It’s entirely true that Sri Lanka’s economy is borked:
Some of the world’s most powerful hedge funds and other investors are holding up vital help for crisis-hit Sri Lanka by their hardline stance in debt-relief negotiations after the Asian country’s $51bn (£42bn) default last year, according to 182 economists and development experts from around the world.
In a statement released to the Guardian on Sunday, the group said extensive debt cancellation was needed to give the economy a chance of recovery and that Sri Lanka would be a test case of the willingness of the international community to tackle a looming global debt crisis.
Debts that cannot be paid will, of course, not be paid.
182 economists and development experts have called for debt cancellation for Sri Lanka to help it out of its current economic crisis. In a statement released today, the signatories – including Jayati Ghosh, Thomas Piketty, Dani Rodrik, Ravi Kanbur, Yannis Varoufakis and Ha-Joon Chang – call for debt cancellation by all external creditors and measures to stem the illicit outflow of capital from the country.
Dr. Gosh has been one of the leading purveyors of the economic policies which have led to Sri Lanka’s economy being borked.
As has been noted before insistences on green policies can have that effect. That immediate switch to organic farming was a crucial part of the disaster. No, really. Dr. Gosh being one of those who have so loudly insisted that Sri Lanka, as with everywhere else, must stop this neoliberal habit of importing things to increase efficiency. Like, say, fertiliser.
Some of those external creditors will be the usual pension funds and so on that are supposed to provide for us in our old age. Because that’s just how international capitalism works, capital is invested globally. So, the demand is that some portion of our pensions should be confiscated to pay for the policy mistakes promulgated by Dr. Gosh. This demand that we pay for it coming from Dr. Gosh.
A traditional definition of chutzpah is to claim orphan status in mitigation against charges of parricide. We think this rises to that standard. It’s early in the cycle but we do think this is s strong contender for the coveted Chutzpah of the Year Award.
Losses should not be socialised in this manner - your pension first Dr. Gosh, your pension first.