Financial Times

Wanted: Neutral business leaders
An impression is gaining ground that our business leaders, those tycoons and professionals who head the various chambers and associations, are not truly independent and tend to take sides, backing one or the other of the two main political parties. It would indeed be a shame if the business community cannot be impartial and neutral at a time of national crisis, especially given the crucial role it plays as the country's 'engine of growth'.

While individual businessmen have the right to their own political preferences, the community as a whole cannot expect to be effective and play its chosen role, if its leaders do not speak with one voice or cannot avoid leaning towards one or the other of the two main political parties. They cannot hope to be taken seriously by the political leadership until they stop currying favour with politicians and stop seeking an unfair advantage over business rivals through political connections, as is quite common.

In other countries with free market democracies the business sector is a powerful voice, which usually is paid heed to, in times of national crisis. This is the kind of regard that our business community should have, particularly in the context of an economy and society that is shedding the vestiges of a socialist past and heading towards a deregulated, free market future where all things business will reign supreme.

Some of the claims about the economic damage inflicted by President's Kumaratunga's action appear to be politically motivated and deliberately exaggerated. An example of such government doublespeak is the claim by Cabinet spokesman Prof. G.L. Peiris that the crisis scuttled plans to sign a free trade deal with the United States during the prime minister's visit. This was denied by the US embassy.

The media too cannot escape blame as there have been cases of plain bad journalism, or irresponsible and slanted reporting that created more confusion. It is some of these exaggerated reports that disturbed investors and foreign visitors.
The power struggle in the south will be a golden opportunity for the LTTE and they can be expected to make maximum political capital out of the crisis. Tiger chief Velupillai Prabhakaran's statement last week that the LTTE will not break the ceasefire but at the same time cannot resume peace talks until the power struggle at the centre is resolved is embarrassing to both President Kumaratunga and Premier Wickremesinghe.

Neither appears willing to share power in a spirit of give and take. They are stubbornly sticking to their positions regardless of the adverse effects of their intransigence. It is indeed tragic that thrice in the past four years when businesses were getting ready to reap the dividends of an upturn in tourism or of peace, their hopes during November/December have been dashed either owing to elections or political uncertainty.

It is imperative for the business community to come out strongly, instead of restricting itself to making statements, to force the political leadership to find a way out of the current impasse. If anyone has the clout - the cash, contacts and education - to bring our national leaders to their senses and make them shed parochial differences, it is the business community. Apart from pure economic interests, it has a moral obligation to do so.

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