ON Thursday, Friends of the Earth India, a network of social movements, trade unions, organisations, people’s collectives & other social environmental justice organisations, held a webinar with the objective of bringing together South Asian countries to express their solidarity with the people of Sri Lanka, and to share the perspectives from these countries on the ongoing economic and political crisis throughout the subcontinent. The webinar, titled Sri Lankan catastrophe and similar humanitarian crisis in South Asia, saw speakers from Sri Lanka, Bangladesh, India, Pakistan and Nepal, discussing the human rights and humanitarian issues plaguing their countries, and drawing lessons to deal with the unprecedented crisis witnessed in Sri Lanka.
The panellists included the Chairperson of the Friends of the Earth International, and the Centre for Environmental Justice, Sri Lanka, Hemantha Withanage; Former Secretary General, World Forum of Fisher People, and the Sri Lanka-based National Fisheries Solidarity Movement, Herman Kumara; Chief Executive, Bangladesh Environmental Lawyers Association, Syeda Rizwana Hasan; Economist and academic, Prof. Arun Kumar ; Convener, Pakistan India Peoples Forum for Peace and Democracy, and the South Asia Partnership Pakistan, Mohammad Tahseen; and Executive Chair, Protection of Public Interest (Pro Public), Nepal, Dinesh Tripathi.
Withanage emphasised the difficulties in seeking a bailout from the IMF on account of its conditions to tighten monetary policy and raise tax to contribute to debt repayment.
The moderator for the webinar, Prof. Ritu Dewan, Director and Professor (retd.), Mumbai School of Economics and Public Policy, emphasised that other South Asian countries are increasingly facing similar issues as Sri Lanka, and the aim of the webinar is to understand the respective political dynamics and to forge alliances against the anti-people government policies that affect the most vulnerable.
The genesis of the Sri Lankan crisis
Withanage gave a background into Sri Lankan history and stated that its economic downfall began when government policies aimed to increase imports and investments into the country, thereby depending on high borrowings, and ultimately causing a steep rise in the poverty rate. He noted that the 30-year-old civil war, between the Liberation Tigers of Tamil Eelam and the Sri Lankan government, contributed to the political disintegration in Sri Lanka.
Through his presentation, Withanage covered the impacts of the current economic crisis that included daily blackouts, severe shortage of LPG, diesel and petrol, and high food prices. He pointed out that since 2005, when Sri Lankan politician Mahinda Rajapaksa became President, Sri Lanka has seen high external debt.
Withanage emphasised the difficulties in seeking a bailout from the International Monetary Fund [IMF] on account of its conditions to tighten monetary policy and raise tax to contribute to debt repayment. He also pointed out that China has expressed its displeasure with Sri Lanka approaching the IMF.
Also read: A Human Rights Concern: Shrinking Minority Rights in Sri Lanka
Immediate causes
Kumara referred to the crisis faced by Sri Lankans in their day-to-day lives in terms of shortage of food, petrol, papers for conducting exams and long hours of power cuts. He blamed the Rajapaksa family holding key government positions, including that of Prime Minister, President and Finance Minister.
Kumara explained a notable demand of the civil society: to abolish executive presidency. In the Sri Lankan context, he said that the President is more powerful under the law. The people, thus, demand that the executive powers of the President be abolished, to uphold the authority of the law over any government.
Kumara explained a notable demand of the civil society: to abolish executive presidency. In the Sri Lankan context, he said that the President is more powerful under the law. The people, thus, demand that the executive powers of the President be abolished, to uphold the authority of the law over any government. Whereas the youth demand constitutional reforms, an end to the state-sanctioned violence in the form of brutal killings, harassments and rampant violence, and freedom of press, among other things. Kumara also highlighted that a unified agenda or plan for the demonstrations is needed.
The crisis in Bangladesh
According to Hasan, while Bangladesh is performing better in terms of human resource development, it is not without its deep political issues. She claimed that the government lends huge funds for metros and underground rails that are hardly accounted for, and the policies of the governments are not known, discussed or vetted.
Hasan stated that the democratic content of elections has been stolen from the people. She remarked that NGOs are highly regulated and monitored, and their licences stood cancelled on account of simple criticism against the government. She said that media personnel that report against the development narrative of the regime, and environmental and civil activists are increasingly arrested by employing the draconian Digital Security Act. She pointed out that army personnel and law enforcement agencies are given roles that are unfavourable towards their own people, and the police are still following colonial rules.
Hasan addressed the commonalities between the political situations in Sri Lanka and Bangladesh, and stated that although Bangladesh is a democracy, the military structures of the erstwhile East Pakistan is not completely withdrawn. She pointed out that law enforcement remains submissive to the political party in power, instead of the people, and this shrinking of the democratic institution is bound to lead to future crises.
