The Impact Of Socio-Political Culture On The Growth Momentum; An Analysis Of Government Policy 

By Suren Sumithrarachchi –JANUARY 18, 2021

Dr. Suren Sumithrarachchi

Governance is the management of a nation’s affairs through the exercise of political power, vested in a group of people with divergent views, uniting for a common purpose (Hupe and Hill, 2007). These political powers form socio-political entities and manifest as Monarchies, Dictatorships and Democracies. Governance is the business of administering these socio-political entities in whatever manifestation they exist in a society. This paper focusses on the governance of an independent democratic state with a struggling economy, and the pressures on governance from the stake holders. Accordingly, the paper discusses the state of the economy, the interests and influence of the various stake holders, and the pros and cons of some government decisions. 

The state of the economy

The current state of the economy can be described as a victim of the negative influences from the socio-political environment that prevailed in the country since independence. The country which received independence from its colonial masters on a platter, with a strong surplus economy, a highly respected and effective public service, a population with high literacy, and a willing workforce, is today in debt to the tune of thirteen trillion rupees. The state income is incapable of servicing the interest on loans, leave alone re-payment, and the country is forced to carry on by continuing to borrow, with no signs of a recovery in sight. Every government since independence is responsible for the current state of the country’s economy. Also, the impact of the downgrading of the country by rating agencies, borrowing becomes more difficult and cheaper rates even dearer. 

Successive amendments have introduced hegemonic elements to the country’s Constitution that have reduced the independence of the public service and created by and large a set of servile officials, fulfilling the bidding of the politicians, which they do for their own survival. The tottering economy has led to the reduction of good employment opportunities for the more gifted among the citizenry, leading to a brain drain resulting in a general decline in the quality of the available workforce. A way out of this crisis is to encourage local production of essential agricultural produce rather than import them, and inviting foreign investment. 

To invite Foreign Direct Investment (FDI) the country needs to create a conducive socio-political environment. Enactment of corrosive regulations implying autocracy in governance, regular swings in ruling ideology, politicisation as the main attribute of governance, a polarised population with regular strife between communal and religious groups, hostile labour regulations allowing for frequent work stoppages and holding employers to ransom, a lethargic labour force and a progressively deteriorating work ethic among the labour force, which are currently the hallmarks of the Sri Lankan socio-political environment, nevertheless stand in the way. Other obstacles to FDI are the high cost of electricity, congested roads which makes commuting time consuming, and the regular changes to regulations and tax laws, driven by political expediency.

These environmental issues not only deter FDI, but discourage even local entrepreneurs from investing in ventures, because of the uncertainty they create. Also, the graft culture that has taken hold of the country makes venturing out into business a nightmare. One does not know when the graft network would strangle a project and how much it would cost in terms of time and money to escape. Therefore, incentivising the local entrepreneur in such an environment is difficult, and requires expeditious and concerted action on the part of government if it is to encourage a more conducive climate for the investor, both local and foreign, which is indispensable if the economy is to be revived.

Interests of the various social groups

Governance is also influenced by the interests of several social groups. These social groups are made up of the elite who have wormed their way into the confidence of the rulers through various ruses; the private media moguls who have taken over the role of the nation’s opinion and culture maker; the clergy who have taken on the role of king-maker; the lower end political activist; the drug mafia; and student and trade union activists who keep spewing out violence, regularly obstructing public life and creating a social environment extremely unfavourable to rational economic activity.

The elite who have worked their way into the confidence of the rulers seem to receive absolute patronage. With such patronage they are able to call the shots in any and every activity they choose to dabble in, and make disproportionate gains for themselves in the process. Some of the activities they have been allowed to manipulate are those that affect the poorer sections of the society, and these elite groups seem to indulge in them with no qualms about the hardships they cause to the poor. The air ticket to the expatriate labour to return from the middle east, priced at several times the standard air fare, the expensive quarantine process, well beyond their means, are just two examples. Repatriating the expatriate labour and quarantining them in an inexpensive manner, is an obligation of the state, and subsidising the cost would have been the more correct approach. After all it is this expatriate group that has been subsidising the government with their remittances over the last several years. Instead what has been done is to hand over these activities to their patrons to spin money. 

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