There has been no other Sri Lankan economist who has played as vital a role in both the Sri Lankan economy and on the international stage. Therefore this insightful autobiography, that was released last month, is of crucial significance as it contributes to the understanding of forces that shaped the economic destiny of the country and the forces that shaped third world economic perceptions. This book not only covers about seven decades of the country and of the international economy, but major events that shaped Sri Lanka’s development and milestones in the negotiations between the developed and developing countries to find a path more conducive to development through more equitable trade.
Gamani Corea was the architect of the Ten Year Plan. He was invited to prepare this plan by S.W.R.D. Bandaranaike. It was an era of planning and developing countries took to preparing such plans as a sine qua non of an economic development strategy. Gamani Corea headed the Planning Secretariat at that time. Those who have read the Ten Year Plan know of its excellent analysis of structure and problems of the economy. In the preparation of the plan several eminent economists from abroad were invited to give their views of the economy as an input to the Ten Year Plan.
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These economists were from different countries and had a wide spectrum of views: from socialist to capitalist. They were from Sweden, U.K. and America. The visits of eminent economists like Joan Robinson, John Kenneth Galbraith, Gunnar Myrdal, Sir John Hicks, Nicholas Kaldor and others added to the reputation of the Planning Secretariat to which SWRD paid a lot of attention. In the words of Dr Gamani Corea, “The Ten Year Plan was in many ways and in the context of Ceylon, a unique and historical document. It was the first overall plan that chartered a course for the entire economy within a specific time frame….it sketched out the structural changes needed to transform the plantation based export import economy.”
Those who have read the Plan know of its lucidity, clarity of conceptualization and presentation of problems and the excellent prescriptions it endorsed. It is undoubtedly the best exposition of the Sri Lankan economy of the time. Corea admits it was not an operational plan. With the changes in government and other political preoccupations, the valuable insights on the economy were only used by scholars and analysts.
It had a mixed reception at the time of its release. Many admired the valuable analysis of the economy, far more comprehensive than any other document. Socialists in particular were disappointed with it and criticized it as it did not have a socialist ideology behind it; no mention of the government controlling the commanding heights of the economy or of nationalization. An interesting aspect captured by Corea’s autobiography was the manner in which SWRD Bandaranaike perceived of the importance of the document. He was of the view that even if the plan was not implemented that the Ten Year Plan would be of importance as an important document for the country. In Bandaranaike’s inimitable style he said that even if the government had done nothing else, there was the Ten Year Plan!
Corea was later Secretary Ministry of Planning and Economic Affairs under Dudley Senanayake. During this spell the emphasis was in the implementation of government policies rather than in producing a document. The Operations Room that monitored the implementation of targets was an innovation of that time. The policies pursued were guided by a perspective plan.
Corea was a leading proponent of the thesis that the deteriorating terms of trade of primary producing developing countries was a root cause of underdevelopment. He spent much of his career trying to find ways and means of finding mechanisms to cope with this problem. His crowning glory was his appointment as Secretary General of UNCTAD, a position he held with distinction for over a decade. The title of an earlier book of his ‘Taming of Markets’ is an apt description of the objective of his international career and the work he did at UNCTAD. His autobiography, My Memoirs captures the story of his efforts, the constraints he faced and the concepts that guided him.
The economy has gone through many changes some of which were envisaged by Corea and the eminent economists from abroad and some of which were not perceived at that time. The transformation of the economy that was envisaged has been accomplished. Agriculture is no longer the dominant sector.
Services of a different character and composition of what it was has emerged. An export industrial sector has emerged as an important one. The population problem that was lucidly discussed in the Ten Year Plan has changed and the country has moved from the stage of a rapid rise in population to one of slow growth and an ageing population. The character of the plantation agriculture has changed with small holdings contributing more to tea production than estates. This was a totally inconceivable transformation in the ‘fifties. The country has moved from a low income country to a middle income country. Yet poverty persists. Social tensions that were not envisaged at the time have emerged and the social character of the country has changed considerably.
This is an autobiography of immense value that places many of the events of economic evolution in a personalized manner. The autobiography is an important contribution on the social history of the country, the process of economic decision making, the character of the country’s leaders, and the workings of an international body. It is indeed fortunate that Dr Corea was able to share these historical insights with us. |
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