The reality of capitalism

15 Apr 2010

Sri Lanka under Mahinda Rajapaksa government has started new journey into the future. The government has quietly adapted the model of ‘National Economy’ replacing the capitalist economy that has been practiced since colonial period except for brief periods (1956-59, 1960-65 and 1972-77) under SLFP lead coalition governments.

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”
-Refused (“Refused Party Program”)
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).

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)

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Anonymous said...

මහින්ද රාජපක්ෂ ගෙන් ලංකාවේ ධනවාදය අවසාන වේ යැයි ප්‍රාර්ථනා කිරීම මෙම ලියුමකරුගේ පටු හා විඥානවාදී අති සරල දැක්ම විදහා දක්වන අතර මෙය ධනවාදය සම්බන්ධ ඉතාම හාස්‍යජනක විග්‍රහයකි.
මහින්ද රාජපක්ෂ කරන්න යනවා කියන ඊනියා ජාතික ආර්ථිකය ( මෙහි ඇති කෙහෙල්මල් ජාතික ආර්ථිකයක් නැහැ.ආනයන ප්‍රමානය,ආන්ඩුවේ සංවර්ධන උපාය මාර්ග ගත්තම මේ ලක්ෂනය හොදට පේනව) ධනවාදයේම තවත් පැතිකඩක්.ධනවාදය සම්බන්ධ මූලිකම සත්‍යය දේපල වල පුද්ගලික අයිතිය පිලිබද කරුන.රාජපක්ෂ රෙජිමය වෙලදපොල ආර්ථිකය සහ නිෂ්පාදන මාද්‍ය වල පුදගලික අයිතිය පන මෙන් රකිනවා.වෙනස මෙ වර ධනපතියන් වෙන්න සජින් වාස් වැනි පාලක තන්ත්‍රය වටේ ඉන්න චෞරයන්ට වැඩි අවස්ථාවක් ලැබෙනවා.රාජපක්ෂට කඩේ යන්න ඕනෙ නම් ඒකේ අවුලක් නැහැ.ඒත් හේ සමාජවාදියෙක් විදිහට නිරූපනය කරන්න යන එක නම් ලෝක විහිලුවක්.

lasitha said...

I do not see anywhere in the post the word "Socialism". Anon seem to be another extremist who thinks that socialism/communism is the solution to capitalism. Annon Looks to be another frustrated JVP supporter who is striving for another blood bath to create revolutionary communism rather than realistic and humanistic national economy !! Go and fly a kite in ohhh that is now supporting Hillary and clans than anything else.

Gamaya said...

mee 'Anonymous' avubon,

dan api obathuma kiyana supiri samajawadaya dinaganna ekwenna one Soamawansa - Tilvin sohodaravaru ekkada? Ehemath nathnam Tissa Vitharana wage pappalath ekkada? General Sarth Fonseka oya kiyana supiri samajavadayata apiwa ekkan yaida?

Poddak withara thava pahadili kolanam bohoma pin.

- Gamaya

Anonymous said...

Democratic Socialist Republic of Sri Lanka (YES WE'RE Socialist not Capitalist check you're passports)

Why Socialism and Wealth Redistribution Don’t Work and Cause MORE Poverty, Inequality, and Injustice
By Capitalist in Chief (

Meet the Sri Lankan Government

Anonymous said...

Those rich people don’t need all that money. They don’t pay their fair share of taxes. And a lot of good can be done if all that money is taken away from those people, who don’t need it anyway, and is given to other less fortunate people so that they can have better opportunities to advance their lives.

People have a strong desire to do whatever is in their own perceived self interest!

The following are detrimental unintended consequences of socialism that stem from the above fact and undermine everything socialism is meant to accomplish:

* Much of the money that goes to the government ends up being wasted, resulting in ineffective government programs, and less wealth for EVERYBODY. Learn more.
* Many are tempted to assume that money collected by the government goes to help the poor and downtrodden. However, much of that money ends up in the hands of the rich and politically connected, those who have the most resources and ability to lobby for it. Learn more
* Socialism concentrates money and power in the hands of the government. When government grows, the greedy and corrupt don’t go away. Conversely, they now have a more powerful tool in their hands, the government itself. Learn more

Anonymous said...

"Lanka Rising

Country with greenery & culture, Nation with dignity & freedom." & girly boys.

I live in New Zealand and needless to say Sri Lanka is very popular among western nations for it's girly boys. I'm pretty sure you guys need a lot of help *wink* to come out of your economic trouble since you're socialist.


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