Let us assume there is a poor rural village, to which there is no milk supply. (I hope you would not ask me why I selected milk as an analogy – It directly came from ‘kolombata kiri – gamata kekiri’)

Well, let us also assume that outside this village Milk is selling at a price of Rs. 3x per litre and, if someone wants to sell milk at this particular village it will cost Rs. 5x per litre (difference being transport and distribution costs.)

So the government now wants to give milk to this poor village under its ‘Gama Perata’ programme. It can do this is several different ways:

1.It is possible to provide a fixed monthly payment Rs. Y to each villager, and assume they will use it to buy milk. The money comes from taxpayers. Govt. does not have to worry about the distribution because if the villagers have money there will be a demand and that demand will attract vendors who will create distribution channels. (In other words this is another ‘Samurdhi’ model)

2.It is also possible for the govt. to create a co-operative society store in the village, which will issue a limited amount of milk to each villager at a reduced price or free of charge. In this case the govt. creates the distribution channels. The money again comes from the Treasury. (This is a ‘Halpoth’ model)

3.The government can approach some vendors and say “Okay you sell milk at this village at Rs. 3x for litre or less and we pay you the difference” The money comes from Treasury. (‘Pure Subsidy’ model)

4.The Govt. Can ask the vendors to sell the milk at this village at Rs. 3x or less while the govt. allows the same vendors to sell milk at city at Rs. 6x or higher so that they earn the difference. (‘Cross Subsidy’ model)

As far as it is milk, the most successful model I can think of is the second one. In fact, this model has worked well for some commodities like rice, flour and sugar till 1977. It will ensure finally the people will get milk. It will also make them happy.

Now put milk = telecom. Will the model work? Yes, I think still it will.

Finally, it will make JVP happy (The poor will no more be oppressed by American imperialists and NGOs and the clan.) and it will also make KKG happy. (It is the only way we can reach a ‘zero cost telecom charges’ as he suggests!) It is too much to expect, but let us assume this process will increase the volume of calls to such a level that the cost of an individual call will comedown to near zero levels, so that it will not be a big burden for the Govt.

Bottom line: I believe in free markets and I believe in capitalism. However, if one still wants to practice socialism, it is better to do it in ‘their own way’ (than ‘our way’). After all their ways are time tested during the 70-77 period in Sri Lanka!