Champika calls for “corporate nationalism”

Wednesday, 4 June 2014 00:00 -     - {{hitsCtrl.values.hits}}

Minister of Technology, Research and Atomic Energy Patali Champika Ranawaka said the country needs sustainable and achievable economic targets based on the corporate nationalism concept and therefore we can no longer concentrate on carpeting roads and beautifying cities. The Jathika Hela Urumaya bigwig added: “We have bigger tasks to achieve. We have to break the middle income trap. Technology-based innovations are essential for that. We have to absorb technology and go for investments. Playing with numbers will never take us beyond the middle income barrier.” Following are excerpts from the interview: Q: What are the achievements and the main challenges you have faced as the Minister of Technology and Research? A: There are 15 institutions that come under my Ministry, which include four research institutions. These 15 institutions have marked some major achievements. Not having a proper appraisal system both individually and institutionally was a notable drawback in the State sector. One of our main focuses is to introduce an effective evaluation system. I strongly believe having an effective appraisal system for both individuals and institutions will make a significant change. When I was the Minister of Environment, I initiated this program and it was a huge success. Research and technology is a significant feature of development. The amount budgeted for the four research institutions is not more than Rs. 360 million per year. Our investment for research is just 0.003% of the GDP. This amount is not sufficient. The Inventions Commission along with the private sector is trying to introduce what we called a ‘research loop’. It is all about how an invention ends up as an innovation. What is the commercialisation aspect of an invention? We see inventors with lots of inventions, but they lack knowledge about commercialisation aspects. Our project will enable inventors to initiate their work with a partner. Meanwhile, the private sector has initiated an innovative product called the ‘Lanka Angel Network’. Through this project they identify and select investors and commercialise our inventions. Annually they allocate about Rs. 200 million for this project. We have the best nanotechnology research centre in the South Asia, but our economy has not received the expected impact from this research centre. This is mainly because we don’t have the required business environment. We are also looking at ways to promote gene and space technology. If we want to move forward as a country, these are the avenues we need to choose. Space technology is one of our main concerns. We don’t have a satellite at present. But UNSCAP has chosen us as the hub in this region. The Global Information System (GIS) developed by United States will enable us to gather data about many fields, such as climate and weather changes, sea level changes and data related to crops as well as infrastructure. This type of data is essential for development. At present we are carrying out a program that disseminates these data into relevant institutions. Our target is to launch our own micro satellite by 2017. Q: What about the satellite that was launched in 2012? A: That was a transponder by a private company. A local private company bought some transponders from a Chinese satellite. This satellite does not belong to the Sri Lanka Government. Our focus is different. We want to get our data from the UN. Our ICT sector has improved in a significant way during the past few years. The ICT sector has earned $ 500 million from exports during last year. Our future is about an industrial phenomenon heavily linked with the ICT sector. This is called the new industrial era. In the modern industrial era, we see huge factories, massive markets. But in the new industrial era these become atomised. We find cloud markets and cloud factories. Computers, communication and 3D printers are the main features of this system. Today’s technology and its developments have made a huge impact on the economy. In a country like ours we can get the maximum benefit out of this system. We have 100% electricity, excellent telephone penetration, a 97% literacy rate and women’s empowerment. But we have not used these for the correct purposes. How can we apply this for cloud technology? How to find and gather investors in a cloud, how to solve issues related to investors in the cyber space; these are the areas we need to focus on. What measures have we taken to break the middle income trap? In 1998 we became a lower middle income country. For the last 15 years we have remained in this category. Even if we take out the 10 years we fought the war, we have wasted five years. In this middle income trap there are two barriers; achieving the $ 4,000 barrier and the $ 8,000 barrier. When we reach beyond $ 12,000, we become a developed country. We can no longer boast about low cost energy, low cost labour, and our environmental laws being stronger than other countries. The demographic advantage is no longer there; countries like Singapore and Dubai now enjoy the geopolitical advantage we once used to boast about. This is not a positive situation for our country. We have failed to take in the technology absorption. Our service economy grew more rapidly than the industrial economy. We still follow that path. If we want to go beyond the middle income barrier, we have to absorb technology and go for investments. Playing with numbers will never take us beyond the middle income barrier. GDP growth is misleading because it takes the current value. For example, if you take the current GDP value during 2005-2009, there is 128% economic growth. But if we leave out inflation, the real GDP growth is only 38%. That is why the people don’t feel the so-called economic growth despite it being all out there in the papers. In the United Kingdom during the industrial revolution, per capita real GDP was increased tenfold. What is most important is the value of the real GDP minus the inflation. We have not been able to achieve that. The current numbers are misleading. To achieve this target we have to improve our goods and