Features
Global recession? Impact on Sri lanka
by Kumar David
Whether there will be a global recession within a year or two and what its impact on Sri Lanka may be, are debated among the cognoscenti. On the first question there is little agreement among economists, Central Bankers and investors the world over. If there is a global recession the nature of its impact on Sri Lanka however is better understood. What there is universal agreement about is that inflation is rising the world over and in this country the rate will be high for two more years – in August 2022 it was 106% year on year, seventh highest in the world. In most countries shown on Hanke’s Inflation Dashboard reproduced above inflation is on the rise for the same reason as Sri Lanka. For decades consumption outpaced production and the shortfall was made up by foreign and debt and domestic deficit. Then one day fate caught up and debts fell due. The collapse was sudden and painful; Covid aggravated the pain but was not the root.
In some cases, the reasons are special. Cuba’s financial patron collapsed; Ukraine is caught up in a war; in Zimbabwe it was corruption and mismanagement on an incredible scale; Venezuela, Argentina and Turkey are examples of economic mismanagement on a lesser scale and Burma is a pariah military dictatorship which all the world except China shuns. Inflation is rising across Europe for more complex reasons to do with unexpected energy shortfalls (especially Germany), monetary and tax policy and industrial decline (UK for example) and social and/or political conflict (the Baltic states, Sudan, Hungary, Czechia – that is former Bohemia – Bulgaria and Poland).
The USA
The USA is an interesting special case. The Biden Administration has for reasons to do with domestic politics and to retain the country’s position as a premier global power, pumped a huge amount of money into the economy as employment and consumption support though inflation reached 9% (headline) 6% (core) leaving the FED’s much proclaimed 2% target in tatters. Salespersons, pre-school teachers, tellers and counter staff are in severe short supply because it’s better to work less hours and collect part-employment benefits than to work full time. Right now, there are two vacancies for one every unemployed person.
There is a genuine fear among economists that dreaded stagflation (simultaneous stagnation and high inflation) may be difficult to avoid in the coming years. The last time this occurred in the late 1970s the Regan-Paulson assault on US living standards sparked global neo-liberalism and, in the UK Mrs Thatcher, responded with a ruthless battering of trade unions. This reactionary global trend was not pushed back till the late 1990s by mass anti-privatisation mobilisations in developing countries and progressive political trends in the West such as the rise of Barrack Obama, China’s increased economic heft and the global ideological defeat of neo-liberalism and neo-conservatism.
Inflation has come to stay in the US since it is clear that the FED will allow the core rate to stay above 7% till 2024. The Dow Jones Industrial average is falling and it will be allowed to continue to decline. In order to retain its global position, the Biden Administration is unlikely to shrink consumer demand or slow down monetary expansion. The political scene also appears to be propitious. Donald Trump is being investigated for a slew of illegal activities and it is possible he may be convicted; in which case he will not be eligible to run for the presidency in 2024. That’s a big headache out of the way for Biden. Taking everything into account including even disrupted global supply chains, and assuming that the US economy will set the trend for the world, it seems unlikely that there will be a global economic recession within say two years.
Is Ranil fit to be Head of State?
Frankly the answer has to be in the negative; he has not been above the ugly. The link between his name and the Batalanda torture chambers is a black mark he cannot live down; the minorities will never forgive his participation in JR’s overtly racist government; the same goes for Ranasinghe Premadasa. Without denying that the JVP committed political suicide, these two men lorded it over a string of torture sites that mushroomed across the country in the 1989-93 period. As if this isn’t bad enough, the moment he took over the reins Ranil Wickremesinghe sent his khakied thugs and military goons early in the morning to beat up aragalaya protestors who were still asleep. This man does not stand above petty politics and for that reason is unfit to be Head of State or to replicate the role of QEII, William Gopallawa or Droupadi Murmu. This underlines the importance of finding a suitable Head of State.
The passing of Lilibet (Elizabeth) provides an occasion to reflect on two matters. The Monarch must be (must appear to be) above the grime of day to day politics; that is to say the roles of a Head of State and a Head of Government must be, or at least must appear to be distinct. This allows the Head of State to create public confidence in the institution of state (as opposed to the cut and thrust of politics). The second matter that Lilibet’s reign highlights is the transition from Empire to Commonwealth of Nations which the good lady and her close advisors managed with consummate skill.
