- Presented by G.V. D. Tilakasiri,
- President,
- Free Trade Union Development Centre
Introduction
This paper explores the way in which the Free Trade Union Development Center (FTUDC) has contributed to fostering peace and reconciliation in Sri Lanka, and the challenges that lie ahead. It calls for transnational solidarity from various sectors of the international community.
Sri Lanka has a recorded history of over 2500 years. Its current socio-economic and political environment has been shaped by the legacies of colonization. Beginning with the Portuguese invasion in 1505, Sri Lanka was subject to successive foreign rule, including Dutch and British. In 1948, Sri Lanka attained independence from Great Britain. However, upon independence, like other countries in the Asia Pacific region such as Malaysia, the country faced the task of nation-building, bridging a credibility gap between majority Sinhalese and minority communities, the largest being the Tamil population, and the task of economic and social development.
Different models of economic policy have been experimented with, including models of import substitution industrialization. In 1977, Neo-Liberal Open Economic Policy was implemented under the direction of the United National Party (UNP). These policies gave primacy to Foreign Direct Investment (FDI), fiscal austerity in the areas of welfare spending and liberalization of financial markets. Free Trade Zones (FTZs) were established, while reducing the Public Services Sector (PSS) and state engaged in large scale development projects bound with the IMF loan system such as the Mahaweli Dam project. In addition, several changes were made to the constitution of the country abolishing democratic values, with the President granted wide ranging dictatorial powers. The government also cracked down on Left Parties and the labor movement; the suppression of the 1980 general strike, sacked 100,000 of workers form their work places, banded trade unions, sealed mass media, extended parliament period without elections, ruling party thugs controlled the street to the Supreme Court in a bid to intimidate it, greatly weakened the labor movement’s capacity to act. Soon after, in 1983, the government of Sri Lanka entered into a protracted military conflict with the Liberation Tigers of Tamil Eelam (LTTE). In the 1983 anti-Tamil pogrom, Sinhala masses came to street and killed Tamil ordinary people openly on the roads, looted and burned their properties with the help of right wing government and the help of their international policy makers.
Open economic policies widened wage gaps between rich and poor and destroyed livelihoods of both Sinhala and Tamil people. The problem of youth unemployment remained high, and open economic impacted traditional livelihoods. Moreover, grievances were expressed by the Tamil population since independence that remained unaddressed by successive governments. Neo-Liberal Economic Policy destroyed self sustaining farming systems that the majority of Tamil living in the North and East areas utilized. As a result of that Tamil youth took up arms against the state, culminating in the formation of LTTE. What unfolded over the subsequent years was increased militarization of society, continuing youth unemployment and deepening of the divide between Tamils, Sinhala’s and other minority ethnic groups in the country.
In May 2009, the government militarily defeated the LTTE. Sri Lanka is currently at a crossroads. The socio economic situation remains unchanged and stands as an obstacle to any real solutions to both Neo-Liberal Economic Policy and the ethnic conflicts. In this paper, I outline the history of economic reform and conflict, before examining the current situation. I then introduce and discuss the activities of the Free Trade Union Development Center (FTUDC) and how we are attempting to address the challenges that lie ahead.
Background: Economic Reforms and Conflict
Sri Lanka is a multi-ethnic, multi-religious country with a diverse and rich culture with a total population of 19 million. According to the last census of the whole country taken in 1981, the population breakdown is Sinhalese 73.8%, Tamils12.6%, Moors 7.2%, Indian Tamil 4.6%, other 0.5%, Religious composition is Buddhist 69.1%, Muslim 7.6%, Hindu 7.1%, Christian 6.2%, unspecified 10% . The Sinhala and Tamil languages are used as official and national languages. English is widely spoken and is studied as a compulsory secondary language in school. Sri Lanka’s Per Capita GDP is presently US$ 2000 – the highest in South Asia with the exception of the Maldives Islands and the Literacy rate is 92% – the highest in South Asia.
