{"id":135390,"date":"2023-07-02T15:36:38","date_gmt":"2023-07-02T22:36:38","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=135390"},"modified":"2023-07-02T15:36:38","modified_gmt":"2023-07-02T22:36:38","slug":"aragala-means-business-imf-scams-epf","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2023\/07\/02\/aragala-means-business-imf-scams-epf\/","title":{"rendered":"Aragala means Business? IMF Scams\u00a0EPF!"},"content":{"rendered":"

e-Con e-News<\/a><\/em><\/span><\/h2>\n\n\n
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\u2018Before you study the economics, study the economists!<\/em>\u2019<\/p>\n\n\n\n

e-Con e-News July 2023 Part 1<\/strong><\/p>\n\n\n\n

*<\/p>\n\n\n\n

\u2018The days of government funding are gone.<\/p>\n\n\n\n

It really needs to be a private enterprise,<\/p>\n\n\n\n

just as exploration was at the turn of the last century<\/p>\n\n\n\n

where people with means make the exploration possible.\u2019<\/p>\n\n\n\n

\u2013 Stockton Rush (see ee Workers<\/em><\/strong>, OceanGate & How the Wealthy Kill)<\/p>\n\n\n\n

Stockton Rush, now \u2018former\u2019 CEO of OceanGate, \u2018maker\u2019 of crewed submersibles to meditate on Titanic<\/em> ruins, in his last moments perhaps wished to regulate himself? Greed \u2013 wellspring of recklessness \u2013 usually sinks them to the bottom of the sea. The trouble is, they wish to take us with them\u2026<\/p>\n\n\n\n

*<\/p>\n\n\n\n

\u2022 Mikhail Khodorkovsky<\/strong>, former owner of Yukos oil<\/strong> group, is another symbol of \u2018freed\u2019 enterprise. He was arrested, charged with fraud, tax evasion, criminal conspiracy, etc, in 2003. Russia\u2019s rising President VV Putin then had Yukos reorganized under state control. Last week from his hideout in London, \u2018in a publication sponsored by The Economist\u2019<\/em>, Khodorkovsky pronounced putative mutineer Yevgeny Prigozhin<\/strong> to be a \u2018thug and war criminal\u2019, but notwithstanding, \u2018truly a revolutionary\u2019. \u2018Only an armed populace can topple this dictatorship\u2019, Khodorkovsky said, appealing for England<\/strong> & NATO<\/strong> to militarily intervene \u2018across the Russian border, all the way to Moscow on Abrams<\/strong>, Challenger<\/strong> & Leopard<\/strong> tanks!\u2019 (see ee Economy<\/em><\/strong>, Political Power out of the Gun Barrel)<\/p>\n\n\n\n

     We recall Khodorkovsky\u2019s dialectics \u2013 \u2018criminal yet revolutionary\u2019 \u2013 when reading the weekly column of the Sunday Times\u2019<\/em> domesticated economist & shareholder, Nimal Sanderatne<\/strong>. He writes, the economy has stabilized, goods are available, however, there\u2019s \u2018discontent\u2026 owing to the high prices\u2026 decreased real income of people, higher unemployment, increased poverty, and malnutrition are serious concerns\u2019. People can\u2019t afford the essentials on display (see ee Economists<\/em><\/strong>, The economy in the first half of this year). The media declares the surgery successful, yet finds the patient gasping\u2026<\/p>\n\n\n\n

*<\/p>\n\n\n\n

\u2018On June 28, China\u2019s ambassador Qi Zhenhong<\/p>\n\n\n\n

visited Keppitipola, Uva, and paid tribute to the statue<\/p>\n\n\n\n

of Keppitipola Disawe, a national hero of Sri Lanka,<\/p>\n\n\n\n

who led the Great [1818] Rebellion against colonization & invasion<\/p>\n\n\n\n

and sacrificed his life for its freedom & independence\u2019<\/p>\n\n\n\n

\u2013 Twitter, Chinese Embassy in Sri Lanka<\/em><\/p>\n\n\n\n

*<\/p>\n\n\n\n

In Sri Lanka, traders still determine national policy, prevent industrialization, and oppose regulation (like the OceanGate CEO). These oligarchs would also go orgiastic if NATO rolls, Khodorkovsky-style, beyond Colombo \u2013 eager suburb of London, and now Wall Street.<\/p>\n\n\n\n