There are 54 members of the Commonwealth, four more than at the end of WW2 with a population of 2.4 billion. Only two have left, Ireland in 1949 (unavoidable) and Zimbabwe in 2003 (good riddance!). The most recent four to join – Mozambique (former Portuguese colony), Rwanda, Gabon and Togo (three ex-French territories) – have no historical ties to the Empire. The frustrated sun must have hoped that at last it will have a chance to set on the blithering Empire. No such luck! Work it out, from the Pacific coast of Canada, to the South Sea Islands, NZ, Australia, the Malay Archipelago, then the huge Sub-Continent, Seychelles, Bahrain, East, Central and West Africa and the Caribbean. The odds against the sun setting on Commonwealth are getting longer by the day! Credit goes to Lilibet; Charlie-Boy may not keep it up though he is the beneficiary of “Darling Mama’s” 70-year stewardship.
Does this remark about the Commonwealth have relevance for Sri Lanka; indeed, it does. Membership of the club provides an opportunity for contact and succour from the countries of the Subcontinent, the UK, Malaysia and Australia. The opportunity to participate in gatherings brings significant benefits. Sri Lanka’s Head of State must fit the role uncontroversially.
What’s for Lanka if a global recession is unlikely?
As I have pointed out in this column previously it seems that capitalism will remain stable globally in the short-term; no one in his right mind will venture to make medium or long-term predictions in an unstable world. Given RW’s awkwardness as a prospective Head of State it is possible to kill two birds with one stone. A new constitution will have to be enacted within say a year and obviously the new president will be selected by the constituent assembly or the first parliament. There are a few suitable candidates I can think of, probably there are many more. No names at this stage please! Parliamentary elections will need to be held within say a year and it this time the front runners appear to be a Ranil+ alliance or the JVP. By Ranil+ I mean Ranil-Sajith, or some combination of SJB people with brains (there are a few) with a UNP contingent. The rump of the SLPP, the Dullas clique, the 10-party comedy and the SLFP will be wiped out. Whoever secures a legitimate and constitutional electoral mandate let him/her be PM, be it Sajith, Namal, Ranil, Anura Kumara, Tom, Dick or Harry. If we seek democracy this right is unquestionable.
If capitalism survives globally for say five plus more years (which is the same as saying a global recession is avoided for now) our country’s economy will need to navigate new waters. Few will wager anything in these parlous times except perhaps that WW3 is unlikely. If capitalism is the global option then to my mind the JVP is the natural parliamentary opposition. This is reminiscent of the reds in the Legislative Council and Parliament in the 1930s and 1950-60s. Most of the 1940s they were locked up or in exile. I have spoken of global uncertainties, so will capitalism be shaken globally to its foundations within a decade? Wow, the topic is way beyond the reach of this essay.
Features
The Division Bell Mystery
Tales of Mystery and Suspense 3
The murder, in a private dining room in the house, is of a financier with whom the government was negotiating a loan. When this seemed difficult the Minister of Home Affairs agreed to lead discussions, since he had known Mr Oissel the financier when they were young. Hence the private dinner, but when the Minister stepped out for a vote, Oissel was shot just as the Division Bell rang.
The Brahms and Simon detective novels, the first of which I wrote about last week, were amongst several books by the pair that Robert Scoble gave me when I was in Australia towards the end of last year. Amongst them was another thriller of a very different sort, though that too was written and set between the wars.
Called The Division Bell Mystery, it was set in the House of Commons, the first such book I believe, and was by Ellen Wilkinson, a Labour MP who became Minister of Education in Attlee’s government after the war, having served previously as Parliamentary Private Secretary to several ministers. Her hero Robert West is also a PPS, but a conservative, and his Minister, of Home Affairs, is an old style aristocrat, not much loved by the less orthodox Prime Minister, who nevertheless needs his support on many occasions.
The murder, in a private dining room in the house, is of a financier with whom the government was negotiating a loan. When this seemed difficult the Minister of Home Affairs agreed to lead discussions, since he had known Mr Oissel the financier when they were young. Hence the private dinner, but when the Minister stepped out for a vote, Oissel was shot just as the Division Bell rang.
West was just outside the door when the shot was heard, and when he opened it saw only the dead body with a revolver beside it. The assumption that this was suicide was however challenged by Oissel’s grand-daughter Annette, who was his heir, on the grounds that he would never have killed himself. But her view was given greater credence by the Inspector put in charge of the case who said there were no burn marks on the body which would have been the case had Oissel fired the pistol himself.
Matters are complicated by the fact that Oissel’s flat had been burgled while he was at dinner, and Jenks the policeman allocated to him, who had served the Home Secretary and seemed more acceptable to Oissel than someone from the Security Service, had been killed. Matters get even more complicated when Annette says her grand-father’s notebook in which he wrote his secrets in cipher was missing.