services. In order to do, that we have to break the technology barrier. Q: What actions need to be taken? A: We have to change our policies. Funding investors will not be the only remedy. There should be a business environment that promotes local businesses; from small scale to bigger businesses. What is the point of providing financial assistance to start a candle-making business when allowing cheap imported candles to be sold in the market? What is the point of encouraging a local businessman to produce an iPad or a notebook when another company brings down the same product at low cost? This system has to change. Q: Are you suggesting immediate economic policy changes? A: There are more than enough policies. What I say is there should be a radical structural change in the economy. We have provided a triple tax holiday for investors. But why don’t they come? Because they have other easier ways to earn money. For example, a businessman spends Rs. 400 million on inventions, deals with 6,000 workers paying salaries and runs factories; going through so much stress, he earns Rs. 1 billion. But another man earns the same amount of money through a business deal or stock market gambling. What will be the reaction of the former businessman? In such an environment, nobody can expect the economy to grow. Every businessman should feel that there is a competitive and level playing field. This is how we could go beyond our middle income barrier. Having strict laws helped countries like Korea and Singapore achieve their targets. We should never forget that our biodiversity is nothing but good wealth. Singapore didn’t have that. Our traditional knowledge is a massive wealth. Have we ever worked out the cost of air pollution or water pollution? We talk about the fertiliser subsidy but have we ever worked out the cost on health aspects of fertiliser use? We boast about the Rs. 45 billion earned from cigarettes, but do we talk about the negative impact on the economy by smoking? Whatever advantages we have, we also need to look at the cost they cause to the future generation. We need a proper costing system. We can pretend economic booms through tricks, but can we sustain? We are constructing tall buildings, but in another three decades the fossil fuel era will be over. How will the elevators work? What is our plan? Recently a huge iceberg broke off from an Antarctic glacier and as a result there will be a 10-foot rise in the sea level in another 100 years. We are an island; are we prepared to face such challenges? Our population density is another serious matter. We have to take some initiatives to address these issues. But what are we doing? Both our Government and the private sector are not sensitive to these issues. Without finding solutions to these matters, we can never talk about development. Income disparity is the next biggest problem. In this country we sell Alpha Romeos. Look at the number of branded shops we have. A branded pen is sold for Rs. 600,000 and there are people to buy such things. What do all these mean? The end result will be social unrest. In this country the majority of the people find it difficult to eat all three meals; there are people who are unable to send their children to school due to financial constraints. Q: But what about the development work carried out by the Government? A: I can colour my hair. I can wear makeup and hide the wrinkles on my face. I may look younger, but that does not mean I can stop the ageing process. I am not saying beautifying cities or constructing roads is bad and I am not blaming the Government. Everyone is responsible for this situation. The Opposition, the media and especially the people should try to make a change in this system. It is their duty. One section of the Government says we should focus on a service-oriented economy. The UNP says to privatise State institutions. But our position is that both these models are now outdated. Ranil Wickremesinghe who screams today has betrayed our country many times. Our soldiers spent months in the jungle and trapped Bal Raj. But what did Ranil Wickremesinghe do? He brought Bal Raj to Colombo and then sent him to Singapore for treatment. Chandrika Kumaratunga also entered into deals with terrorists just to remain in power. But people rejected them. The Hela Urumaya is against the UNP’s liberalisation program and the Government’s service-oriented economy. We blame the Finance Ministry officials who should be held responsible for this situation. We have realised that the country’s economy needs to change immediately. In our country, there are builders. They are coming with various types of projects. We (the Hela Urumaya) are trying to act as a balancer. Our struggle is not against the Government. We are not trying to topple the Government. This fight is not against the President or his administration. Ranil and his policies are outdated. They still live in J.R. Jayawardena’s era. People say the Hela Urumaya is outdated but let me tell you one thing; today the country is in this modernised position because of the Hela Urumaya. Electricity, which was a luxury enjoyed by the Colombo people, is today available to all Sri Lankans. We did that. Today almost every Sri Lankan has a telephone. There are carpeted roads all around the country. The country has democratised. But now we need to take an extra step and move forward. We can no longer concentrate on carpeting roads, because now we have bigger tasks to achieve. We should make sustainable, achievable economic targets based on the corporate nationalism concept. We have to break the middle income trap. Technology-based innovations are essential for that. "Research and technology is a significant feature of development. The amount budgeted for the four research institutions is not more than Rs. 360 million per year. Our investment for research is just 0.003% of the GDP. This amount is not sufficient We have to change our policies. Funding investors will not be the only remedy. There should be a business environment that promotes local businesses; from small scale to bigger businesses We can no longer concentrate on carpeting roads, because now we have bigger tasks to achieve. We should make