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IMF China and debt-trap

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by N.A.de S. Amaratunga

The above topic is relevant to all countries experiencing economic crises for IMF and China, it appears are alternative and perhaps competing sources for economic aid and they are both accused of causing debt-traps for the recipient countries. IMF is accused by people like Joseph Stiglitz of manipulating the economy of poor countries in such a way that there is a drain of their wealth for the benefit of the rich countries. China is accused of trapping the recipients of its aid to cough out to the Chinese their valuable national assets like harbours and airports. Poor countries have turned to China after realising the apparent folly of following IMF policy and China has willingly stepped in to displace the IMF. In this context IMF is perceived as a tool of the Western powers and China as the alternative power that could stand up against Western imperialism.

Sri Lanka seemingly is in a situation where it is not possible to be choosy. Most of the economic advisers have been asking the government to go for an IMF programme since 2019 when the early symptoms of an economic downturn were visible. However, the then government decided not to go to IMF but tried out other measures like heavy cuts on tax and stabilizing the rupee against the dollar. These plus other blunders like a ban on agro-chemicals brought the country to bankruptcy forcing it to default on debt repayment and to decide to seek IMF assistance. IMF may have already asked the government to adopt policies that may cause lot of hardship to people. Heavy taxation has been brought back. Loss making public enterprises may have to be privatized. Welfarism may have to be curtailed with less public expenditure. Market forces may have to be given more freedom with less government intervention.

All these measures would finally hurt the lower middle class and the poor. This is where the Chinese factor comes in. The relevant questions are whether China is an alternative to IMF, whether its presence as a player in the global debt scenario would give recipient countries the opportunity to negotiate with the IMF for more favourable terms and conditions and whether any of these lenders have designs on the recipients. These are important questions for Sri Lanka at the present moment as negotiations with the IMF are not finalised, rescheduling of debt is still being discussed and nothing is certain yet. And China seems to be closely watching the unfolding events, all the time promising every assistance.

A research study done by James Sundquist (2021) involving 104 developing countries covering the period from 2001 to 2017 has shown that Chinese aid has helped some countries to turn away from the IMF and others to negotiate deals with less damaging conditions. Chinese loans may have achieved much more than the loudest critics of the IMF. Plain criticism of the IMF has not brought any results beneficial to poor countries. But the competition brought on by China has resulted in the change of policy in relation to terms and conditions of the IMF. In 1996 the IMF and the World Bank developed the Heavily Indebted Poor Country (HIPC) Initiative, under which low-income countries with multi-year track records of good policies would qualify for grants in association with their concessional loans.

The HIPC initiative soon came under heavy criticism for “offering too little relief too slowly to too few,” with only four countries obtaining full stock of available debt relief before the end of the century. In 1999, the Bretton Woods institutions “enhanced” the Initiative by lowering the bar for judging whether debt was unsustainable and providing debt relief and grants sooner to qualifying countries. Within three years, enhanced HIPC could deliver almost US$1 billion in debt relief to 25 countries.

Critics of China on its role as an aid-giver accuse China of many dirty tricks including 1) prioritising short term projects instead of long term programmes aimed at sustainable prosperity, 2) non-transparent lending with little regard for issues such as corruption and money laundering and 3) promoting infra-structure projects that benefit China’s economy, for instance its imports of raw materialas and export of manufactured goods.

However, if China is intent on ensnaring poor helpless countries it would target countries like Zimbabwe, but it did not come forward to bail out that country for it was seen that Zimbabwe had no reliable foreign exchange earning capacity. This shows that China focuses on debt sustainability of a country rather than its vulnerability that provides an opportunity to trap them and force them to part with their national assets. Countries which export large volumes of natural resources are the most likely to benefit from Chinese aid. This could mean that China may not be interested in encouraging these countries to develop their technology that would enable them to add value to their natural resources before they export them. Yet there are countries which see China as an alternative to the IMF. China may not be engaged in ensnaring poor countries but it certainly is interested in their natural resources.

