Economy
11th international conference on restructuring of global economy begins August 8
The two-day 11th International Conference on the Restructuring of the Global Economy (ROGE) will be held at the Saïd Business School of the University of Oxford during August 8-9.
The Centre for Business and Economic Research (CBER) of London and Egypt's Future University will co-host the international event, seeking to elucidate a wealth of issues in all aspects of business management, management education, teaching and learning methodologies and many more.
Academics, business practitioners, and policymakers from over 25 countries will join the conference.
Topics including the global economy, artificial intelligence, higher education challenges, corporate governance, and the economic impact of emerging cyber threats will be discussed at the 11the edition of ROGE.
Several international experts, including Dr Mike Wagner of the University of Cincinnati, Professor Nagwa Khashba of Future University, Professor Beheruz N Sethna, president emeritus at the University of West Georgia, Chris Bellamy, professor emeritus at the University of Greenwich, Ghanaian Minister of Tourism, Arts and Culture Ibrahim Mohammed Awal, Selva Pankaj, CEO of Regent Group, UK, will give keynote addresses at this conference.
Read: Egypt's Future University to co-host intl conference on restructuring of global economy
Jo-Ann Rolle, dean of School of Business of the City University of New York, Professor Padmakali Banerjee, vice-chancellor of Sir Padampat Singhania University, Professor Alan Parkinson, principal teaching fellow at the University College London, Dr Warren Matthews of Belhaven University, Professor Peter Cook of the University of Wollongong, Srini Sampalli, professor at Dalhousie University, Professor Deepraj Mukherjee of Kent State University, Professor Hoda Abd El Hamid Ali Mohamed of Future University, Professor Srinivasan R Iyengar, of the University of Mumbai, and Professor David Graves of the CBER also speak at the international event.
The international conference has a sizable following and draws academics, policymakers, and observers from all over the world.
PR Datta, chair of the conference and executive chair of the CBER said: "I am confident that such an international event will benefit all researchers in their pursuit of research, scholarship, and practice."
Professor Ebada Sarhan, president of Future University, welcomed the collaboration with the CBER.
"Hosting this conference in cooperation with the CBER provides a chance to study and share research and a road to achieving the 'Partnership for the Goals' as a fundamental pillar of the Sustainable Development Goals," Ebada Sarhan said.
Inflation and wage data suggest US prices will keep climbing
Inflation surged in June and workers’ average wages accelerated in the spring — signs that Americans won’t likely feel any relief from rising prices anytime soon and that the Federal Reserve will feel compelled to further raise borrowing costs.
An inflation gauge closely tracked by the Fed jumped 6.8% in June from a year ago, the government said Friday, the biggest such jump in four decades. Much of the increase was driven by energy and food.
On a month-to-month basis, too, prices surged 1% in June, the biggest such rise since 2005. Even excluding the volatile food and energy categories, prices climbed 0.6% from May to June.
Employees’ wages, excluding government workers, jumped 1.6% in the April-June quarter, matching a record high reached last fall. Higher wages tend to fuel inflation if companies pass their higher labor costs on to their customers, as they often do.
Friday’s figures underscored the persistence of the inflation that is eroding Americans’ purchasing power, dimming their confidence in the economy and threatening Democrats in Congress in the run-up to the November midterm elections.
Some signs indicate that certain categories of inflation may moderate in the coming months, though not by very much: Gas prices have fallen since mid-June from an average national peak of $5 to $4.26, according to AAA. Likewise, other commodity prices, for items such as wheat and copper, have plunged.
But more persistent drivers of inflation show little, if any, evidence of slowing. The wage data released Friday — a measure known as the employment cost index — indicated that paychecks were still growing at a robust pace. That’s good for workers, but it could raise concerns at the Fed about its effect on prices. Chair Jerome Powell specifically cited this measure during a news conference Wednesday as a source of concern for the the central bank’s policymakers.
“This is a (report) that’s going to keep Fed officials up at night,” said Omair Sharif, president of Inflation Insights.
The government also reported Friday that consumer spending managed to just outpace inflation last month, rising 0.1% from May to June. Spending actually jumped, but most of the gain was wiped out by higher prices.
