As a Swede who has been to Sri Lanka, I think one part that this video really missed is corruption. You can't understand a country like Sri Lanka without it
@@Stealthy8Gaming en.wikipedia.org/wiki/Rajapaksa_family A single family gained the majority of political power in Sri Lanka and was rife with corruption, nepotism, incompetence, mismanagement, etc.
I am an Australian. I remember meeting a highly attractive female who said her husband was in politics in Sri Lanka. A few weeks later I meet an Australian who had been living in Sri Lanka. Straight away, without any hesitation, he said her husband would be corrupt.
What we are seeing global inflation. I saw it in the news that most countries are all competing for parts, products, food etc. Even nations that managed their rates better are seeing major issues. The glut of money was an issue sure, but the surging demand from nation that re-opened from covid lockdowns played a larger role. Add to this pandemic-related staffing issues, Russia-Ukraine Conflict and the intentional global oil supply problems and its a nightmare.
I think we need to stop softening the blow with the word “recession”. This is going to be a depression. 4 top economist agree on this. When the market reached high in mid 1930 it took until mid 1932 to reach the bottom. people can’t buy when they have no food, the trucks don’t have DEF to mix with the diesel to run (in all diesel trucks newer than 2009) No trucks-no food-no fertilizer.
@@hushbash2989 In order to reduce my overall risk profile. I diversify owning stocks from several different industries and risk profiles, as well as other investments such as bonds, commodities, and real estate. These various assets work together to reduce my risk of a permanent loss of capital and portfolio's overall volatility. Credit to my investment advisor Eleanor Annette Eckhaus..
Great share, I curiously web-searched the commended lady and found her exclusive site, she looks grade-A, I think I've come across her on Tv or somewhere before. insightful comments
2023 is going to be a massive year for this channel. Explaining all the batshit crazy economic crises that will occur this year will be crucial to understanding how we got here, what we need to learn from these economic challenges, and what policies can help to improve the strength and stability of regional economies and the global economy at large.
@@EconomicsExplained I’ve been watching your videos for years and I just wanted to thank you for all the content. You provide high quality videos explaining complex topics that economics students are learning free of charge. Thank you for providing this incredible service.
@@EconomicsExplained have you read 10 Megathreats by noriel roubini? I would recommend that you do if you haven’t. If you have, are you planning on making a video about Roubinis analysis?
The principal difference is that the loans going into Sri Lanka were *government* rather than private debt. If the debtor organizations had been private enterprises instead of the state, they would not have been able to engage in the massive devaluation which is crushing the country's economy and power to purchase imports. For one thing, much of those government loans were supplied by other governments, not financial experts with a fiduciary stake in the debtor's ability to pay back the money. For another, until the crisis shows up, it's often difficult to evaluate the risk, resliency, and leverage of a state, as compared to a business. And finally, there's a great deal of evidence to suggest that the way the loans were spent was on graft, as opposed to a functioning enterprise which has the possiblity to yield returns. Sri Lanka's current plight certainly presents lessons to developing economies, but I don't think those lessons include "someone always has to be poor". Rather, it appears to be a more prosaic lesson about fiscally responsible governance, something that even huge economies like China and the United States would do well to hearken to.
While I don’t deny that the government debt load caused massive problems *in Sri Lanka*, I don’t think the same rule applies to all major economies. Sri Lanka doesn’t have a floating currency. Instead their currency is managed through reserves of US dollars, which means they don’t have the ability to print their own money to pay their debts. As the US dollar rises, the Sri Lanka Rupee loses value, which makes it harder for them to pay their debts. They definitely overspent in some useless areas, but I don’t think it’s reasonable to assume that corporations don’t make the same fruitless investments. Thousands of private businesses fail every year, and many of them fail because they get out over their skis with debt. The ones that do manage to succeed do so because they keep their finances in check, but any company with a global market lives with perpetual debt. For example, Apple borrowed billions before the interest rates started rising. They have to do this in order to maintain an edge in a tense global competition for customers. Nobody looks at Apple’s decision and says they’re doomed because they’ve taken on massive leverage. Therefore “keeping your finances in check” simply means spending in ways that allow you to continue paying your debt in the future. It doesn’t mean reducing debt and keeping your business in the black at all times. That’s perfectly fine for a local mom-and-pop store, but you’ll never stand out on the global stage with that idea. You just simply won’t have the operating capital to succeed.
