Ranil’s new administration may well take note of a recent development in Croatia, where the incumbent government signed a social partnership agreement with unions and employers aimed at bringing stability (and prosperity) to that Balkan nation.

This could well be a step in the right direction towards Ranil’s much-touted government of national reconciliation for economic integration is certainly a way forward in this respect.

An agreement between government, the unions and the employers would secure the political stability necessary to carry out reforms which in turn would ensure growth and new jobs in this country. There is no development without stability and solidarity and we need these conditions in the years to come.

Ranil would do well to invite all social groups to join in the pact and form the broad-based-consensus needed to start implementing tough reforms ahead.

Croatia is reforming its pension system and preparing the ground for health sector reforms as well as trying to shore up ailing public finances. The fact that all parties reached a consensus was an indication that the country was sick of divisions and conflicts.

The three sides agreed that public spending needs to be slashed and more money diverted into investment in the economy so companies can effect necessary technological upgrades to improve their competitiveness.

The government agreed to involve unions and employers to draft new laws while the unions committed themselves using peaceful means rather than strikes in their fight for workers’ rights.

Unions also agreed that real wages cannot grow faster than productivity which has driven labour costs in the past years constantly higher making Croatia less attractive to foreign investment than other regional emerging markets.

Helping companies to compete in foreign markets by boosting its stagnant exports is the only way to create new jobs and raise living standards.

Closer home, our neighbour (and big brother) India is moving down this street in her quest for economic stability. Developments in the state of Andra Pradesh under the dynamic leadership of Chief Minister Chandrababu Naidu indicate that substantial progress can be achieved by pooling all parties together.

The other states in India are not far behind. Private sector participation in major infrastructure developments in all sectors is evident and the government machinery are gradually reformed to provide the framework necessary to make investors feel more confident to move in.

A government official from Andra Pradesh I met recently told me this: "Chandra Babu Naidu is not our Chief Minister. We call him the state’s Chief Executive Officer (CEO)."

Would Ranil consider transforming himself into Sri Lanka’s CEO?

S. Mahendran
Colombo 3