19 Apr Technocratic solution Of Sri Lankan Crisis
Technocratic solution Of Sri Lankan Crisis – Today Current Affairs
Context : Sri Lanka is facing huge economic crises and seeking financial support from the IMF . Sri Lanka is also seeking the restructuring of the loan taken from foreign countries and international financial institutions . Sri Lanka wants to declare herself as bankrupt so that her loan would be waived off .
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Introduction : Sri Lanka has been facing financial crises for a long time . This financial crisis has erupted because of organic farming as well as other financial maladministration. Sri Lanka has been faced communal and sectoral conflict for a long time . Therefore this present financial crisis may be the result of the sectoral conflict/civil war. Now, many economical excerpts of Sri Lanka suggest various ways to tackle this economical crisis of Sri Lanka , among those suggestion , there are some technocratic solution through which Sri Lanka could overcome from huge economic crises without decaying her financial credit in international market
Technocratic solutions : The Hindu Analysis
The term “technocratic” implies that poverty. Poverty is a technocratic term and it can be solved through scientific and apolitical solutions. Technocracy is also a form of government where the power of decision making is in hand of the expertise of the people . Here , in a technocratic solution , first we should find out the different ingredients of poverty and the expert of Sri Lanka should work on those ingredients of poverty. Technocratic solution always implies securing the rights of the poor . This concerts emerged after 2nd world war
During its postcolonial history, Sri Lanka has gone through 16 IMF agreements, most recently an Extended Fund Facility of U.S.$1.5 billion in June 2016. Before this it was a Standby Arrangement of U.S.$2.6 billion two months after the civil war ended in May 2009. Recent agreements done by Sri Lanka with foreign institutions are very crucial for the commercial borrowings. Therefore in this context, the reforms in the upcoming IMF agreement are likely to be far more impactful and perhaps on the order of the Structural Adjustment Program taken forward after 1977 with the IMF.
The Hindu Analysis
Neoliberal economic policies may be helpful for Sri Lanka . but Sri Lanka has also adopted those policies . And in economic crises condition, neoliberal policies would destroy the poor and poverty would be increased rapidly which would create discontent among the people and further civil war
If Sri Lanka borrow more money from international financial institution, however it would be helpful for Sri Lanka for time being but for long term it would have bring another economical disaster. Today Current Affairs
Sri Lanka Should start wealth tax. This idea given by some economical experts can get through this crisis in a short period of say a year, and that the people who are already in dire straits can take on more economic suffering in the months ahead are likely to backfire.
This idea would be beneficial for the upper class but again the problem for poor people would be more . In fact the main economic threat for Sri Lanka is the threat of hunger and the grain crises. Sri Lanka can get rid from this crisis by investing more money in the agricultural sector.
The Hindu Analysis
The neoliberal technocrats suggest that the property of those people would be brought under the tax who had been more conscious regarding their social security (middle class). The suggestion of ne liberal technocrat would be disaster for the middle class . but it would have been beneficial for the most poor class . If the government would privities all the essential industries , it would be opposed by the people. Today Current Affairs
The IMF agreement, its conditionality and its fallout, are going to be a central point of contention between the elite who are trying to maneuver this crisis and the working people who have generated this political opening. It is such ideological and political struggles amidst this crisis that will determine whether Sri Lanka chooses bankruptcy or redemption.
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Conclusion
As per the above analysis there are many solutions and advice for Sri Lankan crisis . But nobody has advised Sri Lanka how to overcome such crises inclusively . redemption and bankruptcy are the two solutions but both would be harmful and beneficial for some sections only . Therefore, it would be interesting see which path would be adopted by Sri Lanka in future to overcome from such economical crisis.
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Source : The Hindu
Plutus IAS Current Affairs Team Member
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