Echoes of NM’s dismissal may have an impact on present crisis

by Tissa Vitarana

Dr. N. M. Perera, one of the greatest politicians and statesmen produced by our country, was born on June 6, 1905.

In recognition of his stature as a freedom fighter, a trade union leader, an authority who consolidated parliamentary democracy in the country, an economist who defended the rights of the developing world and sacrificed political power to defend minority rights, he remains in the heart of the people 43 years after his death. Each year on June 6, it has become customary to celebrate his birth anniversary by paying floral tribute at his statue in Colombo. Leaders of the Left and many other political parties participated, together with some leading supporters of the Lanka Sama Samaja Party (LSSP), which he had helped to form in 1935 with socialist objectives.

Among the chief speakers were the current Leader of the LSSP and the Chairman of the Dr.N.M.Perera Centre or his representative. Similar functions would be held at the statues in Thun Korale, Ruwanwella and Yatiyantota, in turn bi-annually.

As usual on June 6, 2021 the function was held, but only with three persons present as a token event, to conform with the three health regulations required to control the Covid 19 epidemic . As the present General Secretary of the LSSP I gave a short speech, the Chairman of the Dr.N.M.Centre who was unwell was represented by Ranil Vitarana, and the LSSP rank and file by Nuresh Rajapakse, a member of the PB whose ample size filled the space left by the absent LSSPers. We retired home to discuss how NM might solve the present crisis if he was alive.

The crisis that NM faced as the Minister of Finance in the SLFP/LSSP/CP Coalition Government in 1972 was far worse than what confronts us today. In 1972 there was the perennial crisis of over production that dogs the capitalist economic system. But in addition the fossil fuel price went up seven times due to the getting together of the oil producing countries to form a cartel, OPEC. The worst global drought in 30 years led to a severe food crisis, with thousands of deaths worldwide. As a result, due to the traditional import dependent policies of the UNP Governments, our people were in grave danger (e.g. the price of a ton of imported sugar went up from $ 40 to $ 600).

NM explained to the people the magnitude of the crisis and called upon the people to tighten belts, stop the import based luxury lifestyle, and develop an import substitution national economy, producing our food and developing value added industry (his budget allocation for science and technology was increased four times). The bulk of the burden should not be passed on to the people but borne by government and the rich. The direct personal tax on the rich was raised to a maximum of 75% (today it is only14%). He managed to balance the budget and in one year in office earn more than the loss. The strict import restrictions reduced the foreign trade deficit and helped to cut down foreign borrowing. The foreign debt was reduced to the lowest in our history.

Today the biggest problem is the high cost of living, mainly due to huge profits made by rapacious middlemen (big mill owners, local money lenders to farmers such as traders etc.). To end this NM and the coalition developed the producer cooperatives (such as farmers) and the consumer cooperatives as genuine peoples’ organizations. By direct dealings between the two he wiped out the profiteering of the middlemen. The cooperatives were so successful that NM brought down the price of essentials to affordable levels, and even gave a measure of rice free. The result was that no one died of starvation unlike in other parts of the world. Due to the opposition of the traders, outsourcing to them was not possible. The result was long queues at the co-ops. This and the other shortcomings were exploited by the media controlled by the rich to lay the blame on the government. They hid the global nature of the problem, but blamed the government.

Besides food shortages a major problem was the shortage of medicine in government hospitals and the high cost of medicines in private pharmacies. Prof.Senaka Bibile, a member of the LSSP, came up with his Medicinal Drug Policy, which was accepted by WHO. NM strongly supported it and it was implemented. The outcome was that medicines for practically every disease was available in all government hospitals free of charge. The shortages were overcome, unlike the situation that prevails today. The foreign drug companies got their governments to intervene and promise a large sum of money to the government to overcome the crisis, provided the NM and the LSSP was expelled. The finance portfolio was taken away from him, and he was given a minor post which he refused and the LSSP was forced out of the Government.

The CP left the next year and the SLFP suffered a major defeat in the 1977 general election. The UNP led by JR Jayewardene came to power in 1977 and opened the door for the commencement of the process of change referred to as neoliberalism. This ideology led by the USA reached its zenith throughout the capitalist world, most of all in America. But it was a failure. It was rejected by the Sri Lankan people at the last presidential and general election.

The anti-UNP political parties helped form the SLPP-led government and are committed to do everything possible to solve the economic, social and health problems facing the country and people.

Like NM, I and the LSSP are very happy that the neoliberal foreign market dependent policies have been rejected, and the commitment is to establish an indigenous economy, where local agriculture and value added industry are to be developed. A major problem is the Covid 19 coronavirus epidemic. In view of my training in virology and experience here and abroad in association with WHO, I could have made some contribution to overcome this problem. In addition where local value added industry is concerned I have already made a significant contribution as the Minister of Science and Technology when Mahinda Rajapaksa was President.

In the four years I established 263 Vidatha Centres, one in each division, and helped 12,300 micro, small and medium entrepreneurs to develop island-wide (17 exporters, 64 suppliers to Cargills and other food chains, and 53 to hotels). To promote large scale industry for the export market I set up a Hi-tech Centre, SLINTEC, with emphasis on nanotechnology near Colombo. But it would appear that I am not fit to be a minister, leave alone a cabinet minister. I wonder whether what happened to NM and Senaka Bibile had any bearing on this.

But why was Prof Sirimali Fernando, Senior Professor in Medical Microbiology at Sri Jayawardenapura University left out. For her post-graduate research in London she not only worked in the field of Virology, but also used the PCR. She could have seen that the PCR test (and the RAT) were properly standardized to give reliable results. Control of the epidemic will be difficult with many false positives and negatives.

You can understand what a person of NM’s stature felt when he was kicked out of the finance ministry, when what has happened to me is related. The only occasion that I could express my views was when the Health Advisory Committee of Parliament met on one occasion, at very short notice, with the Minister in the chair. I proposed that a National Committee of party leaders in Parliament be set up to interact with the minister to exchange views so that we all unite to fight this common enemy. Then truly national Covid committees could cooperate down to village level in the interest of all the people.

The minister turned this down and said that this Health Committee will meet twice a month and any party leader is free to come. Four months have gone and this committee has not met once since then. Secondly I proposed that as community spread had begun a new community based approach was necessary to control the spread and I gave an outline of the necessary measures. She rejected my assessment and approach, stating that it was still in the cluster stage. I said that the cluster approach could continue where indicated, but my proposal too should be implemented. She rejected this proposal.

I might mention that the day Dr. Fernandopulle was appointed as minister she invited me to meet her and I had a fruitful discussion with her for more than an hour. I hope that she will get the necessary support.