Connect with us

Opinion

China has overtaken the US – says IMF

Published

on

It was expected but not so swiftly, possibly the Covid-19 has expedited what was inevitable. A report published in “The Our Asian Times” on 1st December 2020, titled ” IMF Admits China Has Overtaken The US As The World’s Largest Economy; But Why Is The Media Silent?” says the world has to wake up to the new reality – China is the undisputed new economic super power.

In the past, economists have traditionally been using the index called MER, which means Market Exchange Rate, to calculate the GDP when comparing the economic performance of different countries. This method has been viewed with extreme suspicion as it doesn’t reflect the real figures because it underestimates the buying power of currencies of many countries. More reliable and now widely accepted yardstick called the Purchasing Power Parity (PPP) which is used by IMF, enables you to compare how much you can buy for your money in different countries.

To explain this further, according to the traditional exchange rate, one US Dollar is equivalent to 6.9 Chinese Yuan, but 6.9 Yuan can buy in China more than one US Dollar in America. On this basis 99 trillion Yuan the Chinese produced in 2019, is equal to USD 26 trillion which is much greater than the USD 21.4 trillion America actually produced in 2019. This is the PPP method which is said to be better than the MER method to compare economies.

The IMF is clear in its report, it says “PPP eliminates differences in price levels between economies and thus compares national economies in terms of how much each nation can buy with its own currency at the prices items sell locally. Using the PPP method, the Chinese economy is determined to be USD 24.2 trillion compared to America’s USD 20.8 trillion”. This is a huge difference, for USD 3.4 trillion is lot of money.

After the IMF, the CIA also decided to switch from MER to PPP in its Annual Assessment of National Economies. The CIA Fact Book notes “The official exchange rate measure of GDP is not an accurate measure of China’s output; GDP at the official exchange rate (MERGDP) substantially understates the actual level of China’s situation, GDP at purchasing power parity provides the best measure for comparing output across countries”

Everybody knows that IMF is pro-US in its approach in matters of global finance and economy. In the 1970s, the IMF and the World Bank were restructured to serve neoliberalism which the US and Europe embraced and forced on the rest of the world, letting loose the market forces which have really ravaged the economies of the poor countries. Therefore the IMF could be considered a tool of the US and Western powers. It would not dare lie regarding the economy of its biggest sponsor. The CIA is the central intelligence service of the USA and it is advising the US government about the seriousness of the problem due to Chinese ascendancy. CIA too , will not give wrong information to the US government.

One cannot be surprised by the Chinese phenomenon. It’s economy has been growing at the mind-boggling rate of 10% in the last 30 years. Only the Covid-19 succeeded in bringing it down and that too, by a small margin. China is expected to contribute 1/4 th of the global growth next year, mainly in the manufacturing sector.

Joseph Needham who had studied ancient Chinese science and technology, has commented on the capability of the Chinese and the uniqueness of their culture.. The methods adopted by the Chinese have bewildered Western social scientists and economists. Some believe that it is the habit of thrift of the people that had contributed to the economic growth as the rate of savings in China ranges around 25%. Others think it is due to the concept of Township and Village Enterprises that has been adopted recently. However, Needham and his associates think the close affinity between the Chinese people and the government to be the secret of their success.

The world has to come to terms with China. The Western countries cannot continue to treat China as an outcast and do its utmost to undermine its development and spread of influence. Australia for instance, supports all such efforts of the US though China is its biggest trade partner. It had agreed with the US policies regarding sanctions on China and implemented similar measures, but complains to the WTO when China retaliates.

One hopes, for the sake of world peace and prosperity that these big powers would stop their childish rivalry and work together. One hopes the new US President Joe Biden would change their policy towards China. He must realize that greater benefit would result to the US, as well as the world by adopting a lesser confrontational approach. If the US and China come to be lesser rivals and greater trade partners the rest of the world could be expected to be more peaceful and conciliatory. Middle East could be less of a cauldron, South Asian rivals may mend fences. China itself would be less belligerent in its neighborhood.

More money would be available everywhere for health and education, employment and culture as the defense budget could be cut as there is no need to spend on weapons as there is no threat of war.

But is this wishful thinking. Would weapons industry allow Biden, even if he wants to, to make peace when their economy, employment, growth and power depends on the perpetuation of a war situation cold or hot in the world.

N. A. de S. Amaratunga



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Opinion

Christmas Roots and Hearts Aglow:

Published

on

Rekindling Faith, Peace, and Love Below…!

(Practical Tips for Christmas Bliss)

by Rev. Fr. (Dr.) Eymard Fernando

Bishop’s House, Kurunegala.