Read: US inflation surges again in June, raising risks for economy
Rising consumer demand for services, such as airline tickets, hotel rooms and restaurant meals, is still helping fuel inflation. Many retail and consumer goods chains, though, say inflation is squeezing shoppers and limiting how far their money goes — a sign that consumer spending could further weaken.
This week, Walmart said its profits would fall because its customers are spending more on pricier food and gas, leaving them less able to buy clothes and other discretionary items. Likewise, Best Buy downgraded its sales and profit forecasts because surging inflation has forced consumers to reduce their purchases of electronics appliances.
Inflation has been rising so fast that despite the pay raises many workers have received, most consumers are falling behind the rising cost-of-living.
High inflation and interest rates are also hampering the U.S. economy, which shrank in the April-June quarter for a second straight quarter, intensifying fears that a recession is looming. Two quarters of declining growth meet an informal rule of thumb for when a recession begins, although robust hiring suggests that the economy still maintains pockets of strength and isn’t yet in a downturn.
On Wednesday, the Fed raised its benchmark interest rate by three-quarters of a point for a second straight time in its most aggressive drive in more than three decades to tame high inflation. Powell signaled that the Fed’ could raise rates by smaller increments in the coming months.
Still, he also stressed that the Fed’s policymakers regard the fight against inflation to be their top priority. He gave no hint that a weakening economy would cause the Fed to slow or reverse its rate hikes this year or early next year if inflation remained high.
By raising borrowing rates, the Fed makes it costlier to take out a mortgage or an auto or business loan. The goal is for consumers and businesses to borrow, spend and hire less, thereby cooling the economy and slowing inflation.
Globally, inflation is weighing heavily on other economies, too. This month, prices jumped 8.9% in the 19 European countries that use the euro currency from a year earlier. Europe’s economy has been hit particularly hard by higher natural gas and oil prices stemming from Russia’s invasion of Ukraine, though it managed to grow slightly in the second quarter.
The Fed monitors Friday’s inflation gauge, called the personal consumption expenditures price index, even more closely it does the government’s better-known consumer price index. Earlier this month, the CPI reported an acceleration in inflation, to 9.1% in June from a year earlie r, the highest in nearly 41 years.
The PCE index tends to show a lower inflation level than CPI. Rents, which are rising at their fastest pace in 35 years, are given less weight in the PCE than in the CPI.
Read: Fed unleashes another big rate hike in bid to curb inflation
The PCE price index also seeks to account for changes in how people shop when inflation jumps. As a result, it can capture, for example, when consumers switch from pricey national brands to cheaper store brands.
How to recession-proof your life amid economic uncertainty
Prices for gas, food and rent are soaring. The Federal Reserve has raised interest rates to the highest level since 2018. The U.S. economy has shrunk for two straight quarters.
Economists are divided over whether a recession is looming. What’s clear is that economic uncertainty isn’t going away anytime soon. But there are steps you can take now to be ready for whatever is ahead.
Yiming Ma, an assistant professor at Columbia University, says it’s not a question of if but when a recession will happen. People should prepare but not panic, she said.
“Historically the economy has always been going up and down,” said Ma. “It’s something that just happens, it’s a bit like catching a cold.”
But, she notes, some people’s immune systems are better able to recover than others. It’s the same with finances. If you think a recession could destabilize yours, here are some things you can do to prepare.
KNOW YOUR EXPENSES AND MAKE A BUDGET
Knowing how much you spend every month is key. Ma recommends sitting down and writing how much you spend day-to-day. This will help you see what’s coming in, what’s going out, and which unnecessary expenses you might be able to cut.
“By understanding what money you are getting and what you are spending, you may be able to make changes to help you through tough times,” advises the Federal Deposit Insurance Corporation’s Money Smart, a financial education program.
Budgets often reveal expenses that can be eliminated entirely or impulsive spending that can be avoided with planning.
For guidance creating a budget, free courses such as “ Creating a budget (and sticking to it) ” by CT Dollars and Sense, a partnership of Connecticut state agencies, and Nerd Wallet’s Budget Calculator can be good places to start.
SAVE AS YOU CAN
The more non-essential expenses you can cut, the more you can save.
