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Should Ottawa really be signing 25-year contracts for cloud services?
Speaking in Parliament on 18 December, President Anura Kumara Dissanayake pledged that under the leadership of his party, “we will never allow a situation like 2022-23 to reoccur in our country”. If AKD and the National People’s Power (NPP) intend to keep this promise, they will have to get a lot more serious about industrialising an economy dependant on services and remittances. It is regrettable that the President’s speech, while announcing welcome relief for the poor through tax cuts, allowances and subsidies, paid scant attention to increasing investment in the real economy. This is a deadly trap that centre-left governments often fall into. Naturally, the wretched conditions following economic collapse require immediate relief measures. However, long term increases in consumption can only be achieved through investment in the real economy. There have been a multitude of interpretations of the root causes of the economic crisis in 2022-23 which led to hours-long blackouts, acute shortages of fuel and cooking gas, a devaluation of the rupee, and soaring inflation. The mainstream explanation has focused almost exclusively on the Government’s budget deficit, and the Central Bank’s financing of it. The reality is that this crisis was a long time coming, rooted in the country’s fundamentally colonial economic structure that is dependent upon tourism, remittances, and low-value-added exports. Historically, a strong focus on value-added manufacturing has been the only way for countries to sustain rapid growth levels, develop indigenous technology, and uplift the living standards of the majority of people. The only exceptions to this rule are small countries that are either rich in natural resources (e.g. UAE, Qatar, etc.) or function as tax havens and centres for financial services (e.g. Luxembourg, Ireland, etc.). With a population of 22 million—comparable to Syria, Burkina Faso, or Chile—Sri Lanka is hardly a ‘small country’. Uplifting our large rural population requires industrialisation. In the lead up to the 2024 elections, one of the NPP’s most articulate voices for industrialisation was Chathuranga Abeysinghe, now serving as Deputy Minister of Industries and Entrepreneurship Development. Abeysinghe has often made sensible points about the need for state-ownership of energy and finance, combined with support for technology transfer and upgrading, to jump start the process of industrialisation. However, his eclectic choice of benchmarks countries, including India, China, Malaysia, and Vietnam, is confused at best. China and Vietnam are socialist countries ruled by a Communist Party. These countries derive legitimacy from the reproduction and growing productivity of an industrial working class. Meanwhile, India and Malaysia feature a relatively strong class of industrial capitalists, who have a vested interest in the perpetuation of interventionist industrial policies. Sri Lanka is unlike both of these, being a liberal democracy dominated by merchant capital (business interests invested in sectors such as trade, finance, and real estate). Setting on a path of industrialisation would necessarily bring any government in Sri Lanka on a collision course with the interests of merchant capital. There can be no industrialisation without tackling parasitic interests in the economy, including the likes of predatory financial services, agricultural middle-men, and import mafias. These domestic interests function as fronts for large-scale multinational companies which seek to keep countries in the Global South as captive markets. There may be ways to peacefully convert at least some factions of merchant capital into industrial capital. South Korea was able to convert its landlord class into an industrial capitalist class through extensive land reforms which redistributed land to the tiller while compensating the landlords with bonds that were reinvested in industry. The challenge for NPP policy makers is to devise incentive structures to direct investment into strategic manufacturing sectors that can deliver long term productivity gains. Industrialisation is no easy task. The interests opposed to it often cloak themselves in humanitarian concern for workers and the environment. Yet the reality is that industrialisation is most oppressive for a business class used to making easy money through trade, finance, real estate, and tourism. Operating a factory, managing scores of workers, competing with international standards, and innovating new products and process will demand much more from our private sector than they are used to. This is precisely why the State, helmed by a political party dedicated to the cause, is needed to drive this process. For better or worse, the NPP’s electoral campaign about corruption and system change captured the imagination of large swathes of the electorate, helping them win both the Presidency and a supermajority in Parliament. However, more work needs to be done to unravel the structural causes of so-called corruption and the exact nature of the system that holds Sri Lanka down. At Tricontinental: Institute for Social Research, we recently published a dossier titled, “How Neoliberalism Has Wielded ‘Corruption’ to Privatise Life in Africa”. Here, we pointed out how the role of the private sector in corruption is avoided or minimised by official definitions of corruption. The biggest losses of revenue for countries in the Global South are not from petty bribery by government officials, but large-scale drain of finances through practices such as tax evasion, transfer pricing, and trade misinvoicing. In the case of Africa, investment into extractive sectors significantly increases the opportunity for private sector corruption and opaque pricing practices. In the case of Sri Lanka, it is our dependency on food and energy imports, and reliance on low value-added exports, that is conducive to private sector corruption. In such a pattern of (under)development, there is hardly any need for capitalists to reinvest profits into developing a domestic industrial ecosystem. If the NPP wants to fulfil its mandate of anti-corruption and modernisation of the country, and if it wants to prevent an economic crisis akin to what occurred in 2022, industrialisation is the only way forward. There is no alternative.F.P. Report ISLAMABAD: Hafiz Naeem Ur Rehman, the Emir of Jamaat-e-Islami Pakistan, called on Pakistan Tehreek-e-Insaf (PTI) founder, Imran Khan, to publicly declare that he does not recognize Israel. Speaking at the Solidarity with Palestine Million March on Sunday at Jinnah Avenue, New Blue Area, Hafiz Naeem criticised the prevailing political system, stating that whenever a government is ousted or takes power, they seek support from the United States (U.S). He also pointed out that this trend extends to those who are imprisoned or those seeking release, highlighting the tendency to seek approval from the U.S. for such matters. He specifically urged Imran Khan to show solidarity with Hamas and publicly denounce the state of Israel. The JI supremo further stated that while the U.S. possesses thousands of missiles, it continues to impose sanctions on Pakistan’s missile technology. He emphasised that the nation had sacrificed to develop nuclear weapons, which are vital for the protection of both Pakistan and the Muslim Ummah. He criticised political parties that seek approval from the U.S. to imprison and release individuals, highlighting the need to ensure democratic freedoms for the people. Hafiz Naeem also condemned the U.S. as a “terrorist nation” and argued that Pakistan could never achieve prosperity while under America’s influence. He pointed out that the U.S. labels those who resist its imperialism as terrorists and imposes its own version of democracy. He further stated that Israel could not fight groups like Hamas, as it targets innocent children, and that Israel’s expansionist goals now reach beyond Palestine, with plans involving Syria, Lebanon, and even Medina. The Jamaat-e-Islami leader referenced Pakistan’s founder, Quaid-e-Azam Muhammad Ali Jinnah, who had described Israel as an illegitimate child of the West.” He also expressed his support for the oppressed Palestinian people, noting that Gaza faces harsher cold conditions than Islamabad, with two million people living in camps. He condemned Israel’s actions as genocide, having killed 46,000 people, and criticised the U.S. for supporting this “open terrorism.” Hafiz Naeem pointed out that the indifference of most Muslim countries, except a few, towards the Israeli-Palestinian conflict further strengthens Israel’s position. He concluded by reaffirming that Israel cannot stand against the resistance of Muslim fighters, adding that Israel’s aggression would eventually be defeated.