     So why have our eager democrats not been able to mount an \u2018aragalaya\u2019 against these Kolombot Khodorkovskys who are openly sacrificing the state on the stock exchange, and would happily sink Sri Lanka to the ocean floor? (see ee Focus<\/em><\/strong>). Their anarchic and ultra-idealistic rhetoric recalls the salaried recipients of NATO\u2019s printed Dollar largesse showered on other locales that have now descended into war. Yet those calling the Aragalaya an \u2018imperialist plot\u2019, have been labelled \u2018wildly lunatic\u2019!<\/p>\n\n\n\n

*<\/p>\n\n\n\n

\u2022 ee<\/em><\/strong> recalls an ominous omen in 2019 when President Gotabhaya Rajapakse was elected by unprecedented landslide: \u2018The business community accepts the choice of the people\u2019 stated Chair & Managing Director of Imperial Teas<\/strong> Group & Chair of Colombo Tea Traders<\/strong> Association, Kantha Karunaratne. Hmmm<\/em>. So they are not the people?<\/p>\n\n\n\n

     At that time, ee<\/em><\/strong> wondered, \u2018So what happens when they choose not to accept the people\u2019s verdict?\u2019 (ee<\/em><\/strong> 23 November 2019 \u2013 The Merchant Oligarchy\u2019s \u2018Boundless Ingenuity\u2019 at Derailing Independence). Now we know. ee<\/em><\/strong> also noted then: \u2018The CBSL this week feebly took on Fitch for its cavalier ratings game<\/strong>, acting as guard dog of the financializers, salivating sour over the recent election. Their immediate defence was to point to the buoyant stock market immediately after GR\u2019s election. But others point out the dangers of quoting a casino (the Colombo Stock Exchange), clearly fixed by a cabal of banks & conglomerates, measuring what is good or not good for the economy. Such indices are no indication of the health of the people\u2026\u2019 Indeed, more than any, these \u2018Tea Traders\u2019, with their Dollars parked in cooler climes (no, not Nuwara Eliya) certainly knew and know what lies in store\u2026<\/p>\n\n\n\n

If you are still curious about the lineages of present goings-on, join novelist of Jathika Chinthanaya \u2013 National Consciousness \u2013 Gunadasa Amarasekera,<\/strong> who with author of 9: the Hidden Tale<\/em>, MP Wimal Weerawansa<\/strong>, will launch Galle Face Protest: Systems Change or Anarchy \u2013 Politics, Religion & Culture in a Time of Terror in Sri Lanka<\/em> by Sena Thoradeniya<\/strong> on July 4, 3:30 pm. at the National Library Services Board<\/strong> \u2013 yes, on the edge of Independence Square.<\/p>\n\n\n\n

*<\/p>\n\n\n\n

\u2018The Finance Minister & the Central Bank Governor<\/p>\n\n\n\n

have misled the people for several months<\/p>\n\n\n\n

until the fact is revealed in the Cabinet Paper at the last moment.<\/p>\n\n\n\n

[They] told a complete lie several months ago<\/p>\n\n\n\n

that they would guarantee that there will be no haircut on domestic debt\u2026<\/p>\n\n\n\n

The government has struck a deal with primary dealers.<\/p>\n\n\n\n

Working people have no chance\u2026\u2019<\/p>\n\n\n\n

\u2013 NPP MP Vijitha Herath (see ee Quotes<\/em><\/strong>)<\/p>\n\n\n\n

*<\/p>\n\n\n\n

\u2018When it comes to implementing trade reforms,<\/p>\n\n\n\n

it is not merely a matter of economic theory<\/strong>,<\/p>\n\n\n\n

but of a communication strategy<\/strong> that needs to be in place.\u2019<\/p>\n\n\n\n

