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Opinion

New govt. to fast-track export-led growth strategy

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By Jayampathy Molligoda

It is common knowledge that Sri Lanka never had a consistent export -led growth strategy. For decades, it has become a buzz word without having a proper infrastructure- both physical as well as soft skill- and much needed foreign and domestic investments. With frequent change of governments, export strategies have been changed and no determined efforts made to promote potential export products, marketing destinations and reap the benefits of positives of globalisation to link up with the global value chain (GVC).

Implement truly export led growth strategy:

It is recommended to appoint a high powered ‘economic advisory committee’ under the Presidential secretariat, comprising key officials of the government, drawn from the Treasury, Central Bank and other relevant institutions, together with a team of experts from private sector thus sharing the same vision and ideology of the new government.

It is suggested that the above mentioned economic advisory committee should pick up acceptable proposals without scrapping the already prepared export strategy and give leadership to effectively implement and monitor same through an efficient economic task force. Whilst supporting traditional exports, time is opportune to concentrate simultaneously for a diversified export portfolio such as newer exportable products as technology-based components, raw materials for chemical industries, bunkering product etc. As far as export of services are concerned, train and upgrade skills of Sri Lanka’s human resource at professional levels, such as nursing and health care services, technology-based services, skilled armed services, maritime and navel services, BPO ICT, etc. This will eventually minimise over- dependence of migrating unskilled labour to the Middle East thus creating unnecessary social issues to their families, children and society at large.

Strictly enforce much needed

fiscal discipline:

The already widened fiscal deficit has been further deteriorated by the recently announced relief measures to meet the COVID-19 packages by the government. Nevertheless, the forthcoming Budget should reflect further austerity measures. It is essential that budgetary allocations are restricted on foreign travel for non-essential purposes for some time and save foreign exchange. Current expenditure should be reviewed regularly and prioritize expenses until such time the economy gets back on track. As for state owned institutions, detailed action plans along with winning strategies should be implemented to minimize losses.

More transparent and equitable pricing formulas will have to be introduced for public goods. Purchase of paddy stocks by the government should be at a reasonable minimum price that covers the farmers cost of production and some element of profit. In order to determine price payable to paddy farmers, it is suggested to introduce a similar scheme such as a reasonable price payable to tea small holders under the Tea Control Act of 1957 as amended, could be used thus stemming from the retail price of rice varieties at the market.

Underprivileged, needy communities can be given subsidies. Indian method of transferring subsidies to underprivileged and bypassing the middlemen through banking system using ‘Aadhar programme’ should be studied and must be adapted to suit Sri Lanka. It is essential to prevent leakages of subsidy as it amounts to a huge drain to the treasury financing.

Link strategy to develop SMEs to global value chain:

It is of paramount importance that the government must revisit and re-activate the financial and banking system loan schemes and provide more wholistic assistance to SME’s, establish SME centres and to provide the necessary guidance and support services which include the following areas;

=Start a programme to promote SME exports linking with global value chain (Select 500 SMEs and support for export as quick starter)

=Engage with DFI’s who have done similar projects – IFC, ADB, JICA

=Encourage SME sector to move up in the value chain

=Give incentives for Sri Lankan expatriate with business ideas to come to Sri Lanka to set up enterprises

=Incentivize setting up of venture capital and Private Equity businesses to support these ideas

=Help Sri Lankan SMEs to find joint venture partners for technology transfer. Set up a fund to support research and Development in SME sector

=Create incubators close to- may be universities to encourage setting up of businesses.

=Restructure banking sector and have a separate window for SMEs in the designated banks.

Re-visit existing subsidies

including fertiliser:

As for fertiliser subsidy scheme, time is opportune to revise same to mitigate negative effects of such schemes. If the present subsidy scheme continues, the Government may not be able to achieve its production targets in the agricultural sub- sectors and the farmers will continue to criticize the Government’s policy implementation. Special cultivation calendar shall be introduced based on resource availability in each Agro- Ecological Zone (AEZ). Improve infrastructure facilities such as laboratories, consultation services, extension on recommending site specific fertilizer application. The strategy should be to export high variety crops in addition to maintain food security and replace unnecessary imported food items.