Financial Times reports (18th January 2022) that some 74 low- and middle-income countries “will have to repay an estimated $35 bn to official bilateral and private-sector lenders in 2022”, which is a 45% increase compared with 2020, “with seen as one of most vulnerable.” Ghana, Salvador and Tunisia could also be in jeopardy. Zambia defaulted in 2020 on an amount of $3 billion and the situation has not improved. The Zambian government is negotiating a new loan from the IMF, which, if granted, will demand more austerity measures. As explained in the Financial Times, this surge is a consequence of developing countries contracting ever more debt to face the impact of coronavirus, but also of the rising cost of refinancing existing loans and the resumption of debt repayments that had been suspended during the pandemic. David Malpass, President of the World Bank, warned that the creditors’ insistence on being paid will increase the risk of disorderly defaults. “Countries are facing a resumption of debt payments at precisely the time when they don’t have the resources to be making them,” he said.

Almost all countries take loans from other countries with the US being the biggest borrower. For the rich it is a game they can play and also enjoy very well. But for the poor countries it is a matter of life and death. The slightest mishap, eg; Covid pandemic, and their survival is in danger. This is so mainly because the system involving global debt is so designed that it ensures a flow of wealth from the poor to the rich. The IMF and the World Bank may have changed their policies, but that may be to prevent the total death of the indebted countries but not with the intention of making them prosperous. The idea is to keep the developing countries in a permanant state of poverty and remain suppliers of raw materials and cheap labour. “The hidden agenda, the one that is actually applied, is to subordinate the public and private spheres of all human societies to the capitalist imperative of seeking maximum . The implementation of this hidden agenda results in reproducing poverty rather than reducing it and in increasing inequalities rather than reducing them. It results in stagnation, if not deterioration, of the living conditions of a great majority of the world’s population, concurrently with a greater and greater concentration of wealth in the hands of a smaller and smaller elite. A further result is the continued deterioration of ecological balances, which means that the very future of humanity is in danger” (Eric Toussaint, 2022).

China, if it is not a party to this evil system must try to help change the system. Chinese economy is not entirly profit dependent and neo-liberal. It must come forward, as it has shown in the recent past, at this critical hour to help the poor countries come out of the debt-trap they have got into. It must get together with other like-minded countries to set up an alternative to the IMF. This new organisation could prevent poor countries from being entrapped by the imperialist forces. It could strengthen the negotiating capacity of poor countries which have to obtain loans for their survival. It should be possible for these countries to get some aid without having to mortgage their future survival.



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Polarizing rhetoric greets America on its epochal anniversary

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President Donald Trump addresses the public on the occasion of the US celebrating the 250th anniversary of the US Declaration of Independence from Britain.(BBC)

Democratic and progressive opinion in the US and the world over would likely have been further jolted by the divisive rhetoric blared forth by US President Donald Trump on no less an occasion than the 250th anniversary of the US Declaration of Independence from Britain. The world has been placed on notice that what it would be having in the main is aggravated polarization on multiple fronts during what’s left of the Trump tenure.

If the world was expecting positive moves by the Trump administration to bridge divisions, heal rifts and usher in a more harmonious international political order, this is very unlikely to be. Instead, in all probability we would be left with a far more ‘dangerous place to live in’.

Some of the more thought-provoking recent ‘takes’ from President Trump are : ‘A generation after we fought and won the cold war against the menace of communism, there is now a resurgence of the communist menace in our land, including from newcomers to our country who embrace ideas totally opposed to our way of life and our great success.’ ‘We will send them (immigrants) quickly away, and we will continue to build our country bigger and better than ever before.’ ‘We are going to give our country its identity back.’ ‘You can be loyal to Karl Marx or you can be loyal to America. You can be a communist or you can be a patriot. You cannot be both.’

Accordingly, what the world would have in increasing measure going forward are stepped-up attempts to consolidate a white supremacist administration in the US accompanied by a suppression of ethnic, religious and cultural minorities at home along with renewed attempts to spread and consolidate US hegemonism world wide.

The latter project would mainly translate into US military interventions abroad of the Venezuelan type and a persistence if not a resurgence of identity based conflicts globally. Violent reactions internationally to what are seen as attempts by the US to bring recalcitrant sections in particularly the South under white supremacist control will provide the basis for the steadfast presence and spiking of identity politics globally.