\u2013 England\u2019s Ceylon Tobacco Co (CTC) Chair Suresh Shah,<\/p>\n\n\n\n

Head of Govt State-owned Enterprises Restructuring Unit (SRU)<\/p>\n\n\n\n

\u2022 Wonder how this week\u2019s fake \u2018threats\u2019 against private banks trumpeted by media, syncs with CTC Shah\u2019s communication strategy?: The private international sovereign bond (ISB) holders\u2019 demand for \u2018Domestic Debt Restructuring<\/strong>\u2018 (DDR) dominated much of the economic news. DDR<\/em><\/strong> is another trope of this \u2018open communication\u2019 that few understand. Economists, academics & their discontents however jumped in, much of their financial ballet dancing over our heads. The media of course did not highlight this DDR (or DDO) as a demand from \u2018Wall Street\u2019.<\/p>\n\n\n\n

     This DDR was supposedly threatening the private banks (many having \u2018foreign links\u2019, including with the World Bank & other imperialist \u2018development\u2019 banks!). The private banks whined that 18%(?) of their loans are not being repaid. The IMF & their local subsidiary, the Central Bank of Sri Lanka, then announced they will let these banks off the hook and made a grab at the pension funds \u2013 Employees Provident Fund (EPF) and Employees Trust Fund (ETF). So this is what \u2018domestic restructure\u2019 means in plain rupees. If the EPF does not submit, the Central Bank Governor warned he would hit them with a higher 30% income tax increase. The EPF, the biggest fund in the whole of South Asia, was set up after a struggle launched by the Communist Party of Sri Lanka in 1957.<\/p>\n\n\n\n

     In this ee Focus<\/em><\/strong>, Howard Nicholas<\/strong> (& Son) argue such moves portend worse repercussions. The Nicholases argue that the IMF, and their local traders in money & imports, wish to screw the country more in our \u2018desperation\u2019. Nicholas Sr (co-founder of the now-hijacked Institute of Policy Studies <\/strong>(IPS) & Social Scientists Association<\/strong>, SSA) suggests it would be better to quit this IMF rollercoaster, and wonders why the Central Bank and the government are not pushing back harder:<\/p>\n\n\n\n

     \u2018We now have \u2018Domestic Debt Restructuring\u2019 being imposed on us. We are told, \u2018Unless you do that, foreign bond holders will not accede to restructuring\u2019\u2026 The foreigner now says, \u2018You must treat us equally\u2019, even though the 2 \u2018asset classes\u2019 are totally different. That\u2019s why the foreigner gets far more than the person buying Sri Lankan debt\u2026The question I ask is, \u2018Why aren\u2019t we fighting back, pushing back?\u2019 [We should declare]: \u2018This is ludicrous. You should not be doing this. You should not be imposing this on us.\u2019<\/p>\n\n\n\n

     \u2018What they are trying to do is push us further and further because we are desperate. And the fear factor is always there: \u2018If you don\u2019t do this, we\u2019re not going to continue supporting you, you won\u2019t get the second tranche, etc etc.\u2019 So we do everything they say \u2013 it\u2019s the monkey jumping for the peanuts basically \u2013 we will do anything. We are not only undermining the democratic essence of our system, but we are also abrogating our responsibility to the people of the country, by doing this. Because one of the consequences of this Domestic Debt Restructuring<\/strong> is we are going to make domestic debt, a risky asset \u2013 and the minute you do that\u2026<\/p>\n\n\n\n

     \u2018And we are doing all of this because we are so frightened that the IMF will pull the plug and say, \u2018Well, sorry, if you don\u2019t agree to domestic debt restructuring, we are not going to give you the second tranche.\u2019 Meanwhile, we are actually destroying ourselves, and it\u2019s going to be far more damaging than actually not continuing with the IMF agreement.\u2019 \u2013 ee Economists<\/em><\/strong>, Howard Nicholas on Domestic Debt Restructuring <\/strong>(also, see ee Focus<\/em><\/strong>)<\/p>\n\n\n\n

