{"id":86707,"date":"2019-03-24T23:22:32","date_gmt":"2019-03-25T05:22:32","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=86707"},"modified":"2019-03-24T02:52:31","modified_gmt":"2019-03-24T09:52:31","slug":"investments-and-anfractuous-strategy-of-so-called-potential-investors","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2019\/03\/24\/investments-and-anfractuous-strategy-of-so-called-potential-investors\/","title":{"rendered":"INVESTMENTS AND ANFRACTUOUS STRATEGY OF SO-CALLED POTENTIAL INVESTORS"},"content":{"rendered":"

BY EDWARD THEOPHILUS<\/strong><\/em><\/span><\/h2>\n\n\n

In terms of economics, investment\nconsiders as an essential requirement of an economy for its expansion and an\neffective variable for solving many macroeconomic problems in a country.\nClassical economic theory indirectly ruled that investment should be equal to\nsavings but the dynamism and macroeconomic problems in countries have forced\nmany governments go beyond the equilibrium condition.  Many countries need to stress in budget\nspending as recurrent spending and capital spending that force to go beyond the\nclassical theory. When there is a gap between the investment and savings, the\nborrowing to cover the gap would be the best option, if any other measures such\nas taxes and charging for government services, grants from overseas, excess\nfrom public enterprises and selling public assets would not practically\npossible. <\/p>\n\n\n\n

The direct result of the borrowing\noption may increase in indebtedness and creating many fiscal problems in a\ncountry. The debt service also increases when the budget spending uses the\nborrowing as a way of covering the budget deficit.  Therefore, increase in investment from domestic\nand foreign revenue (without debt) and direct foreign investment is a difficult\ntask unless like President Premadasa did, the printing money for government\nspending.  This is a summary of\ninvestment in terms of economic theory and it should not forget the factors\nthat as Schumpeter pointed out in relation to investment and entrepreneurship,\ninvestors would not motivate for investment in Sri Lanka without reasonable and\ncompetitive returns.  <\/p>\n\n\n\n

The role of the managers of the economy\nwould be supposed to act within constraints and going to targets without\ncreating unfavourable effects from scam investors to the country.  This is a hard task as dynamism, competition,\ntechnology and social culture such as environmental variables seem to be impact\non the decision-making process of investment and related issues in investment\nmanagement.  Many countries including\ndeveloped countries as well as developing countries have faced to these wider\nproblems and there is an intense competition for attracting investments in developed\ncountries and developing countries.  The\nbest example is, we can see that America is competing with its friendly\ncountries to attract investment and sometimes it gets unfriendly decisions\nviolating or hating USA decisions from friendly countries.<\/p>\n\n\n\n

Anfractuous strategy of certain\ninvestors in some countries in the competition of attracting investments has\nbecome a significant problem to many countries like Sri Lanka and other\ndeveloping countries. The competition has led to increase in corruptions in Sri\nLanka that has different faces at different levels and anfractuous strategy of\ndishonest investors have created political, social and international\ncooperation related problems in Sri Lanka. The major weakness in Sri Lanka\nappears that the nature, practice and purposes of corruption elements in\nrelation to investment have not accurately identified by the responsible\nauthority due to serious debility in investment analysis and political\ninfluences toward the investment decision making. The investment analysis\nprocess has no transparency with a participation of opposition and responsible\nindependent cognizant personnel and it is a closed process of the analysis,\nwhich promotes or allows to anfractuous strategy of so-called potential\ninvestors. The process is trusted by the government politicians as many members\nof the analysis and decision making are henchmen of government politicians. I\nhave seen a video cut and a budget debate in the parliament of Sri Lanka that a\ngovernment politician was too much talking about possibly a fake investment in\nHambantota area, and an ancestor of the politician was a highly corrupt person\nduring the initiation of the market economic system.<\/p>\n\n\n\n

In the investment analysis process,\nthere may be unique policies at bureaucratic level but they are unknown to\npublic as well as politicians. The practical environment in Sri Lanka has\nundisclosed and hidden corrupt elements. \nTransparency in this process is hidden as it might generate risk to\ndecision making as well as investors decisions.<\/p>\n\n\n\n

Many Asian countries have been\nencountered crookedness related issues in investment and international politics\nalso contributed a considerable influence to this scam investments. For\nexample, Chinese investments in Sri Lanka are demurred by India for purely a\nreason that India wants to attract such investments than going to Sri Lanka and\nsuch international politics suffer Chinese investments in Sri Lanka and such\npolitics does harmful suffering to public in the country preventing\ninvestments.  The popular Indian protest\nto surrounding countries is that Chinese investment in South Asian countries\nwould be a threat to Indian security. No South Asian countries want to\nchallenge India on the ground of investments. <\/p>\n\n\n\n

Sri Lanka has faced to anfractuous\nstrategy of so-called potential investors from 1960s and the government\ndevelopment projects were subject to such strategies and an unpublished secret\nin relation to foreign investments in Sri Lanka is that 40% – 50% of total\nforeign direct investments goes to corrupt personnel and people of Sri Lanka\ndon\u2019t enjoy the real economic benefits of foreign investments. For example,\nmany irrigation projects can be highlighted.<\/p>\n\n\n\n

As I understand the first large scale\nanfractuous strategy of foreign investors recorded in relation to the project\nof developing Oil Tanks in Trincomalee, which was subject to investments of\nIndian and Singapore companies.  When\nlook back we can see that Sri Lanka has failed successfully developing the oil\ntank project and generate benefits. Another Oil Refinery Project also was\nsubject to talk but nobody seen the outcomes.  \nSince then many project proposals originated but many become failures.<\/p>\n\n\n\n

We heard many international reports\nthat dishonest investment strategists were punished in USA, UK, Germany, Russia\nand many other countries and a considerable number of these crooks were Indian\ninvestors. One LTTE related sinner investor was punished in USA.  This mean that investors from India, China,\nMalaysia, Singapore and many other countries must be subject to an intelligent\nanalysis before they going to politicians\u2019 platform and TV plays. After 2015,\nthis situation in Sri Lanka has an upward trend as in the name of yahapalanaya\npoliticians as well as crooks of political parties have associated with these scam\ninvestors to show off public that yahapalanaya was doing the right thing.<\/p>\n\n\n\n

How can avoid this situation.  It is essential to develop strong policies\nfor investment for both side investors and investee and such policy needs to be\neducated to public and investors. There is no argument that a Sharpe\ncompetition exists between countries to attract investors providing opportunity\nto scam investors.  Although Sri Lanka\ndesperate for investments it should not consume poison from\ninvestment in scams.    <\/p>\n","protected":false},"excerpt":{"rendered":"

BY EDWARD THEOPHILUS In terms of economics, investment considers as an essential requirement of an economy for its expansion and an effective variable for solving many macroeconomic problems in a country. Classical economic theory indirectly ruled that investment should be equal to savings but the dynamism and macroeconomic problems in countries have forced many governments […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124],"tags":[],"class_list":["post-86707","post","type-post","status-publish","format-standard","hentry","category-edward-theophilus"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/86707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=86707"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/86707\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=86707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=86707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=86707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}