It’s not possible for everyone, but Gene Natali, cofounder of Troutwood, an app that helps people create financial plans, says it’s ideal to budget to save enough to cover basic necessities for three to six months.
Programs such as America Saves, a non-profit campaign by the Consumer Federation of America, can help create a roadmap.
And if you do have a savings account, it’s important to check whether your bank gives you a good interest rate and shop around if it doesn’t, Ma said.
Read: Inflation hits record 8.9% in euro area, but economy grows
Her advice is to keep an eye on the monthly fees or service charges that might eat into your savings. But don’t limit your options. Online banks sometimes offer better rates than traditional ones.
CONSOLIDATE YOUR LOANS, AND DON’T TAKE ANY MORE
As interest rates rise, experts recommend that you consolidate your loans to have just one fixed-rate loan and, if you can, pay down as much of your debt as possible.
“Job security tends to be worse when a recession comes, it’s not a great time to accumulate debt,” said Ma.
But paying off your existing debt is easier said than done. The Federal Trade Commission’s Consumer Advice guide for Getting Out of Debt can help you make a plan.
With interest rates high, it’s also not a great time to take out new loans for big expenses like cars, though experts do recommend that if you need durable goods such as vacuum cleaners, stoves or dishwashers, you buy them as soon as possible to avoid future price increases.
VISIT SECOND-HAND STORES AND YARD SALES
Allen Galeon, an in-home caregiver in California, has been affected for months by the rising prices of household staples like groceries, paper towels, and gas for his commute.
His son’s favorite Hi-C orange juice, which was $1.99 for a six-pack, is now $2.50.
Since the start of the pandemic, when Galeon cut down from caring for multiple families to a single client to reduce his health risks, his household has dealt with financial instability.
One choice he’s made is to buy items like clothes or electronics second-hand whenever possible, whether from Goodwill, pawn shops, or Craigslist. And Craigslist allows you to search by area, to cut down on driving – which means less gas and inconvenience.
NEGOTIATE YOUR MONTHLY BILLS
Since the pandemic, many companies have updated their relief policies and have become more flexible with users, according to Kia McCallister-Young, director of America Saves.
Calling providers of monthly services to negotiate bills — whether it’s utilities, phone service, cable, internet, or auto insurance — can lead to meaningful savings, said McCallister-Young. Individuals can ask for the best rate, any available discounts, rebates, or coupons that can lead to a lowered monthly fee. If a provider is competitive with other companies, there’s an even better chance of getting a discount, she added.
“If you tell them, ‘I’m thinking of changing’ or that you’re shopping around, that helps — if they know you’re considering leaving, they’ll give you the best rate, and the goal right now is to find as much cashflow as possible,” she said.
Read: US economy shrinks for a 2nd quarter, raising recession fear
Check out federal programs such as the Low Income Home Energy Assistance Program, which helps cover bills, and Lifeline, which can assist with phone bills. If you are unsure if you qualify for any federal or state program, you can call 211, which will connect you with a local specialist who can assist you.
SWITCH UP YOUR GROCERIES
Grocery shopping with a meal plan, buying generic rather than brand-name or purchasing in bulk are some of the recommendations from the Consumer Federation of America.
“A lot of stores have price matching, so if you show them that a competitor is selling the same product at a lower rate, they’ll match that,” said McCallister-Young. “You also want to be looking at the stores that are closest to you, so you’re not spending the extra money you’d save on gas.”
An alternative way to save money on groceries is to check out food sharing apps such as Olio, which connects people around their community to share extra grocery items, and Too Good to Go, where customers can buy businesses’ surplus food at a discount.
LOOK AT GOVERNMENT ASSISTANCE PROGRAMS
Even with these saving and spending practices, a month’s wages aren’t always enough to cover important expenses. If this is your situation, programs around the country are available to assist you.
“Sometimes there just isn’t enough ‘end of the month’ at the end of the month,” said Michael Best, an attorney at the National Consumer Law Center who works on financial services issues.
To make use of these resources, check if you qualify for the Emergency Rental Assistance Program, Supplemental Nutrition Assistance Program, Farmers Market Nutrition Program, or the Homeowner Assistance Fund. All of these are federal programs coordinated by state governments. Some states offer additional local programs for their residents.