@@TheCommonS3Nse If apple collapses, it only affects apple. If sri lanka government collapses it affects every sri lankan even though they had little to no influence. Government taking loans is horrible. The people who will suffer, average citizens, are not the ones making the decisions. While the people who benefit, are politicians. Its horrible.
@@sharp7j If Apple collapses it would cause massive issues throughout the economy. All the people that Apple employs would be thrust onto government programs, driving up government debt even further. They would lose their houses which would tank the local real estate market. The drop in stock value would cause many other stock portfolios and investment funds to devalue. All of the companies that supply Apple would also go out of business, which would cause the same problems in their spheres of influence. The failure of Apple wouldn't just impact Apple. If you actually look at the stats throughout history, austerity has caused far more human suffering than government debt ever has. The economist Mark Blyth has done a lot of work exploring this issue. I'm not saying that MMT is correct and governments can spend an endless amount of money. They can't. Even the ones with floating currencies still have to contend with inflation. As the Economist Abba Lerner said, "you don't measure spending by it's costs, you measure it by it's effects." In other words, how much money you borrow matters far less than where that money is spent.
Its corrupt & incompetent leaders and corrupted government institutions who probably didn’t listen to actual experts. If not for this fact, what you said wouldn’t may be have been such a huge issue.
@@somerelativleyuninterestin4763 I think OP is referring to the Masterworks sponsorships. Not sure about it being a scam but I don't really pay attention to sponsorships to begin with, let alone news about them.
That portion on infrastructure investment/development for developing countries is so true. It's the same thing that has happened to my country, Nigeria. Our president, buhari, and the ruling APC government focuses more on debt financing to build "legacy projects" like roads, bridges, buildings etc without actually improving the systems and economic structure and bolstering the private sector to generate jobs and use this infrastructure well, as our previous right-leaning government did. The result has been increased inflation, reduced living standards, increased debt, poorly funded and incomplete infrastructure projects. Basically my country is experiencing many of the terrible decisions that crippled Sri Lanka.
I am sorry but I disagree. Nigeria have a huge infrastructure challenge and there isn’t any problem with building these infrastructures which could help the economy grow. Nigeria doesn’t have anything to do with Sri Lanka.
I don't think the infrastructure in Nigeria was anywhere near developed like Srilanka. Srilanka could have survived without the added development, not sure Nigeria could, especially considering the population differences.
@@endxofxeternity friend, did you actually read my comment at all? I highlighted how the short-sighted economic policies that Sri Lankan government pursued in hopes of drumming up economic growth (i.e. heavy debt financing of infrastructure projects without proper focus or improving the economic systems and institutions to facilitate economic growth first) are similar to what my country has been doing. Why do you think I said Nigeria and Sri Lanka are the same?
@@jaybee4577 there is a problem if a government only focuses on heavy debt financing and taking on several long-term infrastructure projects at once without considering the impact on inflation, standards of living, capital investment, national debt, and negative impacts on private sector. The governments of Sri Lanka and my country, Nigeria, clearly didn't properly think this through, especially for unforeseen circumstances like COVID and the war in Ukraine.
@@orboakin8074 Which specific infrastructure projects do you have a problem with? Nigeria using debt to build infrastructure is not a problem since it will be beneficial for the economy as a whole. There was debt before Buhari came into power and there was 0 infrastructure to show for it. Nigeria had an oil boom after the return to democracy 1999 and most of the money was looted. We hear about billions of dollars disappearing from government accounts under PDP and poverty was growing. They lied about poverty rate and unemployment figures and refused to allow Dangote to build a refinery that could actually help stabilize the Nigerian economy. Insecurity, sharia laws, BOKO haram all started under pdp. I don’t know why Nigerians act blind to these existing problems. Before PDP left office in 2015, they said the next administration will have many issues to deal with because they know they have messed up. Go do your research and see how mismanaged the economy was under pdp despite the oil booms Nigeria had. You can criticize Buhari and APC all you want but PDP shouldn’t be allowed into Aso rock again. Nigerians are not being rational but emotional when it comes to governance and politics. Go take a look at oil revenues, infrastructure development, poverty rate, total population, hdi increase by states. Compare both administrations and make your final judgement. Note I said total population because Nigeria have added more than 50 million people under Buhari alone.