In an increasingly and incredibly materialised and commercialised world today, the core meaning of Christmas often seems distorted, being overshadowed by consumerism, bustling sales, and extravagant festivities. Yet, at its heart, Christmas is a season meant for reflection, change, love, and unity – a time when people gather to celebrate gratitude and generosity centred around the Divine Baby. As we explore the roots of Christmas and what it can mean for us in today’s world, we uncover themes of faith, hope, peace, and kindness that transcend religious boundaries, reminding us of the true purpose and value of God becoming man.

Therefore, let us delve a little into the origins and deeper significance of Christmas, exploring ways to return to these roots through themes of generosity, togetherness, and humility. By rediscovering these essential values, we can certainly celebrate Christmas as a season that brings light and life to our world.

A Season of Faith and Reflection

Christmas has its origins in the Birth of Jesus Christ, a moment celebrated by Christians as the arrival of hope and salvation. However, even beyond its religious significance, Christmas season has become a time when many reflect on themes of love, hope, and renewal. The story of the Nativity conveys universal values: humility, peace, and the power of hope.

The Birth of Jesus in a humble manger represents a profound lesson about simplicity and compassion. As theologian Henri Nouwen noted, “Jesus was born in the least expected place to the least expected people in the least expected way.” This simplicity, intertwined with humility, challenges the commercialised image of Christmas today. Instead of focusing on luxury and excess, the roots of Christmas invite us to value the simple, meaningful aspects of life: faith, family, and fraternity.

In today’s world, we can return to these roots by setting aside time for personal reflection during Christmas. Practising gratitude, being mindful of those less fortunate, and reaching out to loved ones are all different ways we can honour the spiritual foundation of Christmas. Thus, we all can benefit from a moment of stillness and introspection during this busy time of the year.

The Spirit of Generosity and Compassion

Christmas has always been a season of sharing, inspired by the gifts of the Magi to the Christ- Child and later, Saint Nicholas’ acts of charity as santa claus. However, the tradition of sharing has gradually shifted from simple acts of kindness to an intense focus on material gifts. According to American sociologist Juliet Schor, “We give to show love, but in a culture that equates love with spending, our giving has been commercialized.”

However, in recent years, a shift towards alternative, meaningful sharing has gained momentum in the form of a worthy ‘retromarch’. Many individuals and families now choose to give to charity in a loved one’s name or to offer experiences rather than material goods. This form of sharing very much aligns with the true spirit of Christmas, embodying generosity without extravagance.

Likewise, local initiatives, such as community food drives and clothing and toy collections, have become popular ways to give back. Participating in these efforts allows people to connect with others in their communities, creating a shared sense of purpose and compassion. As Mother Teresa famously said, “It’s not how much we give, but how much love we put into giving.” By focusing mainly on the intention behind our gifts, we can bring the spirit of Christmas alive in our own hearts and communities. However, the magic of Christmas is not very much in presents and parties, but in His Presence!

Family and Togetherness: A Time for Connection

The Christmas season is often one of the few times in the year when families come together, setting aside time to reconnect, reflect, and celebrate. This emphasis on togetherness is deeply rooted in the season’s traditions, dating back to ancient winter solstice festivals where communities gathered to share warmth and light during the darkest days of the year.

In modern times, when families may be dispersed across cities or even continents, Christmas remains a crucial opportunity to reconnect. This communal emphasis shows how Christmas, regardless of religious affiliations, has become a unifying tradition centred on family.

Simple traditions – like sharing a meal, decorating a Christmas tree, or singing carols together – allow families to pause, connect, and create memories. These rituals not only strengthen family bonds but also convey the essence of Christmas for younger generations. As American author Richard Paul Evans, best known for his inspirational and heartfelt novels says, “The smells, tastes, and sounds of Christmas are the roots that nurture a family tree.” By focusing on togetherness, Christmas serves as a reminder of the love and connection that sustain us all throughout the New Year.

Peace on Earth: Seeking Unity in This Divided World

One of the most significant messages of Christmas is the call for ‘Peace on Earth’. Yet, today’s world is marked by political, social, cultural, economic and various other divisions, making the pursuit of peace and unity more relevant than ever before. From the hymn ‘Silent Night’ to the angels’ proclamation of peace, Christmas has long symbolized hope in times of conflict.

A poignant historical example of Christmas promoting peace is the Christmas Truce of 1914, during World War I. British and German soldiers, entrenched on the Western Front, laid down their arms on Christmas Eve to exchange greetings, sing carols, and share small gifts. This unexpected truce, though brief, reminded soldiers of their shared humanity amidst the horrors of war. It symbolised the power of Christmas to transcend differences and bring people together, even during a time of darkness and death.

