Self-reliance and development

Minister Rishad Bathiudeen

In 1945 Mao Zedong wrote: 'On what basis should our policy rest? It should rest on our own strength, and that means regeneration through one's own efforts.' Self-reliance, defined thus, has been the cornerstone of China's development policy since then.

This might not be apparent, superficially - China's greater integration with the world economy and consequently its apparent subjugation to international market forces is seen as a bar to its ability to retain the initiative in developing itself. However, the country's self-reliant policy is most clearly apparent in its drive for technological renewal, which is governed by its nationalist strategy, rather than by market pragmatism.

The results of this strategy have been to ensure China's sovereignty and independence, in addition to growing prosperity. At the other end of the spectrum is Tanzania, once at the forefront of the Third World self-reliance movement.

Post independence Tanzanian leader Julius Nyerere had formulated a policy of 'Ujamaa' for the development of his country, which was based on the institutionalisation of social, economic and political equality, the abolition of discrimination, the village-isation of production, free and compulsory education, the creation of a Tanzanian identity and the fostering of cultural and economic self-reliance.

Foreign aid

A few years before his death Nyerere asked the new Tanzanian leadership: 'I can understand your decision to do away with the policy of Ujamaa... but what about the policy of self-reliance? Are you also not interested in it?'

Unfortunately, Nyerere's advice was not heeded and Tanzania went down a path of dependent development. Despite substantial mineral and natural gas production, the country remains poor and is increasingly dependent on foreign aid.

Tanzanian journalist Attilio Tagalile pointed out this week that 'Since Tanzania elected to become a donor-dependent nation, with almost 30 percent of its budget being funded by the Britton Woods institutions and other donor countries, the country lost its sovereignty on budget preparations. Therefore, every year before tabling its official budget in Parliament, the Minister for Finance is forced to submit the budget draft to the WB and IMF, on behalf of Tanzania's donors (conveniently referred to as development partners) for approval.'

Economic growth

Sri Lanka was previously on the same road as that taken by Tanzania, to dependency and neo-colonialism. However, the Mahinda Rajapaksa government set its sights on self-reliant development. The focus was on fulfilling the baseline requirements of the people, to have a healthy and prosperous population. This was to be achieved mainly through the village or the neighbourhood - each of which was to be a micro-centre of economic growth, while preserving its traditional social cohesion - and the individual household unit. The first step was to promote food self-sufficiency. The government found that 42 percent incomes were spent on food and drink.

Growing vegetables

Furthermore, food consumption patterns were shifting, particularly in urban households, towards pre-cooked foods; the consumption of fresh vegetables and food was falling and nutritional value of the food consumed was descending accordingly. Hence, the Divi Neguma programme was launched to establish one million self-sufficient domestic economic units - the majority growing food items in home gardens using organic fertiliser, while earning stable incomes from surplus produce. One hundred households were selected from each Grama Niladhari (Village Officer) division and given seed, organic fertiliser, advice and other aid.

One year on, this programme had the effect of reducing drastically the price of vegetables and fruit, while ensuring a better nutritive balance in (especially urban) diets. Apart from the cultivation of vegetables and fruit, the Divi Neguma programme envisages that households will undertake projects in other horticulture, bee keeping, animal husbandry, fisheries and cottage industry. Under the third phase of the programme, 2.5 million household units are to be included.

After food security, an important plank of self-reliant development is the preservation of a substantial manufacturing and industrial sector supplying domestic needs. Unfortunately, Sri Lanka's economic growth has hitherto rested mainly on a service sector which has depended for profit on the consumption of imported goods - rather than on the productive sectors.

Free trade agreements

As the Divi Neguma programme lowers expenditure on food items, the amount available for other expenditure will increase, creating a larger market for imported goods. It is necessary to divert as much of the resulting consumption towards locally produced goods. This can be achieved mainly through fiscal and tariff methods - which, unfortunately are constrained by Sri Lanka's commitments to the World Trade Organization and to several multilateral and bilateral free trade agreements.

Nevertheless, the government has pursued several options in this area since 2005, affording some level of protection for local industries and jobs for the first time since the introduction of the open market economy. This has caused chagrin in Globalisation circles - which see the world in terms of capital, markets and cheap labour, not as populations who require fulfilment of necessities and social cohesion.

There are certain specific areas which the government is targeting. For example, this month Industry and Commerce Minister Rishad Bathiudeen said that the President intends to promote domestic import substitution production of pharmaceutical products in order to reduce the heavy dependence on imports.

This is likely to benefit the local population, as the product quality is likely to improve.

The government is also focussing on energy self-sufficiency. The current heavy dependence on imported fossil fuels is unhealthy. Increased attention is being given to renewables, which do not require imported fuels.

In following this path, it is necessary for Sri Lankans to bear in mind another of Mao's sayings:

'We must recognize difficulties, analyse them and combat them. There are no straight roads in the world; we must be prepared to follow a road that twists and turns and not try to get things on the cheap.'

It was a similar attitude which saw the country through the horrors of the conflict of the past years and it can see the country through the ongoing battle for self-reliant development.