Lessons from Sri Lanka: India's Path to Economic Resilience and Democratic Stability
India has been fortunate in learning crucial lessons through the economic and political experiences of other nations, particularly Sri Lanka. Adversity has often served as a teacher, especially in the wake of the Sri Lankan economic disaster and political crisis. This article delves into these lessons and explores how India can leverage them to foster a more resilient and stable democratic future.
Understanding the Context: Economic and Political Similarities
While Sri Lanka's economic challenges began in 1991, the nation has faced a series of financial crises and political instability since then. These challenges have highlighted the dangers of imprudent economic policies and inadequate political leadership. In 1991, Sri Lanka struggled to manage its debt and foreign exchange reserves, leading to a severe economic downturn. Similarly, India in 1991 almost went bankrupt due to decades of controlled and underperforming economic policies.
Lessons for Indian Politicians
Indian politicians must take a deep look at the consequences of short-sighted policies and ego-driven governance. For instance, the 1991 economic crisis was not handled by merely submitting to international financial institutions like the IMF and World Bank. Instead, Prime Minister Vishwanath Pratap Singh and his team, though criticized, managed the crisis by implementing far-reaching economic reforms that stabilized the country's finances.
Prudent Governance and Economic Reforms
The Indian government, post-1991, learned to avoid complacency and embrace transparency. Genuine economic reforms were necessary, and the government took steps such as reducing dependency on foreign loans, liberalizing trade, and privatizing state-owned enterprises. These measures were crucial in turning the economy around and ensuring long-term sustainable growth.
Freebies and Public Sector Dependence
Another critical lesson for Indian politicians is to avoid giving freebies or creating a dependency culture. Freebies often come at the cost of fiscal discipline and efficiency. India has witnessed the aftermath of such policies, with farmers on dharna (protest) and the government struggling to address their demands. The 2022 farm bill protests are a stark reminder of what happens when freebies are granted without considering long-term consequences.
Governance and Democratic Practices
In Sri Lanka, dynastic politics has often led to corruption and inefficiency, eventually culminating in political collapse. India is gradually moving away from this pattern. The end of the Nehru-Gandhi dynasty and the Abdullah family in politics signifies a shift towards more meritocratic governance. However, the Karunanidhi family still holds sway in politics, highlighting the need for further reform.
Equality and Inclusivity
India’s strength lies in its democratic framework and the recognition of the common man as the king of the democracy. Political leaders must not be on an ego trip and instead focus on serving the people, respecting their demands, and fulfilling their promises. Engaging with the common man and seeking their consent before making decisions is not just a moral duty but a strategic necessity for sustainable governance.
Resilience in Economic Development
India is a naturally resource-rich nation, with significant agricultural output and strong export capabilities. In 2019-20, India produced 296 million tonnes of food grains, earning $10,064.04 million in food grain exports in 2021. However, the focus should be on productive development that benefits the common people rather than creating an ultra-rich class at the expense of socio-economic welfare.
Human Resource Development
The key to sustainable development is the development and education of human resources. Investing in education, health, and infrastructure not only improves the quality of life but also drives productivity and economic growth. A focus on promoting entrepreneurship, skill development, and innovation can help ensure that the common people benefit from economic growth and do not revert to the pre-1947 era socioeconomic status.
Conclusion
Ideally, India has no direct lessons to learn from Sri Lanka's economic disaster and political crisis. Instead, India's path forward should be based on the lessons learned from its own past and the successes of its democratic institutions. By fostering transparency, inclusivity, and productive development, India can ensure its long-term resilience and stability.
As India continues to evolve, it must remain vigilant against the pitfalls of dynastic politics, dependency on freebies, and underproductive development. A focus on human resource development and democratic practices will be critical in ensuring a bright and prosperous future for its people.