That was found in Jenks’ pocket, and then a photographer came to West to say he had been asked by Jenks to photograph this. More worryingly for West, he finds in the Home Secretary’s drawer a few pages from the notebook with what appears to be an interpretation of the cipher.
Overwhelmed by all this he confides in a recently created peer who knows all about the business world, who insists that they leave the house party at which they had met over dinner and discuss the matter with the Prime Minister who promptly summons the Home Secretary.
But the Home Secretary had gone to Scotland to launch a ship over the weekend, so the meeting could take place only on the morning of the Monday, when difficult questions were expected on the adjournment motion. He admits at the meeting that he had got Jenks to take the notebook, and also that he knew the code since it had been created by him and Oissel when they were young.
He thought he should resign, and even contemplated suicide, but the Prime Minister told him that that would be even worse for the government, and that he should go home to bed. The Prime Minister said that he himself would handle the question, which he did with aplomb, insisting that confidentiality was needed until the inquest. What had happened would be made clear then, he declared, leaving West and Inspector Blackit and Lord Dalbeattie what seemed the impossible task of solving the murder.
Dalbeattie had suggested that West ask a female Labour MP who was very fond of him to get what information she could from the staff. That there was some involvement there had become clear when West, going back late one night to collect a briefcase he had left in a dining room, found someone lurking in the dark in the corridor outside the private rooms. Room J, where the murder had happened, was meant to be guarded throughout by a policeman, but he had left the room having felt dizzy, and it seemed that his coffee had been drugged. West’s sudden appearance however had prevented anyone else getting into the room.
Dalbeattie decides to recreate the scene of the murder and has a dinner party in Room J on the Tuesday night, inviting West and Annette and the society hostess at whose house he had met, and also Patrick Kinnaird, an MP who was engaged to Annette, as well as the Permanent Secretary to the Home Ministry.
After coffee Inspector Blackit comes in with Grace, the Labour MP who had got the confidence of the staff, and a journalist who had also been helpful, and just as they say they think they are on the track the division bell rings. Grace jumps up and tells the Inspector that that provides the solution and they get a ladder, and sure enough find the revolver in the space where the bell is. Directed at the place where Oissel had sat, it had been primed to go off with the ringing of the bell. The waiter who had helped to set things up made clear who the murderer had been.
The reason for the murder and the confused motives of all those involved made for a fascinatingly intricate mix. But also impressive in the book were the descriptions of the isolation possible in the crowded premises of the house, the forceful characterization of the members – Grace based on the writer, the society hostess based on Nancy Astor, the first female MP – and the laid back nature of senior politicians which West realized had to change in the brave new world of high finance.
Features
The challenge of keeping value-based politics alive
The current outbreak of anti-immigrant protests in Durban, South Africa is bound to have taken many a subscriber to value-based politics or political idealism quite by surprise. After all, this is evidence that despite the historic accomplishments of nation-builders of the stature of the late President Nelson Mandela it cannot be taken for granted that identity politics, including racism in its worst forms, is no more in South Africa.
At the time of this writing details are scarce on the substantive root causes of the protests but it could very well be that economic grievances, particularly on the part of the majority community in South Africa, are contributing considerably to the disaffection. Shrinking employment and material prospects are likely to figure majorly among the factors igniting the unrest.
Fortunately, the local authorities in Durban are losing no time in calling for peaceful co-existence among the relevant communities and are pointing to the vital importance of stepping-up national integration processes. Apparently, immigrants in sizable numbers from neighbouring countries are present in Durban. However, international TV footage of the protests quoted some local authorities as saying that the majority of the immigrants in some centres that housed them were not illegal migrants and had the documents that entitle them to be in Durban.
In the Durban protests the world has fresh proof of the socially divisive consequences of the gathering globe-wide economic disaffection, touched off particularly by the continuing crisis in West Asia. Going ahead, the world would need to brace for increasing identity-based unrest of the kind it is just witnessing in South Africa.
Considering that the material lot of ordinary people everywhere could only aggravate progressively, with the US and Iran showing no signs of negotiating an end to their confrontation any time soon, it will be left to the more democratic and progressive sections of the world community to initiate positive measures collectively to bring a measure of relief to the discontented.
The swiftness with which such relief will be provided would depend crucially on the importance those sections taking up these undertakings attach to value-based politics as opposed to Realpolitik of power politics.
Going by these yardsticks, Italy could be considered to be moving in the right direction. Recently Italy came to the fore in initiating the collective named, ‘Rome Coalition for Food Security and Access to Fertilizer’, which has as one of its aims the swift provision of fertilizer to economically weak African countries.