sustainable, achievable economic targets based on the corporate nationalism concept. We have to break the middle income trap. Technology-based innovations are essential for that" Q: What made you become so rebellious? Why the sudden change? A: No, I don’t think that is true. There is no sudden change and I don’t think I have become rebellious. I am calm and peaceful. Q: Did you meet Wimal Weerawansa and if so, what did you discuss? A: We have had discussions with various parties. We have met the SLFP, Wimal’s party, other political parties and especially professionals. We have discussed many things, mainly economic reforms required for a better Sri Lanka. These economic reforms are linked with research and development, education and built environment. These are the medium term matters we discuss. Political reforms are another topic discussed by us. Then we talk about social reforms. We also talk about how to break through this international containment. Q: Is this just another ‘act’ by you and Minister Weerawansa? The Government is gradually losing popularity; are you trying to collect those votes? A: Those allegations are not valid to us. During 2000/’10 the Hela Urumaya was the only political party that changed the country policy wise. We have always acted as a national force. We were never after votes. We are sensitive to the views and opinions of people. Q: What is your stand on the executive presidency? A: Abolishing the executive presidency alone will not solve the matter. There are other issues linked to this matter. If we are to abolish the executive presidency, we need to take all that into consideration. Q: Did you meet Ven. Maduluwawe Sobitha Thero? A: Yes, we did. Q: Did you discuss the common candidate? A: No, we didn’t discuss such issues. There is nothing called common candidacy. This topic has been discussed since 1982. Rohana Wijeweera is the person who first spoke about this. Our discussion is about a nationalistic candidate who comes with a nationalistic agenda. We don’t care who the individual is. If Mahinda Rajapaksa fits the bill, we will not hesitate to support him. We feel the country is at a critical juncture and we need a candidate with a nationalistic agenda. Q: Do you feel Ven. Maduluwawe Sobitha Thero has the qualities of a nationalistic candidate? A: Sobitha Thero has never said he will contest. We have never discussed a common candidate. He has never mentioned anything to us. Q: There is an allegation that you abstained from voting during Dhammika Perera’s Queensbury project but voted against the act related to James Packer’s and John Keells Holdings casinos. Your comments? A: What rubbish is this? Who is making these idiotic accusations? John Keells runs on Dhammika Perera’s license. This allegation was made by a newspaper that has links to the casino. Let me reiterate: The JKH license belongs to Dhammika Perera. On the other hand, nowhere is it mentioned that Dhammika Perera’s Queensbury will have casinos. People cannot expect us to be against all new hotels that are coming up. Q: You and Minister Wimal Weerawansa claim you are against casinos. But in 2010 you voted in support of legalising casinos. Why? A: This act was originally brought in 1988 during President Ranasinghe Premadasa’s rule. However, during his difficult times, he took out casinos to make sure that he would remain in power. When Chandrika Kumaratunga came to power, she imposed taxes and allowed these casinos to function. Then what happened in 2011? There was a proposal to regularise the casinos that were spread everywhere. The idea was to bring all the casinos into one place. But this act was never implemented. This is not a casino act. It is the UNP that is making these allegations. They are the very same people who promoted casinos in the country. If we are unable to ban something, we should at least try to restrict that. That is what we were trying to do. Unfortunately we were unable to take the casinos in Colombo to Kalpitiya. In 2002, Ranil Wickremesinghe’s and Milinda Moragoda’s ‘Regaining Sri Lanka’ program proposed commencing two casinos in Colombo. This is clearly mentioned in page 208 of ‘Regaining Sri Lanka’. Please ask Harsha de Silva what he has to say about that. We are the ones who fought against casinos from the day this was submitted to the Cabinet. The gazette regarding casinos was withdrawn in September because of the pressure we had on the Government. The UNP cannot blame the Government because it was to carry out similar projects when it was in power. Q: This Government has a two-thirds majority. Without blaming the previous government, why can’t you take the necessary measures to change the laws? A: The Government is not run by the Hela Urumaya. The biggest burden in this country is not casinos. Casinos do not affect the majority of the people in this country. If we come to power, we will take measures to stop the harm caused by projects. Q: This Government is allegedly supporting drug peddling; it is accused of promoting casions in the country. These are against the policies and principles of the JHU. As a coalition partner what measures have you taken to prevent such things? A: We talk about drugs. The first case was reported in 1981. How did heroin first come to Sri Lanka? It was a result of liberalisation. This is not something that developed during the past couple of years. During the recent drug container incident, it was the JHU which stood against it. There is a mafia and everyone has links. Who is behind the VAT fraud? A person called Kuthubdeen, who is a member of the UNP Working Committee. Sakvithi Ranasinghe and his wife were taken into custody for fraud, but what happened to Cecile Kotelawala and Lalith Kotelawala? These people are above the law. Venerable Galaboda Aththe Gnanasara Thero was brought before the law for threatening another Buddhist priest, but when Bishop Rayappu Joseph questioned the military about the use of chemical weapons during the war, nobody criticised him. Why is Bishop Joseph above the law? Where is the law in the country? The JHU will fight against these things but there are questions that need answers.

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