The government needs to ensure that fertilizer is available to the farmers at the correct time and at a revised level of subsidized price where ‘large-scale estate’ owners also get subsidized fertilizer. We need to educate farmers on the proper usage of fertilizer to suit the soil conditions, minimizing wastage and environmental damage. It goes without saying that the system must provide the optimum quantity of fertilizer at reasonable price in time. It is important to identify farm level factors that influence the adoption of straight fertilizers and it would help in promoting the use of straight fertilizers at the farm level. More investment on R&D as well as private sector involvement are needed for manufacture of fertilizers using locally available raw materials.

The following additional points are also recommended:

a. Oligopoly of present fertilizer importers should be taken away and the government should encourage small- scale importers/farmers/RPCs to enter in to the market to import or produce locally. This will resolve issues related to malpractices, fertilizer availability, etc.

b. There shall be no subsidy given to importers, however a ‘ceiling price’ based on the market rate of fertilizer as determined could be fixed taking into account the CIF price of importers. The Subsidy, being the difference between the ceiling price and the subsidized rate, should be given only to the selected beneficiaries and be paid in cash to their bank accounts.

c. Fertilizer will then be freely available in the market and the selling price could be monitored by the relevant agencies and if there is a requirement of controlling the fertilizer prices at the market, then the ‘ceiling price’ could be used by the government. The present subsidized rate should be increased from – Zero for paddy and/or Rs. 10,000 per metric ton (MT) to say, Rs 12,500 and for other crops, the fertilizer mixtures could be increased from the present Rs. 23,000 to say Rs 35,000/ per MT.

d. Government shall encourage farmers (higher subsidy) for “Site Specific Fertilizer Usage and Organic Fertilizer” and required technology shall be given through crop research institutions. Subsidy should be given only for Urea, MOP, TSP and SA. Subsidy on all other straight fertilizers/mixtures should be removed and encouraged to use only where necessary.

e. It is necessary to clear the outstanding subsidy payments to the suppliers of fertilizer by the treasury leaving no room for ‘blame assigning’ by the private sector.

This will enable the government to reduce the burden on the treasury for additional government expenditure on subsidy (at present Rs 50 Billion per annum) at least by 30%.

(1) Invite FDI under the Chinese led “Belt and Road Initiative” (BRI):

To increase foreign exchange earnings, it is important to enhance port and port services by expediting the already planned development activities. The new Government has already approved the installing three gantry cranes to the JCT and the contract to deepen the JC. There is nothing wrong in entering into JVs based on ‘PPP models’ as articulated under the agreement between the GOSL and ADB on Colombo break-water financing. Geo-political realities and the popular public sentiments on the concept of nationalism should not be construed as strictures for decision making ability for economic growth and the writer is confident the next government under the leadership of President Gotabaya Rajapaksa is capable of maintaining a balance between the two in order to fast track economic growth activities.

It is essential to resort to a full-scale effective drive towards getting FDIs for long term projects in a transparent manner and such FDIs should be used only for revenue yielding projects from which, at least part of the borrowing can be met. It will be useful to revert to the marine and maritime activities and Aviation hub concept and ensure that appropriate projects are listed under these two hubs as early as possible and invite FDI under the Chinese led “Belt and Road Initiative” (BRI) and also link up with the ASEAN supply chain trough BRI as Sri Lanka is not a member of the ASEAN.

Conclusion:

Sri Lanka has already demonstrated its ability to combat COVID-19 successfully and the need of the hour is to fast track domestic economic activities, thus enabling Sri Lanka to record a faster recovery than other countries to improve economic growth. A more pragmatic nationalistic ideology – socialist oriented market based economic development model, coupled with an Executive Presidential system of governance would be more suitable to implement inclusive economic development programme to improve quality of life of the people of this country.

