Editorial

17th December 2000

Cut down consumption

With the cost of living escalating like the sky-rockets of this festive season, and the government apparently unable or incapable of checking or monitoring it, the people would need to ponder on what they could do to balance their budget and also stabilise the economy of the country.

By way of a backdrop, the people could take a good hard look at a heart problem that is arising in the market economy which we and other third world countries, have swallowed wholesale. Essentially we see the reality that basic resources such as water, and energy are declining at a rapid level. On the other side, we see the market economy creating more wants and desires among the people through powerful hi-tech communications. For example, some decades ago thirst was identified with water. Now most young people when they feel thirsty have been conditioned or allured to think of some multinational soft-drink. The same is true in a multitide of other areas.

So, we see a situation where resources are declining while wants and desires are increasing and the market economy is aimed at the highly improbable, if not highly impossible task of balancing the two. So, what are the courses of action open to the ordinary people or the silent majority? They don't need to go to the Central Bank or the stock market to find some value added ways. Like the law, economics is also essentially codified common sense that would clearly show how we could help ourselves or the country by cutting down consumption and learning to manage with basic needs instead of taking the damaging if not destructive path of excessive if not extravagant consumerism.

By cutting down on unnecessary or non essential consumption, the people could save more and thereby again help themselves and the country because the savings could be ploughed into development work, for the common good of all. We note that economists are now again encouraging the savings habit with a much higher interest rate for fixed deposit, after a period during which low interest rates drove ordinary people into excessive consumption or the complexities of the share market where those who had got more and those who did not have lost even the little they had.

A related fact that is the need to refocus attention on the principles of 'being Sri Lankan and buying Sri Lankan' . Enlightened leaders like Mahatma Gandhi guided India on that path, decades ago through swadeshi movements and to-day we see that 95% of vehicles used in India are home made with a multi million dollar savings in foreeign exchange. Sri Lanka has a much higher intelligence rate with engineering skills dating back to centuries. but what a tragedy, not even toy-cars are made here.

Even in foreign investments, India did not and does not take anything easily from the West. India would welcome microchips for the booming computer industry but it does not open its doors wide for multi- nationals to market potato chips as we do with so much fanfare and elitist attractions. Of course there is also a need for local products to refocus on the vital aspects of insuring highest quality without going for mass production or losing consumers by palming off third rate products. The Chinese taught us that good things don't come cheap and cheap things are often not good, but we seem to have gone after the Taiwanese example of cheap imitations.

Grumbling and anger won't bring the cost of living down. An extremity could be an opportunity for fresh positive thinking whereby people cut down on consumption buy more Sri Lankan products save more and even go a little further and share more with the less fortunate. Then we will see a people-based and people-friendly economy that is more stable while also restoring the virtues of a caring and sharing society.

The Political Column

Editorial/ Opinion Contents