Opinion
What is money?
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By Prof Kirthi Tennakone
People, who are over-conscious about money, strive to earn as much as they can in the shortest possible time. Some resort to crooked means of acquiring large sums. Few realise money is not everything but depends on it for survival. The poor sweat and exhaust themselves to earn pennies. Improvised beg for pennies in streets. Governments in debt plead for dollars
Whether you like it or not, money drives modern society. It is hard to think of an affair that costs no money. Being so familiar and too attached people take money for granted and rarely question what it really means. And tends to think of money in terms of currency notes and coins. Money is not something tangible but an abstract entity representing the worthiness of goods and services. Money can be moved across any distance at the speed of light, permitting beneficent transactions as well as laundering. It can be stored to postpone usage or invested.
Concept of money
Philosophers and economists have attempted to define money. According to Aristotle, money facilitate exchange of goods and serve as an assessment of worth – implying money has an intrinsic measurable value. Thereafter gold became the standard of money and the value of currency was defined in terms of weight of gold. Aristotle was materialistic, but his teacher Plato being more idealistic and abstract, disagreed. He denounced linking money to metals like gold and silver and declared money is only a symbol devised to makes exchanges of goods easier. More recent credit theory of money akin to Plato’s idea considers money as the entity that keep track of credit and debit in transactions of commodities and services. International Monetary Fund (IMF) states: money is anything that serves as store of value, unit of account and medium of exchange.
In physics familiar quantities such as length, weight and time are precisely defined in terms of fixed units. Money cannot be similarly defined to the satisfaction and precision of a physicist. It is a social attribute that emerged naturally.
The concepts in physics are understood and defined precisely. We feel temperature, it is the degree of hotness of a body, which can be measured using a thermometer. Physicists have understood temperature as average energy of random motions of molecules constituting the object. Money is also a measurable entity, but cannot be understood that accurately as the simpler idea of temperature.
Complex systems derived from a large number of mutually interacting entities acquire qualities absent or un-meaningful to an individual entity existing alone. We cannot talk about the temperature of one single isolated molecule. Likewise, money made no sense to earliest ancestors of humans, when each adult was singly dependent by himself for food and shelter. As humans advanced, the community noted there are individuals who perform better in certain tasks. Some were good at hunting, while other excelled in searching and digging yams. Why not exchange meat for yams and by how much? Three handfuls of meat for one handful of yams, because yams were a scarce commodity in the forest! The primitive tool makers had an opportunity. They would have exchanged stone tools for meat or yams; devoting lesser time for gathering food and gaining time for improvising better tools. This is the origin of barter system–exchange of goods and services. The barter marketing posed a natural hurdle; the producer of a certain item had to find a customer who possessed something he or she wanted to exchange – a double coincidence of low probability. With the advent of agriculture, grain became a commodity consumed by everybody. The quantity of it being measurable by volume; grain reached the status of a quantifiable commodity, adopted as the standard of barter – a form of money. However, grain money entailed problems. Grain cannot be stored indefinitely and instant transport of large quantities poses insurmountable difficulties. Thereafter, money shifted from grain to weighed amounts of noble metals; gold, silver and copper. Being rare and durable metals served as better exchange materials quantified in handy light weight pieces, which later transformed into coins. A community in a pacific island had used coconuts as the exchange material, one nut as the unit of money. Later, realising the inconvenience of transactions using a bulky object as exchanging agent, they resorted to a rare kind of sea shells. The pacific islanders had no contact with the continent, where metal money originated. Nevertheless, reverting from coconuts to sea shells in the pacific island is conceptually equivalent to going from grain to metal money in the continent. Things material or immaterial can represent money, provided counterfeiting is prevented. Today world has accustomed to paper money. Electronic money already there, might replace it in the future
A society progressing and moving forward, imperatively arrives at the concept of money. Aliens with capabilities similar to humans, if they exist elsewhere in the universe, would undoubtedly use money for their activities. A civilisation cannot advance without invoking the idea of money. How else they would exchange goods and compensate services? English novelist and historian H.G. Wells in his work ‘A modern utopia’ says, I do not see how one can imagine anything at all worthy of being called a civilization without money.
Is money also an evil?