(Writer acknowledges the contribution made by Dr Ranee Jayamaha and Mrs Thusitha Molligoda)

 



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Opinion

Child food poverty: A prowling menace

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by Dr B.J.C.Perera 
MBBS(Cey), DCH(Cey), DCH(Eng), MD(Paed), MRCP(UK), FRCP(Edin),
FRCP(Lon), FRCPCH(UK), FSLCPaed, FCCP, Hony FRCPCH(UK), Hony. FCGP(SL) 
Specialist Consultant Paediatrician and Honorary Senior Fellow,
Postgraduate Institute of Medicine, University of Colombo, Sri Lanka.
Joint Editor, Sri Lanka Journal of Child Health

In an age of unprecedented global development, technological advancements, universal connectivity, and improvements in living standards in many areas of the world, it is a very dark irony that child food poverty remains a pressing issue. UNICEF defines child food poverty as children’s inability to access and consume a nutritious and diverse diet in early childhood. Despite the planet Earth’s undisputed capacity to produce enough food to nourish everyone, millions of children still go hungry each day. We desperately need to explore the multifaceted deleterious effects of child food poverty, on physical health, cognitive development, emotional well-being, and societal impacts and then try to formulate a road map to alleviate its deleterious effects.

Every day, right across the world, millions of parents and families are struggling to provide nutritious and diverse foods that young children desperately need to reach their full potential. Growing inequities, conflict, and climate crises, combined with rising food prices, the overabundance of unhealthy foods, harmful food marketing strategies and poor child-feeding practices, are condemning millions of children to child food poverty.

In a communique dated 06th June 2024, UNICEF reports that globally, 1 in 4 children; approximately 181 million under the age of five, live in severe child food poverty, defined as consuming at most, two of eight food groups in early childhood. These children are up to 50 per cent more likely to suffer from life-threatening malnutrition. Child Food Poverty: Nutrition Deprivation in Early Childhood – the third issue of UNICEF’s flagship Child Nutrition Report – highlights that millions of young children are unable to access and consume the nutritious and diverse diets that are essential for their growth and development in early childhood and beyond.

It is highlighted in the report that four out of five children experiencing severe child food poverty are fed only breastmilk or just some other milk and/or a starchy staple, such as maize, rice or wheat. Less than 10 per cent of these children are fed fruits and vegetables and less than 5 per cent are fed nutrient-dense foods such as eggs, fish, poultry, or meat. These are horrendous statistics that should pull at the heartstrings of the discerning populace of this world.

The report also identifies the drivers of child food poverty. Strikingly, though 46 per cent of all cases of severe child food poverty are among poor households where income poverty is likely to be a major driver, 54 per cent live in relatively wealthier households, among whom poor food environments and feeding practices are the main drivers of food poverty in early childhood.

One of the most immediate and visible effects of child food poverty is its detrimental impact on physical health. Malnutrition, which can result from both insufficient calorie intake and lack of essential nutrients, is a prevalent consequence. Chronic undernourishment during formative years leads to stunted growth, weakened immune systems, and increased susceptibility to infections and diseases. Children who do not receive adequate nutrition are more likely to suffer from conditions such as anaemia, rickets, and developmental delays.

Moreover, the lack of proper nutrition can have long-term health consequences. Malnourished children are at a higher risk of developing chronic illnesses such as heart disease, diabetes, and obesity later in life. The paradox of child food poverty is that it can lead to both undernutrition and overnutrition, with children in food-insecure households often consuming calorie-dense but nutrient-poor foods due to economic constraints. This dietary pattern increases the risk of obesity, creating a vicious cycle of poor health outcomes.

The impacts of child food poverty extend beyond physical health, severely affecting cognitive development and educational attainment. Adequate nutrition is crucial for brain development, particularly in the early years of life. Malnutrition can impair cognitive functions such as attention, memory, and problem-solving skills. Studies have consistently shown that malnourished children perform worse academically compared to their well-nourished peers. Inadequate nutrition during early childhood can lead to reduced school readiness and lower IQ scores. These children often struggle to concentrate in school, miss more days due to illness, and have lower overall academic performance. This educational disadvantage perpetuates the cycle of poverty, as lower educational attainment reduces future employment opportunities and earning potential.

The emotional and psychological effects of child food poverty are profound and are often overlooked. Food insecurity creates a constant state of stress and anxiety for both children and their families. The uncertainty of not knowing when or where the next meal will come from can lead to feelings of helplessness and despair. Children in food-insecure households are more likely to experience behavioural problems, including hyperactivity, aggression, and withdrawal. The stigma associated with poverty and hunger can further exacerbate these emotional challenges. Children who experience food poverty may feel shame and embarrassment, leading to social isolation and reduced self-esteem. This psychological toll can have lasting effects, contributing to mental health issues such as depression and anxiety in adolescence and adulthood.