Since the mid-1950s Sri Lanka had been pursuing import-substitution methods of economic development. While this policy orientation yielded great advances in social welfare, health and education, the economy stagnated. Youth unemployment in particular was high, leading to an insurrection of the Janatha Vimuthi Peramuna (JVP), who was Sinhala rural youth and university students. In addition, the Tamil population expressed continued grievances of discrimination and violence against them, which was not adequately addressed by the government. For example, in 1956, Sinhala was declared the official language, while Tamils were killed in riots after Tamil parliamentarians protested against the law. In 1958 further anti-Tamil riots left more than 200 people dead and thousands displaced. In 1977, further anti-Tamil riots leads to more killings.
The UNP swept into office in 1977 under the leadership of J.R Jayewardene, on a campaign to establish a dharmishta samajaya or “free and just society” devoid of social malpractices (Lakshman (1985:20). Once in power, the reform agenda involved a process of market liberalization including deregulation of trade, the elimination of food subsidies and the liberalisation of internal agricultural markets. In order to appeal to the poor rural constituency, the UNP implemented projects such as the Mahaweli Dam Scheme which benefited the Uva and Central provinces, and the Gam Udawas (Village Awakening programs) which benefited the rural Southern provinces that are all predominately Sinhalese. Other policy changes included the liberalisation of import trade and exchange payments, elimination of the dual exchange rate system, abolishing of price controls, reducing budgetary expenses, promoting private capital, including FDI, reducing budgetary expenditures on things like food stamps and rice subsidies, placing restraints on granting wage demands in general and especially to those in the public sector, repression of the labour movement, search for increasing foreign aid, measures to promote economic activities earning foreign exchange such as the export industry, tourism, and labour migration (Lakshman p21).
Jayasuriya and Durham point out the discriminatory nature of economic reform, whereby class and ethnicity was interwoven in a highly complex way. Trade liberalization was selective, and this selectivity adversely affected Tamil farmers of crops such as grapes, chilies and onions in the Jaffna peninsula, but this was not extended to paddy and potatoes grown by Sinhalese farmers. Other Tamils however, prospered. Urban middle class and wealthy Tamils with commercial interests gained. In subsequent years, development policy continued to be geared towards Sinhalese regions. The Mahaweli extension to Tamil areas was rejected and public sector jobs restricted because of Sinhala language requirements (p25-26).
Political scientist Laksiri Fernando has called a period of “open economy, closed polity (2000:84).In conjunction to economic reforms, the enactment of the Prevention of Terrorism Act (PTA) in 1979 led to the institutionalization of political violence which included torture and disappearances (Obeysekera 1984; AI 1989; Uyangoda 1992; Senaratne 1997). In 1979, revival of the World War II era Essential Public Services Act gave the government power to outlaw trade union activities in the public sector. President Jayewardene initiated Constitutional reform and introduced proportional representation meaning that a party must obtain at least 12.5% of the votes in order to qualify for seats in the National State Assembly, effectively placing limitations on smaller and less organized parties from gaining power (Samarakone, 1984: 86 in DeVotta, 2002). The rationale given was to provide a stable political environment for investors by cutting out political volatility. In addition, he pushed through 16 Constitutional Amendments between 1978 and 1988[1]. One of the contentious Amendments related to this power was Article 126 which imposed limitations on the applications for redress of fundamental human rights violations (Edirisinha, undated in Edrisinha & Selvakkumaran 2000:108).
UNP President J.R.Jayewardene refused to hold an election in 1982 and instead, extended the life of the parliament, through a referendum, which Manor (1984:1) called: “the most dramatic change in political practice in Sri Lanka since independence”. This all culminated in the growth of movements such as the LTTE, whose development was spurred on by past grievances (such as Sinhala only policy) and contemporary violence such as the pogrom of 1983.
The 1983 outbreak of the ongoing ethnic war relates to the Tamil youth struggles for recognition and redistribution in the mid-1970s (Uyangoda 2000). The Sri Lankan state had been involved in ongoing conflict with LTTE since 1983, the later pursuing an armed separatist campaign in the North-East of the island. The ethnic war was amplified for a short violent ‘terror’ period, during the 1988-89 JVP. This insurrection was also fuelled by the growing unemployment and underemployment in rural areas and the articulations of class resentment in terms of ethno-nationalist politics (Senaratne 1997, Uyangoda 2000).
