BY EDWARD THEOPHILUS

The regime change in international financial management cannot be done overnight by South and Southeast Asia, the attitudes of people in the region are rigid and overnight changes impossible, it needs a broader discussion and debate among countries, and the political leadership of China and India must be agreed to a plan for achieving the aim.  Sri Lanka associated with EU style SARC, but it was unsuccessful in a short period as self-centered attitudes of certain members of the organization and foreign influences mainly caused to unsuccess. SARC leaders contributed to disunity, and a severe conflict identifying standard aims and was impossible and abortive.  SARC had a weakness of thinking we are different in ethnicity, religion, and culture, but have one face with an endeavor to achieving the prime objectives. This situation forced the SARC union to get away from creating an international financial management regime for the region, despite massive expectations at the beginning SARC failed to build a regional financial management regime.

I observed that SARC was working against the aggregation, ethnic and natural conditions. The behavior of SARC leaders was reflected traditional animosity between nations and reflected the ability to enter foreign forces against the objectives of the prime objectives. The change of the leadership of India attempted to change to the prime objectives and this situation was brought about destructive forces against the unity of countries.

However, some leaders of the Asian region such as Mr. Takshin Sinevatra was able to initiate the Asian Bond market to invest in Asian savings in Asia, and reduce the pressure on the trading bank system financing for the government and private firms. The regime change in international financial management in the South and South Asian region could be efficacious if political leaders in China and India begin the concept into practicality. They need to forget animosity and come to a round table and broadly discuss the issue. As long as the political regimes of India and China are maintained the animosity it would help the current regime of IMF to maintain the superiority of American and European currency units and other countries to be treated as slaves.          

Leaders in the South and Southeast Asian region should formally inform the current suppression to the leadership of the international financial management regime of the International Monetary Fund, which has been not implemented an effective role in responding to the currency depreciation pandemic after the COVID 19 except offering few credit facilities by the current Briton Wood approach. The regime changes of the IMF and setting new policies for the operations of the IMF are essential in the current situation. Developing countries cannot expect from the US, UK, and European countries justice for the currency depreciation. They will implement essential reforms as they are depending on cheap trade with developing countries. When they have cheap prices for importing raw materials and other products such as garments, fish products, depreciated currency values in producing countries would be profitable to them. developed countries can buy goods at cheaper prices and maintain the leadership of international trade.

The reforms requirement has not been convinced to the IMF by developing countries and Sri Lanka should take leadership to convince developing countries in the South and Southeast Asian region where has a large volume of the population in the world and such action will force the IMF to make regime change. The reality in the last century was developed countries eliminated leaders of developing countries when work together to force various policies disadvantaging developed countries. 

After more than 50 years of the establishment of the Briton Wood System, no significant changes that supporting developing countries were not carried out by the authority, and as a small country, Sri Lanka can motivate countries in the region to convince the requirement to the IMF. The Unity among China and India is key to change the IMF policies. If this not happens with India and China the IMF would not take any action to protect Asia and continue to hit the third world.

I am of opinion that the world needs five regional regimes for international financial management as Asian Region including all countries in Asia, African region, Latin American region, America, British and Canadian region, and Euro Region.  Australia and New Zealand could be joined with any region that they are willing to associate with.  Each region should introduce a common currency for the region and the foreign value of each common currency of the five regions should be equal and the new regime will prevent currency depreciation. The countries could further discuss recognizing BANCOR as originally planned by countries before initiate the Briton Wood system.

The other advantage of the new regime is promoting trade within the region and supporting the development and growth of countries within the region.  Annually, the leaders of the region could have a currency conference and determine the progress and changes requirements.

Sri Lanka can get the leadership for this regime change.  Previous leaders of Sri Lanka had taken the pre-eminence for various international matters. Mr. J.R. Jayewardene for Japanese peace, establish Colombo Plan, Mrs. Sirimao Bandaranaike to make the Indian Ocean Peace Zone and Non-align movement could be given as examples. President Gotabaya Rajapaksa could get superintendency on reforming the international financial management regime and contribute to the international policymaking thrust. 

Originally, China and India will associate and play a leading role, and Japan, South Korea will enter the Asian region as they want to maintain trade and growth. If Russia is willing to join with the Asian region it could accept, otherwise, Russia could join with the European region.

Foreign policymakers in Sri Lanka adhere to the problems of Sri Lankans who engage in foreign employment and they have not developed this type of creative proposals. The personnel in overseas service in the past contributed many creative policy developments and now it has become to play a limited clerical role. Many officers of the Foreign Office are interested only in going overseas and getting allowance than developing policies, which are beneficial to the country.