Moreover, the path has been paved for stepped-up ethnic, religious and cultural disharmony within the US. A united state is far from possible, given this backdrop. Put simply, it would be a question of steeper political polarization at home and abroad.

The persistent, widespread support for the hard line Islamic regime in Iran locally and globally should serve as an eye-opener for the political decision-makers of the US. Huge crowds at the funerals of Iran’s political leaders could very well be state-orchestrated but they are a pointer to the fact that political Islam is far from on the decline. To the extent to which this is so, the phenomenon could be a hurdle in the path of a stridently expansionist US.

Looking back, it was the consolidation of the Islamic regime in Iran in the late seventies of the last century that, besides proving a major challenge to the unfettered global power expansion of the US and its Western allies, provided the motive force as it were for the proliferation of Islam-based identity politics in particularly the South. This continues to be so.

Going forward, the US would need to figure out how best it could manage the persistent presence of Islamic fundamentalism world wide, and for that matter other forms of identity politics, without drastically losing its global power and influence.

The recent successful challenge by Iran to the US’ efforts to exercise its diktat in West Asia should prove an ‘eye-opener’. In these confrontations both sides were bloodied but Iran proved that it could successfully take on the US militarily. The inference for the US ought to be that projecting its military might in the Middle East in a no-holds-barred fashion would not prove easy.

Arising from the foregoing a foremost policy challenge for the US would be to curb Iranian military power while avoiding another major military confrontation with the Islamic state that would cost the US and the world dearly in particularly economic and material terms. The US would have no choice but to persist with the often flagging West Asian peace effort and to render it fully workable.

Ukraine presents the US with another formidable challenge. As is known, Ukraine is proving no easy ‘push-over’ for Russia, but it is badly in need of more sophisticated Western arms, particularly effective air defense systems, to fully neutralize the Russian invasion. What would the US choose to do; go to Ukraine’s assistance fully or opt not to ruffle and antagonize the Putin regime, with which it is on some cordial terms?

A negotiated solution is best in Ukraine and the Trump administration would do well not to lose sight of this ideal but Russia too should see the need for a diplomatic solution if it is to salvage itself from its military stalemate in Ukraine. The US needs to try being a peace mediator in the latter theatre but if the Russian political leadership fails to opt for peace the US would have no choice but to join the rest of NATO and Europe in continuing to arm Ukraine.

The US would need to take the latter course if the ‘world’s mightiest democracy’ is to remain committed to its founding ideals. If President Trump fails to meet this challenge he would prove that he is nothing more than an ‘empty rhetorician’.

However, it should not come as a surprise to the world if Trump chooses not to strongly back the rest of the West on Ukraine. Domestic and foreign policy are closely intertwined. Since the Trump administration is committed to building a white supremacist state at home, democratic development worldwide has been of the least importance to it.

The Trump administration’s strong affinities to white jingoism would increasingly compel it to opt for a policy of international isolationism. As a result Ukraine could prove unimportant for the US going forward.

Consequently, US-Western Europe friction in particular is only likely to intensify in the days ahead. Coupled with the contentious issues growing out of the persistence of identity politics, the Trump administration’s far-sightedness in managing foreign policy issues would be tested to the fullest. Whether the world would have comparative peace or continued blood-letting would depend crucially on such judiciousness.

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Beyond concrete: Sunela Jayewardene urges Sri Lanka to rediscover an ancient wisdom for a planet in peril

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Sunela / Rishan / Spencer

It was more than a lecture on architecture. It was a challenge to rethink civilisation itself.

Standing before a packed audience at Dilmah by Genesis in Maligawatte, internationally acclaimed environmental architect, author and conservationist Sunela Jayewardene delivered a keynote that transcended blueprints, buildings and urban planning.

Instead, she invited her listeners on an intellectual journey into Sri Lanka’s ancient past, arguing that the answers to some of the world’s gravest environmental crises may already exist within the island’s forgotten ecological wisdom.