In a recent statement Italian Minister of Foreign Affairs and International Cooperation, Antonio Tajani, said that a principal aim of the project was to ensure that the farmers of Africa gained easy access to fertilizer, considering that food security is a growing concern among some of Africa’s economically vulnerable countries.
The statement went on to mention that some 30 countries hailing from the Mediterranean region, the Middle East, the Balkans as well as the FAO had been invited to join the coalition. The venture is far-seeing in that food security is main among the reasons for social discontent which in turn could degenerate into endemic political turmoil and bloodshed. Separatist violence and geographical fragmentation of countries wouldn’t be too far behind these developments, as Africa itself has often proved.
It is hoped that more G7 countries would take the cue from Italy and do what they could to ease the hardships of economically distressed countries, particularly of the global South. In these efforts they would need to break rank with the US, which is today brutally indifferent to the consequences of its policy of making ‘America First’, come what may.
Going by current developments, the Trump administration seems to be blithely oblivious to the wider, deleterious effects of its policy course in West Asia. Besides rendering Iran militarily and otherwise impotent nothing else seems to matter to Washington, as regards West Asia. This is policy short-sightedness of an extreme kind. After all, right now West Asia could be said to be sitting on the proverbial powder keg.
On the other hand, Iran is not giving the world the impression that it is doing anything constructive to get out of the policy straitjacket that it wove for itself decades ago. Rather than enter into a policy of ‘live and let live’ in relation to Israel in particular and initiate a process of reconciliation with the latter, it has chosen to operate within policy parameters that continue to damn Israel. This has put Israel always on the ‘defensive’ so to speak and prevented the opening up of space for meaningful dialogue.
That said, Israel is obliged to explore the possibilities of entering into a negotiatory process with the Arab-Islamic world that could lead to a de-escalation of tensions and bloodshed. It cannot continue to look at its neighbours through lenses that distort them as archetypal enemies who should be ‘wiped off completely from the face of the earth.’
In other words, the need is urgent for Realpolitik to give way to value-based politicks. Italy is beginning to prove that the latter approach could be pursued with some success. May be the EU and the UK could throw their weight behind these initiatives as well and establish that international politics could be refashioned on the basis of humane, civilized norms. The UN would need to be fully supportive of these moves and prove an organizational nucleus of the operations that follow.
In fact the time is ripe for people of conscience to collectively stand up on the side of peace and say ‘No’ to war and violence. Organizations such as the ICRC, the WHO and Medicines Sans Frontiers have already taken up this call. Referring to the widespread destruction of health facilities and their dehumanizing results these organizations have said, among other things, that ‘This is not a failure of the law. It is a failure of political will.’
True, ‘failure of political will’ among those powers that matter accounts for the runaway, uncontrollable nature of war and destruction in contemporary times, but more fundamentally it is a failure of the human conscience. It could very well be that the phenomenal levels to which violence and war have been unleashed today have had the effect of deadening consciences. This is a matter for urgent study and wide discussion.
Features
Vesak celebrations … with Cuteefly
I would describe Indunil Kaushalya Dissanayaka as innovative and creative, and she operates under the name of Cuteefly.
Indunil always comes up with something novel to celebrate special occasions, and she does it with candles … and that’s her profession.
She was in the spotlight when she created a happening scene, with candles, for Christmas, Sinhala and Tamil New Year, and Valentine’s Day.
As lanterns light up Sri Lanka for Vesak, the Colombo-based candle maker is quietly turning wax and wick into little pieces of the festival.

Candles reflecting Vesak themes
Her candles reflect Vesak themes – light, peace, remembrance, giving, etc., to enable you to fill your Vesak celebration with devotion and beauty.
Among her Vesak creations is a lotus-shaped soy candle, scented with sandalwood, lavender, etc., meant to burn during this Vesak Poya Day.

Indunil Kaushalya Dissanayaka: Customers
praise her for her creativity
These handcrafted Vesak candles are perfect for offering at the temple, she says.
What makes her creations so novel is that they come in different shapes, scents, themes, and all are handmade.
What’s more, her customers have heaped praise on her for her creativity.
According to Indunil, her creations are perfect as a thoughtful gift … to bring beauty, unity, and light into every moment.
Says Indunil: “Our beautifully handcrafted Unity candles are designed with premium detail and love, making them perfect for celebrations, gifts, and meaningful occasions.”
Cuteefly, says Indunil, is available online.
Readers could contact Indunil on 0778506066 for more details.
He Facebook Page is: Cuteefly.

Handmade with love
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