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to bow to pressure
Pressure for Indraratna to withdraw his research findings
It was the presidential election time in 2010. The incumbent President after a
five-year rule and a conclusive victory over the Northern rebels had sought
another term. Given his popularity, the Opposition had a tough time to penetrate
the voter base in the country. Hence, they used every trick in the book to attack
the incumbent candidate.
The report had quantified that public sector corruption was at 9% of GDP causing
the country to lose 2% of growth every year. This was delicious food for the
Opposition to attack the ruling administration and they used it liberally at every
possible forum.
The price came after the election. By then, Indraratna had completed three years
as the Chairman of the newly-established Monetary Policy Advisory Committee at
the Central Bank. It was a voluntary job he had performed without any
remuneration.
He said: “I got a letter from the Governor of the Central Bank immediately after
the election informing me that the bank was considering the restructuring of the
Committee. Hence, I was to take note of the fact that my services were no longer
needed.” I asked him whether he did not protest against this sudden decision by
the bank. He said: “No, I didn’t, though I knew that it was not for restructuring the
Committee. That was a ruse used because except me, all other members
continued to serve the Committee. Why should I betray my values for a position?”
Anyone else would have yielded to pressure and betrayed his values. But this was
Indraratna and he was of a different species.
Unwelcome independent economic analyses
Though he was the President of the only powerful body of economists, the Sri
Lanka Economic Association (SLEA) from 2004, the Government chose not to
engage him or the SLEA for economic policymaking exercises. He delivered many
useful messages from the chair of the presidency of the SLEA at its annual
sessions or special conferences organised by it. They all fell on deaf ears.
Even the new government that came to power in 2015 promising economic
democracy and policy transparency kept a distance from Indraratna or his body,
the SLEA. It pretended that there was no such body as SLEA. It was most
noticeable when the new government hosted the Sri Lanka Economic Summit in
January 2016 in collaboration with Harvard University’s Center for International
Development and the US-based George Soros Foundation.
At the summit, there were many economists, both local and foreign. But a
notable absentee was Indraratna or any member of SLEA participating in the
summit in his official capacity. But this did not deter Indraratna from doing what
he was required to do as an independent economist or the head of the powerful
body of economists in the country.
Guru of Gurus
Indraratna had been guru to many thousands of students passing out from the
University of Ceylon in the 1950s and 1960s and those who passed out from the
University of Colombo in the 1970s and 1980s. Many of his students ended up as
professors of economics at universities, top bureaucrats in the government and
top managers of the country’s banking system. Hence, he was considered the
Guru of Gurus. I was able to write on this aspect of Indraratna’s contributions in
my series on Sri Lanka’s top economists (available at:
http://www.dailymirror.lk/article/Professor-Indraratna-Guru-of-gurus-
122476.html ).
I did not have the chance of studying under Indraratna formally. But he was my
guru in a different sense. I learned the ABCs of economics from his textbook on
microeconomics titled ‘Mila Nyaya’ or Price Theory in the mid-1960s. I began to
meet him in person when I was appointed to the newly-established University of
Ceylon, Colombo as a clerk in 1969.
At the new university, Indraratna was the Dean of the Faculty of Social Sciences in
addition to being the Professor and Head of the Department of Economics there.
After joining the Central Bank, I had a very close relationship with Indraratna, who
had now retired from the university. Our relationship helped us to learn of each
other’s views on economic issues and learn from each other.
A three-year majoring and minoring degrees
The reform he introduced to the new university’s Faculty of Social Sciences had
not been tried anywhere else in Sri Lanka. The traditional four-year special degree
offered by other universities was converted to a three-year degree with a
majoring subject; the general degree that had been offered by other universities
continued as a minoring degree.
Thus, students completing the majoring degree could leave the university after
three years and were qualified to compete with special graduates who had spent
four years to acquire their degrees. Accordingly, several of his students joined the
Central Bank in a fast-track mode and some ended up even as Deputy Governors.
A fourth-year BPhil degree
Though many students opted to complete the BPhil degree after completing the
majoring degree, it was not a requirement; they could join the job market one
year ahead of their counterparts specialising in subjects in other universities.
But unfortunately, after Indraratna left the university service, the successor to the
University of Ceylon, Colombo, the University of Colombo, reverted to the old
method of offering a three-year general degree and a four-year special degree.
Once they are delivered, they are debated in public, analysed and assessed by
university academics, reviewed in class assignments by students and used as the
main seed ingredients for subsequent policy research. For instance, when the
American Economic Association or AER conducts its annual sessions, for months
universities in North America and the UK prepare their students for the oncoming
event. Students are advised to be vigilant on the President’s address and other
papers to be presented at the sessions.
The pet topic being discussed by university dons teaching economics in classes as
well as in corridors of those universities invariably revolves around AER
proceedings. Everyone tries to be ahead of the others with respect to his reading
of the outcome of the proceedings.
The failing homo economicus
But that is not the case with Sri Lanka. University academics teaching economics
at universities pay scant attention to SLEA proceedings. The media does not give
sufficient coverage to what happens at those events. The public, as usual, show a
strange aloofness to anything ‘economic’, though they are categorised as a
species known as ‘Homo economicus’ or ‘Economic Man’.
Thus, economists as well as non-economists do not think that economic issues are
important for them to be concerned with. This apathy on the part of the public is
demonstrated by the poor response they have shown to articles analysing
economic issues published in newspapers. The internet editions of these
newspapers have opened opportunities for the public to get engaged in
discussions and debates.
Yet the comments section relating to these articles is usually left blank though the
open invitation has been for readers ‘to leave a comment’. It appears that
economic issues are mostly relegated to studying for examinations and after
those examinations they are conveniently forgotten.
Releasing SLEA Presidential Addresses in book form
Revising and updating his Presidential Addresses at annual sessions of SLEA for 10
years, he released a book titled ‘Policy Issues for Sustained Development of Sri
Lanka’ in 2014. It enabled interested readers and even those who were engaged
in policy research to have access to his addresses as a ready reference.
This does not mean that readers should necessarily agree with Indraratna. They
can bring his addresses to a free debate, agree or dissent with him or even refute
him. For whatever the intellectual enterprise one may wish to have, all his
addresses were made available in a single place in printed form. According to the
preface, the book was addressed to the relevant authorities or policymakers and
relevant public officials who were engaged in policymaking.
Indraratna: The liberal thinker
He thus found it difficult to amend his ways to suit the rhythms and pulses of
people in power. As a result, given the current political and public policy culture in
Sri Lanka which does not accommodate alternative views, it was hard for
Indraratna to play any useful role in influencing the evolution of the country’s
economic policy thinking.
His short stint as a member of the Economic Policy Council under the Mahinda
Rajapaksa administration too ended up with no concrete results. Another
member of the Council confided in me that the administration viewed Indraratna
as a troublemaker since he was opposed to the trade and exchange rate policy of
the Government. Hence, according to the member, the Council instead of firing
Indraratna chose not to meet. This was despite the fact that the leading figure at
the Council happened to be a one-time student of Indraratna.
Legacy in economics
Indraratna left this world a year ago and his death anniversary falls on 18 January.
He left a legacy in Sri Lanka’s economics teaching. He successfully built a strong
network of economists in the country. He had the obsession of contributing to
knowledge creation in the country. He was obstinately independent. That was the
message he left to the future intellectuals of the country.
(W.A. Wijewardena, a former Deputy Governor of the Central Bank of Sri Lanka,
can be reached at waw1949@gmail.com).
Posted by Thavam