2. Shared Economy
As outlined earlier, all our policy positions are oriented towards the notion of “People before Profits”. What that means is our economic planning is driven not by the objective of “conventional profit maximisation” but for “shared value maximization” or promotion of social well-being of all.
To do so, we will introduce a Social Market Economic System powered by digital technology adaptations. Social Market Economy is a socio-economic model combining free market private investor driven sector alongside social policy measures to the welfare of the less fortunate to establish a fairer and just society. The social market economy refrains from attempts to plan and guide production, the workforce, or sales, but it does support planned efforts to influence the economy through the organic means of a comprehensive economic policy coupled with flexible adaptation to market studies. This type of economic policy creates an economy that serves the needs of the entire population, thereby fulfilling its ultimate goal.
We believe the full potential of public ownership can only be achieved through the use of democratic, accountable and inclusive models.
This approach puts decision-making closer to the people who are affected by those decisions, giving bill payers and employees a democratic voice. When workers have a say in how their workplace is run and a stake in its success, productivity goes up. When consumers participate, they can ensure the services they rely on are invested in properly and run in everybody’s interest. Decision-making is transparent, and decision-makers are accountable for the decisions they make in all our interests.
We will work towards creating an economy where power and wealth are shared. Just as political institutions are measured by the extent to which they give the ordinary citizen the fullest opportunity of exercising political power, public ownership must be judged by the test whether it gives economic suffrage to ordinary citizens too. Public utilities and transport will be designed using co-operating values and principles that would democratise key aspects of our economy.
We are a private, public and community investment friendly movement. We encourage creativity, entrepreneurship and innovation in all sectors of society, including in the private sector. We will ardently promote the Social Economy sector. The concept of social economy neatly fits in with economic democracy concept as well. Worker Self-Driven Enterprises (WSDE) is the more modern and more democratic version of the old concept of cooperatives. The government will set up a Work Self Driven Enterprise Authority to promote and oversee the operations of the WSDE sector commonly known as worker cooperatives sector where production and distribution of goods and services are democratised.
We will boost democratization of capital ownership by encouraging public listing of companies, equity ownership by the management and employees, multi-stakeholder participation in corporate management and community ownership.
We will welcome foreign & local investment with enthusiasm on the proviso that those investments do not threaten the sovereignty of the country.
We will provide incentives such as temporary tax breaks to foreign companies and brand-new local companies where appropriate.
We will adopt a policy that by a certain date all government fleet cars will be purchased from a car manufacturing company or assembling plant established in Sri Lanka. Vehicle manufacturers will be encouraged to locally start plants manufacturing or assembling electric vehicles; similarly, vehicle owners and drivers will be given incentives to buy electric vehicles. This strategy could also be employed for other products.
We will promote a policy of ethical trading for all business enterprises. We will set up an Ethical Trade Labelling (ETL) Authority to certify that particular products and or organisations embody ethical trading standards. Based on international best practice on ethical trade, for example, following the Sustainable Development Goals (SDGs) stipulated in the UN’s 2030 Agenda for Sustainable Development, we will seize opportunities to take action on and promote ethical trade and workers’ rights in partnership with businesses, trade unions and civil society organizations.
We believe when it is affordable the government should make arrangements to provide a universal basic income (UBI) to all those who are on low or receive no income.
Our long-term vision given the way technology is heading is about a world without work! It may be too idealistic/theoretical to grasp or difficult to envision presently, but even Sri Lanka is fast moving in the direction of automation and digitalisation, making UBI a necessity.
Therefore, it is important for everybody to have a tax file. The amount of tax to be paid will be determined from time to time based on the government revenue base. UBI will be linked to the individual’s tax file number.
Tax avoidance will be taken seriously, and necessary resources will be provided for policing irregularities and tax declarations. The government will expand the regular desk checks regime and make sure those who claim losses continuously will be monitored thoroughly and the rogue operators will be brought to justice. Random tests need to be carried on for all taxpayers, including those who claim to be below the threshold.