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Sunday, 18 July 2004  
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Globalization makes the rich richer - Dr. Carlo Fonseka

by P. Muthiah

Globalization was termed as modern capitalism which made the rich richer, Emeritus Professor of Medicine Dr. Carlo Fonseka said at a seminar on 'Globalization and Human Rights' held at Marga Institute, Colombo. This was the first in a series of four seminars organised by the Centre for Policy Alternatives which was presided by its Director, Dr. P. Saravanamuthu.

Attorney-at-Law Ruana Rajepakse who submitted a paper on water and land said that the prime aim of opening water services under the General Agreement on Trade and Services (GATS) was to privatise the water supply system which had until recently was in public ownership in a majority of developing countries. It was left to the host country to make a significant change in its socio-economic system. The request to open up this sector under the GATS was designed merely to eliminate public enterprises to allow multi-national water corporations to expand their areas of operation.

Referring to Sri Lanka's Water Services Reform Bill, she said it was designed to allow for privatisation of pipeborne water supply and the transfer of public water assets to private entities and, it was submitted before parliament in 2003, without any prior public discussion.

Referring to land, Ruana Rajepakse said it was not a subject that came under the GATS. However, the United States treated barriers to foreign ownership of land imposed by other countries as "trade barriers".The former government introduced the Land Ownership Bill which was challenged in the Supreme Court, but rejected.

Under this Bill, State agricultural land would have been converted into a free marketable commodity, non-citizens would have gained control of these land, and there were no specific directions or guildelines for the purpose of their utilisation. These examples clearly indicate that in Sri Lanka the policies of economic globalization would have to operate within the framework of the constitutional guarantees on human rights, Rajepakse said.

Mr. Sarath Fernando said that successive governments supported forces that controlled the markets. At the Tokyo conference of 2003, the document 'Regaining Sri Lanka' was the theme for discussion but not peace as envisaged. He added that this document encouraged migration from rural to urban areas and changed the agricultural lands as hunting grounds for multinational companies.

Former Treasury Secretary Charitha Ratwatte said the present bureaucratic system in the country was incapable of tackling important issues as there was a breakdown in the fundamental system. The country needed capacity that should be built to win the battle against the globalization which could not be eliminated.

Mr. P. Sarath Gunawardene said there were disparities between the WTO and the governments of developing countries. Referring to fifteen multilateral agreements, he said some of the provisions could not be implemented locally. For example, there were no parallels between the fifth agreement and the Intellectual Property Bill which did not include concessions provided by the agreement.

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