Her address, titled “Beyond Concrete: Architecture for the Coexistence of Species,” was at once philosophical, historical and deeply practical. It questioned humanity’s obsession with dominating nature and called for a return to a design ethic rooted in respect, restraint and coexistence.

“The road is actually very simple,” Jayewardene said. “We have simply forgotten it.”

That observation became the defining thread of an afternoon that challenged conventional thinking about architecture and development.

According to Jayewardene, modern society has inherited a worldview shaped largely by colonial values that placed human needs above those of every other living organism.

“Our value system was turned on its head,” she observed. “We accepted a Western way of looking at nature without questioning it. Today we can clearly see the consequences. The world is in crisis. Species are in crisis. Our lifestyles are in crisis.”

She was careful not to romanticise the past, nor was she dismissive of modern science. Instead, she argued that Sri Lanka’s pre-colonial civilisation possessed a sophisticated environmental philosophy that modern planners and architects have largely ignored.

For Jayewardene, environmental architecture is not about fashionable sustainability slogans or cosmetic landscaping.

It begins with humility.

It begins by recognising that humans are only one species among millions sharing the same landscape.

“The built environment should not exist in opposition to nature,” she said. “It should become part of nature.”

One of the most captivating moments of her presentation came when she introduced her own research into the island’s ancient sacred geography.

Using digital mapping and satellite imagery, Jayewardene demonstrated the remarkable alignment of Sri Lanka’s four original Saman Devalayas, whose axes converge on Sri Pada, historically known as Samanthakuta.

The extraordinary precision of these alignments, she argued, raises profound questions about the scientific and surveying capabilities of ancient Sri Lankan civilisation.

“What kind of technology enabled them to achieve this?” she asked the audience.

Her purpose was not to offer speculative answers but to challenge deeply ingrained assumptions that ancient societies lacked scientific sophistication.

“We often underestimate what our ancestors knew,” she said. “Yet the evidence around us tells a very different story.”

That forgotten knowledge, she argued, extended well beyond engineering.

It shaped an entire philosophy of living with the landscape rather than imposing human will upon it.

Displaying photographs from archaeological sites including Ritigala, ancient monasteries and rock pavilions hidden within Sri Lanka’s forests, Jayewardene illustrated how builders carved steps around natural boulders, integrated structures into existing rock formations and preserved the contours of the land.

Modern construction, she suggested, would almost certainly have bulldozed those landscapes into submission.

“Our ancestors honoured the land,” she said. “They accepted the landscape instead of trying to conquer it.”

For Jayewardene, that principle remains the foundation of every project she undertakes.

She described environmental architecture as an exercise in listening rather than commanding.

Every site, she explained, possesses its own identity, ecological history and natural rhythm.

The responsibility of the architect is to understand that identity before attempting to intervene.

“The land tells you what it wants to become,” she said.

Throughout the presentation, one word repeatedly surfaced—context.

Without understanding context, she argued, architecture becomes little more than sculpture.

Good design cannot be copied indiscriminately from one country to another or even from one district to another.

Climate differs.

Rainfall differs.

Vegetation differs.

Wildlife differs.

Culture differs.

Even the stories associated with landscapes differ.

All of these, Jayewardene insisted, must shape architecture.

“When I speak about inhabitants, I don’t mean only human beings,” she explained.

“The birds, insects, reptiles, mammals, trees and every living organism already occupying that land must become part of the design equation.”

This broader understanding forms the basis of what she describes as non-human-centred design—an approach that rejects the notion that cities exist exclusively for people.

Instead, landscapes should provide refuge for biodiversity while simultaneously serving human communities.

It is an idea that resonates strongly at a time when rapid urbanisation continues to erode habitats across Sri Lanka.

Jayewardene also challenged prevailing attitudes towards development itself.

Too often, she argued, “development” has become synonymous with replacing natural systems by concrete infrastructure.

She questioned whether flattening hillsides, redirecting streams and clearing vegetation can genuinely be described as progress.

In her view, genuine development should first ask what ecological value already exists before deciding what should be built.

One of the simplest yet most profound examples she offered concerned water.

