Financial Times

Poverty, conflict, development and the rural economy
By Sunil Karunanayake
The debate on direct relationship between poverty and conflict continues, whether poverty cause conflict or conflict cause poverty this relationship is a vicious circle that destroys life, wealth, society and civilizations. History has shown sufficient examples why some countries remain poor, unstable and in conflict while many others are rich, stable and peaceful.

Countries like Myanmar, Nepal, Afghanistan, Iraq and many African countries etc have remained economically stagnant losing out on global economic development and resultant integration and also demonstrate increasing incidence of conflict adding to poverty and suffering. Conflict leads to civil war, which is development in reverse.

Post Independent Sri Lanka has witnessed two southern uprisings in 1971 and 1989, 1983 communal riots which escalated to a major civil war and has cost the country billions of rupees in military expenditure, capital flight of private wealth as well as human migration, loss of social capital, psychological damage (war children) etc. The three cases demonstrate clear lessons for the present policy makers and politicians. Where there were hardships and lesser development pursing causes and ideologies were not difficult.

No compromise to rapid economic development, whether its south north or Uva. Failure of economic development as the root cause of conflict has been proved globally.

Sri Lanka is yet struggling to manage a 6% economic growth with a highly distorted distribution of resources. The much-talked of 8% growth could be a possibility on the elimination of these distortions. It’s not only that a higher growth must be achieved but it must also be made sustainable. While a shift from agriculture to industry is a sign of development rural agriculture is being given prominence even in the developed countries. The critical role of agriculture in the rural economy in Sri Lanka must be given due priority.
Sri Lanka is not a Singapore but could emerge as a Malaysia with right direction.

Contrasting economic policies from Independence to the nineties were the pattern until 1994 where the thrust on private enterprise was strengthened and continues to date.

Also in this era there were some leaders who were bold enough to revitalize the rural economy, the first Prime Minister D. S. Senanayake, a native of Botale with rural beginnings, pioneered the rural settlement and did a lot to stabilize the rural agriculture.

Then in the post 1977 era Gamini Dissanayake a descendant from Kotmale pioneered the accelerated Mahaveli Programme giving a new facelift to rural life through roadways, townships, irrigation facilities etc.

Then President Ranasinghe Premadasa a native of Colombo improved the conditions of the underprivileged in the city and took the same concept to villages.

President Mahinda Rajapaksa has quite rightly understood the value of the rural economy and far-reaching fiscal incentives were granted to the farming sector in his maiden budget. President Rajapaksa though educated in the city is a man of strong rural links from Medamulana in Weeraketiya a hamlet surrounded by plush paddy fields, Kurakkan chena’s and citronella plantations of Giruwapattuwa and obviously witnessed the many hardships experienced by the farming community.

It is this background that has prompted him to accelerate a rapid development in the southern province by way of extended rail links, sea and airports, development of road ways, etc. These catalytic instruments could improve the quality of rural life. Scientific inputs for sustainability in agriculture and financial support could further revitalize the rural economy. Thanks to the information technology today most villages enjoy telecommunication facilities.
The day the president could roll out a similar package to the long suffering masses of the war-ravaged north and eastern areas would definitely be the end of the on going conflict. Trincomalee already home to many global giants such as Indian Oil, Mitsui, Prima and Holcim has tremendous potential. Poor governance causes poverty & poverty causes conflicts leading to economic destruction.

Prime Minister Abdullah Ahmed Badawi who replaced Mahathir Mohamed in Malaysia (aspiring to become the first developed Muslim nation) recently unveiled a 5-year development plan of US$54 billion aimed at tackling poverty. Despite a high quality of life in Malaysia, Mr Badawi says that great disparities of income and wealth still exist, especially between ethnic groups and between rural and urban areas. He added that Malaysia must overcome these myriad challenges astutely and effectively; “we have no time to lose”. Here is an nation of 20 million people who at one stage were a dependent primary commodity exporter engulfed in ethnic strife.

It was Peter Harold Country Director World Bank Colombo Office who recently said, “ I must emphasize that I am not speaking about something that is alien to Sri Lankan culture. I am trying to re-kindle your aptitude to live in harmony with nature. I was once told that this was a way of life in ancient Sri Lanka, even today I am told in rural areas people don’t harvest all the fruit off trees in their home gardens, even though their livelihood may depend on the sale of fruits.

They always leave some fruits to be shared by the birds and squirrels, I think the time is right for us to take a page from their book and leave some of our natural resources for future generations.” What better tribute to our treasured rural economy that saw the value of preserving environment and contributing towards sustainable development.

(Comments on this article could be sent to the writer at suvink@eureka.lk)..

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