:

The best parallel to me in Sri Lanka is the apparel industry. We know it’s under pressure given the GSP+ issue with the EU.

What is required is to drive home our competitive advantage with the ‘Ethically Manufactured’ proposition and link to strong R and D that is the good work of SLINTEC.

We must become the Apparel Capital of the world for Ethically manufactured Garments. The Sri Lanka Designer Festival is one event that can support this proposition. We must make this happen is my view.

Economic Athletism Lesson 9: Fani Halkia breaks the Olympic Record in the Women’s 400m hurdles.

Greek athlete Halkia was little known before the games. Her best timing was 56.40 seconds in the 400m hurdles for women. However at the semi finals she electrified the Olympics with 52.77 seconds blistering run that broke the Olympic record. This sent shock waves throughout the world of athletics as such performance improvements normally happen with the help of Performance enhancing drugs’. In the final she ran down Australian world champion Jana Pittman and world record holder Yuliya Pechonkina to storm home five meters clear of the second best.

The Halkia’s victory had the majority of the 70,000 home crowd on their feet. Her response to the victory was “The Greek soul is so great that it can carry ourselves to victory.”

Implication to Sri Lankan economy:

The best implication is the tourism industry of Sri Lanka. We must ride the wave on this sector with global hype on Sri Lanka post the war.

The National Geographic Channel ranking Sri Lanka the “no two must visit in the world” captures this trend well. What is required is to drive tourism development in Kuchchaveli, Pasikudah and Kalpitiya from a strategic sense so that we can increase our rooms from 14,700 to 30,000 in the next five years.

If this is not done we cannot make Sri Lanka tourism a two billion industry like Sri Lanka Tea.

This direction requires a new financial model if it is to be a reality. If we do not do that like what Fani Halkia did, Sri Lanka will be the loser. What Sri Lanka requires is not promotional spend but robust infrastructure development.

Economic Athletism Lesson 10: For 17th time the US produces an athlete to win the 400m Of the 25 Olympics in which the 400m sprint has been worked out, the US has secured it 17 times. The greatest being Michael Johnson. At the Athens Olympics, a 20 year old “white man’ won the event at a 44.0 seconds flat.

It’s a difficult event to master and young Jeremy Wariner reacting to the comment “The fastest white man” he said “....It does not matter whether you are black or white. What matters is to reach your top potential. I never wanted to win. But sure wanted to better my personal best timing.”

Implication to Sri Lankan economy:

The lesson for Sri Lanka is that we need to urgently provide a solution to the ethnic issue. Yes, we have won the economic war that ravaged the world in 2007/8 with the financial crisis and then we won war on terror in 2009. But the need of the hour is the solution that we provide the Tamil population of Sri Lanka. We also need to be sensitive to the livelihood development opportunities that we must create for the people in the Vanni.

As Michael Jordan said it’s not whether one is black or white but allowing people to be the best that one can be. We are all Sri Lankans now.

Economic Athletism Lesson 11: Brazilian loses Gold in marathon

The Brazilian marathon champion Vicente De Lima who ran into trouble when a spectator crossed the road cost him his chance to winning the Gold. However, his magnimanous gesture of solving the problem won him two medals, the Peace medal of the Olympic Games and the Bronze. A fitting tribute at the final awards ceremony.

Implication to Sri Lankan economy:

I strongly feel the time has come for Sri Lanka to decide which industry that it needs to invest into make Sri Lanka competitive. The peanut butter approach, when the pool of funds for investment is allocated to all industries will not work.

Its time we look at the future industries like the software industry and the BPO business and do the development work with focus, as this can become the two billion dollar export revenue business for Sri Lanka in the future. Maybe this kind of strategic decision making can make Sri Lanka win two medals on the world stage like the Brazilian.

Economic Athletism Lesson 12: Glamorous Gianna Angelopoulos

The Greeks call her the ‘Iron Lady’. Gianna headed the Athens Olympic committee when many an individual thought the job was a nightmare.

Glamorous, ruthless and ambitious, the 49 year old has achieved the impossible to get an accolade from the Olympic Chief as “Athens Olympics - A Dream Olympics.”

Recent reports say that Ginna Angelopoulos used the games to launch herself into the chair of the nations outgoing president Costis Stephznopoulos.

Some journalists who know her in person says, “Behind the charm there’s a rich bitch straight out of Dynasty.” Whichever way it goes it was the ‘Event of the year’ and it was the brainchild of Gianna Angelopoulos. What was her motive, we will have to wait as it unfolds in the future.

Implication to Sri Lankan Economy:

We also need to have a ‘Secret Agenda’ every time we take up a challenge.

Right now Sri Lanka is managing the relationship with China and India very well but we must be cautious on the CEPA arrangement with India so that we retain the Sri Lankan identity and its service sector. Just like Gianna we must also have a secret agenda on business growth.