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IMF ගියොත් ජනතාව හොම්බෙන්… කුපන් ක්රමයට ඉන්ධන දෙන්නැයි කියයි..
- Thread starter BernieSanders
- Start date
මූ කියන එක ඇත්ත ඉතින්. යන්න එපා වගේ ලයින් එකක් දෙන එකයි වැරැද්ද. ඉක්මනින්ම යන තරමට හොඳයි. පරිප්පුවක් කන්න වෙනව. වැරදියට මැනේජ් උනොත් දශක ගානකට නැගිටගන්න උනත් බැරිවෙන්න පුලුවන්.
IMF යන්න එපා මොකද ගියොත් 100% transparency තියෙන්නේ ඕනා නේ. එතකොට පොඩ්ඩක් ගහන්න අමාරුයි නැතුව මේ ජනතාවට තියෙන ආදරේට නෙමේ ඕවා කියන්නේ 
Okay this became a long reply, sorry about that.
The issue is that austerity measures as suggested by IMF rarely work during a sovereign debt crisis. Now the austerity measures that are going to be proposed to us will probably include,
- Downsizing government employment
- Lowering public employee wages
- Curtailing pension benefits
- Raising taxes
- Privatizing government corporations
...among others. Why austerity measures are given as mandatory conditionals is clear enough. They are mainly to increase investor confidence and to make sure that country would not bankroll trying to re-finance unsustainable debt.
The problem is, when implemented, austerity measures often exacerbate the financial crisis it swears to improve. Unemployment ballooning, high recession, political and societal chaos are what we usually see as the result instead of the good news it promises. Greece is perhaps the best example. We saw the same happening in Argentina also in Italy and Spain to a lesser extent.
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Austerity measures are not inherently a bad course of action. For these measures timing is everything so a lot depend on when they are enacted. Measures best work when the country is at the outset of a financial crisis, not when the country is already beginning to struggle under its repercussions. Laying off workers and increasing tax etc. are obviously going to create different waves to exigency that are going to fall unto the original crisis impeding the economic development.
So, IMF conditionals should not be mismanaged and approached cautiously...that much is clear. We do not have any option other that going to IMF in order to get the country up and running but people need to understand that we are in for a pretty hairy couple of years. Worse yet, under rash management it can turn into a full-blown humanitarian crisis.
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Okay thanks for the reply. I just wanted to see your point on why we should be cautious about implementing the austerity measures. But I do believe Sri Lanka needs to enact strict austerity measures and take this as an opportunity to get the country out of its 'welfare state' status. Get government spending as low as possible. There's no public resistance for that. You can convince them under current circumstances. Then try to deal with the repercussions afterwards. Try to increase the investor confidence, get FDIs, get the tourism sector moving and gradually alleviate the unemployment problem. I think this is the best opportunity to get the process moving, and even though we might suffer in short term, I think it's the best course of action.
No arguing here. We are in this mess because nobody had the guts to right this wrong in the first place, and...
...a time of crisis definitely is a great opportunity to promote the necessity of getting rid of bad national economic practices and normalize the fact that the only way to achieve this is through hardships. But I worry this might escalate to a greater calamity because we may be a little late for the measures to be effective. Couple of years of suffering is not the same as decades of economic despondency. Going to the IMF is imperative but I hope it will be done with caution and forethought.
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