The failure of reconstruction

REBUILDING: Some positive changes have taken place after the war but much
remains to be done to support the local economy such as investing in appropriate rural
infrastructure, controlling market price fluctuations, and supporting measures to
strengthen co-operatives. Photo: AP
AHILAN KADIRGAMAR-May 21, 2014
As five years after the war is marked by
militarised victory celebrations, who speaks for the continuing suffering of the
survivors in the North and East?
What happens to a society and an economy ate! th!ee decades o "a!# $%e! a h&nd!ed
tho&sand peop'e dead o! disappea!ed, a disp'aced pop&'ation, dete!io!atin( socia'
instit&tions and dis!&pted p!od&ction "as the sta!tin( point o !econst!&ction "hen
the "a! came to an end in )!i Lan*a in May 200+, Reconst!&ctin( s&ch a society is a
tas* o t!emendo&s po'itica', socia' and economic p!opo!tions, -i%e yea!s ate! the "a!,
the!e is %isi.'e !e.&i'din( o in!ast!&ct&!e, a &.i/&ito&s cons&me! (oods ma!*et and
the .o'd p!esence o .an*s and inance companies ac!oss the co&nt!yside,
Reconst!&ction, ho"e%e!, has &ndo&.ted'y ai'ed,
Social and economic crisis
0he post-"a! impasse is mean"hi'e .ein( de.ated inside the co&nt!y and at
inte!nationa' o!&ms, 0hese de.ates a!e !i(ht'y !aisin( the p!o.'ems o contin&in(
mi'ita!isation, 'ac*in( acco&nta.i'ity o! the deaths and disappea!ed d&!in( the "a!,
inc!easin( cent!a'isation o a&tho!ita!ian state po"e! and a sta''ed sea!ch o! a
po'itica' so'&tion "ith 'itt'e p!o(!ess on de%o'%in( po"e! to the mino!ities in the No!th
and 1ast, 2&t they ha%e 'itt'e to say a.o&t the socia' and economic c!isis in the "a!-
to!n !e(ions,
0he !esponse in )!i Lan*a to the 'ands'ide e'ection %icto!y o Na!end!a Modi is
cha!acte!ised .ye&pho!ic c'aims .y the Ra3apa*sa (o%e!nment and the 0ami' Nationa'
A''iance 40NA5 that the ne" !e(ime in India "i'' .e po'itica''y a%o&!a.'e to the
inte!ests o the )!i Lan*an (o%e!nment and the 0ami' mino!ity !especti%e'y, 0he
impact o the economic shit in India "ith deepenin( neo'i.e!a' po'icies on in%estment
and t!ade in )!i Lan*a o! s&ppo!t o! !econst!&ction o its "a!-to!n !e(ions a!e ha!d'y
disc&ssed, Indeed, the post-"a! po'itica' de.ate "hich has inc!easin('y descended into
hype! nationa'ist !heto!ic 6 .oth in )!i Lan*a and 0ami' Nad& 6 !a!e'y to&ches on the
cha''en(es o !econst!&ction,
As "ith any othe! society de%astated .y "a!, decades o dis!&ption o p!od&ction in the
No!th and 1ast c&!tai'ed capita' acc&m&'ation, 7onse/&ent'y, the!e has .een 'itt'e
in%estment in the !e(ion to &p(!ade e8istin( p!od&ction aci'ities and ne" p!od&cti%e
%ent&!es, 0he inte(!ation o these "a!-to!n !e(ions into the nationa' and inte!nationa'
ma!*et in !ecent yea!s has 'ed to &!the! dis!&ption o 'oca' p!od&ction .y ma!*et
competition, 0he o&tcome is a dep'etion o p!od&ction and emp'oyment,
At the end o the "a!, the No!th and 1ast &!(ent'y needed capita' o! !econst!&ction,
0he state, "ith the s&ppo!t o dono!s, c'aims it po&!ed .i''ions o do''a!s in in%estment
