Since 1977 we have been under capitalist system for continues twenty eight years until Mahinda Rajapaksa was elected as President on 2005. The 1977-2005 period was the golden age of capitalism in Sri Lanka.
What is Capitalism?
Capitalism is an economic and social system in which capital, the non-labor factors of production (also known as the means of production), is privately controlled; labor, goods and capital are traded in markets; and profits distributed to owners or invested in technologies and industries. Capitalist societies encourage competition and personal profit.
What you are not taught in comprador Sri Lankan education
Most of the people think that it is ‘Goods’ that is freely traded under capitalism. However the most important entities that are freely traded under capitalism are ‘capital’ and ‘labour’.
Free trade of ‘Capital’
Public quoted companies are the main means of trade of ‘capital’ under capitalist system. Colombo Stock Exchange (CSE) which itself is another company plays facilitator role of trading of ‘capital’ in Sri Lanka.
Free trade of ‘Labour’
Under capitalist system labour (humans) are just another commodity of trading for the companies. Most people who love and toil hard for their companies are aware of this reality until they are in some sort of trouble.
What is a public quoted company?
Under capitalism it is individuals (called entrepreneurs) who get together and start large scale businesses. Then they get the help of ‘investors’ in gathering necessary capital. The investors have a sole intention of highest return on capital and nothing else. They freely move their capital from venture to venture by analyzing the historical profit records and forecasts publish by companies.
A heartless entity
If you are working under a small scale company or business owned by one or few known individuals, you have good idea of personality of the place you are working. It is mostly reflection of perception of the owners which is mostly transparent to public.
However you may be working on a multinational (Listed on stock exchange in USA or UK etc) or national listed company. Now you are working for a mysterious devil. Stocks are freely traded and most of the case a single person does not hold the majority of the shares. Therefore the decision making and governing authority of the company pass from people to people each year (or group of people). Therefore, It does not have a tangible personality with a heart. It is moving targets of investors that each and every employee of the company must strive and those who set targets gather profits and move to a another.
The short-term intentions of Investors
You may be an ambitious person who is committed to have long term honest career in a multi-national/listed company in Sri Lanka. However in reality bulk of the investors who have invested in your company have short term interests in profit making. Your company may have made big profit last year. The bulk of the profit is already shared among the investors or reinvested in other sectors which they expect more profit in the near future. If some other investment areas yield more profits in next year, your section or subsidiary may even internally displaced within the parent company and you will be shown the back doer.
“Capitalism is, indeed, organized crime, and we are all their victims”Regardless of past earnings, if your company fails to meet expected profit margins in consecutive two years that will be the end of your company because the investors will soon turned back and look for better opportunities else where (May be even investment in some other country).
-Refused (“Refused Party Program”)
That is why the heartless entity called ‘company’ is in continues struggle of survival every year. It is employees that are put on pressure each year to get maximum out of their soul.
While you are in the same crusher working late hours, week ends etc to meet financial targets, the investors are freely moving from company to company, sector to sector and even country to country. While you are forced to specialized on specific skills and bound to work for a single company (at a given time). The ‘capital’ is free flown without boundaries in continues hunger of higher profits.
Are you ready?
This is the reality of capitalism. Either you can be a one of miserable silent victims of the vicious cycle or think rationally and rise firmly in order build better socio-cultural-economic system in Sri Lanka.
(This is part 1 of the series of posts titled - Towards National Economy)
- The Myth about Money
- Never fall into the trap of 'Flexible Hours' !
- Smart Employee in Open Economy
- The political reading of American Idol
- Trear drop of capitalism - A case study
- Prepare for the knowledge based rising –sharpen your vocabulary