It seems that many of the ghosts that were created by the current regime in order to secure power at both the presidential and general elections are now returning to haunt it. And by the looks of it, if these ghosts are not put to rest quickly, they will end up consuming much of the credibility and goodwill that has accrued to the new Government.
The matter of the Millennium Challenge Corporation (MCC) is a case in point. Political pundits continue to argue that it was this very same issue that brought down the previous Government when the then Prime Minister rushed to seek Cabinet approval for the controversial grant programme on the eve of the last presidential election. Ultimately, the entire Government was vilified for it by the then Opposition. The MCC bogey fit in well with the ultra-nationalist mood in the country at the time and the then Prime Minister, as a result of his notoriously poor timing, once again hit an own goal much to the delight of the Opposition. The rest is history.
But one year down the line, things look nowhere near what they were back then, thanks to the Covid pandemic that has ravaged the economy and continues to keep emptying the country’s foreign reserves. The MCC, which was in grant form totalling $ 480 million, could have been quite useful at this particular time in not only funding the two envisaged projects which ironically had been formulated in conjunction with government input back in 2016, but also helped shore up foreign reserves at a critical juncture which in turn could have had the potential to rescue the country from its last rating downgrade, thereby providing cheaper access to other sources of funding. Therefore, the ripple effects of its cancellation by the Washington-based Corporation last week cannot be discounted easily and is surely not the end of it.
Granted that no entity in today’s dog-eat-dog world has noble intentions when it comes to any manner of funding, that does not mean that the finer details cannot be discussed and shaped in a manner that mutually benefits both parties. As in any business matter, each party to the transaction will demand the most they possibly can and the only way forward is to negotiate. Whatever be the merits of the envisaged projects under the MCC pact, it was up to the government of the day to sit down and thrash out what it wanted and did not want without throwing the baby along with the bathwater.
In hindsight, US Secretary of State Mike Pompeo’s visit in October would have been the ideal opportunity to do so but will now count as another wasted opportunity. The issue here is that the word “MCC” itself was demonised to such an extent that anybody having anything to do with it was automatically labelled a traitor.
Most bilateral funding, whether loan or grant funding, comes with the caveat that project implementation should occur via entities designated by the funder. Nowadays, the Chinese have made a fine art of it to the extent that even the labour component down to the last man is imported from that country. As a result, the multitude of Chinese-funded projects have spawned Chinese colonies wherever they have been located, be it in Sri Lanka or any other country for that matter.
Some sections of the political spectrum and clergy who are largely responsible for demonising the issue are mistaken in their utopian belief that there still exist do-gooders who have nothing better to do than handover billions in cash to countries that need it and simply disappear thereafter, no strings attached. That may well be the case with their benefactors but such benevolence simply does not extend to bilateral funding amounting to billions of rupees. It is this misguided notion tempered with political expediency that continues to be the root of the problem.
For instance, our outdated, inefficient transport system is the root cause for the wastage of billions of rupees in the unproductive burning of fuel imported with precious foreign currency. We take huge loans to pay for these commodities which end up being burnt in traffic jams. We are not for a moment plugging the MCC agenda, but the fact that the envisaged streamlining and optimising of our transport resources to minimise wastage of fuel, man-hours, vehicle wear and tear, etc. by reducing commuting times between identified congested routes would certainly have served the country well, saving many more times the actual project cost.
The fact that we lack intellectuals who can actually think long term and look at the bigger picture in the political gallery that plays to the masses is not only the biggest drawback in taking the country forward, but also the key in bringing governments to power and keeping it that way. To pull away from this destructive formula is something that no political party has had the gumption to do and chances are the status quo will continue.
Politicians are generous in their platitudes to the people, especially when it comes to their intellect. “The people are intelligent and they will make the right choice” is their constant mantra, but the reality is rather different. Seasoned politicians know how gullible people can be and how easily they can be manipulated, which is why we continue to see rhetoric rather than substance on the political front, be it here or in the American heartland.
The issue with the MCC was that it was politicised beyond redemption. To go back on election propaganda that propelled the Government to power would amount to political harakiri and there lies the problem. The MCC operates under the aegis of the US State Department, and with the incoming Biden administration boasting many faces from the Obama era well known to be not too well disposed towards Sri Lanka, a subtle yet intense battle of wits seems inevitable, notwithstanding the usual diplomatic niceties of “close and cordial relations” when the official announcement of the withdrawal is eventually made by Washington. Sri Lanka’s loss is now Sierra Leone’s gain.
Another ghost that is reinventing itself in multiple cycles is the panacea to the Covid pandemic. The Government’s willingness to play along with the mythical rather than the scientific could haunt it for the rest of its term in much the same way that the Bond Scam did to the last Government, with equally destructive consequences. The Health Ministry keeps making regular announcements that it does not trust the vaccines that are already being administered in the US, the UK, China, Russia, India, and even Bangladesh that has already ordered 30 million doses of the vaccine which it has announced will be provided free of cost to the public.
No other government has made the kind of negative announcement made by our Health Ministry, making it stick out like a sore thumb. All well and good if there were any alternatives or if in fact one was at least under development in accordance with established standards. The one that the Ministry was pinning its hopes on exploded in its face when its creator described himself as a reincarnation of a female deity before no less a person than the Chief Prelate of the Sri Maha Bodhiya.
