A Break Through Economic Model that breaks down corruption as it is needed to take the country towards rapid economic development!
The breakthrough economic model introduced to build a country full of corruption.
Hon. President Gotabhaya Rajapaksa recently inaugurated the new Parliament and unveiled his “Saubagyaye Dakma” or his Vision for the next five years, focusing on how to develop the country economically.
His landslide victory proved that the vast majority of the people favored the concept of Economic Nationalism that he put forward in the 2019 presidential election, and his recent two-thirds parliamentary majority called from the nation for the necessary legislation, including amending the constitution to implement that policy. It was also given at the general election.
It is the strongest ever and most powerful parliament after President Jayewardene’s most four-fifths majority in parliament.
The naming of ministries created by the President shows his desire to take the country towards a nationalist economy.
State ministers have been appointed and delegated responsibilities for all traditional and indigenous industries. It is our hope that appointed ministers will be able to fulfill the aspirations of the President and the nation.
Here, what we hope to discuss today is a powerful factor that can push forward the President’s vision. It is not only the strongest point but also the most important point. That is, how to raise capital to achieve the President’s national economic goals.
For this, we will introduce a breakthrough economic model to the country.
At present, Sri Lankan economy is not stable from any economic point of view. Today, the country’s economic growth rate is negative due to the collapse of the tourism industry following the Easter attacks and the contraction and recession of the local and world economies caused by the Corona Pandemic. Some economists predict that the economy of the country will collapse today or tomorrow.
Also, in a country where millions of people live on less than Rupees 500 per day according to Central Bank statistics, people would have starved to death during the Corona Pandemic.
Plunderers in search of food should be plentiful. But none of those was reported.
If so, why?
How should it be explained?
The answer is the Black Economy that has engulfed the country.
From the country’s top political leaders to the beggars on the streets, the people are part of the black economy and all engage in some form of economic activity outside of their declared sources of income. Most of these activities are directly or indirectly corrupt. Therefore, the countries with corrupt economies like Sri Lanka do not collapse in midday as philosophical economists predict. These economies do not meet the country’s economic statistics and criteria.
According to Central Bank statistics, the country is in a deep abyss, but on the contrary, people have achieved significant prosperity individually. Without catching to the country’s official economic statistics, huge sums of money are circulating among the people.
We need to understand that this huge amount of money is our strongest resource and driving force for the economic development of the country.
Incumbent governments use various traditional tactics to add this money to the official national economy.
1. Granting tax amnesty periods.
2. Sudden cancellation of high denomination banknotes.
These are methods have been tested in Sri Lanka too. Banknotes cancellation was done during the time when the Finance Minister was honorable N.M.Perera’s once.
The history reveals that the granting of amnesty periods from time to time during the tenure of various Finance Ministers was done. Maybe the new government too may try a new attempt of that.
Though the government and President are new, the success or the failure of the government’s economic policy and the results are controversial hence we got the same old faces in the cabinet and the same lame, inefficient government officials that run it.
Therefore, we need to think about how to achieve rapid economic development using these very old faces, the inefficient government mechanism, and the people who are considered corrupt. (by themselves, through themselves, and with themselves ).
For that, economists always suggest the same theories they taught in universities for decades. Actually swimming against the flow. That’s why they flop where they start.
The many economic models presented are not suitable for our countries as they are highly theoretical and the country in question is corrupted.
As preconditions for their implementation, need already existing funds/ Capitol, very efficient state mechanism, economically well literate people, above all uncorrupted system.
There are no such rulers or people in the world now and may never ever be not even in the future.
So we have to drive through this corrupt system inefficient state mechanism and machinery, this political and social system.
Therefore the country must be transformed into becoming a breakthrough economic model that can lead to rapid economic development.
For this, we have studied the methods of South Korea, Hong Kong, Slovakia, Italy, and Spain, which were previously corrupt but now experiencing rapid economic development.
We are studying strategies and methods used by Mexico, Brazil, Ethiopia, Rwanda, India, and Bangladesh, etc which are still corrupt but gaining rapid economic development.
We invite Economists and you the general public to discuss a breakthrough economic model that a country with a corrupt economy can build on itself and break it, later on, throw it away. Since everything has a fixed price and value, as described by every economic theory from Marxism to neoliberalism, If the motherland needs our knowledge and active participation, then our unwavering commitment to it is the .. highest and greatest role and contribution we can offer for this our nation at this time.
Recent Moody’s Sovereign Rating downgraded Sri Lanka as a country with a very high risk of repaying the debts.
in response to this, State Minister Ajith Nivard Cabraal said in a statement on behalf of the government, Moody’s Ratings is unwarranted and does not erode investor confidence in Sri Lanka. On one hand, his statement has some truth: we can identify two groups of investors who are interested in such critical opportunities.
1. Chinese investors
2. High profile Sri Lankan politicians and racketeering businessmen.
They have understood Corona Epidemics as a lucky situation posed to buy small and medium-scale enterprises, restaurants and wholesale shops etc (by Chinese ). Sri Lankan racketeers have started to buy three and four stars hotels on the edge of bankruptcy throwing their black money ( money laundering ).
This huge influx of dollars to the market prevents the collapse of Sri Lanka as Moody foresees.
If the government is able to absorb this enormous black economy into the national economy promptly, vigilantly in the right way, it is the need of the hour of the Nation.
Dr. Nilanga Samarasinghe
Health Economist and Researcher
University of Lucerne