A less recognised cause of our underdevelopment

Two days ago the country celebrated 74 years since Independence. For most of the country’s 22 million, it was not a day of celebration. They are in severe economic difficulties deprived of the essentials for living and uncertain of their livelihoods.

Third World country

Popular singer and satirist Sunil Perera, who passed away last year, said his country was a Third World country when he was going to school and now that he was about to die, it is still a Third World country. Had he lived a little longer he would have said his country was in a worse condition than at any other time of his life.

Many reasons

Many reasons have been given for the island’s lower than potential economic growth and why other countries that were less developed at the time of our Independence in 1948 overtook us.

Objective

The intent of today’s column is not to discuss the multiplicity of causes that hindered the country from achieving its potential. It is to focus on a less-discussed cause of our weakening capacity for economic growth that continues to vitiate our economic development.

Actually

As the nation’s first Prime Minister, D.S. Senanayakewould have said in his inimitable way: “Actually as a matter of fact,” it is not correct to say that the country has not developed. It has.

Economy

The economy has grown by about four percent over the seven decades since Independence. The per capita income reached middle-income level a few years ago and social indicators have been impressive.

Social indicators

Life expectancy has risen from about 55 years at Independence to over 70 years now, infant and maternal mortality is low and adult literacy is high.

Economic development

Notwithstanding these achievements, the country’s economic development was far below those of other South East Asian countries that were less developed and had lesser capacity for economic development, such as Singapore, Malaysia, South Korea, Thailand and Indonesia.

Overtaken

A much-discussed issue is why Sri Lanka that had a good potential for economic development at Independence was overtaken by other countries. Although most South and South East Asian countries were less developed and their infrastructure weaker than ours, they have surpassed Sri Lanka’s economic achievements.

Reasons

Among the reasons that have been given have been the adverse terms of trade, regular changes in economic policy, the adoption of inward- looking restrictive policies, rapid population growth, and inappropriate economic policies. Ethnic violence and the civil war too were important reasons for the country’s underdevelopment. While these and other factors were significant, a much less discussed factor is the weakening of the country’s economic capacity by several waves of population exodus.

Today

Currently, we are seeing another wave of the country’s educated and skilled youth leaving the country for a wide range of countries. Instead, of them being drivers of the country’s economy. They are looking forward to living and working in other countries that have better opportunities.

Historical perspective

For many centuries Sri Lanka was the repository of people from all parts of the world. Migration from India, the Middle East, China, Malaysia, and African countries is well- known. Apart from these, the country was enriched by people from European nations such as Germany. Jews from Europe played an important role. They contributed richly to the country’s talents, entrepreneurial skills, professional capability and education.

Indian communities

Several Indian communities with entrepreneurial skills and capital came to Sri Lanka. These included the Gujaratis, Sindhis, Borahs, Parsees and Chettiars. Many large successful business enterprises in the country have been developed and expanded by these communities.Much of the country’s main exporters of apparel, the largest single item of manufactured export, are entrepreneurs of these communities. They are internationally successful businessmen. The success of these enterprises has also contributed to the transfer of business, technical and management skills to indigenous businesses.

Burghers

Dutch and European intellectuals made a significant contribution to the country’s education and legal development. The Burghers of Dutch and Portuguese ancestry made significant contributions to a number of professional fields like medicine, law and education of importance for the country’s development. This is only a brief and inadequate reference to the contribution of foreigners to the country’s economy.

Development phenomenon

Economists and economic historians have pointed out that migrant populations played important roles in the economic development of many countries. Huguenots from Holland, Jews from Europe, Chinese migrants and Indians have played key roles in the development of many nations, most notably the US, Australia and Canada. Chinese migrants played key roles in the development of South Eastern countries. The contribution of migrants to economic development has been a significant international economic experience.

Post-independence

The story of Sri Lanka’s development since Independence is one of an exodus of capable people that has reduced the country’s economic capacity. On the other hand, Sri

Lankans have contributed to the development of other nations. The post- Independence period is a story of people leaving the country to enhance the development capacities of other countries.

Exodus

The initial exodus of Burghers and Sinhalese and Tamil intellectuals was a result of the Sinhalaonly Policy of 1956. In fact, many intellectuals, not only from minority communities, but also from the Sinhalese community, left the country over time.

Contribution abroad

Scientists who left the country contributed significantly to the development of other countries. The tea industries in Kenya and other African countries have been developed by Sri Lankan scientists and planters. Sri Lankans have also contributed significantly to the development of rubber research in Malaysia and Vietnam. The significant contribution of Sri Lankan medical specialists in countries like Britain, America, Australia and Canada are wellknown. Their gain has been our loss.

Second wave

The second wave of exodus came with the 1958 racial riots. Large numbers of Tamils, both professional and educated, left for North America and Europe. This was a turning point in the country’s history of a weakening economic capacity.

Other waves

There were smaller waves of migration since then till the big push came with the July 1983 riots. Many skilled engineers, doctors and other professionals left for other countries. This was apart from the economic consequences of terrorism and civil war for 27 years.

Continuous exodus

Apart from these waves of migration, there has been a constant outflow that has certainly weakened the country’s capacity for economic development. Today’s conditions are such that people of all communities, most notably the Sinhalese too, are of the view that this is not a country to live, but a country to leave. The adverse implications of this will be seen in future years.

Conclusion

The exodus of the country’s educated and skilled workforce makes the island a repository of the less capable. The technical capacity of the country, as well as its intellectual calibre, will be seriously jeopardised. As much as the country’s post- Independent development was seriously hampered by the exodus of people, the future capacity for development is threatened by this brain drain.