Most Sri Lankans pay their electricity bills on time, and in full. That fact was observed in a recent revelation by top officials at the CEB. However, this key utilities sector provider is on the verge of bankruptcy, and this may be partially due to the fact that there were long duration power cuts in the last few months.
What kind of bitter pill awaits the public as a result of expected IMF prescribed measures is still unknown, but it is possible that a great many of the subsidies that Sri Lankans enjoy may be removed as a result of the foreseen remedial measures. This is the first time that the IMF would be prescribing major reforms when the country is in fact defaulting on its debt obligations already. This is seen as an opportunity to ensure that a great many of the subsidies that have been a bane on the national exchequer are removed, so that as a country we would be able to embark on a more sustainable financial path.
However, can subsidies be removed when the people of the country have shouldered many burdens already? It would be a very difficult call. Finance Minister Sabry has said already that he would have to increase taxes but would probably touch the VAT last, because the ordinary people of this country would be affected.
Honouring that pledge would be a very tall order. Our tax base cannot be expanded much more. An increase in taxes only for the middle-classes would mean more social unrest as the professionals etc. are among the worst affected as a result of the recent economic convulsions.
The only viable alternative seems to be to tax big business. This is as opposed to taxing small businesses. Through the last two years big business seems to have had the most significant reprieve despite everything.
It is time that the Corporates be held accountable and are made to contribute much more to the national revival at this time of crisis. Corporate entities issued communiques recently that were aimed at the political leadership. It was as if these statements were being made by consistently responsible entities that had remained mute all this while, and were finally coming out with sage advice because the situation had become desperate. There was no finger-pointing inward.
This was to be expected. If there were true self-effacing statements made, the Corporate entities would have had to make somewhat self incriminating confessions. The massive companies including the so-called blue chips are not in charge of running the country, but there are enough professionals in these organisations that could have offered advise that would have amounted to appeals to the authorities to correct some of the policy that contributed to the current economic impasse.
But it was left to the academics and the journalists to tell the policymakers that some of the policy direction was flawed. The Corporate entities were busy making money and are always busy making money, because the leadership of these institutions is aware that no matter what happens they are by and large insulated from the fallout of what happens if society implodes, particularly on the economic front.
As usual these so-called vanguard entities that have monopolies over entire sectors of commercial enterprise appear to want to close the stable door once the horse has bolted. Whatever happens in the country in the next few months would be critical, and it is hoped that no matter the form and shape of government in the near future, the leadership holds the Corporate entities to better account.
The Corporate leadership has to be made to contribute to a more equitable sharing of resources and profits and not be confined to their vanity CSR projects. These so-called Corporate Social Responsibility endevours are mostly PR stunts in which millions of rupees are spent even though the beneficiaries are mostly advertising companies and not the folk who are supposed to be positively impacted by these initiatives.
These Corporate entities have been some of the biggest drivers of social disparity due also to their advertising budgets etc. which create ‘needs’ in society that are not necessities but are ‘felt needs’ because people are told by advertisers that they need various products that are already being used by the rich and the wise.
The recent upheavals in society show that this type of irresponsible attitude towards social transactions cannot be tenable any longer because there are vast segments of society that are faced with immense difficulty due to the current issues that face the country. When people say the ‘system’ has to change they are not just talking about the political system, though the business classes would rather divert public attention in that direction. If the wealthy business entities try any longer to shore up their monopolies these tactics would end up coming back to bite them — and if they are to avoid this boomerang effect, it is best that Corporates take their social responsibility very seriously in these inarguably decisive times.
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