Money is neither an evil nor a virtue intrinsically. Nonetheless, literature frequently portrays money as an evil. According to Aristotle man’s ambition and desire to make money are the most frequent causes of deliberate injustice. Bible says love for money is root of all evil. In the play ‘The Merchant of Venice’ Shakespeare writes a love for money can be deadly. Treating money as something sinister had also originated from the attitude of predatory money lenders. In early days when barter economy was transforming into a currency system. Peasants and workers were deprived of new commodities purchasable only with currency. Money lenders offered coins for unwarranted rates of compound interest. They quarreled and harassed peasants in the event of failure to settle the loan with due interest. Often the law of the land favored the moneylender, supported by corrupt officials of the state. When East India Company introduced their coins to Sri Lanka, moneylender exploited our famers. Folklore recite many such incidents.
Evil is not money but the manipulations of opportunists who grab money unfairly and illegally or use of money to inflect crime. Rightful earning of money is not considered a sin but a meritorious deed worthy of praise as told in Chulasetti Jatakaya.
Chulasetti Jatakaya
Chulasetti who inherited his father’s position as the Treasurer of the King Brahamadatta was a man of unmatched wisdom-a Bodhisattva. One day on way to the palace he saw a dead mouse lying on the road. With a burst of foresight, Bodhisattva declared this is an opportunity for young man to be rich and marry a woman. A poor lad having overheard the words of the Bodhisattva, picked up the carcass sold it for one penny to a nobleman fondling a cat. With the penny he bought jaggery. Serving sweet and water to tired men returning from jungle after collecting flowers, he earned eight pennies. After a series of many other innovative pursuits, he earned sufficient money to buy a shipload of merchandise and sold them to wealthy persons in the town. One day he went to see Chulasetti and told him, I earned so much money because of your words. Chulasetti said, you deserve praise for earning money rightfully. I will give my daughter in marriage to you and transfer my wealth.
Money is neutral and innocent. The neutrality permits any person irrespective of his or her social standing to earn rightfully and become rich, whereas innocence allow rogues to pilfer billions. Society honors the former and condemn the latter.
Relative value of money
A kilogram of sugar costs around 500 rupees in Sri Lanka and about 0.4 dollars in United States. On basis of these prices, can we deduce sugar is more expensive here than in United States? One would argue, as one US dollar amounts to about 360 Sri Lankan rupees, sugar is lot more expensive in Sri Lanka. But what made one United States dollar equivalent to 350 Sri Lankan rupees? The value of money is relative. Conversion rate of US dollars to another currency is absolutely determined by comparison of the average purchasing power of the two currencies. However, currencies are also marketable commodities, value determined by supply and demand, which depend on factors additional to purchasing power and determined by the foreign exchange market. The Central Bank adjust the value of local currency accordingly. Central Banks also have the authority to set the value of local currency at a desired level relative to the dollar. If the productivity of a nation is low, devaluation (depreciation) of its currency would be advantageous, whereas the impact of revaluation (appreciation) likely to be negative; when it comes to earning of foreign exchange.
Wages and prices of goods together decides money’s worth in the society. If you express price of sugar as a fraction of the average wage of people in United States and Sri Lanka, you can meaningfully conclude sugar is cheaper in United States. Obviously, this fraction remains independent of the unit of currency. Likewise, the fraction defined as: the average price of goods divided by the available supply of money remain invariant with respect to the unit of currency. Economists, conjecture that the price level of goods increase in proportion to the money supply. When a government print money to raise the wages, the price level escalates. Compelling workers to demand further salary increases and if implemented by printing more money, prices of goods continue to increase – an economic outcome referred to as hyperinflation. The price of goods can be reduced effectively only by boosting the production.
Hard currency
Nation cry for dollars, shouting we cannot purchase adequate quantities essential commodities without this brand of money. Hard money means a kind of currency accepted in international transactions and readily convertible. United States dollar stands as the hardest currency – competitively preferred in global business dealings. Other currencies acknowledged as hard are; Euro, Japanese Yen, Great Britain Pound, Swiss Franc and Canadian and Australian Dollars. A general consensus of credibility in transactions determine hardness. The countries where hard currencies originate are politically stable and economically sound offering a wide variety of quality goods and services. It is impossible to define a hard currency precisely. They originate as competitive selection of different brands of money.
Development plans and Monetary Policy
Every country obtains a portion of goods and services from abroad. Demanding foreign exchange which has to be earned and maintained as a reserve. Lower the productivity greater is the requirement of foreign money. Increasing production to optimize local requirements and delivery of exportable goods and services ensure hard currency earnings and economic stability. During past few decades many nations, previously classified as underdeveloped have achieved this goal.