Child food poverty also perpetuates cycles of poverty and inequality. Children who grow up in food-insecure households are more likely to remain in poverty as adults, continuing the intergenerational transmission of disadvantage. This cycle of poverty exacerbates social disparities, contributing to increased crime rates, reduced social cohesion, and greater reliance on social welfare programmes. The repercussions of child food poverty ripple through society, creating economic and social challenges that affect everyone. The healthcare costs associated with treating malnutrition-related illnesses and chronic diseases are substantial. Additionally, the educational deficits linked to child food poverty result in a less skilled workforce, which hampers economic growth and productivity.

Addressing child food poverty requires a multi-faceted approach that tackles both immediate needs and underlying causes. Policy interventions are crucial in ensuring that all children have access to adequate nutrition. This can include expanding social safety nets, such as food assistance programmes and school meal initiatives, as well as targeted manoeuvres to reach more vulnerable families. Ensuring that these programmes are adequately funded and effectively implemented is essential for their success.

In addition to direct food assistance, broader economic and social policies are needed to address the root causes of poverty. This includes efforts to increase household incomes through living wage policies, job training programs, and economic development initiatives. Supporting families with affordable childcare, healthcare, and housing can also alleviate some of the financial pressures that contribute to food insecurity.

Community-based initiatives play a vital role in combating child food poverty. Local food banks, community gardens, and nutrition education programmes can help provide immediate relief and promote long-term food security. Collaborative efforts between government, non-profits, and the private sector are necessary to create sustainable solutions.

Child food poverty is a profound and inescapable issue with far-reaching consequences. Its deleterious effects on physical health, cognitive development, emotional well-being, and societal stability underscore the urgent need for comprehensive action. As we strive for a more equitable and just world, addressing child food poverty must be a priority. By ensuring that all children have access to adequate nutrition, we can lay the foundation for a healthier, more prosperous future for individuals and society as a whole. The fight against child food poverty is not just a moral imperative but an investment in our collective future. Healthy, well-nourished children are more likely to grow into productive, contributing members of society. The benefits of addressing this issue extend beyond individual well-being, enhancing economic stability and social harmony. It is incumbent upon us all to recognize and act upon the understanding that every child deserves the right to adequate nutrition and the opportunity to thrive.

Despite all of these existent challenges, it is very definitely possible to end child food poverty. The world needs targeted interventions to transform food, health, and social protection systems, and also take steps to strengthen data systems to track progress in reducing child food poverty. All these manoeuvres must comprise a concerted effort towards making nutritious and diverse diets accessible and affordable to all. We need to call for child food poverty reduction to be recognized as a metric of success towards achieving global and national nutrition and development goals.

Material from UNICEF reports and AI assistance are acknowledged.

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Opinion

Do opinion polls matter?

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By Dr Upul Wijayawardhana

The colossal failure of not a single opinion poll predicting accurately the result of the Indian parliamentary election, the greatest exercise in democracy in the world, raises the question whether the importance of opinion polls is vastly exaggerated. During elections two types of opinion polls are conducted; one based on intentions to vote, published during or before the campaign, often being not very accurate as these are subject to many variables but exit polls, done after the voting where a sample tally of how the voters actually voted, are mostly accurate. However, of the 15 exit polls published soon after all the votes were cast in the massive Indian election, 13 vastly overpredicted the number of seats Modi’s BJP led coalition NDA would obtain, some giving a figure as high as 400, the number Modi claimed he is aiming for. The other two polls grossly underestimated predicting a hung parliament. The actual result is that NDA passed the threshold of 272 comfortably, there being no landslide. BJP by itself was not able to cross the threshold, a significant setback for an overconfident Mody! Whether this would result in less excesses on the part of Modi, like Muslim-bashing, remains to be seen. Anyway, the statement issued by BJP that they would be investigating the reasons for failure rather than blaming the process speaks very highly of the maturity of the democratic process in India.

I was intrigued by this failure of opinion polls as this differs dramatically from opinion polls in the UK. I never failed to watch ‘Election night specials’ on BBC; as the Big Ben strikes ‘ten’ (In the UK polls close at 10pm} the anchor comes out with “Exit polls predict that …” and the actual outcome is often almost as predicted. However, many a time opinion polls conducted during the campaign have got the predictions wrong. There are many explanations for this.

