Worthwhile change?

Tuesday, 7 February 2017 00:11 - - {{hitsCtrl.values.hits}}

Coalition governments have notorious reputations when it comes to balancing self-interest and political agendas. Despite speculation of a Cabinet reshuffle reports have also hinted that President Sirisena has been prevailed upon at a high level meeting to defer the reshuffle for a while longer as the Government works to show a united front to the public. But in many ways a Cabinet reshuffle at this point would be of little point to the public unless the exercise is underscored by dusting off the Government’s election pledges to make the new appointments more accountable, improve policy consistency and bite down on corruption.

The Achilles heel of this Government from almost day one was policy inconsistency. The private sector, economists and other stakeholders have daily lamented the need to have cohesive and comprehensive policies that focus on long-term development. This coupled with better adherence to law and actually punishing wrongdoers is the deceptively simply but essential formula for sustained economic growth. It is what would set Sri Lanka apart in a world of growing vulnerability, xenophobia and uncertainty.

Yet the Government on numerous occasions has failed to deliver on anti-corruption, policy consistency and reconciliation. The three biggest expectations the voters had in 2015 and which have largely fallen by the wayside in the subsequent two years. It is doubtful whether the Government can gain little more than a marginal respite from criticism by trotting out a ministerial reshuffle. Such an event would only create space for an interesting evaluation of the health of the cohabitation between the two parties based on what politicians get the plum portfolios.

At present the United National Party (UNP) led by Prime Minister Ranil Wickremesinghe has been given the task of fixing the economy. A hefty challenge that could become even more difficult as public objection to selling State assets grows. Plans to create public-private partnerships with the Hambantota port and other ventures have limited public buy-in with people deeply suspicious of transactions planned by the Government.

Bringing PPPs together in a credible and transparent manner would be the first step to making genuine progress and would ease public animosity over tax increases to foster fiscal consolidation. Tax increases and tightening of policy rates are also likely to dampen growth for 2017, setting a difficult stage forpotential local government elections.

A public long used to big budget development projects under the previous administration are awaiting the same from the present Government. But high levels of debt mean that the best way for the Government to foster growth would be through attracting investment, which it has had very limited success at. As Foreign Direct Investment (FDI) numbers continue to stagnate and elections loom the Government has to find a way to keep the public’s support behind it.

With so much to accomplish 2017 will certainly continue to try the ‘Yahapalanaya’ Government and its woes will find little redress in a fickle game of political musical chairs.