Development plans and monetary policy of a nation are intimately linked. Monetary policy means management of money by a Central Bank to secure price stability and employment. Economic theories and empherical evidence indicate sustainable economic growth necessitates maintenance of a low price level. Unfortunately, foreign exchange heavily influences the price structure and availability certain goods, compelling governments in low income countries to go for loans, to be paid back with interest. The situation is critical when countries are heavily dependent on imports for routine consumption and development. If borrowed funds are not properly utilized or misused the consequences would be disastrous.
Improper expenditure of money by governments: Wrong policies
The greatest harm to an economy would be the diversion public funds to avenues having no bearing on production and social wellbeing. Such expenditures incur as massive projects commissioned without ascertaining economic returns or misappropriation.
Providing extraordinary financial benefits to sectors not commensurately contributing to the society, constrains the budget and discourages productive groups who agitate for fairness. Programmes geared for alleviation of poverty and employment are sometimes counterproductive. Poor should be supported to become rich providing substantial inputs, instead of stagnating them at the same level of deprivation giving token subsidies. Instead of exploiting cheap labor to earn dollars, country needs to introduce policies to breed high quality labour for domestic and overseas expectations. Increasing work force for shake of employment creates inefficiency.
The human resource turns productive and innovative only when they receive proper education. It is a myth to believe that a general education inclined only towards technology will nurture innovators. Educational reforms have to consider inculcating rational thinking, absence of which is the root cause of many social ills. Innovators are dreamers who undertake risk, dispelling myth. Our policies should be geared for the purpose.
An example of wrong policy that will go to history is banning of chemical fertilisers. Even a high school student who had assimilated science understands why the present-day food demand cannot be not met without concentrated fertilisers. The stupidity and motives of the politician is one thing, but a band of so- called experts advocated the idea. The ineffectiveness of their carbon, organic, microbial, bio and biofilm fertilisers has now been manifested to the nation and world at large. Agricultural specialists in our institutions did not (could not) turn out sufficiently vociferous to nip the foolish idea in the bud!
The fertiliser episode reflects a serious fundamental flaw in our entire establishment. Identifying all the factors (not necessarily pertaining to agriculture) and their elimination is absolutely essential to rebuild the nation.
Author can be reached via email: ktenna@yahoo.co.uk
Opinion
Pope decries ‘major crisis’ of Trump’s mass deportation plans, rejects Vance’s theology
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by Christopher White Vatican Correspondent
Pope Francis has written a sweeping letter to the U.S. bishops decrying the “major crisis” triggered by President Donald Trump’s mass deportation plans and explicitly rejecting Vice President JD Vance’s attempts to use Catholic theology to justify the administration’s immigration crackdown.
“The act of deporting people who in many cases have left their own land for reasons of extreme poverty, insecurity, exploitation, persecution or serious deterioration of the environment, damages the dignity of many men and women, and of entire families, and places them in a state of particular vulnerability and defencelessness,” reads the pope’s Feb. 11 letter.
Since taking office on Jan. 20, the Republican president has taken more than 20 executive actions aimed at overhauling the U.S. immigration system, including plans to ratchet up the deportations of undocumented migrants and halt the processing of asylum seekers.
The pope’s letter, published by the Vatican in both English and Spanish, offered his solidarity with U.S. bishops who are engaged in migration advocacy and draws a parallel between Jesus’ own experience as a migrant and the current geopolitical situation.
“Jesus Christ … did not live apart from the difficult experience of being expelled from his own land because of an imminent risk to his life, and from the experience of having to take refuge in a society and a culture foreign to his own,” writes Francis.
While the letter acknowledges the right of every country to enact necessary policies to defend itself and promote public safety, the pope said that all laws must be enacted “in the light of the dignity of the person and his or her fundamental rights, not vice versa.”
The pontiff also goes on to clearly reject efforts to characterise the migrants as criminals, a frequent rhetorical device used by Trump administration officials.
“The rightly formed conscience cannot fail to make a critical judgment and express its disagreement with any measure that tacitly or explicitly identifies the illegal status of some migrants with criminality,” the pope writes.
Soon after Trump took office, Vice President JD Vance — a recent convert to Roman Catholicism — attempted to defend the administration’s migration crackdown by appealing to St. Thomas Aquinas’ concept of ordo amoris.
“Just google ‘ordo amoris,’ ” Vance posted on social media on Jan. 30 in response to criticism he received following a Fox News interview.
During that interview, Vance said: “You love your family, and then you love your neighbour, and then you love your community, and then you love your fellow citizens in your own country. And then after that, you can focus and prioritise the rest of the world.”
While not mentioning Vance directly by name, Francis used his Feb. 11 letter to directly reject that interpretation of Catholic theology.