In 1988-89, President Premadasa crushed the JVP, but also had to face economic crisis. In that period over 60,000 youth were killed by the government. He negotiated an agreement with the IMF, and implemented second wave of liberalization that placed privatization at the center of the economic agenda. One prominent policy instigated by Premadasa was Garment 200 program, which was intended to facilitate the establishment of apparel factories in villages, but again this policy was mainly directed towards Sinhalese areas. He was assassinated by the LTTE in 1993.
In 1994, following 17 years under the UNP rule, the Sri Lanka Freedom Party (SLFP) led coalition called the People’s Alliance (PA) won the election and came to power. It was supported by the working class parties, the Communist Party (CP) and the Lanka Sama Samja Party (LSSP), and the labor movement. But this government also continue with the same economic policy that conducted by the UNP. While peace talks are attempted by President Chandrika Kumaratunga, conflict escalates, including high profile suicide bombings carried out by the LTTE.
The UNP returned to power in 2000 and negotiated a ceasefire agreement in 2002 with the LTTE, while renewing market reforms. The UNP launched a policy agenda entitled “Regaining Sri Lanka” in 2003, in which the private sector was given prominence in promoting economic ‘recovery’. It was touted as a “Vision and Strategy for Accelerated Development” (Government of Sri Lanka, 2002) and consisted of three parts: economic reform measures; poverty reduction strategy; and action plan. This was to be a “new approach” to accelerated growth and development; however it was a package of oft seen economic reforms that is advocated by the WTO and IMF. The UNP government articulated it to be a ‘decisive break from past economic policies”. Intense emphasis was put on competition, improving productivity and meeting the competitive demands of world markets. As the war and ‘poor economic management’ was seen as the reasons behind the high incidents of poverty (PM Ranil Wickremesinghe, 2005), the two objectives of the government was to bring peace and revitalize the economy, based on free market principles. Moreover, the government expressing links war and economic failure and ties hopes for future peace through reconciliation, reconstruction and rehabilitation on the ability to meet economic goals. The government also adopted the argument that reforms of the first liberalization were not adopted properly or pushed ahead with, hence their failure. Despite the formal ceasefire agreement, the LTTE, as well as the state, engaged in acts of violence. Nevertheless, the UNP continued on its quest for peace, and entered into a power sharing coalition with the LTTE. Policies included a new tax regime, and the implementation of a pro trade package- tariff streamlining, reforming customs, bilateral trade activities, participate in Doha round of talks with the WTO, regional trading possibilities , reform to exchange controls, the creation of a more flexible, labor market and review and reform of labor legislation according to the donors desire.
As a result the southern people’s movement got angry with PM Ranil Wickremasinghe’s policy and activities. The government stopped public sector recruiting, promotion and salary increases and abolished the state sector vacancies. This affected the educated youth. On the other hand the majority of people thought the government’s peace policy would lead to the division of Sri Lanka. At the same time the government’s economic policy negatively affected to the welfare of the people and benefited the multinational corporate sector and the wealthy companies. People in large numbers came out against the UNP government and this led to continuous strikes.
In response, the SLFP formed another broad coalition with the Sinhala nationalists JVP and the newly launched Buddhist monks’ party, the Jathika Hela Urumaya (JHU – National Sinhala Heritage Party) and new social democrats, Democratic Left Front (DLF) That coalition was called the United People Freedom Alliance (UPFA). That broad coalition got strengthened in 2004-5 with tensions escalating within the country over how to distribute and share aid between ethnic communities in the aftermath of the devastating 2004 Tsunami. In 2005, the population rejected the UNP and elected Mahinda Rajapakse to the position of President.
In 2008-2009, the government under President Mahinda Rajapakse pushed to end the 30 years war militarily. At the same time the Mahinda Rajapakse government took strong decisions to stop privatization of public property and expand the public sector for welfare of the ordinary people. President Rajapkasha attracted to the social democratic polices for benefit of the masses. In the war that took place against the LTTE the Sri Lankan government was widely supported by the international community. However, both the LTTE and government were accused of violating human rights on a large scale. The LTTE were defeated. Overall, the final stages of the war cost over 60,000 lives, and 300,000 of people displaced, the overwhelming majority of them being Tamils in the North and East part of the Sri Lanka. The Western section of the international community continues to be worried about the governance and economic policies of the Rajapaksa government, especially its tilt towards non Western countries such as China and Iran. They have imposed several economic barriers including suspending the GSP+ tariff benefits that Sri Lanka previously enjoyed. However at the recent elections the people once again elected Mahinda Rajapaksa as a president of Sri Lanka and at the Parliamentary elections, the ruling party won with about 60% of the popular vote obtaining almost a 2/3 majority in the parliament.