LOOK FOR COMMUNITY ASSISTANCE
If you are experiencing food or housing insecurity, look for non-profit or community organizations around you. From housing support and food banks to utility assistance, non-profit organizations around the country can help. National organizations such as Feeding America host food banks in all 50 states.
“We’re already seeing the community reaching out to us in overwhelming numbers because of what’s happening in the country in terms of economic stability,” said Kavita Mehra of Sakhi for South Asian Women, an organization that helps domestic violence survivors in New York City.
Her organization provides housing, food, and cash emergency assistance for people in the community. She said that between January and June, her group distributed over $150,000 in emergency cash assistance to survivors who were having a harder time keeping the lights on and putting food on the table. That’s more than all of last year.
Food assistance organizations such as Ample Harvest, Hunger Free America and Food Rescue US offer maps that allow users to search a nearby food bank by typing their zip code.
TAKE CARE OF YOUR MENTAL HEALTH
Between worrying about the bills and not knowing what your financial future might look like, your stress levels can go through the roof.
“It’s a hectic existence,” Galeon said. “You have to do a lot of managing, and you have to keep a cool head, for the sake of your mental health.”
Debra Kissen, a clinical director of Light On Anxiety CBT Treatment Center, recommends first recognizing when your body is stressed. Then she advises mindfulness exercises such as breathing, touching a wall to calm yourself, and completing the “five senses for anxiety relief” exercise.
Most health insurance covers some type of mental health assistance. If you don’t have health insurance, you can look for sliding-scale therapists around the country, including through FindTreatment.gov and the Anxiety and Depression Association of America directory.
Bangladesh ahead of other nations in reining in inflation: AL
Amid discussions about a Sri Lanka-type abyss in Bangladesh, the Awami League (AL) has come up with a comparative analysis of inflation in different countries, showing how it managed to deal with it in the wake of the ongoing Russia-Ukraine war.
The party's official Facebook page mentioned that the inflation in the US has soared to 9.1 percent, compared to 7.56 percent in Bangladesh as of June. Turkey's inflation has reached a record high, 78.6 percent.
About the austerity measures of the government, the AL said: "A look at the rising prices in different economies would reveal Bangladesh is not isolated as bigger countries are reeling from bigger shocks."
"As the world is still reeling from the Coronavirus pandemic, it has faced another potential disaster, the Russia-Ukraine conflict. Sanctions and counter-sanctions left the world economy in a daze," the AL said.
"Looking at the inflation scenario across different countries in the world, the crisis around the planet can be readily figured out. Still, some people in the country try to portray the problem of inflation solely belonging to Bangladesh."
Read: Inflation hits record 8.9% in euro area, but economy grows
Nothing wrong in economy as Bangladesh seeks IMF loan: Finance Minister
Confirming Bangladesh’s request for a loan from International Monetary Fund (IMF) Finance Minister AHM Mustafa Kamal has said that it does not mean the country's economy is in bad shape.
“But I had to make my previous statement looking into the perspective. I didn’t want to expose our demands”, he told reporters while briefing on a meeting of the Cabinet Committee on Government Purchase on Wednesday.
Last Wednesday, after a similar meeting, the Finance Minister had said that Bangladesh didn’t need IMF loan and would not seek any funding support from the lending agency. But within days, it was reported by the media that Bangladesh had sought $4.5 billion in loan from from IMF.
When his attention was drawn to his last week’s statement, Kamal said he had to made such a statement for strategic reason.
“If I expose my demand in advance, the burden and cost will be high on me”, he said. “This is a bargaining point. Every body has to do this”, he added.
Read: Mustafa Kamal dismisses reports about Bangladesh request for IMF loan
He said the government has to keep in mind that any condition of the IMF loan will not go against the interest of the country.
He, however, said no specific figure was quoted in the loan proposal sent to the IMF. “We will see first at what conditions they want to provide the loan and how much we should take”.
Responding to another question, he said seeking IMF loan does not mean Bangladesh’s economy is in bad situation. The IMF, the World Bank know about our economic situation and they know that Bangladesh is capable to repay the loan.
About the current dollar crisis in the market, the finance minister said the government has already taken steps to tackle the situation.