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ST. SIMONS ISLAND, Ga. (AP) — PGA Tour rookie Patrick Fishburn played bogey-free for an 8-under 64 for his first lead after any round. Joel Dahmen was 10 shots behind and had a bigger cause for celebration Friday in the RSM Classic. Dahmen made a 5-foot par putt on his final hole for a 2-under 68 in tough conditions brought on by the wind and cold, allowing him to make the cut on the number and get two more days to secure his PGA Tour card for next year. He is No. 124 in the FedEx Cup. “I still got more to write this weekend for sure,” said Dahmen, who recently had said his story is not yet over. “But without having the opportunity to play this weekend, my story would be a lot shorter this year.” Fishburn took advantage of being on the easier Plantation course, with trees blocking the brunt of the wind and two additional par 5s. He also was helped by Maverick McNealy, who opened with a 62 on the tougher Seaside course, making two bogeys late in his round and having to settle for a 70. Fishburn, who already has locked up his card for next year, was at 11-under 131 and led McNealy and Lee Hodges (63) going into the weekend. Michael Thorbjornsen had a 69 and was the only player who had to face Seaside on Friday who was among the top five. RELATED COVERAGE Angel Yin rides a hot putter to 2-shot lead in LPGA finale Martin Slumbers hangs his hat on making British Open big and promoting women’s golf Second round washed out at the Australian PGA and the tournament has been reduced to 54 holes What mattered on this day, however, was far down the leaderboard. The RSM Classic is the final tournament of the PGA Tour season, and only the top 125 in the FedEx Cup have full status in 2025. That’s more critical than ever with the tour only taking the top 100 for full cards after next season. Players like Dahmen will need full status to get as many playing opportunities as they can. That explains why he felt so much pressure on a Friday. He didn’t make a bogey after his opening hole and was battling temperatures in the low 50s that felt even colder with the wind ripping off the Atlantic waters of St. Simons Sound. He made a key birdie on the 14th, hitting a 4-iron for his second shot on the 424-yard hole. Dahmen also hit wedge to 2 feet on the 16th that put him on the cut line, and from the 18th fairway, he was safely on the green some 40 feet away. But he lagged woefully short, leaving himself a testy 5-footer with his job on the line. “It was a great putt. I was very nervous,” Dahmen said. “But there’s still work to do. It wasn’t the game-winner, it was like the half-court shot to get us to halftime. But without that, and the way I played today, I wouldn’t have anything this weekend.” His playing partners weren’t so fortunate. The tour put three in danger of losing their cards in the same group — Zac Blair (No. 123), Dahmen and Wesley Bryan (No. 125). The cut was at 1-under 141. Blair and Bryan came to the 18th hole needing birdie to be assured of making the cut and both narrowly missed. Now they have to wait to see if anyone passes them, which is typically the case. Thorbjornsen in a tie for fourth and Daniel Berger (66 at Plantation) in a tie for 17th both were projected to move into the top 125. Dahmen, indeed, still has work to do. Fishburn gets a weekend to see if he can end his rookie year with a win. “I’ve had a lot of experience playing in cold growing up in Utah, playing this time of year, kind of get used to playing when the body’s not moving very well and you’ve got to move your hands,” said Fishburn, who played college golf at BYU. “Just pretty happy with how I played.” Ludvig Aberg, the defending champion and No. 5 player in the world competing for the first time in more than two months because of knee surgery, bounced back with a 64 on Plantation and was back in the mix. Aberg played with Luke Clanton, the Florida State sophomore who looks like he belongs each week. Clanton, the No. 1 player in the world amateur ranking who received a sponsor exemption, had a 65 at Plantation and was two shots off the lead. Clanton already has a runner-up and two other top 10s since June. “Playing with him, it’s pretty awesome to watch,” Clanton said. “We were kind of fanboying a little it. I know he’s a really good dude but to be playing with him and to see what he’s done over the last couple years, it’s pretty inspirational.” ___ AP golf: https://apnews.com/hub/golf
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