China has overtaken the US – says IMF
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
Daring siege of the Cultural Ministry
The University of Colombo, Sri Lanka was established in 1979 in accordance with the provisions of the Universities Act No. 18 of 1978. The university was given all the land from the road joining Bauddhaloka Mawatha and Reid Avenue (later named Prof. Stanley Wijesundera Mawatha) right up to the Thummulla junction.
There were the court premises set up to try the insurgents of 1971, the Curriculum Development Centre (CDC), the Queen’s Club, an unauthorized temple which had everything else like car wash, canteen, night life, etc, except what should be found in a temple.
Of these the university was able to get rid of the bogus temple. The request to get the CDC premises did not materialize as the then Secretary of Education turned it down. Later these buildings were taken over to house the Ministry of Cultural Affairs.
One day in the early 1990s just prior to closing time the Senior Assistant Registrar in charge of Student Affairs came into my office and told me that the Students Union is planning to take over the Buildings of the Ministry of Cultural Affairs. Their plan was to wait till dusk and get in surreptitiously two by two. I told the Senior Assistant Registrar not to divulge this to anybody else and to wait till the following morning to see the outcome.
When we reported for work the following morning, I asked the Senior Assistant Registrar as to what had happened. He said the mission had been successfully accomplished and now the students were occupying the buildings. It seemed that what the university had been trying to get for a long time, the students had successfully achieved in one night!
On the second day the students who were occupying the buildings were a little agitated, telephoned me and asked whether the Special Task Force (STF) was planning to surround the building with a view to oust them as the STF personnel were occupying vantage points on buildings in the vicinity . I telephoned and inquired from the OIC of Cinnamon Gardens Police station, and he told me that there was no such plan and that they were only watching the situation. I conveyed this to the students and allayed their fears.
A meeting was convened at the Ministry of Higher Education to see how the problem could be sorted out. At the meeting a student showed a copy of a Cabinet decision where agreement had been reached to hand over the CDC buildings to the University of Colombo. The Minister of Cultural Affairs at that time, Mr. Lakshman Jayakody, was surprised and asked the student as to how he got the copy of the decision as even he had not seen it. The student stated that he did not want to divulge the source.
The Minister stated that his immediate need was to get the pay sheet and cheque book as the employees had to be paid their salaries. The students were adamant not to surrender, and they stated that this was done as they needed hostels. Hence the decision to lay siege to the buildings. Mr. Jayakody agreed to vacate the buildings so that the university could make use of them.
That ended the saga of the famous siege of a Ministry building by a few daring undergraduates. The buildings were used to house the newly established Faculty of Management and Finance. The undergraduates were accommodated in other buildings in Muttiah Road and Thelawala, which were handed over to the university to be used as hostels.
HM NISSANKA WARAKAULLE
Professor Dayantha Wijeyesekera
Professor Dayantha Wijeyesekera who passed away a few days ago was a dynamic personality who headed not one but two national universities in Sri Lanka. It was as the Vice-Chancellor of the Open University of Sri Lanka (OUSL) that I first encountered him, an encounter that highlighted Professor Wijeyesekera’s powers of perseverance and persuasion. During the late 1980s, I was happily ensconced at the University of Colombo when I started receiving messages from Professor Wijeyesekera to ask me to consider moving over to the OUSL. The proposition did not seem very viable to me at the time and I ignored his calls But for almost two years, he persisted until I finally gave in and shifted my academic career to Nawala- a move never regretted.
OUSL at that time was in the throes of changes and innovation, most of which were spearheaded by Professor Wijeyesekera who had taken over the leadership of OUSL in 1985 at a most controversial time. Perceptions of the OUSL were negative and the authorities were even considering closing it down. With his characteristic vigour, Dayantha Wijeyesekera set about putting things right bringing in changes, some of which were most controversial and even considered detrimental to OUSL.