“If anybody or any section is found to be involved in creating artificial crisis in the dollar market or concealing information, action will be taken against them”, he said.
Kamal said the main sources of foreign exchange is remittance and export. Both the remittance and export are increasing although import is also rising.
“Dollar rate should be fixed on the basis of demand and supply”, he said.
Gas lines and scuffles: Sri Lanka faces humanitarian crisis
Chamila Nilanthi is tired of all the waiting. The 47-year-old mother of two spent three days lining up to get kerosene in the Sri Lankan town of Gampaha, northeast of the capital Colombo. Two weeks earlier, she spent three days in a queue for cooking gas -- but came home with none.
“I am totally fed up, exhausted,’’ she said. “I don’t know how long we have to do this.’’
A few years ago Sri Lanka’s economy was growing strongly enough to provide jobs and financial security for most. It's now in a state of collapse, dependent on aid from India and other countries as its leaders desperately try to negotiate a bailout with the International Monetary Fund.
What’s happening in this South Asian island nation of 22 million is worse than the usual financial crises seen in the developing world: It's a complete economic breakdown that has left ordinary people struggling to buy food, fuel and other necessities and has brought political unrest and violence.
Read:Senior US officials visit Sri Lanka to help resolve crisis
“It really is veering quickly into a humanitarian crisis,’’ said Scott Morris, a senior fellow at the Center for Global Development in Washington.
Such disasters are more commonly seen in poorer countries, in sub-Saharan Africa or in war-torn Afghanistan. In middle-income countries such as Sri Lanka they are rarer but not unheard of: 6 million Venezuelans have fled their oil-rich home country to escape a seemingly unending political crisis that has devastated the economy.
Indonesia, once touted as an “Asian Tiger’’ economy, endured Depression-level deprivation in the late 1990s that led to riots and political unrest and swept away a strong man who’d held power for three decades. The country now is a democracy and a member of the Group of 20 biggest industrial economies.
Sri Lanka’s crisis is largely the result of staggering economic mismanagement combined with fallout from the pandemic, which along with 2019 terrorism attacks devastated its important tourism industry. The COVID-19 crisis also disrupted the flow of payments home from Sri Lankans working abroad.
The government took on big debts and slashed taxes in 2019, depleting the treasury just as COVID-19 hit. Sri Lanka’s foreign exchange reserves plummeted, leaving it unable to pay for imports or defend its beleaguered currency, the rupee.
Ordinary Sri Lankans -- especially the poor -- are paying the price. They wait for days for cooking gas and petrol -- in lines that can extend more than 2 kilometers (1.2 miles). Sometimes, like Chamila Nilanthi, they go home with nothing.
Eleven people have died so far waiting for gasoline. The latest was a 63-year-old man found dead inside his vehicle on the outskirts of Colombo. Unable to get gasoline, some have given up driving and resorted to bicycles or public transportation to get around.
The government has closed urban schools and some universities and is giving civil servants every Friday off for three months, to conserve fuel and allow them time to grow their own fruit and vegetables.
Food price inflation is running at 57%, according to government data, and 70% of Sri Lankan households surveyed by UNICEF last month reported cutting back on food consumption. Many families rely on government rice handouts and donations from charities and generous individuals.
Unable to find cooking gas, many Sri Lankans are turning to kerosene stoves or cooking over open fires.
Read: Why Sri Lanka’s economy collapsed and what’s next
Affluent families can use electric induction ovens for cooking, unless the power is out. But most Sri Lankans can’t afford those stoves or higher electric bills.
Sri Lankans furious over fuel shortages have staged protests, blocked roads and confronted police. Fights have broken out when some try to jump ahead in fuel lines. Police have attacked unruly crowds.
One night last week, a soldier was seen assaulting a police officer at a fuel station in a dispute over gasoline distribution. The police officer was hospitalized. The police and military are separately investigating the incident.
The crisis is a crushing blow to Sri Lanka’s middle class, estimated to account for 15% to 20% of the country’s urban population. Until it all came apart, they enjoyed financial security and increasing standards of living.
Such a reversal is not unprecedented. In fact, it looks like what happened to Indonesia in the late 1990s.
