Features
Biden’s American Social Welfarism
by Kumar David
Here is my 4th of July special for readers surprised by zesty trends in America. Biden’s economic programme, Bidenomics, is shaping up, but it is uncertain whether it can power off into full flight because of dogged opposition of the Republican Party (GOP) but more because the consensus culture which prevailed since the end of the Civil War has evaporated. The country is more divided than I have ever seen before; not only in politics but across social attitudes. It’s not that people across the divide don’t talk to each other, they don’t even understand each other. What remains as a common factor is unalloyed consumerism.
Trump was not the progenitor of right-wing extremism nor of its dystopian creed that intones: “Immigrants are rapists, Democrats are selling America to China and that WASP civilisation is imperilled”. He is only its most mendacious practitioner. The extreme divide commenced with the ‘hated’ election of a Black President 
spawning mass right-wing white-populism initially in the Tea Party Movement (KKK, John Birch Society and McCarthyism are its forefathers) and festering into today’s Trump-Base which has taken control of the GOP.
Whether Bidenomics will erode this Base remains to be seen – I will make a comment on that anon – but the GOP has turned so obstructionist that getting Bidenomics up and running is going to be tough. Unlike FDR who had thumping majorities in both houses of Congress, the Democrats today are faced with a 50:50 split in the Senate and depend on Kamala Harris’s casting vote which will be unusable if even one Democrat defects on any Bill.
In a recent article bearing the title “The Bidenomics Revolution” in the web-magazine Foreign Policy dated June 9, Michael Hirsh argues that if Biden succeeds he “will cast 40 years of economic doctrine on history’s ash heap”. The essay is available on the web at https://foreignpolicy.com. Hirsh argues that Biden wants to “create a new paradigm: resurrecting America’s beleaguered underclass with a combination of education, health-care, and tax proposals and a new brand of industrial policy and economic nationalism that will, eventually, propel the United States past China. If he is able to follow through it will negate the ruling doctrine of Reaganomic trickle-down economics. Biden is setting his sights high, as revealed by the name he has given his program: the New Bargain, consciously echoing FDR’s New Deal”. Clearly he is seeking a new Social Contract expanding government support for the working class in a move that can obliterate the Trump’s base in the class. Biden, from a lower middleclass family, has suffered many tragedies in his personal life and he is trusted by workers. And unlike his immediate predecessor in office, he is not despised as a moral pariah by the educated classes.
America’s white working-class (that is white workers without a college degree) is the now the smallest it has ever been. It is now 40% of the total adult population and will fall below 50% of the working-class by 2032 — an all-time low, and down from 70% three decades ago. It is losing wealth and income, amplifying economic 
insecurity. The attitude of white workers has split from that of college educated whites, it has turned Republican and joined the Trump-Base. Educated whites – what I call the modern working class which has deluded itself into believing that it is a middle class! – has benefited from modest income gains, but not the working-class. Life expectancy of white workers has fallen due to social pressures, alcohol and opioid use.
Nevertheless the blue-collar working class even when it declines to 30 to 35 percent of the population, will roughly be the same as the lower middle class. The proportion of Hispanics in the working-class will rise from 20% now to 32% by 2032, whites fall from 62% to below 50% and the percentage of Blacks and Asians in the working-class remain unchanged at 15% and 3%, respectively. Asian Americans (5.7% of US population) belong to well-off income groups and few are in the working-class.
Biden has long believed that deficit reduction and government inaction on public investment are responsible for America’s domestic social malaise and its global decline. He is a social-democratic grandpapa in a liberal suit and tie who shuns Milton Friedman’s monetarism and Friedrich Hayek’s neoliberal economics. He thinks the US lost global leadership because it regressed economically. His team believes that high GDP growth and a flourishing stock market generate wealth for the top 1% and therefore misses the point that prosperity must extend down to low-income communities. This makes his team a toned-down Americanised version of social-democracy.
Furthermore, Biden says if America doesn’t stand up for globalization and open markets, who will? In May he elaborated saying “America’s global leadership depends on the country’s economic resurgence. And that depends on major government investment in every kind of infrastructure, from interstate highways to internet connectivity to new climate-saving technology. The basis of foreign policy is in our stature in the world. We must be No. 1 in the world to lead the world in the 21st century. It’s a simple proposition”.
He declared, also in May, that “100 percent of government investment will be guided by one principle: Make it in America.” Certainly there is a large degree of ‘Make it in America’ economic nationalism in his outlook; but this is unavoidable for any government expenditure plan. You can’t eat your cake without making it. Competition with China and Asia, in the economic sphere at least, will be heightened.
The Chinese and Europeans have faulted Biden’s approach as Economic-Trumpism without Trump. Economic nationalism and anti-China rhetoric usually go together, but political confrontation can be avoided so long as welfare-economics at home does not become aggressive, zero-sum foreign policy directed at China. This can be avoided by an Administration bent on respecting international treaties and global climate correction. Hostility to human-rights violators is likely to become a flash point. Other capitalist nations are watching in disbelief as blue-collar fathered Joe tones down the ‘world according to finance-capital’ doctrine in favour of a spending plan that would make Keynes blink.
Biden has proposed his third $2 trillion economic expenditure plan in a hundred days (it may be trimmed to $1.2 trillion by a bipartisan deal in the Senate) and claimed that his infrastructure spending scheme is the “the largest jobs plan since World War II.” In all he plans $7.5 trillion new spending, double America’s expenditure in inflation-adjusted dollars on WW II. Spending is focused on new state-led R&D, infrastructure and support for low-income Americans. The latter includes outlays on community colleges, health and child care, as well as federal spending in districts with concentrations of poor, black and less advantaged people. Luckily things are going well on the economic side: The World Bank has doubled its projection of US GDP growth from 3.5% to 6.8%, the fastest pace since 1984.
However, political opposition from the Republican Party is horrendous; it is determined to scuttle Biden’s spending Bills in the Senate. The GOP knows that if Biden’s New Bargain succeeds it will bury the Trump-Republican grip on the American working class for a generation. Hence many State Legislatures with a Republican majority are curtailing voting rights in a flagrant attack on electoral democracy and asserting control over the voting and counting processes. Local election officials affiliated to the Democratic Party are being removed. A threat to Biden’s programmes is that mid-term Congressional elections in 2022 will be “fixed”.
Biden’s splurge on reorienting the economy away from billionaires and towards the middle and working classes is also shifting the global ideological discourse. The Washington Consensus (neoliberalism) could well find its leading champion riding away into a semi social-democratic sunset. The unconditional virtue of free-markets, reproving state participation in the economy, privatization and foreign investment may be less forcefully shoved down the throat of developing nations hereafter. But don’t hold your breath for anything dramatic, it’s a matter of degree. In the eyes of the hard-left Biden is a lukewarm plain vanilla social democrat. Still for an American president – Wow! And of course don’t underrate America’s global sway for another generation. Rome declined for three hundred years before it finally fell.
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 . )
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
