True welfare

Cabinet, this week, decided the “Divi Neguma” Department would be renamed “Samurdhi”, taking the program, at least in name, to the pre-Rajapaksa era. Yet this move itself demonstrates all that is wrong with the welfare systems of Sri Lanka and why it needs to move towards a more developmental approach than the current system of hand-outs in return for votes.

State-funded programs to alleviate poverty are important, but they also have to ensure that their targets are met. Even when Divi Neguma was in its infancy, a mammoth Rs. 14 billion was funnelled into its various functions, but there have been no post-evaluation programs. This is true of a host of other welfare programs kicked off during the past decade, including Gama Neguma, Maga Neguma, and Api Wawamu – Rata Hadamu, to see if these programs achieved the desired result. The efficacy of Government programs have to be understood before claims can be made to alleviating poverty by political parties. Not only would this give a truthful account of the state of living standards in Sri Lanka, but it will give a better understanding of how to structure future projects.

Corruption is rampant in Sri Lanka and there is little assurance that the intended funds have benefitted the people. In such a situation, it would make sense to ascertain how the funds have been used, as they were intended and did not end up lining someone’s wallet. The repeated failure of Government programs to reach their full potential is also a reason for people to distrust the State and not pay their taxes. As a result, much urban development is sidetracked or outright neglected as people try to shirk responsibility. If Sri Lanka is to be a truly developed nation, then it has to embrace good governance with all its requirements for transparency and efficacy.

Currently the Government is facing a challenging fiscal consolidation process made even more fraught by the massive subsidies expected by the public. While the poor should be helped, unlike professionals who demand perks for their own ends, there has to be a sustainability element and expenses that can be borne by the shrinking tax revenue of this Government.

The longstanding welfare approach adopted by the Government has led to a chronic dependency of the people on the State. Government officials and politicians are reluctant to adopt approaches other than a welfare approach for fear of political repercussions. This welfare approach destroys the capacity of families to explore other indigenous coping mechanisms and pushes more responsibility onto the Government.

Despite the availability of screening criteria, they may in some cases not be enforced, leading to politically-motivated selection of families as well as communities - the difficulty of linking the program with other developmental activities, particularly those implemented by non-governmental organisations. Programs built entirely on a welfare premise also reduces connection to the greater economy in the form of small businesses and discourages the Government from liberalising those sectors to assist poor people.

In some areas there is compartmentalisation of services rather than convergence; a lack of marketing facilities for products of income generating enterprises. For the ultra-poor, financial support provided by the Government is barely sufficient to meet subsistence requirements and thus cannot be used for productive purposes.

Few can argue that welfare programs since independence have helped millions of poor but Sri Lanka needs to focus its limited resources on people who actually deserve it rather than broad basing it as an entitlement.