With that episode exploding right before the glare of the media, the Government, in addition to damage control, will also have to allay the MCC ghost in order to restore its pride. It is said that one can fool some of the people all the time and all the people some of the time, but one cannot fool all the people all the time.
The matter of the Millennium Challenge Corporation (MCC) is a case in point. Political pundits continue to argue that it was this very same issue that brought down the previous Government when the then Prime Minister rushed to seek Cabinet approval for the controversial grant programme on the eve of the last presidential election. Ultimately, the entire Government was vilified for it by the then Opposition. The MCC bogey fit in well with the ultra-nationalist mood in the country at the time and the then Prime Minister, as a result of his notoriously poor timing, once again hit an own goal much to the delight of the Opposition. The rest is history.
But one year down the line, things look nowhere near what they were back then, thanks to the Covid pandemic that has ravaged the economy and continues to keep emptying the country’s foreign reserves. The MCC, which was in grant form totalling $ 480 million, could have been quite useful at this particular time in not only funding the two envisaged projects which ironically had been formulated in conjunction with government input back in 2016, but also helped shore up foreign reserves at a critical juncture which in turn could have had the potential to rescue the country from its last rating downgrade, thereby providing cheaper access to other sources of funding. Therefore, the ripple effects of its cancellation by the Washington-based Corporation last week cannot be discounted easily and is surely not the end of it.
Granted that no entity in today’s dog-eat-dog world has noble intentions when it comes to any manner of funding, that does not mean that the finer details cannot be discussed and shaped in a manner that mutually benefits both parties. As in any business matter, each party to the transaction will demand the most they possibly can and the only way forward is to negotiate. Whatever be the merits of the envisaged projects under the MCC pact, it was up to the government of the day to sit down and thrash out what it wanted and did not want without throwing the baby along with the bathwater.
In hindsight, US Secretary of State Mike Pompeo’s visit in October would have been the ideal opportunity to do so but will now count as another wasted opportunity. The issue here is that the word “MCC” itself was demonised to such an extent that anybody having anything to do with it was automatically labelled a traitor.
Most bilateral funding, whether loan or grant funding, comes with the caveat that project implementation should occur via entities designated by the funder. Nowadays, the Chinese have made a fine art of it to the extent that even the labour component down to the last man is imported from that country. As a result, the multitude of Chinese-funded projects have spawned Chinese colonies wherever they have been located, be it in Sri Lanka or any other country for that matter.
Some sections of the political spectrum and clergy who are largely responsible for demonising the issue are mistaken in their utopian belief that there still exist do-gooders who have nothing better to do than handover billions in cash to countries that need it and simply disappear thereafter, no strings attached. That may well be the case with their benefactors but such benevolence simply does not extend to bilateral funding amounting to billions of rupees. It is this misguided notion tempered with political expediency that continues to be the root of the problem.
For instance, our outdated, inefficient transport system is the root cause for the wastage of billions of rupees in the unproductive burning of fuel imported with precious foreign currency. We take huge loans to pay for these commodities which end up being burnt in traffic jams. We are not for a moment plugging the MCC agenda, but the fact that the envisaged streamlining and optimising of our transport resources to minimise wastage of fuel, man-hours, vehicle wear and tear, etc. by reducing commuting times between identified congested routes would certainly have served the country well, saving many more times the actual project cost.
The fact that we lack intellectuals who can actually think long term and look at the bigger picture in the political gallery that plays to the masses is not only the biggest drawback in taking the country forward, but also the key in bringing governments to power and keeping it that way. To pull away from this destructive formula is something that no political party has had the gumption to do and chances are the status quo will continue.
Politicians are generous in their platitudes to the people, especially when it comes to their intellect. “The people are intelligent and they will make the right choice” is their constant mantra, but the reality is rather different. Seasoned politicians know how gullible people can be and how easily they can be manipulated, which is why we continue to see rhetoric rather than substance on the political front, be it here or in the American heartland.
The issue with the MCC was that it was politicised beyond redemption. To go back on election propaganda that propelled the Government to power would amount to political harakiri and there lies the problem. The MCC operates under the aegis of the US State Department, and with the incoming Biden administration boasting many faces from the Obama era well known to be not too well disposed towards Sri Lanka, a subtle yet intense battle of wits seems inevitable, notwithstanding the usual diplomatic niceties of “close and cordial relations” when the official announcement of the withdrawal is eventually made by Washington. Sri Lanka’s loss is now Sierra Leone’s gain.
Another ghost that is reinventing itself in multiple cycles is the panacea to the Covid pandemic. The Government’s willingness to play along with the mythical rather than the scientific could haunt it for the rest of its term in much the same way that the Bond Scam did to the last Government, with equally destructive consequences. The Health Ministry keeps making regular announcements that it does not trust the vaccines that are already being administered in the US, the UK, China, Russia, India, and even Bangladesh that has already ordered 30 million doses of the vaccine which it has announced will be provided free of cost to the public.
No other government has made the kind of negative announcement made by our Health Ministry, making it stick out like a sore thumb. All well and good if there were any alternatives or if in fact one was at least under development in accordance with established standards. The one that the Ministry was pinning its hopes on exploded in its face when its creator described himself as a reincarnation of a female deity before no less a person than the Chief Prelate of the Sri Maha Bodhiya.
With that episode exploding right before the glare of the media, the Government, in addition to damage control, will also have to allay the MCC ghost in order to restore its pride. It is said that one can fool some of the people all the time and all the people some of the time, but one cannot fool all the people all the time.