and aci'itated the 'o" o conside!a.'e p!i%ate inance, 2&t this o!m o capita' has
neithe! stim&'ated 'oca' p!od&ction no! mo.i'ised 'oca' 'a.o&!, Rathe!, it aci'itated
o&tside cont!acto!s "ho oten a!!i%ed "ith e8te!na' 'a.o&! and e8t!acti%e inancia' and
comme!cia' inte!ests,
$%e! the 'ast i%e yea!s, po'icies aimed at !econst!&ction oc&ssed p!ima!i'y on !e-
.&i'din( !oad in!ast!&ct&!e, enhancin( connecti%ity to the ma!*et o! cons&me! (oods
and %ehic'es, and e8pandin( c!edit "ith inancia'isation, Indeed, inancia'isation has
a'so dete!mined the path and ai'&!e o !econst!&ction, 2an*s and inance companies
e8panded c!edit th!o&(h 'oans and 'ease hi!e p&!chasin(, and pa"nin( 'o&!ished "ith
the !ise in ('o.a' (o'd p!ices, 9ana society, histo!ica''y *no"n o! its !&(a'ity, ast
.ecame an inde.ted society, 1%en ishe!s and 'and'ess "a(e 'a.o&! a!e inde.ted on the
o!de! o t"o to o&! 'a*hs !&pees 4INR one to t"o 'a*hs5 pe! ho&seho'd in most %i''a(es
in 9ana, He!ein 'ies the ai'&!e o !econst!&ction, the!e is the she'' o in!ast!&ct&!e
and the ci!c&'ation o cons&me! (oods, .&t the economic st!&ct&!es o p!od&ction
necessa!y to en(a(e 'a.o&! a!e ho''o" e%en as "idesp!ead inde.tedness is tea!in(
apa!t society,It is not that the!e ha%e .een no positi%e (ains: e'ect!iication o the
co&nt!yside, ta!!in( o %i''a(e !oads and !e.&i'din( o sma'' tan*s ha%e !e%ita'ised !&!a'
in!ast!&ct&!e, 2&t these (ains a!e o%e!shado"ed .y the a'te!in( incomes in
a(!ic&'t&!e, in pa!t aected .y .ad !ains and d!o&(ht, In ishe!ies, enc!oachin( Indian
t!a"'e!s ha%e c!ipp'ed ishin(, 0he!e is m&ch that co&'d ha%e .een done to s&ppo!t the
'oca' economy s&ch as in%estin( in app!op!iate !&!a' in!ast!&ct&!e, cont!o''in( ma!*et
p!ice '&ct&ations, and s&ppo!tin( meas&!es to st!en(then co-ope!ati%es, Ha%in(
s&!%i%ed the "a!, a!me!s; o!(anisations a!e no" acin( se%e!e p!ess&!e !om the
'i.e!a'ised ma!*et economy,
0he !esponse o the state to this has .een denia', 0he 7ent!a' 2an* c'aims that in 2012
the No!the!n and 1aste!n <!o%inces had the hi(hest p!o%incia' GD< (!o"th !ates o 2=
pe! cent and 2> pe! cent !especti%e'y, In !ea'ity, this "as d&e to the onetime .oost o
the const!&ction secto! and the (!o"th o .an*in( and inance, Dono! en(a(ement is
a'so comp'icated .y (!o&nd !ea'ities, 0he no!the!n !ai'!oad, i!st .&i't o%e! a cent&!y
a(o .y the 2!itish, is .ein( !e.&i't .y India, Ate! dis!&ption o se!%ices o! o%e! th!ee
decades, t!ains a!e a.o&t to !each 9ana, Rai'"ay connecti%ity is openin( &p the No!th
and may cont!i.&te to st!en(thenin( 'oca' e8po!ts, Ho"e%e!, the a'te!in( incomes,
sta(nant p!od&ction and !isin( inde.tedness &nde!mine these positi%e initiati%es,
Dispossession and politics
0he socia' and economic conse/&ences o the ai'&!e o !econst!&ction a!e de%astatin(,
0he!e a!e !isin( !epo!ts o s&icides and attempted s&icides 'in*ed to inde.tedness, In
9ana dist!ict, medica' so&!ces c'aim ?1 !epo!ted cases o s&icide attempts !e'ated to
de.t in Ap!i' 2014, Women, inc!easin('y .&!dened "ith p!o%idin( o! the enti!e ami'y,
