Thread by @ChayuDamsinghe

1/ Corruption and tackling it is a key question, especially now that tax hikes have come in place. Noting down my thoughts on it and how we can move forward regarding the problem in my view.

#EconomicCrisisLK #SriLankaEconomicCrisis #lka #SriLanka #Corruption

2/ As always my personal view. This is how I see corruption in SL rather than any academic or "correct" way to see it (which doesn't exist obv). So discussion and questions welcome!

3/ I personally think of corruption as happening in one of 5 ways.

1. Outright theft and low-level bribes
2. Political expenses
3. Crony projects
4. Crony policies

4/ While I don't have any explicit numbers, from my understanding 1 - explicit theft and small bribes only account for a very small amount relative to size of SL's economy. Instead most "theft" happens in the other ways I feel and I would think it matters most to focus on those.

5/ Political expenses to me is essentially the expenses made for a politician's benefit, personal or electoral. Range from their official cars to getting jobs to their supporters. Goes in line with basic theft in a way.

6/ Expenses made on their personal behalf aren't usually very large in context of SL's economy. It's immoral and wrong and they should 100% not do that especially in a crisis, but on the numbers, it barely makes a dent IMO.

7/ Expenses made for reasons like giving jobs on the other hand, is really bad. It's not bad cause of the "cost" behind it in my view - that isn't too high as I've explained before. But it really messes with efficiency and ability of the state sector.

https://twitter.com/ChayuDamsinghe/status/1551206915606466560

8/ This should very much be stopped ASAP - the easiest way is probably what's already done. Freeze hiring on any basis except for predetermined essential jobs like doctors, nurses, teachers. This won't last, but it's a start.

9/ Then we get to projects and policies taken to benefit cronies. This to me, is one of the biggest issues in SL's corruption space, since it really messes with good policy and uses our limited budgets to help cronies, and with bribes associated, keeps good business out.

10/ The policy side of it is being adjusted right now, and that's a key part of what this overall reform is like. For example, the exchange rate adjustment means we no longer prioritize import traders over exporters. (not saying import=corrupt, but there was clear lobbying there)

11/ The project side will be much harder, since for not just years, but decades, a big chunk of our economy has been based off such "helping the friends of our politicians grow". This ties into policy corruption directly too.

12/ To be very VERY clear, it's not that everyone who benefitted from this shift in policy towards what the cronies did is corrupt. Rather, that it started DUE to corruption and a huge chunk of our economy over years was tied up there, including that of honest people's.

13/ Unfortunately, fixing that is going to be painful. Once the economy has been based on corruption, getting rid of said corruption will mean the economy has to adjust. That is painful for sure, and the policy side of it, we're going through.

14/ None of this happens overnight. We can set in some policies like we have done, but even that would take time to actually bring in results. Until then, things are tough.

15/ Why not prosecute corruption and seize corrupt proceeds? Why not "bring the money back"? We should in my view, very much. It's quite hard to do and will take time (Philippines took decades to deal with Marcos for example), but we still need to go ahead IMO.

16/ In my view, the fact that successive government don't take that step IS quite telling. It feels very unfair that they don't do the things that will hurt them and only expect us to, because it is unfair.

17/ But until we vote better leaders in, there's nothing else we can do other than do our part. There are steps being taken currently that directly and indirectly deal with corruption, but those will be painful. It's not enough, and it won't fix it fully, but it IS a step.

18/ I disagree strongly with the view that until corruption is fixed, I shouldn't do my part. First, you can't "fix corruption" that's wayy too idealistic a goal. Second, I think I can only reduce corruption BY doing my part.

19/ I also feel then, that what we can do is support those steps and keep our elected officials accountable. Push through the pain until we get the benefits we want and more. That power is in our hands and we must use it, not expect our leaders to become saints overnight.