Rebuilding northern economy: Are efforts realigned in the right direction?

 A man seen buying application forms at a local book store in Jaffna Town with the hope of securing government employment. Various openings for government jobs pasted on the walls of the local book store. Pic by : Suthaharan Perampalam 

By Suthaharan Perampalam 

A genuine in-depth understanding about the northern economic heritage is vital while looking ahead and planning for an enriched future. Reinvent the cycle by utilising the value system which has worked in the past to reap better results, now.  

However, fresh modern ideas need to be incorporated while rebuilding the northern economy especially at a time when the infrastructures are in place. The northern economy’s slow progress clearly points out the failures resulting from thrusting based on personal agenda and convenience, instead of working with a thorough understanding.

Historically, Northern Tamil’s socioeconomic system and culture have been strongly upheld by three key pillars - education, business and farming and fishing related activities, thus bringing economic prosperity to the region. 

Education resulted in professionals and governance by respectable government servants 

Education was a top priority for everyone, regardless of one being an elite or an ordinary person. A significant number of Northern Tamil professionals, especially doctors and engineers, were present during the pre-1970s due to the intense competition to gain educational success and fulfilment.

On the other hand, the most eligible and qualified represented the civil services during the pre and post-independence periods. Government intervention was at its best with a disciplined government mechanism that led to an effectively managed society. An efficient system and prosperity need to be attributed to the values practiced in the North, where the people naturally strove for educational success.

Businessmen brought riches to the region 

The islands around the northern peninsula and northern tip, called Vadamarachchi are geographically disadvantaged for any commercial cultivation due to the lack of agricultural land and clean water compared to other areas in the North. Hence, these people’s focus turned towards business. 

Businessmen from the North are well known for retail trade and they have deeply penetrated into the smaller towns in South as well. Businessmen brought additional wealth and prosperity to the Northern Province.

Farming and fisheries contributed greatly 

Farmers fulfilled local communities’ needs using the natural resources available within the region. Market oriented cash crop cultivation within the Jaffna peninsula has been known for a fairly long period of time due to efficiency, productivity and innovative tendencies involved.

In 1983, one third of fisheries exports were from the Jaffna district amounting to 49,000 metric tonnes. Northern economy flourished with farmers and fishermen’s effective functioning until the ethnic issues started to creep in during the 1980s.

Reengaging the North towards growth 

Startling changes that have taken place in the Northern Province within the past 30 years. The majority of people from the higher socioeconomic classes went abroad, while some remained in Colombo turning Wellawatte into Little Jaffna, to escape the prior conflict zones. 

Pre-war, Jaffna was Sri Lanka second largest commercial city. However, in order to regain the economic prosperity enjoyed in the past, the three core pillars highlighted above need to be strongly re-established. Rebuilding the northern economy after 30 years of stagnation and neglect is challenging, considering the damage caused by influencing the people’s mind negatively. 

Immediate efforts should be made to provide psychological aid to alter perceptions in order to change their attitude. More efforts needs to be channelled towards creating a positive mindset in order to reap the benefits from education, employment, business and any other economically viable activity. In order to develop a proactive youth community, a clear and precise message appealing to the people’s hearts and minds needs to be delivered to create a meaningful impact. Currently, there is a clutter of ongoing communication directed from multiple sources for their personal benefits.

Keep agricultural momentum up 

The agriculture and fisheries sectors have picked up strongly economically after the war. This is mainly due to Government and NGO momentum, communities’ commitment and the market mechanism driving returns for the time and money invested. Demographic transition within the agricultural and fisheries sectors remains unchanged compared to the pre-war period, resulting in growth and momentum after the war.

However, the remaining pillars of northern societies have weakened due to war and displacement. 

Re-establish focus on education and employment generation 

As the war evolved the Northern Province lost its grip on education and is still struggling to prioritise and focus on education. The Diaspora’s intervention and influence has negatively impacted the livelihood of those in the north. 

The younger generation has been caught in a dilemma of leaving the country and settling abroad at any cost, even through illegal avenues. Relatives living abroad are continuously pumping money in the form of free remittance and this has led to youth wasting time roaming around waiting for an opportunity in the form of going abroad or a job position which is beyond their qualifications. 

The free flowing money from abroad convinces the youth that they should not settle for any lower levels of employment. The irony is that when these youths migrate they eventually end up doing odd jobs at fast food chains, fuel stations and grocery stores.

Restore the excellence of Government services 

While acknowledging the existence of some dedicated government employees, it’s impossible to ignore that a significant number of appointments have been achieved through political rent-seeking for the last two decades. A proper investigation would reveal the number of qualified employees selected through genuine protocol while the rest invested money to secure government jobs. 

Government employees lacking the required basic skills and capacity are clearly evident. Overstaffing and lack of productivity are huge barriers for efficient functioning of the economy. It’s worrying to imagine the future of the Northern Province when strategic planning and strategic resource allocation are made and implemented by an inefficient resource pool.

Future-oriented planning and implementation by establishing high standards for goverment services and aligning resources is an upmost priority for the region. Qualified and talented government employees should be recognised and opportunities granted in order to progress towards the betterment of society.   

Transform trade and business in the region 

Thirty years of uncertainty has left businessmen without further investments, expansion and technology upgrades so the focus still remains on the conventional brick and mortar business. 

Over time intense competition from modern retailing establishments such as supermarkets has led to a drastic decline in successful traditional businesses. The majority of businesses active in Jaffna are managed by the older generation and there is a lack of appeal for conventional business amongst the younger generation. 

Educating and helping northern businessmen will develop businesses and inserting the right technology will enable competitiveness. Huge potential for employment generation lies within this pillar; the next generation should be encouraged to come up with innovative businesses and ideas to transform the economy. 

Post-war, there are tremendous efforts directed from the Government and NGOs towards building the northern economy. However, numerous problems and challenges were encountered in terms of transforming livelihoods and aligning towards growth. Thoroughly understanding the heritage, values and people and also connecting the dots are vital to turning the northern economy towards growth and development. 

(The writer is a senior researcher attached to a think tank organisation active across  Asia Pacific. He can be contacted at [email protected])