The U.S. Agency for International Development -- which runs aid projects for poor countries -- was preparing to close up shop in the Indonesian capital Jakarta; the country didn’t seem to need the help. “As one of the Asian Tigers, it had worked its way off the aid list,’’ recalls Jackie Pomeroy, an economist who worked on a USAID project in the Indonesian government before joining the World Bank in Jakarta.
But then a financial crisis -- triggered when Thailand suddenly devalued its currency in July 1997 to combat speculators -- swept across East Asia. Plagued by widespread corruption and weak banks, Indonesia was hit especially hard. Its currency plummeted against the U.S. dollar, forcing Indonesian companies to cough up more rupiahs to pay back dollar-denominated loans.
Businesses closed. Unemployment soared. Desperate city dwellers returned to the countryside where they could grow their own food. The Indonesian economy shrank more than 13% in 1998, a Depression-level performance.
Desperation turned to rage, and demonstrations against the government of Suharto, who’d ruled Indonesia with an iron fist since 1968. “It very quickly rolled into scenes of political unrest,’’ Pomeroy said. “It became an issue of political transition and Suharto.’’ The dictator was forced out in May 1998, ending autocratic rule.
Although they live in a democracy, many Sri Lankans blame the politically dominant Rajapaksa family for the disaster. “It’s their fault, but we have to suffer for their mistakes,” said Ranjana Padmasiri, who works as a clerk at a private firm.
Two of the three top Rajapaksas have resigned — Prime Minister Mahinda Rajapaksa and Basil Rajapaksa, who was finance minister. Protestors have been demanding that President Gotabaya Rajapaksa also step down. They’ve camped outside his office in Colombo for more than two months.
Resignation, Padmasiri said, isn’t enough. “They can’t get away easily,’’ he said. “They must be held responsible for this crisis.’’
Why Sri Lanka’s economy collapsed and what’s next
Sri Lanka’s prime minister says the island nation’s debt-laden economy has “collapsed” as it runs out of money to pay for food and fuel. Short of cash to pay for imports of such necessities and already defaulting on its debt, it is seeking help from neighboring India and China and from the International Monetary Fund.
Prime Minister Ranil Wickremesinghe, who took office in May, was emphasizing the monumental task he faces in turning around an economy he said is heading for “rock bottom.”
Sri Lankans are skipping meals as they endure shortages, lining up for hours to try to buy scarce fuel. It’s a harsh reality for a country whose economy had been growing quickly, with a growing and comfortable middle class, until the latest crisis deepened.
HOW SERIOUS IS THIS CRISIS?
Tropical Sri Lanka normally is not lacking for food but people are going hungry. The U.N. World Food Program says nearly nine of 10 families are skipping meals or otherwise skimping to stretch out their food, while 3 million are receiving emergency humanitarian aid.
Doctors have resorted to social media to try to get critical supplies of equipment and medicine. Growing numbers of Sri Lankans are seeking passports to go overseas in search of work. Government workers have been given an extra day off for three months to allow them time to grow their own food. In short, people are suffering and desperate for things to improve.
Read: Sri Lanka holds its breath as new PM fights to save economy
WHY IS THE ECONOMY IN SUCH DIRE STRAITS?
Economists say the crisis stems from domestic factors such as years of mismanagement and corruption, but also from other troubles such as a growing $51 billion in debt, the impact of the pandemic and terror attacks on tourism, and other problems.
Much of the public’s ire has focused on President Gotabaya Rajapaksa and his brother, former Prime Minister Mahinda Rajapaksa. The latter resigned after weeks of anti-government protests that eventually turned violent.
Conditions have been deteriorating for the past several years. In 2019, Easter suicide bombings at churches and hotels killed more than 260 people. That devastated tourism, a key source of foreign exchange.
The government needed to boost its revenues as foreign debt for big infrastructure projects soared, but instead Rajapaksa pushed through the largest tax cuts in Sri Lankan history, which recently were reversed. Creditors downgraded Sri Lanka’s ratings, blocking it from borrowing more money as its foreign reserves sank. Then tourism flatlined again during the pandemic.
