SYSTEM CHANGE, NOT IN MY LIFETIME!

By Sanjeewa Jayaweera

For a short time, the word “system change” was on the lips of many, spoken, shouted, and written with a great deal of passion and hope. The resignation of Mahinda Rajapaksa and his cabinet was expected to be the beginning of the much sought-after and looked forward to system change.

System change may have meant different things to many. Still, there was universal agreement that the way politicians ruled this island nation needed to change. Notably, a new set of people not tainted with allegations of criminal activity, corruption, nepotism, and incompetence should take charge of governing the nation.

It was generally acknowledged that for decades our country had been systematically destroyed and plundered by those we had elected without even a whimper from most of us. A few who understood the precipitous level to which the economy had descended raised the red flag when Gotabaya Rajapaksa(GR) was elected President and implemented shocking changes to the country’s tax regime that significantly reduced government revenue. A debilitating pandemic made the journey to bankruptcy faster than predicted. But, as was the case, too many in the know kept their mouths shut which emboldened those reposed with managing the country’s economy to experiment with reckless policies that defied logic.

Recently in the United Kingdom, Liz Truss, the newly appointed PM, had to eat humble pie and quickly reverse several contentious tax cuts. However, our President, his government, and the Gang of Four steadfastly, stubbornly, and stupidly carried on to destroy our country’s economy.

The straw that broke the camel’s back was the long power cuts and queuing up for days to buy a packet of powdered milk, a cylinder of cooking gas and fuel. The acknowledgment that the country was officially bankrupt, the collapse of the rupee and the steep increase in prices of essential goods impacted every segment of the population, even if the severity was not the same. Finally, it dawned on a few that a stand must be made, and our contempt and displeasure should be expressed outside the confines of our homes, offices, and cocktail parties.

Arising from the discontent, a few English-speaking middle-class professionals organized silent protests in Colombo’s suburbs, holding placards and a candle to express their frustration and anger towards the government. The number of protest locations increased, and the placards were more explicit in condemning GR and his government.Not many, including myself, took these protests seriously and expected them to die naturally. All that changed when the demonstration organized in Mirihana near GR’s home became a battle between the protesters and the police. There was no doubt that “muscle power” had been added to the previously largely middle-class group.

After that, it quickly progressed to setting up a protest site in Galle Face that attracted a sizable segment of youth. The slogan “Gota Go Home” became a rallying cry for the people to express their anger toward the President and his government. The word “Aragalaya” became the catchphrase for the protest movement.

The momentum remained with the protesters, despite the President making certain cosmetic changes by replacing a few individuals in the cabinet, the central bank, and the treasury. The violence that erupted on May 9 changed the country’s mood and political landscape, with Ranil Wickeamesinghe (RW) appointed the PM. The destruction of several SLPP MP’s private residences and the murder of a member of parliament (MP) resulted in many going into hiding and fearing for their lives.

The events of July 9, when thousands of young and not-so-young protesters marched on and forcibly entered the Presidential palace, resulted in GR fleeing the country and subsequently RW being voted by a majority of MPs as the new President. So, if the objective of the “Aragalaya” was only the replacement of the President, PM and the Cabinet, then it has been somewhat achieved. I say somewhat because the incumbent PM and many in the cabinet are still from the previously failed government of GR.

As someone who worked in the private sector for more than a quarter century and was involved in industries such as hotels, manufacturing, and retail, I support the need for an IMF program and its recommended reforms. We need reforms to rectify decades of bad governance and corruption, and to enable these, a stable government and peace in the country is a prerequisite. Many entrepreneurs have articulated that the initial goal of “Gota Go Home” has been achieved, and now his successor should be given time to rebuild the economy and reset the country.

An often cited justification is that the aragalaya was a spontaneous civil society movement without any visible and structured leadership that could be considered an alternative to the current crop of incompetent and crooked politicians. The violence that erupted on May 9 and July 9 is also a factor that concerned many, although many would privately agree that it was the muscle power of the youth that delivered.

On the other side of the coin, I am confident that RW will not facilitate the desired system change. He is a product and an entrenched representative of the political system that is so corrupt and needs to be changed. He is no less responsible for what the country today is and the suffering being endured. The people rejected RW and his party decisively at the last General Election. As a result, he lost his seat in the heartland of Colombo which previously was the bastion of support for his party.

That RW felt he should accept the appointment of PM and, after that, as President despite less than 300,00 people voting for him and his party is an affirmation of how rotten the system is. His accession to power through a manipulated system will define his Presidency.

Once again, the choice before us seems to be between the devil and the deep blue sea. No doubt the economy needs a stable government, but the majority also wants to see an end to the culture of political entitlement. We need common decency and values and compliance with the rule of law to replace the culture of impunity, rampant corruption and wheeler-dealing that pervades politics in our island nation.In terms of the system change that I want for my country, the important ones are as follows:

Politicians who are not corrupt

We had lived for several decades with rampant corruption that has become a way of life for politicians and has unfortunately permeated down the ranks. That there are no checks and balances and that corruption could be practiced with impunity has been accepted by society with a shrug and a muttering of “monawa karanada, loku ung paga gahanawane.”

Many believe corruption’s economic and social impact on our country is the most significant cause of our current predicament. I remember my father, a retired public servant and civil activist, being interviewed along with a politician on TV about 20 years ago. My father, known for his outspoken and fearless views, said, “In my opinion, all politicians are crooks.” The politician quickly interjected by saying, “Aiyo, Mr. Jayaweera, that is not a fair comment. Some of us are honest.”