*<\/p>\n\n\n\n

\u2022 Sri Lanka\u2019s \u2018Human Resource\u2019 luminaries (ranging from managers of plantations to moneylenders to Coca-Cola) shepherded themselves this week to plot their \u2018hire & fire<\/strong>\u2019 strategies for the year. They broadcast a selection of their public thoughts through the media (see ee Random Notes<\/em><\/strong>). The Chief Human Resources Officer of Singapore Prime Minister<\/strong>\u2019s Public Service Division presumably highlighted \u2018open communication between management and employees\u2019. Yet the IMF (& their local running poodles, the Employers Federation etc,) demand \u2018flexibility\u2019 \u2013 a euphemism that does not exactly lubricate \u2018open communication\u2019. The World Bank appears more \u2018transparent\u2019: The WB wails Sri Lanka\u2019s \u2018rigid\u2019 labor laws lead to \u2018very high firing costs<\/strong>!\u2019 Workers are already informal & insecure, yet these whites demand more precarity! (see ee Focus<\/em><\/strong>)<\/p>\n\n\n\n

     Singapore is not a real country anyway. It is a trading centre for multinational corporations and the foreign militaries that gird them. It is indeed an industrial powerhouse. However, it has no water. It has no peasantry. It is at best a city-state, a stationary imperialist aircraft carrier. There is no compare to Sri Lanka, where the favored \u2018human resource\u2019 expression is to call a worker a \u2018buffalo\u2019. ee<\/em><\/strong> truly loves buffalos (Bubalus Bubalis<\/em>!). ee<\/em><\/strong> sees their culling as symbolic of the increasing privatization of water resources and asphyxiation of the national ethos.<\/p>\n\n\n\n

     The HR meeting included Borah merchant Murtaza Jafferjee, stated as representing US thinktank Advocata. No mention that in May 2022, Jafferjee was appointed by then-PM-&-Minister of Finance, now President, the unelected Ranil Wickremasinghe, to form an \u2018Economic Stabilization Dialogue\u2019 between the Ministry of Finance & \u2018independent\u2019 economists. Brother Jafferjee is working overtime, we hope he gets adequate recompense. Some ee<\/em><\/strong> readers argue, he too is a worker! (see ee Comments<\/em><\/strong>).<\/p>\n\n\n\n

*<\/p>\n\n\n\n

\u2018We<\/em> know so little of ourselves, so little of our history\u2026<\/em>\u2019<\/p>\n\n\n\n

This was a constant tocsin of SBD de Silva. He also struck notes on the curious absenting of an economic history<\/strong>. A foundational record that could inform all other accounts, base our knowledge in material lives, including of course the strivings of people themselves. After all, all manner of \u2018other\u2019 histories are promoted. Many funded by that bountiful Ford Foundation (whose founder Henry is famously quoted as saying, \u2018History is Bunk\u2019) have been published and celebrated. Political histories! Cultural histories! Anthropology. Archaeology. Fiction. All without strategic reference to people\u2019s lived experience, or rather their experience of making a living and a life. Bunk? Fictions, indeed!<\/p>\n\n\n\n

*<\/p>\n\n\n\n

\u2018This was the first time that a participatory, non-bureaucratic method<\/p>\n\n\n\n

was used for the creation of land records<\/strong> in the developing world.\u2019<\/p>\n\n\n\n

(see ee Focus<\/em><\/strong>, <\/strong>Participatory Origins: the Paddy Lands Register)<\/p>\n\n\n\n

SBD de Silva, for example, identified many types and relations of rice and agricultural production: in the dry zones and wet, in Jaffna, and in the East, in the highlands, along the Mahaveli, Hambantota\u2019s gambara system, etc. Meantime, much is passionately written about Sri Lanka\u2019s this & that magula, our utter backwardness, our primitivity, despotism, chauvinism, etc, and reams of books published about it, many PhDs & professors awarded, rewarded & tenured for such forays into our hearts of darkness. And here we are. This ee Focus<\/em><\/strong> looks again at the creative attempts to implement the revolutionary Paddy Lands Act<\/strong> against all odds, and the attempt to identify tenant cultivators. The Act was enacted for humanitarian reasons, and secured tenure, but, said SB, had no impact on the supply of labor. Labor required to power rural industrialization\u2026<\/p>\n\n\n\n

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Aragala means Business? IMF Scams EPF!<\/a><\/blockquote>