“The true ordo amoris that must be promoted is that which we discover by meditating constantly on the parable of the ‘Good Samaritan,’ that is, by meditating on the love that builds a fraternity open to all, without exception,” wrote the pope.
Since his election in 2013, Francis has become one of the world’s most vocal champions. His latest letter, however, marks a rare moment when the pontiff has directly waded into a country’s policy debates.
In the letter, however, he states that this is a “decisive moment in history” that requires reaffirming “not only our faith in a God who is always close, incarnate, migrant and refugee, but also the infinite and transcendent dignity of every human person.”
“What is built on the basis of force, and not on the truth about the equal dignity of every human being, begins badly and will end badly,” the pope warned.
In a brief post on social media, the U.S. bishops’ conference shared the pope’s letter with its online followers.
“We are grateful for the support, moral encouragement, and prayers of the Holy Father, to the Bishops in affirmation of their work upholding the God-given dignity of the human person,” read the statement.
(The National Catholic Reporter)
Opinion
Is Sri Lanka’s war on three-wheelers an attack on the poor?
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For decades, three-wheelers—commonly known as tuk-tuks—have been a vital part of Sri Lanka’s transportation system. They provide an affordable and convenient way for people to get around, especially in areas where public transport is unreliable. However, successive governments have repeatedly discouraged their use without offering a viable alternative. While concerns about traffic congestion, safety, and regulations are valid, cracking down on three-wheelers without a proper replacement is unfair to both commuters and drivers.
For millions of Sri Lankans, three-wheelers are not just a convenience but a necessity. They serve as the primary mode of transport for those who cannot afford a private vehicle and as the only reliable last-mile option when buses and trains are not accessible. Senior citizens, people with disabilities, and those carrying groceries or luggage rely on tuk-tuks for their ease and accessibility. Unlike buses, which often require long walks to and from stops, three-wheelers offer door-to-door service, making them indispensable for those with mobility challenges.
In rural areas, where public transport is scarce, three-wheelers are even more critical. Many villages lack frequent bus services, and trains do not serve short-distance travel needs. Tuk-tuks fill this gap, ensuring people can reach markets, hospitals, and workplaces without difficulty. In urban areas, they provide a quick and affordable alternative to taxis and private vehicles, especially for short trips.
Despite their importance, three-wheelers have increasingly come under government scrutiny. Restrictions on new registrations, negative rhetoric about their role in traffic congestion, and limits on their operation in cities suggest that policymakers view them as a problem rather than a necessity. Authorities often cite traffic congestion, safety concerns, and lack of regulation as reasons for discouraging tuk-tuks. While these issues are valid, banning or restricting them without addressing the underlying transport challenges is not the solution.
The biggest flaw in the government’s approach is the absence of a proper alternative. Sri Lanka’s public transport system remains unreliable, overcrowded, and often inaccessible for many. Buses and trains do not provide efficient coverage across all areas, and ride-hailing services like Uber and PickMe, while convenient, are often too expensive for daily use. Without a suitable replacement, discouraging three-wheelers only makes commuting more difficult for those who rely on them the most.
Beyond the inconvenience to passengers, the economic impact of limiting three-wheelers is significant. Thousands of drivers depend on tuk-tuks for their livelihoods, and with rising fuel prices and economic instability, they are already struggling to make ends meet. Further restrictions will push many into financial hardship, increasing unemployment and poverty. For passengers, particularly those from lower-income backgrounds, losing three-wheelers as an option means higher transport costs and fewer choices.
Instead of discouraging tuk-tuks, the government should focus on improving and regulating them. Many countries have successfully integrated three-wheelers into their transport systems through proper policies. Sri Lanka could do the same by enforcing proper licensing and training for drivers, introducing digital fare meters to prevent disputes, ensuring better vehicle maintenance for safety, and designating tuk-tuk lanes in high-traffic areas to reduce congestion. These measures would make three-wheelers safer and more efficient rather than eliminating them without a backup plan.
The government’s push to restrict three-wheelers without providing a suitable alternative is both unfair and impractical. Tuk-tuks remain the only viable transport option for many Sri Lankans, particularly senior citizens, low-income commuters, and those in rural areas. Instead of treating them as a nuisance, authorities should recognise their importance and focus on making them safer and more efficient. Until a proper substitute is in place, discouraging three-wheelers will only create more problems for the very people who need them the most.
P. Uyangoda
Director-Education (retired)
Nedimala
Opinion
Government by the people for the people: Plea from citizenry
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By an Old Connoisseur
The incumbent rulers keep on reminding the people, ad nauseam, that the current administration is a government for the people by the people. They have claimed the current government was born out of the uprising of the people.
