SL’s growth spurt and the current world order

An outstanding feature of Sri Lanka’s foreign policy is the emphasis it lays on fostering and consolidating relations with the developing world in general and the Arab world in particular. It is in the fitness of things that this country interacts closely with the Arab states of the Middle East, for instance, because Sri Lanka’s heart has been in the Palestinian cause since the outbreak of the ‘Middle East problem’ decades ago.

However, with economic interaction taking pride of place in the contemporary world system, it should not come as a surprise if Sri Lanka is seeking to consolidate its economic ties with the fast growing economies of the Middle East, and Qatar is one such state of note whose material robustness cannot be overlooked. Therefore, it should not come as a surprise if Qatar is seeking to expand its investment ties with Sri Lanka.

Moreover, Sri Lanka’s economy is on the rebound following the crushing of terrorism in this country in May 2009, and countries such as Qatar could be said to be underscoring their confidence in Sri Lanka by seeking to bolster investment ties with us. As one of our front page news stories says today, Qatar is seeking to invest in Sri Lanka’s hotel and leisure industries to the tune of some US $ one billion and this is indicative of the confidence reposed in Sri Lanka’s economic dynamism by Qatar. Among other things, this is a resounding rebuff of the criticisms and allegations emerging in particularly Opposition circles about the Lankan state’s economic management capabilities.

However, it should not be overlooked that it is a country’s political leadership which helps in keeping its image glowing on the world stage, among other key functionaries, and President Mahinda Rajapaksa is more than abundantly contributing towards this process. There is no doubt that the forward-thinking nature of President Rajapaksa’s policy initiatives and thinking have helped in projecting Sri Lanka as a country on the move and in the forefront of affairs, to the world outside. ‘Today, our economy is growing rapidly because we were able to successfully end the three decade long terrorist conflict in our country. A new platform has been provided for the Sri Lankan economy to grow and prosper’, President Rajapaksa told the Doha Economic Forum.

This amounts to putting the record straight about Sri Lanka in these post-conflict times. Besides being optimistic and forward-looking, pronouncements such as these inspire confidence and trust among the audiences giving ear to them. Accordingly, it should not come as a surprise if countries with the economic muscle are willing to invest in Sri Lanka.

In the emerging world order, economics would prove to be of pivotal importance. In fact, one would not be wrong in saying that ‘Economics drive politics’, in contemporary times. At first blush, this would seem to be an oversimplification, but it could be asked, if not for economic forces, what is accounting for the continued engagement between the US and China, despite ideological differences and intermittent trade wars, but the consideration that both countries should gain from their economic interaction. Apparently, mutually-rewarding business and investment relations are what are compelling the US and China to continue to relate to each other in the sphere of economic ties.

Therefore, it is inspiring to see Sri Lanka putting its best foot forward to make good use of the economic opportunities that are opening up in particularly the Middle East and East Asia. It should not be lost sight of that the centre of gravity, so to speak, of the global economy has shifted to East Asia and the Middle East and it would be foolish of a Middle Income Country to stand idly by and allow economic opportunities to by pass it.

But those sections of the local Opposition who insist on criticizing the state mindlessly on economic issues, are cutting a very sorry figure by doing so. The opportunities to bolster our economic fortunes must be made use of without much ado and berating the government when it is proactively involved in making most out of the chances that come our way to further the growth process, is tantamount to engaging in destructive and futile fulminations which take ‘economic discourse’ nowhere.