In April 2021, Rajapaksa suddenly banned imports of chemical fertilizers. The push for organic farming caught farmers by surprise and decimated staple rice crops, driving prices higher. To save on foreign exchange, imports of other items deemed to be luxuries also were banned. Meanwhile, the Ukraine war has pushed prices of food and oil higher. Inflation was near 40% and food prices were up nearly 60% in May.
Read: Sri Lankan Cabinet reshuffled to counter economic crisis
WHY DID THE PRIME MINISTER SAY THE ECONOMY HAS COLLAPSED?
Such a stark declaration might undermine any confidence in the state of the economy and it didn’t reflect any specific new development. Wickremesinghe appeared to be underscoring the challenge his government faces in turning things around as it seeks help from the IMF and confronts criticism over the lack of improvement since he took office weeks ago. He’s also fending off criticism from within the country. His comment might be intended to try to buy more time and support as he tries to get the economy back on track.
The Finance Ministry says Sri Lanka has only $25 million in usable foreign reserves. That has left it without the wherewithal to pay for imports, let alone repay billions in debt.
Meanwhile the Sri Lankan rupee has weakened in value by nearly 80% to about 360 to $1. That makes costs of imports even more prohibitive. Sri Lanka has suspended repayment of about $7 billion in foreign loans due this year out of $25 billion to be repaid by 2026.
WHAT IS THE GOVERNMENT DOING ABOUT IT?
Wickremesinghe has ample experience. This latest is his sixth term as prime minister.
So far, Sri Lanka has been muddling through, mainly supported by $4 billion in credit lines from neighboring India. An Indian delegation was in the capital Colombo on Thursday for talks on more assistance, but Wickremesinghe warned against expecting India to keep Sri Lanka afloat for long.
“Sri Lanka pins last hopes on IMF,” said Thursday’s headline in the Colombo Times newspaper. The government is in negotiations with the IMF on a bailout plan and Wickremesinghe said Wednesday he expects to have a preliminary agreement with the IMF by late July.
The government also is seeking more help from China. Other governments like the U.S., Japan and Australia have provided a few hundred million dollars in extra support.
Earlier this month, the United Nations began a worldwide public appeal for assistance. So far, projected funding barely scratches the surface of the $6 billion the country needs to stay afloat over the next six months.
To counter Sri Lanka’s fuel shortage, Wickremesinghe told The Associated Press in a recent interview that he would consider buying more steeply discounted oil from Russia to help tide the country through its crisis.
UN report details ‘dramatic’ impact on people’s lives due to internet shutdowns
The dramatic real-life effects of Internet shutdowns on people’s lives and human rights have been vastly underestimated, the UN Human Rights Office warns in a new report issued from Geneva on Thursday.
The report urges states not to impose Internet shutdowns.
“Too often, major communication channels or entire communication networks are slowed down or blocked,” the report says, adding that this has deprived “thousands or even millions of people of their only means of reaching loved ones, continuing their work or participating in political debates or decisions.”
The report aims to shed much-needed light on the phenomenon of Internet shutdowns, looking at when and why they are imposed and examining how they undermine a range of human rights, first and foremost the right to freedom of expression.
Shutdowns can mean a complete block on Internet connectivity but governments also increasingly resort to banning access to major communication platforms and throttling bandwidth and limiting mobile services to 2G transfer speeds, making it hard, for example, to share and watch videos or live picture broadcasts.
The report notes that the #KeepItOn coalition, which monitors shutdowns episodes across the world, documented 931 shutdowns between 2016 and 2021 in 74 countries, with some countries blocking communications repeatedly and over long periods of time.
“Shutdowns are powerful markers of sharply deteriorating human rights situations,” the report highlights. Over the past decade, they have tended to be imposed during heightened political tensions, with at least 225 shutdowns recorded during public demonstrations relating to social, political or economic grievances.
Shutdowns were also reported when governments carried out security operations, severely restricting human rights monitoring and reporting. In the context of armed conflicts and during mass demonstrations, the fact that people could not communicate and promptly report abuses seems to have contributed to further insecurity and violence, including serious human rights violations.
Collecting information about shutdowns is difficult as many governments refuse to acknowledge having ordered any interference in communications and sometimes put pressure on companies to prevent them from sharing information on communication being blocked or slowed down.