Also read: Fifty Years of Liberation of Bangladesh from Pakistan
Why the crisis may aggravate
Prof. Kumar stressed that the nature of global capitalism that is governed by international finance capital needs attention. The dominant countries, controlling the trade, technology and finance determine the rules, whereas the countries at the margins suffer the most. He gave instances of the Ukraine-Russia war having a ripple effect on other economies, and the 2007-2009 financial crisis that, although originated in the U.S.A., impacted developing countries more than the U.S.A. itself.
Hasan remarked that NGOs are highly regulated and monitored, and their licences stood cancelled on account of simple criticism against the government. She said that media personnel that report against the development narrative of the regime, and environmental and civil activists are increasingly arrested by employing the draconian Digital Security Act.
According to him, while the help from countries like India and China to Sri Lanka has been inadequate, the conditionalities imposed by the IMF, World Bank and other global financial institutions are bound to further aggravate the crisis.
Highlighting the economic situation in India, he stated that the large unorganised sector in India is gravely hit due to the factors of demonetisation, Goods and Services Tax, and the COVID-19 pandemic. India’s economic growth rate has been drastically falling, being the worst amongst the G20 countries, he pointed out.
Prof. Kumar pointed out that international finance capital dictates policies, forcing its borrowers to follow and implement policies that are not pro-people. Hence, there is a ‘race to the bottom’ where concession is given to foreign and national capitalists instead of social sectors like education and health. The local self-sufficiency, as Prof. Kumar stated, has declined, triggering the process of marginalisation and alienation of population, further causing greater divides.
He proposed a new normal of de-globalisation, independent politics, development from below with a focus on equity, priority of welfare of the people over capital and market, and inclusive developmental policies.
Also read: Widening of inequality is a natural consequence of capitalist planning
Instability in Pakistan
Tahseen highlighted the human rights issues faced by the people of Pakistan including a highly regulated media, growing fascism, and the unaddressed issue of missing persons in Balochistan. He claimed that the elites are prioritised over the welfare of the poor.
Prof. Kumar pointed out that international finance capital dictates policies, forcing its borrowers to follow and implement policies that are not pro-people. Hence, there is a ‘race to the bottom’ where concession is given to foreign and national capitalists instead of social sectors like education and health.
Tahseen expressed the need for global solidarity in order to address rule of law, protection of minorities and the rising violent fascism seen in South Asian countries. He opined that the South Asian Association for Regional Cooperation [SAARC] needs to be revived, even as the IMF fails to solve the economic crisis of developing countries.
Nepal’s weak institutions
Tripathi provided a painful exposure to the internal issues, and the unprecedented economic and political crisis faced by Nepal. On the rampancy of chronic capitalism and a corrupt bureaucracy, Tripathi stated that with huge resources of black money, Nepal is looted in a systematic manner. While the cost of huge projects is rising and a considerable amount of funds are spent on elections, essential products are seeing a price hike, coupled with unemployment. The misuse of funds is further evidenced through the government spending funds on an international airport, to be built on a protected forest land.
Tripathi noted that the Election Commission is rendered helpless with the erratic campaigns and the money spent on it, as well as the premature selling out of party tickets. He emphasised that Nepal faces a high illiteracy rate and the absence of a working population that is “exported” to the Gulf countries.
Tahseen expressed the need for global solidarity in order to address rule of law, protection of minorities and the rising violent fascism seen in South Asian countries.
He stressed that the economy of Nepal is on the verge of collapse, with every industry except for the “corrupt political industry” ceasing to function. With not enough money to import essential items, as well as disturbingly low exports, Nepal is witnessing high trade deficits. Tripathi brought to light the need for cooperation among the South Asian countries through SAARC.
Also read: Strength of democracy lies in its institutions
Questions
In a brief question and answer segment, the first question raised was on the reaction of people of Sri Lanka towards the bailout sought from the IMF. Withanage explained how there is immense distrust in China, leading people to perceive the IMF as a saviour to the economic crisis.
Secondly, on the question of whether unity is seen amongst various ethnicities of Sinhalese, Tamils and Muslims during the demonstrations, Kumara emphasized that although the Muslim community has shown solidarity and support, the Sri Lankan crisis is not considered a “common struggle” by the Tamils on account of their voices going unheard in grave situations in the past.
Tripathi stressed that the economy of Nepal is on the verge of collapse, with every industry except for the “corrupt political industry” ceasing to function. With not enough money to import essential items, as well as disturbingly low exports, Nepal is witnessing high trade deficits.
Thirdly, addressing the question on whether China was overly blamed for the economic crisis in Sri Lanka, Withanage answered it to be partially true. He stated that while Sri Lanka faces geopolitical issues with superpowers disputing over the Indian Ocean, Chinese grants have added to the debts and made the debt restructuring impossible. Thus, the powerful countries have misused the political crisis in Sri Lanka, he suggested.
Lastly, on the question of reviving SAARC, Tahseen and Tripathi noted that with no other alternative mechanism available, SAARC will prove to be a cooperative means to ensure solidarity and support.