Today, peace-oriented traditions continue to play an important role during Christmas season. Interfaith gatherings, community meals, and charitable events all serve as spaces for people from different backgrounds to connect and understand one another. In a world often divided by ideological and political differences, Christmas can become a season with a reason for open dialogue, compassion, and understanding. Embracing Christmas’ call for peace and unity allows us to honour its roots in ways that resonate with our global context.

Practising Simplicity and Mindfulness

While Christmas has grown as a metaphor for lavish celebrations and enchanting tamashas, the season’s roots actually encourage simplicity and mindfulness. The traditional story of Jesus’ Birth in a manger speaks to a humble beginning, one that invites us to cherish what truly matters in life. Embracing that simplicity allows us shift our focus from material abundance to the richness of shared experiences.

In recent years, minimalism and mindfulness have gained popularity as antidotes to the consumer-driven spendthrift lifestyle with a ‘shop till you drop’ psychosis. Many people now opt for simpler, handmade gifts or choose to forgo elaborate decorations in favour of natural elements. These preferred choices reflect a desire to connect more authentically with the true meaning of Christmas. Instead of flashy lights or mountains of gifts, families can create meaningful memories through acts of kindness or spending quality time together strengthening family ties. One modern example for this is the ‘Reverse Advent Calendar’ tradition. Instead of receiving a treat each day, participants place an item – such as dry rations or clothing – in a box to donate to those in need. This practice helps to instil gratitude and generosity, shifting the focus from consumption to community service. By embracing a simpler and more mindful and meaningful approach, we honour the humble roots of Christmas and foster a deeper sense of appreciation for life’s countless blessings.

A Journey of Rediscovering…

Returning to the roots of Christmas is a journey of rediscovering faith, kindness, and togetherness in a world that often moves at a very rapid pace. The true spirit of Christmas calls us to reflect on values that transcend time and culture: humility, compassion, peace, unity, and love. In embracing these themes, we transform Christmas from a season of materialism into one pregnant with meaning.

As we celebrate Christmas this year, let us remember that this event is not about what we have, but about who we are with and how we make others feel. It is a season of opening our hearts and minds to others, of putting love into action, and of finding moments of peace and tranquility in the midst of cacophony, disorder and chaos. By going back to the roots of Christmas, let us therefore invite joy, hope, and kindness into our lives, allowing Christmas grow and glow with renewed purpose and profound meaning resulting in a new birth in our own lives!

Continue Reading

Opinion

Closer look at regulatory oversight and its impact on tourism

Published

on

Sri Lanka’s Struggling Aviation Sector:

Sri Lanka, a nation blessed with cultural richness, breath-taking landscapes, and strategic geographic positioning, has long been considered a gateway to Asia’s tourism market. Yet behind the scenes, the country’s domestic aviation sector is struggling, caught in a web of regulatory challenges and infrastructural stagnation. Two key documents shed light on these issues: the ICAO Universal Safety Oversight Audit Programme (USOAP) Continuous Monitoring Approach (CMA) Final Report (November 2018) on Sri Lanka’s civil aviation system, and a recent panel discussion organised by the Organisation of Professional Associations (OPA) on “The Role of Domestic Aviation in Sri Lankan Tourism.”

Taken together, these sources paint a picture of a sector mired in what industry experts call “over-regulation” and “lack of facilitation.” This situation not only impedes the growth of domestic aviation but also adversely affects the country’s tourism potential. At the heart of the problem lies the Civil Aviation Authority of Sri Lanka (CAASL), described as being more obstructive than supportive, thereby stifling innovation and progress in the industry. ICAO highlights the need for a more tailored regulatory approach, stating as a high priority that “all the applicable provisions of the Annexes to the Chicago Convention are properly transposed to Sri Lanka national regulations, instead of a word-by-word copy of the Annex provisions, to ensure that the national regulations provide for clear requirements of the State and are implementable and enforceable.”

The OPA panel discussion reinforces these findings. It offers a historical overview going back to the 1950s, when domestic aviation briefly thrived under partnerships like Air Ceylon and Australian National Airways (ANA). Yet by the 1960s and beyond, domestic aviation began to decline due to inadequate regulatory support, financial hurdles, and misguided policy decisions. As the OPA discussion states: “During the discussions, fingers were pointed at the Regulator, Civil Aviation Authority Sri Lanka (CAASL), Airport and Aviation Sri Lanka (AASL), and the Sri Lanka Air Force (SLAF) for being more obstructive than facilitative as a direct result of their employment of personnel who are unprofessional, inefficient and unqualified.” This criticism suggests that the CAASL applies international standards (SARPs) too rigidly, without considering alternative means of compliance suitable for local conditions. Instead of fostering a dynamic and cost-effective domestic aviation environment, over-regulation hampers operators and prevents them from serving remote destinations efficiently.