In spite of opposition, he stuck to his vision and it is testimony to his persistence that a number of changes have lasted to this day – Faculties headed by Deans instead of Boards of Study headed by Directors, Departments of Study and not Units, a two-tier administrative system akin to the conventional university system of Council and Senate. To help support students who needed to come to Nawala for workshops and laboratory classes, he established student hostels-another move deemed by his critics as undermining the concept of Distance Education. The hostels still stand and have even been expanded.
Other changes were welcomed such as his indefatigable pursuit of state –of the art technology for OUSL. The OUSL’s centre for Educational Technology was a gift from Japan due to Professor Wijeyesekera’s efforts. And it was in his period of stewardship at OUSL that the first ever language laboratory to be established in a Sri Lankan university was set up in the Department of Language Studies – a gift from KOICA, the South Korean aid agency.
During Professor Wijeyesekera’s tenure as Vice Chancellor, the OUSL experienced growth and expansion in academic sectors too. During the 1980s, the university had only a handful of centres but under Dayantha Wijeyesekera the number rapidly grew- there were Regional Centres in major cities such as Colombo, Kandy and Jaffna. Study centres were set up in towns throughout the island and he was more than supportive when requested permission to establish teaching centres for English in smaller urban conglomerations such as Akkaraipattu .
Academic programmes blossomed. The Faculty of Humanities and Social Sciences for example had just one Bachelor’s degree, the LLB, during the 1980s. In Professor Wijeyesekera’s time this grew to include a Bachelor of Management Studies, a Bachelor’s degree in Social Sciences and the first ever Bachelor’s degree in English and English Language Teaching. The first degree programme for nurses in Sri Lanka, the BSc. In Nursing, was established at the Faculty of Science with support from Athabasca University in Canada. In addition there also sprang up a whole cohort of Certificate and Diploma programmes catering to the diverse needs of professionals all over the island.
The growth of the university was reflected in the expansion of facilities. New buildings sprang up on reclaimed land bordering the Narahenpita-Nawala Road – a new Senate House which offered space to all the administrative sections and had a spacious facility for Council and Senate meetings. A three-storey building was provided for the Faculty of Humanities and Social Sciences and a new Library building took shape near the Media Centre.
In addition Professor Wijeyesekera reached out to international centres of Distance Education and Open Universities across the world. In the early 1990s, he hosted with aplomb the Conference of the Association of Asian Open Universities (AAOU) and OUSL became a respected member of the AAOU as well as of the Commonwealth of Learning.
Dayantha Wijeyesekera began his career at OUSL in 1985 when the fate of the OUSL hung in the balance. Under his stewardship, the university burgeoned into a national university, a leader in Distance Education which others sought to emulate.. When he joined the OU, the student enrolment stood at 8,000. When he left, nine years later, there 20,000 students registered at the university. It was his hard work, his dedication, his commitment to academic progress that helped transform the OUSL.
May his soul rest in peace.
Open University of Sri Lanka
X-Press Pearl disaster
It will be a crying shame if we fail to get the much wanted and much spoken about compensation due to us for the monumental maritime disaster caused in around our shores when the X-Press went down.
Our government and all those departments and ministries responsible had ample time to make a water tight claim to make the compensation 1claim to the right place. The best available brains and talent to deal with this complex problem involving a host of subjects including the ecology, marine biology, shipwrecks, the law of the sea, maritime laws and whatever else should have been organized to fight our case.
The moment the disaster occurred, all concerned should have acted with single minded dedication to make a strong claim for compensation. Much video and other evidence of the damage done is available. All of us are aware of the shoals of fish, turtles and other sea creatures that died and were washed ashore and the plastic and oil pollution of our beaches. Some of those creatures that died live for over 100 years.
What we saw on our shore post-disaster was a heartbreaking sight. I don’t think it’s possible to assess the ecological damage done in monetary terms. The plastic nurdles the ship has been washed as far as Matara and it is said the acid pollution caused will be with us for a century. Fishermen have suffered great hardship by the loss of catch.
The case filed is being heard in Singapore. I hope the verdict will temper justice with mercy. The damage and misery suffered through no fault of ours is untold.
Padmini Nanayakkara, Colombo-3.
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