An opinion poll is defined as a research survey of public opinion from a particular sample, the origin of which can be traced back to the 1824 US presidential election, when two local newspapers in North Carolina and Delaware predicted the victory of Andrew Jackson but the sample was local. First national survey was done in 1916 by the magazine, Literary Digest, partly for circulation-raising, by mailing millions of postcards and counting the returns. Of course, this was not very scientific though it accurately predicted the election of Woodrow Wilson.

Since then, opinion polls have grown in extent and complexity with scientific methodology improving the outcome of predictions not only in elections but also in market research. As a result, some of these organisations have become big businesses. For instance, YouGov, an internet-based organisation co-founded by the Iraqi-born British politician Nadim Zahawi, based in London had a revenue of 258 million GBP in 2023.

In Sri Lanka, opinion polls seem to be conducted by only one organisation which, by itself, is a disadvantage, as pooled data from surveys conducted by many are more likely to reflect the true situation. Irrespective of the degree of accuracy, politicians seem to be dependent on the available data which lend explanations to the behaviour of some.

The Institute for Health Policy’s (IHP) Sri Lanka Opinion Tracker Survey has been tracking the voting intentions for the likely candidates for the Presidential election. At one stage the NPP/JVP leader AKD was getting a figure over 50%. This together with some degree of international acceptance made the JVP behave as if they are already in power, leading to some incidents where their true colour was showing.

The comments made by a prominent member of the JVP who claimed that the JVP killed only the riff-raff, raised many questions, in addition to being a total insult to many innocents killed by them including my uncle. Do they have the authority to do so? Do extra-judicial killings continue to be JVP policy? Do they consider anyone who disagrees with them riff-raff? Will they kill them simply because they do not comply like one of my admired teachers, Dr Gladys Jayawardena who was considered riff-raff because she, as the Chairman of the State Pharmaceutical Corporation, arranged to buy drugs cheaper from India? Is it not the height of hypocrisy that AKD is now boasting of his ties to India?

Another big-wig comes with the grand idea of devolving law and order to village level. As stated very strongly, in the editorial “Pledges and reality” (The Island, 20 May) is this what they intend to do: Have JVP kangaroo-courts!

Perhaps, as a result of these incidents AKD’s ratings has dropped to 39%, according to the IHP survey done in April, and Sajith Premadasa’s ratings have increased gradually to match that. Whilst they are level pegging Ranil is far behind at 13%. Is this the reason why Ranil is getting his acolytes to propagate the idea that the best for the country is to extend his tenure by a referendum? He forced the postponement of Local Governments elections by refusing to release funds but he cannot do so for the presidential election for constitutional reasons. He is now looking for loopholes. Has he considered the distinct possibility that the referendum to extend the life of the presidency and the parliament if lost, would double the expenditure?

Unfortunately, this has been an exercise in futility and it would not be surprising if the next survey shows Ranil’s chances dropping even further! Perhaps, the best option available to Ranil is to retire gracefully, taking credit for steadying the economy and saving the country from an anarchic invasion of the parliament, rather than to leave politics in disgrace by coming third in the presidential election. Unless, of course, he is convinced that opinion polls do not matter and what matters is the ballots in the box!

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Opinion

Thoughtfulness or mindfulness?

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By Prof. Kirthi Tennakone
ktenna@yahoo.co.uk

Thoughtfulness is the quality of being conscious of issues that arise and considering action while seeking explanations. It facilitates finding solutions to problems and judging experiences.

Almost all human accomplishments are consequences of thoughtfulness.

Can you perform day-to-day work efficiently and effectively without being thoughtful? Obviously, no. Are there any major advancements attained without thought and contemplation? Not a single example!

Science and technology, art, music and literary compositions and religion stand conspicuously as products of thought.

Thought could have sinister motives and the only way to eliminate them is through thought itself. Thought could distinguish right from wrong.

Empathy, love, amusement, and expression of sorrow are reflections of thought.

Thought relieves worries by understanding or taking decisive action.

