WB and GSP+


by Jehan Perera

(June 17,Colombo, Sri Lanka Guardian) The World Bank’s decision to provide Sri Lanka with USD 900 million over the period 2008-2011 would come as a morale booster to the government. Sri Lanka’s inability to retain its seat in the UN Human Rights Council despite intense lobbying by the government has been generally seen as a vote of no confidence on account of the deteriorating human rights situation in the country. However, the World Bank’s willingness to commit itself to a significant level of developmental support to Sri Lanka for a three year period suggests that the international community is reluctant to penalize the country, and the masses of its poor people, on account of the human rights situation.

The World Bank decision would encourage the government to view its forthcoming application to renew the favourable tax concessions from the EU in terms of the GSP+ facility with a greater measure of confidence. Economists have pointed out that Sri Lank’s exports to the EU, particularly from the apparel industry, are crucially dependent on the favourable import duty reductions that the GSP+ facility makes possible. Due to the fact that over 100,000 jobs are believed to be at stake, even the main opposition party has pledged to support the government’s efforts to enact and implement the necessary requirements to retain the facility.

Obtaining the GSP+ facility is likely to prove harder than obtaining economic assistance from the World Bank. The World Bank is first and foremost a bank, and its decision making processes are primarily driven by economic motivations. From an economic point of view Sri Lanka is an attractive investment option, in comparison to many other third world countries. It has an educated population, a comprehensive social welfare system and a dense network of governmental institutions that operate in the remotest villages. Further, responsible fiscal management by successive governments has ensured that Sri Lanka has never defaulted on its international financial commitments.

On the other hand, the GSP+ facility is only partly an economic contract. Countries that are entitled to receive its benefits need to demonstrate their commitment to international law and to practices of good governance that are consistent with upholding the rule of law. Accordingly, countries that seek to obtain the GSP+ facility need to show their adherence to 27 international agreements, which include protection of human rights and labour rights. Reports submitted by UN’s High Commissioner for Human Rights, Louise Arbour, and the International Labour Office, influence EU decisions in this regard. Unfortunately the escalating war that the country is presently experiencing has made the fulfillment of these criteria problemmatic for the government.

Centre stage

Any country that is fighting a war will sooner or later find that the war has taken centre stage in the affairs of the country. The nature of violence, like that of fire, is to expand and spread. This means it is difficult to fight a limited war in which human rights are protected and the rule of law prevails. This is true of Sri Lanka’s war as well as international wars. Even the US, which seeks to ensure human rights compliance worldwide stands accused on this count. There has been a recent decision of the Supreme Court of the United States permitting those incarcerated in US prisons in the war against terror to file Habeas Corpus applications in the regular civilian courts of law, rather than be restricted to military tribunals.

In a similar way, the war against terrorism that the Sri Lankan government is fighting against the LTTE has led to serious human rights violations. The worst manifestation of these is the targeted killing of civilians by bombs placed on buses and trains and remote-controlled claymore mines in different parts of the country. There has also been a long list of political assassinations, abductions and intimidations that have targeted a range of actors, including the media. Addressing the inaugural convention of the breakaway faction of the ruling SLFP, former President Chandrika Kumaratunga is reported to have said, “It is not right for a government which is fighting against terrorism to act like terrorists. It will not be successful. There should be alternatives to end terrorism. The only solution to terrorism and terror is freedom and democracy.”

The present government needs to be more mindful of the need for it to balance the competing interests of liberty and security. This is precisely the position taken by the US Supreme Court in ruling that the US government could not deprive any person, even those arrested in the course of its war against terror, from knowing the charges against them. The US Supreme Court said, “Liberty and Security can be reconciled; and in our legal system they are reconciled within the framework of the law.” The majority in the Supreme Court took this decision despite a minority of judges opposing it on the grounds that the US was at war with radical Islamists, and one judge saying the decision “will almost certainly cause more Americans to be killed.” Strict adherence to the rule of law, even in a time of war, is what makes a country democratic and not fascist.

It is no cause for surprise that attacks in Sri Lanka against media personnel in particular would become well known internationally, as the international media would rally together to protect its own. The treatment of senior journalist and editor, J S Tissainayagam would be a case in point. He was arrested over three months ago, on allegations that he was supporting the LTTE. But so far no charges have been leveled against him in open court. His case has been taken up by the international media, and media organizations, including the International Federation of Journalists. These send negative messages to the international community.

Unbalanced approach

Underlying the government’s seeming insensitivity to international opinion, appears to be an attitude that there is no greater national purpose than to remain in power and defeat the LTTE. The government’s decision to dissolve the Provincial Councils for the North Central Province and Sabaragamuwa Province are pointers in this regard. The government’s attention ought to be devoted to safeguarding civilian life, the spiraling cost of living and securing the EU’s GSP+ facility. Instead the government appears to be focusing its energies, and the attention of the country, onto elections that are not essential at this time.

The government has sought to justify its decision to dissolve the two provincial councils on the grounds that they have become ungovernable. The ruling party has the largest number of seats in the two provincial councils, but it does not have an absolute majority. Until the government suddenly dissolved the two provincial councils it was not evident that there was indeed a problem of ungovernability. The opposition has taken the issue of the premature dissolution of the two provincial councils to the judiciary arguing that this action was taken without consulting them.

It appears that the government’s intention is to consolidate its power by obtaining a fresh term of office in the provincial councils, which would further demoralize and weaken the opposition. But the loss to the country can be as high as the gain to the government. This is on account of the neglect of the principles of good governance that are crucial to obtaining the GSP+ facility. In addition, the arbitrary dissolution of the provincial councils by Presidential fiat will undermine confidence in the strength and viability of the provincial council system which the government has been promoting as the solution to the ethnic conflict.

Despite the problems with these government actions, the underlying strength of international support to Sri Lanka, which is one of the third world’s oldest democracies, remains intact. French Ambassador Michel Lummaux who speaks on behalf of the EU on account of Slovenia currently holding the presidency of the EU, has reconfirmed the EU’s commitment to Sri Lanka’s unity and democracy and opposition to a separate state. He also stated that the grievances of minority communities should be addressed within this contextual framework. This political support of the EU, combined with the World Bank’s support for economic development, demonstrates the goodwill of the international community in facing the LTTE’s challenge. But to maximize this support, the government needs to adopt a more balanced approach to conflict resolution.
- Sri Lanka Guardian