“The official justification for the shutdowns was unknown in 228 shutdowns reported by civil society across 55 countries,” the report states.
When authorities do recognize having ordered disruptions, justifications often point to public safety, containing the spread of incitement to discrimination, hostility or violence, or combatting disinformation.
Yet, the report describes how shutdowns often achieve the exact opposite, furthering fear and confusion, and stoking risks of division and conflict.
Internet shutdowns also carry major economic costs for all sectors, disrupting for example financial transactions, commerce and industry.
Read: Each union to get high speed broadband internet by 2023: Mustafa Jabbar
Economic shocks provoked by shutdowns are felt over long periods of time, greatly exacerbating pre-existing social and economic inequalities.
“Shutdowns effectively deepen digital divides between and within countries,” the report warns. At a time when substantial development aid is justifiably directed towards enhancing connectivity in less developed countries, some of the beneficiaries of that assistance are themselves deepening the digital divide through shutdowns.
At least 27 of the 46 least developed countries have implemented shutdowns between 2016 and 2021, most of which have received support to increase connectivity.
The report urges States to refrain from imposing shutdowns, to maximize Internet access and remove the multiple obstacles standing in the way of communication.
The report also urges companies to speedily share information on disruptions and ensure that they take all possible lawful measures to prevent shutdowns they have been asked to implement.
“Internet shutdowns have emerged as the digital world has become ever more important, indeed essential, for the realization of many human rights. Switching off the Internet causes incalculable damage, both in material and human rights terms,” said UN High Commissioner for Human Rights Michelle Bachelet.
Read: Remotest region to connect with broadband internet by 2025: Palak
“When a state shuts down the internet, both people and economies suffer. The costs to jobs, education, health and political participation virtually always exceed any hoped for benefit.”
“What this report clearly highlights is that swift action is needed to end Internet shutdowns, including through more prominent reporting of their impacts, more transparency by involved companies, and ensuring that we all defend connectivity from self-imposed disruptions,” the High Commissioner added.
Bangladesh hits eight-year high inflation at 7.42pc: BBS
Bangladesh’s overall inflation in May surged to an eight-year high at 7.42 per cent, driven mainly by soaring food prices, according to an official report.
The rate of inflation was 6.29 per cent in the previous month (April), according to latest data released by Bangladesh Bureau of Statistics (BBS) on Sunday.
It also revealed that the inflation rate has been higher in the rural areas in the country.
According to the BBS, inflation in food items rose to 8.30 per cent in May from 6.23 per cent in the previous month. However, in the same month, the rate of inflation in the non-food sector has come down to 6.08 per cent from 6.39 per cent last month.
Read: Rising inflation hurts rural people more than their urban counterparts: BBS
According to the BBS, non-food inflation rose to 6.8 per cent in May. Inflation in rural areas was higher in May than in cities like in the last few months. Inflation in rural areas was 7.94 per cent in May and in the cities it was 7.49 per cent.
According to data released by BBS, prices of most of the 47 essential commodities have gone up in one month.
In May, the price of Miniket rice rose to Tk 72.15 per kg from Tk 69.11 in April. Similarly, the price of pajam varieties of rice went up to Tk 62.72, which was Tk 58.05 in April.
Prices of boro rice, flour, mugdal, molasses, rui fish, hilsa, catfish fish, meat, eggs and milk have gone up. Soybean, dried chilli, onion, ginger, garlic, potato, green chilli, papaya, milk, cloth, melamine utensils are also expensive. Prices of cement, kerosene, coconut oil, cigarettes and white paper also went up.
Budget to make economy stronger: Finance Minister
Finance Minister AHM Mustafa Kamal on Friday hoped that the implementation of the proposed national budget for FY2022-2023 would make the economy stronger and more vibrant.
“Hopefully our economy will be stronger and more vibrant with the implementation of this budget,,” he said at a post-budget conference in the city’s Osmani Smriti Auditorium in the afternoon.
The finance minister on Thursday unveiled the Tk 678,064-crore national budget for the financial year 2022-2023 with special focus on economic recovery from uncertainties caused by Covid-19 pandemic and the Russia-Ukraine war.