Despite the universal virtue of thoughtfulness, some advocate an idea termed mindfulness, claiming the benefits of nurturing this quality to shape mental wellbeing. The concept is defined as focusing attention to the present moment without judgment. A way of forgetting the worries and calming the mind – a form of meditation. A definition coined in the West to decouple the concept from religion. The attitude could have a temporary advantage as a method of softening negative feelings such as sorrow and anger. However, no man or woman can afford to be non-judgmental all the time. It is incompatible with indispensable thoughtfulness! What is the advantage of diverting attention to one thing without discernment during a few tens of minute’s meditation? The instructors of mindfulness meditation tell you to focus attention on trivial things. Whereas in thoughtfulness, you concentrate the mind on challenging issues. Sometimes arriving at groundbreaking scientific discoveries, solution of mathematical problems or the creation of masterpieces in engineering, art, or literature.

The concept of meditation and mindfulness originated in ancient India around 1000 BCE. Vedic ascetics believed the practice would lead to supernatural powers enabling disclosure of the truth. Failing to meet the said aspiration, notwithstanding so many stories in scripture, is discernable. Otherwise, the world would have been awakened to advancement by ancient Indians before the Greeks. The latter culture emphasized thoughtfulness!

In India, Buddha was the first to deviate from the Vedic philosophy. His teachers, Alara Kalama and Uddaka Ramaputra, were adherents of meditation. Unconvinced of their approach, Buddha concluded a thoughtful analysis of the actualities of life should be the path to realisation. However, in an environment dominated by Vedic tradition, meditation residually persisted when Buddha’s teachings transformed into a religion.

In the early 1970s, a few in the West picked up meditation and mindfulness. We Easterners, who criticize Western ideas all the time, got exalted after seeing something Eastern accepted in the Western circles. Thereafter, Easterners took up the subject more seriously, in the spirit of its definition in the West.

Today, mindfulness has become a marketable commodity – a thriving business spreading worldwide, fueled largely by advertising. There are practice centres, lessons onsite and online, and apps for purchase. Articles written by gurus of the field appear on the web.

What attracts people to mindfulness programmes? Many assume them being stressed and depressed needs to improve their mental capacity. In most instances, these are minor complaints and for understandable reasons, they do not seek mainstream medical interventions but go for exaggeratedly advertised alternatives. Mainstream medical treatments are based on rigorous science and spell out both the pros and cons of the procedure, avoiding overstatement. Whereas the alternative sector makes unsubstantiated claims about the efficacy and effectiveness of the treatment.

Advocates of mindfulness claim the benefits of their prescriptions have been proven scientifically. There are reports (mostly in open-access journals which charge a fee for publication) indicating that authors have found positive aspects of mindfulness or identified reasons correlating the efficacy of such activities. However, they rarely meet standards normally required for unequivocal acceptance. The gold standard of scientific scrutiny is the statistically significant reproducibility of claims.

If a mindfulness guru claims his prescription of meditation cures hypertension, he must record the blood pressure of participants before and after completion of the activity and show the blood pressure of a large percentage has stably dropped and repeat the experiment with different clients. He must also conduct sessions where he adopts another prescription (a placebo) under the same conditions and compares the results. This is not enough, he must request someone else to conduct sessions following his prescription, to rule out the influence of the personality of the instructor.

The laity unaware of the above rigid requirements, accede to purported claims of mindfulness proponents.

A few years ago, an article published and widely cited stated that the practice of mindfulness increases the gray matter density of the brain. A more recent study found there is no such correlation. Popular expositions on the subject do not refer to the latter report. Most mindfulness research published seems to have been conducted intending to prove the benefits of the practice. The hard science demands doing the opposite as well-experiments carried out intending to disprove the claims. You need to be skeptical until things are firmly established.

Despite many efforts diverted to disprove Einstein’s General Theory of Relativity, no contradictions have been found in vain to date, strengthening the validity of the theory. Regarding mindfulness, as it stands, benefits can neither be proved nor disproved, to the gold standard of scientific scrutiny.

Some schools in foreign lands have accommodated mindfulness training programs hoping to develop the mental facility of students and Sri Lanka plans to follow. However, studies also reveal these exercises are ineffective or do more harm than good. Have we investigated this issue before imitation?

Should we force our children to focus attention on one single goal without judgment, even for a moment?

Why not allow young minds to roam wild in their deepest imagination and build castles in the air and encourage them to turn these fantasies into realities by nurturing their thoughtfulness?

Be more thoughtful than mindful?

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