“I always say it is acceptable to interrupt water,” she remarked. “But never disrupt it.”

That distinction reflects an ecological understanding often absent from conventional engineering.

Natural drainage systems, she warned, perform countless functions that remain invisible until they are damaged.

Floods, soil erosion, biodiversity decline and even changes in local climate frequently follow.

“We disrupt far more than water,” she said. “We disrupt entire ecological relationships.”

Equally significant was her distinction between degraded brownfield sites and relatively untouched greenfield landscapes.

Brownfield sites require ecological restoration, rehabilitation and renewal.

Greenfield sites demand restraint.

Minimal intervention, she argued, is often the highest form of environmental design.

The keynote found an appropriate setting within Dilmah Conservation’s own efforts to restore degraded urban landscapes.

Earlier in the programme, Rishan Sampath of Dilmah Conservation outlined the organisation’s transformation of an abandoned industrial property in Moratuwa into a flourishing urban forest containing over 300 tree species and more than 1,000 individual plants.

Scientific studies conducted within the restored forest have already demonstrated improvements in air quality compared with adjoining urban roads, providing measurable evidence that biodiversity restoration can improve city life.

For Jayewardene, such initiatives represent far more than beautification projects.

They demonstrate that ecological restoration can become a guiding philosophy for future urban planning.

Her address ultimately became a call to rethink humanity’s place within nature.

Architecture, she argued, should no longer celebrate domination over landscapes.

It should celebrate coexistence.

Every building should strengthen biodiversity.

Every development should restore ecological balance.

Every designer should ask not merely how a project serves people, but how it serves life itself.

As the audience left the hall, they carried with them more than architectural ideas.

They carried a challenge

To question inherited assumptions.

To rediscover indigenous ecological wisdom.

And to recognise that Sri Lanka’s greatest contribution to global sustainability may not lie in importing new environmental models, but in rediscovering the timeless principles embedded within its own civilisation.

For Sunela Jayewardene, the future will not be secured by building more impressive skylines.

It will be secured when humanity learns once again to build gently, intelligently and respectfully—allowing architecture to become not an act of conquest, but an expression of coexistence.

By Ifham Nizam

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Colombia’s “back-to-back queen”

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Beyond modelling, Colombia’s Katherine Castaño, who captured the crown at the Top Model of the World 2026, in Egypt, is also a TV host, entrepreneur and social media influencer.

She’s based in Miami, Florida right now — a hub for fashion and influencer work — a city she calls home base, while representing Colombia on the world stage.

Her Miami base gives her access to fashion, entertainment, and business networks, while her title keeps Colombia front and centre in the global modelling conversation.

Off the runway, she says she enjoys singing, playing the piano, and tennis.

Katherine didn’t make the trip to Egypt as a newcomer. She’s built a strong international portfolio before winning the crown.

In fact, her résumé reads like a fashion passport: Colombia Moda, New York Fashion Week, Miami Swim Week, Miami Fashion Week, Nicaragua Diseña, IXEL Moda, and Mercedes-Benz San José.

On June 8, 2026, Katherine Castaño was crowned by outgoing winner Natalia Garizabal Vera, also of Colombia. That gave Colombia a historic back-to-back victory — the first time any country has done it in the competition’s history, and Colombia’s 4th win overall.

As Top Model of the World 2026, Katherine’s reign is centred on elevating her profile as a model, influencer, and entrepreneur.

She’s built a personal brand around beauty, ambition, style, and professionalism, with strong reach across fashion, social media, and business.

As titleholder, she’s now the face of the pageant’s international fashion platform, representing Colombia globally, while based out of Miami.

Ahead of the competition she was clear about the stakes: “This is bigger than me. This is for my country. This is for the story I’m here to write… And I’m not going quietly… we’re going for that back to back.”

As the reigning titleholder, Katherine Castaño’s role extends far beyond the sash. She’s using the platform to grow her brand as a model, influencer, and entrepreneur rooted in “beauty, ambition, style, and professionalism”.

She will also be doing runway shows, photoshoots, brand appearances, and fashion events.

Sri Lanka’s representative at this pageant was NetalieWithanage.

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