politicodiary

Sri Lanka isn’t getting any help from the World Bank. The world lending agency has shown deep concern over the economic situation of the country, but it has also made it clear that it has no intentions of extending more funding, unless there is some development in the way the democratic setup of the country is put back on track. A robust ‘macroeconomic framework’ is the need of the hour as suggested by the UN led World Bank in its twitter message. Deep structural reform is needed to ensure the worthy 22 million starving and suffering Sri Lankans are taken care of. Corruption within the ranks has been seen as the major reason for the drain of funds and no economic growth. While the World Bank isn’t going to lend any money for the economy to run, it has shown clemency and diverted US$160 million from existing loans to finance urgently needed medicines, cooking gas and school meals. People have been forced to buy low quality food. There is dearth of fuel and long queues have left pe...

Africa is likely to get badly affected by the current situation between Russia and Ukraine. The already affected economy due to Coronavirus is likely to be hit badly with high prices, weak investments and increasing prices of commodities. Africa has high dependency on Russia and Ukraine for wheat, oil and maze and with the shipments on hold, there is extreme shortage and therefore increase in prices. The most affected products will be food stuff like oil and wheat, as these are expected to have the highest effect of inflation. Price of crude oil are ever time high with surge of five times since the start of war, touching the 2008 prices if almost $120. Prices of wheat have increased 50% in last one month, touching the highest point in last 14 years. Europe produces 14% of global wheat, out of this 10% is produced by Russia and 4% is produced by Ukraine. With the sanction on Russia and already tight supplies, the situation is further aggravated. Currently the ports are closed and al...

India now seems to be in a position of handing off loans as it helps Sri Lanka in its darkest hour (literally). With reeling power cuts and shortage of oil, the country has been troubled over scarce electricity. The island has now secured a $500 million loan from India to save its sinking economy. Indeed, the island is looking cash strapped.   No wonder, this has left their thermal power generators dry, with the country finding it difficult to keep the lights on, disrupting transport networks as well. Even traders are seen running desperately low on foreign currency to fund imports. The country still uses fossil fuels to fire its thermal power plants. There have been frequent breakdowns at a huge coal power plant too. Blame it on lack of coal supply as well. So, the unannounced electricity power cuts and understandable. Even cooking gas and kerosene is not easily available to households. Officials said a formal agreement was being signed after two weeks of talks, in addition ...

 The new Finance minister of Turkey, Mr. Nureddin Nebati, was in news last month for his surprising reply during a TV interview. When asked by a reporter, regarding the economic situation of Turkey, Nebati replied by saying “I won’t give a number now,” he told a surprised television interviewer. “Can you look into my eyes? What do you see?... The economy is the sparkle in the eyes.” Considering the selection of Nebati by president, Erdogan his response sounded rather unconventional to all. Turkey is facing high rates of inflation, erratic currency rates and high interest rates. Nureddin Nebati was selected by the President Tayyip Erdogan as the finance minister to drive the new economic policy in a rather unconventional way. He has completed six weeks in the role of Minister of Finance and Treasury, in Erdogan’s cabinet. The remarks of 58-year-old minister, during the TV interview has created  a stir in the market. Two weeks, ago, justifying his efforts, Nebati, said on th...

The story doesn’t get any easy for the Palestinians living in and around Israel or in Lebanon. Their access to jobs remains limited. It seems syndicated individuals can restrict their right to work. Last week, the Lebanese government granted limited access to Palestinians to seek jobs in their economy. But sadly, but most white-collar jobs remain barred without a Parliament vote. The decree, published on the Labour Ministry’s website, says Palestinians born in Lebanon, as well as non-Lebanese with a Lebanese mother or married to a Lebanese citizen, are now allowed to work in professions managed by Lebanese orders and syndicates. According to Abdelnasser El Ayi, project manager at the Lebanese-Palestinian Dialogue Committee, an inter-ministerial body headed by the prime minister's office, “Laws governing jobs organised by the order, can only be changed by lawmakers in Parliament.” These include professions like, engineering, medicine, pharmacy and law. Post the Arab-Israeli war in ...