The current situation
After the war the country is facing the problem of families. There are 3000 children who have lost both parents, Over 40000 widows live in the war affected areas. In the the Northern and Eastern parts the majority of victims are the Tamils. In the Southern part most of them are soldiers’ families.
Major problems have escalated in the North and Eastern part of Sri Lanka, where war damage is heavy. There are more than 80,000 people living in the government maintained welfare camps in Vanni District. The most serious problems are housing, resettlement; women-led families with only one parent and the lack of adequate resources for living and providing for their children’s education.
Summary and Conclusions
We, Free Trade Union Development Center and other NGOs are conducting various kinds of programmes on the livelihood of the war affected areas as well as creating greater social awareness of the conditions in that areas, the need for a political solution and ethnic harmony.
Most of Sri Lankan people want to abolish the undemocratic features of the present constitution and ensure that minorities are provided with equal rights, abolish the present preferential district electoral system and have a fairer electoral system. They also wish to see a stop to anti-people Neo-Liberal Open Economic Policies and instead have a sustainable economic policy that expands the welfare state for the benefit of the masses and not for the multinational corporations, international banks and wealthy companies.
Sri Lanka’s present economic development rate is over 5%. It could be increased to 8% very soon with the constructive support of the international community. The Sri Lankan people desire a just and free democratic society, in which there are improved economic and social ties with the international community based on equality and mutual benefit, and to maintain the welfare state with sustainable economic polices for the benefit of people living in the island.
Key Words
FTUDC Free Trade Union Development Center
UNP United National Party
FDI Foreign Direct Investment
FTZ Free Trade Zones
PSS Public Services Sector
LTTE Liberation Tigers of Tamil Eelam
PTA Prevention of Terrorism Act
SLFP Sri Lanka Freedom Party
PA People’s Alliance
CP Communist Party
LSSP Lanka Sama Samja Party
JHU Jathika Hela Urumaya
DLF Democratic Left Front
UPFA United People Freedom Alliance
References
Lakshman, W. D. (1985) “The IMF-World Bank Intervention in Sri Lankan Economic Policy:Historical Trends and Patterns.” Volume 13 Issue 2, p. 2-29.
Dunham, David and Sisira Jayasuriya (2001) “Liberalization and Political Decay: Sri Lanka’s
Journey From Welfare State to a Brutalized Society” (Working Paper 352, ORPAS
– Institute of Social Studies , The Hague – The Netherlands).
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Uyangoda, J. (1992). “Sri Lanka’s Crisis : Alternative”, Pravada 2.8, Colombo: Social Scientists’ Association.;
- ‘Post-Independence Social Movements’ in W. D. Lakshman and C. A. Tisdale (eds)Sri Lanka’s Development since Independence: socio-economic perspectives and Analysis, Nova Science Publishers: N.Y.
Senaratne, Jagath P. (1997) Political Violence in Sri Lanka, 1977 –1990: Riots, Insurrections, Counterinsurgencies, Foreign Intervention, Sri Lanka Studies series, Amsterdam: Vrei University Press
DeVotta, N (2004) “Blowback: linguistic nationalism, institutional decay, and ethnic conflict in Sri Lanka” Stanford University Press
Edrisinha, R & Selvakkumaran N. (2000) “The Constitutional Evolution of Ceyolon/Sri Lanka 1948-98” in Lakshman, W.D & Tisdell, C.A “Sri Lanka’s development since independence: socio-economic perspectives and analyses”. Nova Publishers. P.108
[1] Prior to these Amendments, Sri Lanka had two others constitutions, the Dominion Constitution of 1946 immediately before Independence, and the first Republican constitution of 1972
