Features
The ‘Political Weapon’ that Joe Biden Didn’t Deploy!
THE RELIEF PACKAGE HE BARELY MENTIONED . . .
by Selvam Canagaratna
“Perhaps the most surprising element of President Joe Biden’s first presidential speech on Thursday night was what it did not include” was how Jeff Greenfield, a five-time Emmy-winning network television analyst and author, described it in Politico magazine.
A day after the passage of the most far-reaching piece of domestic legislation in decades, Biden spent only the last few minutes in touting his $1.9 trillion American Rescue Plan. The lion’s share of his talk was a detailed account of the effort to contain and control the coronavirus pandemic. Apart from a passing reference to the “denial” and “silence” of his unnamed predecessor, politics was not on the agenda.
There may well have been good reason for that decision. His first prime-time speech as President called for a message of unity — the same message he had sounded during his campaign and in his Inaugural. No mention of the unanimous opposition of Republicans to his plan; no attempt to draw partisan lines. The selling of his Rescue Plan is expected to begin any time, but Biden clearly decided it could wait a day or two.
Yet there is no doubt that the political implications of his plan have the potential to be nothing less than radical.
It was 11 years ago, almost to the day, House Speaker Nancy Pelosi said of Obamacare: “we have to pass the bill so that you can know what’s in it.” That notion, which seemed borrowed from the Queen of Hearts’ absurdist “Sentence first! Verdict afterwards!” approach in Alice in Wonderland, turns out to have been even more applicable to this week’s American Rescue Act.
It was after the bill’s approval by the Senate that we learned the full dimensions of the most audaciously ambitious social welfare legislation since the New Deal. Most tellingly, the congressional Republicans, who had voted unanimously against it out of force of habit, never bothered to train the full fury of their fire at a series of provisions that took the nation several steps down the road to social democracy.
There’s the tax credit for children that in effect provides thousands of dollars a year for each child — an idea that’s been debated since Daniel Moynihan proposed it as a member of the Nixon administration. There’s the significant expansion of subsidies to buy into health care, along with months’ worth of free access to health insurance for those who’ve lost their jobs and health insurance — not “socialized medicine,” but a significant step toward more public underwriting of health care. And there’s an $86 billion commitment to protect the pensions of a million retirees whose multi-employer plans were in danger of insolvency — without even a pretense that this is linked to the Covid pandemic.
It’s the kind of bailout you might expect in a nation where organized labour is a significant share of the workforce. Now, in a United States where unions represent barely 6 percent of the private sector labour force, that protection is law.
From a policy perspective, the key question is whether these and other provisions lead to a robust economy or one eroded by a spike in inflation. From a political perspective, the potential impact of the rescue plan is hard to overstate; what it represents is the possibility that the Democratic Party has found a tool to reconnect it to a working and middle class whose loyalty has been threatened for well over half a century.
There are a host of centrifugal forces pulling at the Democratic Party coalition: In the early 1960s, clashes over housing, jobs, schools, crime and welfare divided black and white working-class voters. Cities like Berkeley and Seattle repealed fair housing laws, and in 1964 — the high-water mark of postwar Democratic Party strength — voters in California overwhelmingly banned such laws.
By 1968, George Wallace’s campaign for president was striking chords beyond the South. The fraying of the New Deal coalition was very much on the mind of Robert F. Kennedy, whose presidential campaign was based on holding it together. In his last weeks, he began talking about an issue he believed had broad appeal: specifically, how many of the wealthiest Americans avoided paying a fair share of taxes. By the end of 1968, divisions over the war in Vietnam, deadly riots in the cities and upheaval on college campuses reduced the Democratic share of the presidential vote from 60 percent in 1964 to 43 percent; Richard Nixon and George Wallace divided the rest.
Little more than a decade later, the twin demons of recession across the industrial heartland and double-digit inflation helped turn millions of voters into “Reagan Democrats,” leading to two landslide victories for the Gipper and 12 consecutive years of GOP presidencies. All through the 1980s, Democrats and their intellectual allies tried to grapple with the fact that voters seemed to prefer Democratic policies (on health care, education, taxes), but voted, at least at the presidential level for Republicans. (I have a vivid memory of House Majority Leader Dick Gephardt assuring a group of journalists that once the American people saw his party’s proposals for lower drug prices and access to college, they would return to the fold.)
It took “a different kind of Democrat” (as Bill Clinton defined himself) to win back, at least temporarily, those defecting Democrats by breaking with his party’s orthodoxies on crime and welfare, and by pledging that “the era of Big Government is over.” And it took an emerging demographic sea change that yielded an increasingly non-white electorate, and a more liberal cohort of college-educated whites, to outweigh (at least in popular vote terms), the increasingly Republican tilt of less-educated whites and to put Barack Obama in the White House.
But both Clinton and Obama suffered severe political damage in their first midterms from the fact that their principal battles — for deficit-cutting tax hikes on the part of Clinton, and from a stimulus and a health care plan from Obama — had failed to deliver tangible success. While both were re-elected, those midterm failures had severe consequences that endure; in particular, 2010 produced a GOP takeover at the state level that now threatens severe voting limits across the country.
With the American Rescue Plan, Democrats are offering something very different: a package that is in a key sense a throwback to its roots first planted in the days of Andrew Jackson. It is an unapologetic assertion of the power of government to redress a set of grievances without any assertion of identity politics; while the stark facts of the pandemic mean that it has hit with special force in black and brown communities, the remedial power of government is directed to the victims defined by circumstance, not colour.
The political potential here is impressive. Consider a 2022 mid-term where the future of the now-temporary child tax credits is on the line, and where every Republican House and Senate incumbent will have to explain to the electorate why they voted against them. Consider the votes of tens of thousands of small-business owners — the entrepreneurial heart of what Republicans rhetorically celebrate — whose enterprises survived because of the law enacted with a clear partisan split. Imagine a Republican arguing that only a small fraction of the law addressed the costs of the pandemic, when there are countless parents of school-age children, restaurant workers, retail shop owners, hotel clerks, freelance consultants, who know exactly what happened to their lives when Covid struck.
This is a possibility that Republicans simply may not have imagined, given their midterm successes in running against the initiatives of the past two Democratic Presidents, and inflicting on Clinton and Obama successive political catastrophes.
This time, the benefits of the new law are easy to grasp, and will be — literally — in the hands of Americans within weeks. The scope is broad enough to encompass both the poor and large elements of the middle class, which is why it now enjoys a level of support almost unimaginable for a law passed along such partisan lines. There is a hint that an outbreak of public happiness may be about to begin; when American Airlines tells its workers to “tear up those furlough notices!”, it portends the chance of celebration with every re-opened restaurant, with every eviction notice burned. More broadly, it appears to contain provisions that leapfrog a dilemma that has plagued Democratic social programs in the past: When they are perceived as helping one class of voters, they meet with a powerful backlash, (often one infused by racial resentment). When a program reaches broadly — Social Security, Medicare and, increasingly, the Affordable Care Act — it also becomes politically potent.
Potential is not prediction. There are plenty of ways that 2022 could be another Democratic disaster; perhaps inflation will accelerate, or the looming issues of an overwhelmed border and rising crime may override good economic news, or the Republican efforts to limit the vote in state after state will prove too formidable.
But what does seem clear is that, unlike past measures that required huge congressional majorities, a radical change in the social fabric of the United States has become a reality — and with it, an opportunity for the Democratic Party no one could have imagined 50 days ago, concluded Greenfield.
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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