Poor governance caused Sri Lanka’s economic downturn and it culminated in bankruptcy. It is quite evident that poor governance has resulted from the abuse and the misuse of public office with no regard for accountability by top political authorities. Since the 1990s in particular the political authorities have abused and misused public office in various ways.
Abuse of public office
Cronyism and Nepotism, repression of dissent, removal of checks and balances on executive power and willful failure to fight corruption in public life mainly account for the abuse of public office.
Taking inappropriate policy decisions mainly accounts for the misuse of public office.
Cronyism and Nepotism
Cronyism and nepotism , the twin sins committed by the political authorities of successive regimes have led to the removal of the pillars of good governance like, discipline, transparency, independence, and accountability, paving the way for the rank inefficiency and rampant corruption and financial losses in the public sector.
Cronyism
A normal practice of political authorities soon after assuming power has been to ignore the proper recruitment procedures and to stuff the state-owned enterprises, statutory bodies, and the public service with political cronies mainly those who had played an active role in their election campaigns.
Nepotism
Meanwhile, in making appointments to high posts in the public sector, familial ties have been given precedence over merit.
Analysts have pointed out that unchecked power wielded by familial appointees has led not only to lack of transparency and accountability, but also to an environment conducive for corruption.
Analysts also say that one of the key factors that had hindered the country’s development has been the pervasive influence of political nepotism.
Repression of dissent
It is also the past experience of our people that the political authorities would abuse their power – public office to repress dissent. Media personnel in our country in particular have had to face the brunt of the ruthless measures of suppression in the past and some of the victims of such measures have been killed or made to disappear.
Removal of checks and balances on Executive power
Analysts say that the removal of checks and balances on executive power through Constitutional Amendments have undermined the rule of the law, and fundamental freedoms apart from adversely impacting on the accountability and transparent use of public funds.
Misuse of public office
Political authorities during their respective regimes, have made inappropriate policy decisions. Some of these decisions have caused ethnic and religious tensions and communal disharmony while some other wrong decisions have taken a heavy toll on the country’s economy.
Political authorities have taken wrong policy decisions either for immediate political gain like cheap popularity by pandering to the wish of the majority or on the advice of influential individuals close to them.
Unsustainable foreign debt
The past decade witnessed a steady rise in foreign debt due to successive governments borrowing from bilateral and multilateral lenders to finance both Budget deficits and some mega projects.
Governments also have resorted to borrowing through International Sovereign Bonds (ISBs) with high interest rates to finance even Budget deficits.
According to analysts, the huge foreign debt accumulated over the years had eventually crossed the $ 50 bn mark placing an unbearable burden of debt servicing obligation amounting to about $5 bn a year, when there was a persistent trade imbalance placing pressure on the country’s foreign exchange reserves which limited the ability to meet this obligation.
As a result, governments have had to further borrow from bilateral creditors like China, India, and Paris Club nations to service the ever increasing-annual debt.
Thus the country plunged into a deep debt trap and the government had to default on the debt repayment and declare that the country was bankruptin April 2022.
Aragalaya and its immediate aftermath
With more than $ 50 bn in external debt, a foreign debt obligation for the year exceeding $7 bn and a shortage of foreign exchange reserves which stood at only $ 1.6 bn as of March 2022, the country could not pay for essential imports . This led to a sharp increase in the prices of essential commodities like rice, fuel, wheat flour and milk powder.
The situation took a turn for the worse, when a severe shortage of fuel and LP gas in particularled to unprecedented long queues at fuel filling stations and sales outlets.
Thousands of people later took to streets to protest against the long power-cuts, high prices and shortage of essential commodities and the widespread protests which were widely referred to ‘aragalaya’ later led to a series of dramatic events in the political landscape which saw the induction of a new Executive President in office.
New President’s economic recovery initiative
The new President Ranil Wickremesinghe soon after assuming office took a series of measures to reduce the impact of the economic crisis. He also lost no time in seeking an Extended Fund Facility (EFF) from the IMF. Following the approval of nearly $ 3 bn under the EFF to assist the Sri Lanka’s economic policies and reforms, the country has embarked on an IMF-supported economic recovery programme.
Though there are no more shortages of essential commodities and long queues and the country appears to be on the road to economic recovery, we are not yet out of the woods, warn analysts.
So, it is quite clear that it will take many more years for our country to get out of the debt trap. And it is incumbent on the political parties seeking to come to power in the future to pursue the ongoing economic recovery effort to overcome the crisis.
“Never let a good crisis go to waste.”
Winston Churchill’s famous dictum, “Never let a good crisis go towaste.” is very apt in the context of our country’s economic crisis today.
Now that a national election is round the corner, people expect that all leaders of political parties looking forward to form the next government, will make a solemn pledge publicly to faithfully adhere to policies and principles underpinning good governance and not to repeat the sins committed by political authorities in the past.
The political parties may enshrine this pledge in their party manifestos as well.