The impact on tourism is profound. High-end travellers value time and comfort, and efficient domestic aviation can transform hours-long road trips into brief, scenic flights. As noted in the OPA document, domestic aviation could attract “high end ‘luxury tourists’ who preferred to go from their departure point to their final destination in minimum time.” Yet over-regulation, poor infrastructure, and insufficient marketing force many visitors to rely on time-consuming road travel or skip certain destinations altogether.

Summarising the problem, the OPA document states: “The overarching message was that domestic aviation and the tourism industry do not seem to work together as a team.” Both the ICAO report and the OPA discussion not only highlight deficiencies but also propose solutions. ICAO recommends that the CAASL “conduct a structured review of all Regulations/Implementing Standards” to ensure regulations are more practical and enforceable. Despite these clear directives, it remains puzzling why the current administration has not acted on these recommendations and taken advantage of the “low-hanging fruit” within domestic aviation. Sri Lanka stands at a crossroads. Its natural beauty, cultural diversity, and strategic location create a promising backdrop for a thriving tourism industry. Domestic aviation can serve as a critical catalyst in this resurgence. However, the documents make it clear that unless the CAASL heeds ICAO’s recommendations and the OPA’s insights, regulatory gridlock will continue to hold the sector back. If the CAASL adopts the suggested reforms, Sri Lanka’s domestic aviation could finally take off, bolstering the tourism sector and paving the way for sustainable growth, greater foreign exchange earnings, and enhanced competitiveness in the regional travel market.

Aircraft Owners’ and Operators’ Association

Continue Reading

Opinion

What AKD and NPP should bear in mind

Published

on

AKD

This is to thank you for drawing attention to the dangers posed by India to our society and its culture and other basic resources as well as its on-going exertions towards encroaching on our maritime territory.

As your distinguished correspondent Neville Ladduwahetty has pointed out in an article—President Dissanayake’s forthcoming visit to India: Issues Sri Lanka should take up with New Delhi (09 Dec.)—in your columns, what the NPP government led by Anura Kumara Dissanayake should bear in mind is that India is not our friend. Indeed, as I myself pointed out in an opinion piece published by you many months ago, India’s practice of greed has alienated everyone of the countries that lie on or in proximity to its borders from Pakistan in the west to Bangladesh in the east, to Sri Lanka and the Maldives  in the south with that vast territory of distinct cultures that cover Jammu and Kashmir, Nepal and Bhutan all capped by China.

India mouths the observations made by the rest of the world on what is euphemistically called “western” “hypocrisy” (and not the pack of looters and genocidal goons they have long been). The reason for that has been quite evident but has been pronounced a few days ago in statement/s by Jaishanker (a public servant who has found politics more to his taste) on India’s “complicity” (what a seeking-to-be-neutral term) in the criminal assaults on the people of and around Palestine.

And, if one were to ask, “Who are they?” they are a widespread group of rogue states and range from the prime mover (the USA) to arms-vendors across Europe, to traders in fossil fuels and to money-makers by any other means such as Egypt’s Sisi, Pakistan’s unelected rulers in military uniform whether home-bred or governed by the “policy’ makers in Washington and right down to the wallahs of a rich mixture of rogue businessmen, politicians cum mythmakers masked in “religion” in India.

And what have we here? The same manoeuvres as elsewhere with treacherous politicians of our own in place of the Marcos line in the Philippines, the Sharifs et al in Pakistan and a whole string of the like in Africa and Latin America.

How subservient the more recent lot here are and how much the US-Indian combine can chalk up as “success” can be seen in a wealthy Indian businessman’s role in support of the American-underwritten carnival on Galle Face green to remove Gotabaya from office. An exertion capped by insinuating their long-term friend, Ranil Wickresinghe, into Parliament and the presidency with not a whisper of legitimacy. And that’s the sort-of man who spent hundreds, maybe thousands of our hard-earned ‘valuable foreign exchange’ going for funerals and other bits of show-dom. We await the present administration to make public an audit of those and other expenditures incurred by him and his cohorts, in addition of course to the ‘agreements’ he has signed with ‘his’ constituency of MPs who had long lost any form of legitimacy themselves.

And now they must be, should be, delighted to have Harini Amarasuriya. She is on record as telling us that she’s concerned for India’s fears for her security from her neighbours. I do not wish to go on and risk the blood pressure levels of your readers by spelling out the meaning of what she’s said and of her presence in Parliament, never mind the Cabinet.

That reminds us that she has been designated “Prime Minister” as following Sirimavo Bandaranaike, who earned world-wide respect for severing diplomatic relations with Saigon (Vietnam), Formosa (Taiwan) and ‘Israel’.

That was in 1970, over fifty years ago. It’s possible that Dr. Amarasuriya’s knowledge of or respect for history does not extend that far back.

Gamini Seneviratne

Continue Reading

Trending