My father smiled; many who knew him closely understood what he thought of the response and left it at that. However, about 15 years later, the same politician who was then a cabinet minister, when questioned at the Presidential Commission of Inquiry as to who paid the rent for his luxury penthouse apartment, said, “I do not know.”

I am sure what my father said on TV that day is believed by many to be the gospel truth. It is necessary that an independent commission of inquiry consisting of experienced forensic auditors and retired justices be appointed to go through the assets of all MP’s, current and retired, who are still alive. Any unexplained wealth should result in a prison sentence, debarment from contesting any future elections and forfeiture of all such assets of the MP concerned.

Elimination of Nepotism and Cronyism

Our country has thrived on this practice, with politicians using their power to appoint family members, relatives, and friends to positions of authority, with many not having the requisite knowledge or experience. A recent post in social media listed the names of various politicians who have used their influence to get relatives appointed to several overseas missions. However, that is just the tip of the iceberg. In the future, even those with qualifications related to politicians should not be appointed so that the public is satisfied that there was no favouritism.

All Races, Religions and Languages should be Equal

Politicians have shamelessly and opportunistically used race and religion as political weapons to divide the people. It is time that we all subscribe to the view that all people are equal, should be treated equally, and that Sinhala, Tamil and English be given parity status. Overhaul our Education System, and University education should not be free

As someone who worked in a senior management position in the private sector, I know our education system does not produce people capable of efficiently discharging their work responsibilities. We need to move away from the belief that passing examinations by memorizing will not produce people who are job ready and capable of thinking outside the box. I also believe that a University education needs to be paid for. Government loan schemes and scholarships should be available for those from the poorest families.

An Efficient, Independent, and Fearless Public Sector

Over the years, the public sector has been politicized and made to be servile to its political masters. This has resulted in the country being burdened with a bloated and inefficient public sector costing taxpayers a significant amount of money. The public sector needs to be pruned down, those employed should be made to contribute to their pension, and those above the single-person income tax threshold should be taxed.

To expect the best in the country to seek employment in the public sector, as was done over 80 years ago, would be futile, and as such, I don’t recommend a salary structure in line with the private sector. However, that should be a medium to long-term goal.In addition, no person employed in the public sector should be allowed to go on strike.

Privatise all State-Owned Enterprises

For many decades, it has been acknowledged and proven that the state should not be involved in managing and operating businesses. That this philosophy has not been adhered to has resulted in the taxpayers funding many inefficient and unprofitable enterprises. All such enterprises must be privatized, with the GOSL holding a minority stake. However, there needs to be an independent regulator to ensure that utilities are priced within specific parameters and that there is competition among the players. There should be no monopolies.

Most should pay Income Tax

It is a fact that very few individuals pay income tax. This should not be the case. Many are not paying income tax despite earning more than the single person tax-free threshold. The recent announcement that all above 18 years should have a tax file is a welcome proposal. As to how GOSL intends to enforce this will be interesting. More than 300,000 grocery shops account for nearly 75% of the resale revenue of the Fast-Moving Consumer Goods (FMCG) industry. How many are registered for Income Tax will be revealing.

The GOSL would need to assess whether the monthly single-person tax-free allowance of Rs. 150,000 is too generous when the average monthly income is far less than the threshold. Otherwise, the objective of most paying income tax would not be achieved.The tax rates for higher income earners should be increased, and I believe even a maximum marginal rate of 50% for a few years is not undesirable. Additional taxes in the form of Capital Gains Tax and Wealth Tax are necessary. As to why the Withholding Tax of 5% on interest income should be the final tax defies logic.In addition, the Inland Revenue Tax Administration should be made effective. This should not mean that they should be allowed to bully those who are paying but to go after those evading the payment of taxes.However, a credible and compliant tax system is only possible if taxpayers feel confident their money is not wasted.

Adherence to the Law and Expeditious Prosecution of the Guilty

Those entrusted with the responsibility of ensuring the country’s laws are adhered to by the public, like the Police, Attorney General’s Department and the Bribery Commission, should enforce the laws stringently, fearlessly, and expeditiously. Remember, “Justice delayed is Justice denied.”My list doe does not end here, but I believe I have listed the most significant changes that I would like to see implemented.

No System Change in My Lifetime

I doubt that much of what I have articulated here will be implemented, at least within my lifetime. To put that in context, let me say I am 63-years old. Despite the tumultuous events in the last few months that gave hope that some form of change would be undertaken, the actions of RW and the SLPP have confirmed that nothing has changed, and the people’s views count for nothing. This is borne out by the recent appointment of 38 state ministers with proven track records of failure and questionable integrity at a significant cost to the taxpayers.The SLPP deemed it fit to launch a “Political Leadership Academy” for political excellence. I read a social media post that quite appropriately stated that it should be an academy specializing in teaching how to bankrupt a country in two years!

The number of cabinet ministers present at the airport to greet former President GR on his return from exile affirms that those present have neither understood the reasons for the previous government’s failure nor the feeling of great antipathy towards GR and his government.Recently, Anura Kumara Dissanayake rattled off a long list of names and positions held in the media unit of RW. That such a large contingent is not needed is obvious.

Despite the financial constraints, the country is presently undergoing RW felt the need to travel along with his spouse (though she paid her airfare) and some others to London to attend the funeral of the Queen. Why our High Commissioner in the UK could not adequately represent our impoverished nation is a question he needs to answer.

Despite my criticism of RW, I believe he is one of the very few in the parliament who can grasp the economic challenges impacting our country and the economic and political reforms that need to be undertaken. However, I doubt that he has the political will to go ahead with such reforms and be the change agent to deliver the system changes that we, the citizens, desire.

(Views and Opinions expressed in this article are of the author and not of any institution or organization that he may be associated with.)

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