ind themse'%es %&'ne!a.'e to a.&se and %io'ence, 0he M&s'im comm&nity, e%icted
!om the No!the!n <!o%ince d&!in( the "a!, !emains iso'ated, And the caste st!&ct&!e
is ast !econso'idatin( in the post-"a! e!a, "ith the opp!essed castes.ein( socia''y
e8c'&ded !om ed&cation and a%en&es o emp'oyment,
0his pe!iod o !econst!&ction is not a @t!ansitionA to"a!ds no!ma'cy 4as it is te!med in
po'icy ci!c'es5, m&ch 'ess a .ette! &t&!e, .&t !athe! a ai'&!e o p'annin( that has 'ed to
dispossession, 0his dispossession is cha!acte!ised .y a 'oss o assets, dec'inin(
'i%e'ihoods, e8c'&sion !om a%en&es o! socia' mo.i'ity and "idesp!ead insec&!ity,
0he po'itica' economy o this 'a"ed !econst!&ction p!ocess is an acce'e!ated %e!sion o
neo'i.e!a' de%e'opment in the !est o the co&nt!y, "he!e acc&m&'ation .y
dispossession .y inance capita' siphons o 'oca' assets and c!eates massi%e
inde.tedness, 0he !eaction in the No!th and 1ast is o&t mi(!ation, "ith month'y
!emittances on the o!de! o Rs 20,000 4INR 10,0005 sent .y "o!*e!s e8p'oited in the
Midd'e 1ast, Ho"e%e!, those !emittances a!e in pa!t t!anse!!ed as de.t payments
cont!i.&tin( to the acc&m&'ation o ('o.a' inance capita' and nationa' inancie!s,
As the t!a&ma o "a! is a&(mented .y the t!a&ma o post-"a! !econst!&ction, the!e is a
need o! c!itica' !ethin*in( "ithin 0ami' society, Ho"e%e!, midd'e c'ass 9ana is
co&ntin( on thei! chi'd!en 3oinin( the 0ami' diaspo!a, and a!e the!eo!e, 'ess
committed to !e.&i'din( a de%astated society, 0he 0ami' e'ite in the co&nt!y and the
diaspo!a a!e comp'icit in the contin&in( dete!io!ation o 0ami' society .y thei!
dis!e(a!d o! the socia' and economic p!edicament,
0he 0NA-'ed No!the!n <!o%incia' 7o&nci' e'ected 'ast yea!, a'.eit "ith 'imited po"e!s
and &nde!mined .y the Ra3apa*sa (o%e!nment, has done 'itt'e .y "ay o e%en ana'ysis
and ad%ocacy to add!ess the socia' and economic p!edicament in the No!th, I a
p!o(!essi%e 0ami' po'itica' 'eade!ship is se!io&s a.o&t cha!tin( a die!ent path, it
sho&'d i!st ad%ocate so'&tions, 0he p!io!ity no" is to !e%e!se the p!ocess o
inancia'isation, add!ess inde.tedness and (ene!ate incomes, )t!en(thenin( the co-
ope!ati%es, and int!od&cin( a ne" sma'' ind&st!ies scheme that can &ti'ise 'oca'
!eso&!ces and c!eate emp'oyment is one a%en&e o economic !e%ita'isation, He!e, India
is "e'' p'aced to comp'ement its 'a!(e ho&sin( scheme and !ai'!oad const!&ction "ith
.oth capita' and technica' assistance o! emp'oyment (ene!atin( sma'' ind&st!ies,
As i%e yea!s ate! the "a! is ma!*ed .y mi'ita!ised %icto!y ce'e.!ations .y the
a&tho!ita!ian neo'i.e!a' !e(ime in 7o'om.o and !ed&ced to %ictimhood .y the 0ami'
nationa'ists, "ho spea*s o! the s&e!in( o the s&!%i%o!s in the No!th and 1ast# 0he
po'itica' (!o&nd has shited, I "e a!e to add!ess 200+, the th!ee decades o "a!, and
the ma3o!ita!ian po'itics that ha%e !ei(ned o%e! the 'ast cent&!y, "e need to .e(in .y
"o!*in( "ith the peop'e to add!ess the conse/&ences o the ai'&!e o post-"a!
!econst!&ction,
(Ahilan Kadirgamar is a political economist and researcher based in Jaffna, ri
!anka"#