All governments in democratic societies are born out of the will of the people. In such a context, all such governments have to work towards the well-being of the people with undiluted commitment. There is no doubt in the minds of even the most discerning citizens of Sri Lanka that all these promulgations are indeed the most noble of objectives and one would justifiably expect such contentions to even warm the cockles of the hearts of all and sundry.
Yet for all this, we do need to remember and firmly reiterate to our politicians that this principle should be the bedrock on which the political governance of any democracy is based. The people of a country should come first and foremost in all considerations of any legally elected democratic government. True enough, we do know for sure that even despite the very loud vocal grandiloquence of all previous governments, and I repeat all previous governments, they did not go even a little distance to hold the welfare of the people to be sacred, and their deeds and interests were completely at loggerheads with such an honourable foundation as well as essential and admirable attitudes. Without any significant exceptions, all previous political systems over the last 77 years of independence of our much-loved Motherland, have gone on record as institutions that put themselves first in all their considerations.
In point of fact, we also have to agree even unequivocally that this noble task cannot be achieved by the politicians alone. Politicians will have to take steps to stimulate, facilitate and unite all sections of society so that our people will put their collective shoulder to the wheel in a concerted initiative to lift up this country from the mire into which it has been pushed by politicians of various hues. Delving deeper into the depths of this contention, the question arises as to what or who are understood as people. In any society when one talks of people, we should focus on all people; the rich and the poor, the able and the disabled, the educated and the not so well educated, the employed and the unemployed, public-sector workers and the private-sector workers, the farmers as well as the white-collar workers, government enterprises as well as community organisations, and the business enterprises; in fact, the whole lot of Homo sapiens in our country. To improve the well-being of people we need the participation and unstinted cooperation of all these groups in our populace. An abiding sense of patriotism in the psyche of all of our people is definitely the need of the hour.
Politicians lay down the policies and the public sector ensures the implementation of these rules and regulations to improve the wellbeing of people. The public sector, including all politicians of different sorts, are servants of the people and are not deities with unlimited power just to take care of themselves and their political institutions as well as their kith and kin and acolytes. To realise these exalted goals we have to ensure that we have certain universal rules including respect for our people at all times, fair distribution of resources in an equitable manner, kindness, empathy and respect for the freedom of others, preservation and conservation of nature and the environment, adherence to the rule of law, unmitigated compliance with basic human rights and dignity, as well as the development of those very fine humane attributes such as beneficence, non-maleficence and altruism.
If we are to develop by transforming society by the people for the people, we will have to internalise and translate these attributes in our behaviour all the time and in all sectors of the community. Political leadership alone cannot do this honourable task. Society has to unite under these values and other attributes to be articulated and facilitated by the leadership. This is what many other progressive countries have attempted, some of them forging ahead with great success. For this to happen the entire society will have to work together over a long time with respect and minimal adversity. The stakeholders for this endeavour would be all individuals of society, Public Service including the political leadership, Private Sector and their leading figures and Community Organisations including their management. Every member of the population of our wonderful country should be invited to put his or her shoulder to the common wheel in a trek towards prosperity to enable everybody to enjoy an era of opulence.
The most admirable theme for the celebrations of our independence on the 4th of February this year was “Let us join the National Renaissance”. It was a clarion call to enable us to rise up like the proverbial phoenix from the ashes towards a magnificent revival. In addition to all that has been written above, the government and its leadership, for their part, have an abiding duty to take all necessary steps to facilitate the revitalisation of patriotism to urge the populace to contribute to the prospect of national resurgence. Towards that end, the general public has to be happy in this thrice blessed land and they need to live in a country that is safe and affluent. The powers that be need to realise most urgently that unless corruption is completely eliminated, the drug lords effectively neutralised, murderers and other law-breakers swiftly brought to book, various Mafia-type impertinent audacious organised collectives such as Rice Millers, Egg Manipulators, Coconut Wheeler-dealers, and Private Transport Syndicates; all of which hold the public to ransom, are ruthlessly tamed, there is no way in which we can rise and march towards any kind of Nationwide Resurgence. Of course, equally importantly, the farmers who provide sustenance to the entire nation should be looked after like royalty. It is also ever so important that vital and purposeful steps are taken to develop the rural impoverished areas and take steps to alleviate the poverty of the downtrodden. If these things are not attended to, at least for a start, the grandiose but implausible and tenuous rhetoric of that call to rally would just be a ‘pus vedilla’, and could even be a virtual non-starter.
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