Small recommendation - How about adding the year (and maybe also month) with the country on leadership board? Considering that the conditions of economies are changing so quickly this decade.
As a Sri Lankan that's lived here my entire life mad appreciation for making this video and explaining things so clearly, never thought I'd see us here!
I can assure you, the video is b!ulc!RAP. It's nothing but the corruption by the politicians. You get a loan of 10 billion, and 8 billion is going to politicians, and 2 billion is invested on useless stuff like government education, especially the university education. +++..+
Sri Lanka deserves this. 🤣 A racist black short people country. Also poorest country. Bankrupt and beggar. 🤣 🇮🇳We will give them money as donation because we help beggar. 🤣
I'm currently in my last year of highschool and it's frightening because each time I'm seeing something at school, your videos are on talking about the same thing we're studying, sometimes more in depth, sometimes not. It's really nice because I get study cases/examples for my exams and i grasp around the concepts more easily.
These mistakes won't ever be learned. There are some states in India... Like my state, Andhra Pradesh, whose governments just borrow everything like crazy and give free stuff to the people so that they can secure a seat next term. Luckily, or unluckily, the state of Andhra Pradesh is a part of the Indian union so there is some illusion of a safety net for the region's leaders to spend on a whim. But if Andhra Pradesh were a separate country, it would be far far more disastrous than Sri Lanka.. who knows, we might see a video in the future about this and still no one would learn from their mistakes.
Most Indian states are heavily indebted, even Punjab where the Green Revolution occurred. However, the US wants to use India against China the way it used Ukraine against Russia and so the Western press will continue to talk up India and its economy.
@P A India has played the geopolitical chess game very well in Ukraine, but you're missing my point. Why are you so pessimistic about the Eastern Hemisphere?
@@jimbocho660 Because way too many births. 2.1 children per woman made sense before computers but now just means you're unlucky to live in a place where houses are unaffordable. China's forcing because of a past policy. And not saying India should repeat the 80's sterilization, but those two unbalanced age pyramids represent the majority of "the East". Both are horrible.
@pa3465 if that was your first listening of Peter zeihan I recommend you listen more and stop stretching his take on China to reflect the eastern hemisphere as a whole..Indian subcontinent does not suffer the same demographic issues as China.
the old Sri Lankan president had good intentions on agriculture. Having your food supply dependent on fertilizers controlled by only a few companies that can produce the fertilizer is a bad long term game plan. Organic is much better, yes it will be hard transition, but is better in the long term. Using pesticides and fertilizers to artificially prop up food production leads to population increase which requires more food, and you eventually back yourself into a corners where these companies have leverage over your food supply then they can control your nation. Fertilizers and pesticides are like a drug, its good while on it, hard to get off, but you cant stay on it for ever.
@@pluto8404 I think a lot of the farmers were pro going organic, but the complaint and failure was to execute it in what seemed to be over night, no one could manage the shock. So you are right, but unfortunately a good idea can have bad execution.
@@pluto8404 Fertilizer is one of the main reasons the world barely have famines anymore. And you want us to go back to those days? lol. Banning fertilizer was a terrible idea period.
Please make a video about the loadshedding crisis in South Africa and its economic effects. The whole country is plunged into darkness for 8-12 hours every day, and it's absolutely wreaking havoc on businesses, public utilities, schools, and homes.
My previous job definitely used Sri Lanka for outsourcing. Our crew in Colombo was great - was sad to see the country tearing itself apart, hope they all managed to stay safe.
As a Sri Lankan I can say this is a very well documented analysis without any bias or prejudice. Another thing I want to add that is not covered in here is the political instability and corruption and nepotism which are other big reasons as to why Sri Lanka is suffering
We actually can do this for that we have to privatize some SOE s , Reduce the head count of State employees and we really need to give power to another political party as the current main parties are filled with corrupted politicians..
Very well explained than other media which blindly blames Srilanka government on its collapse IT IS PARTLY FAILURE OF PEOPLE TOO... Industries are the backbone for a country to develop... It can be private or public. IT IS IMPORTANT TO HAVE MORE PRIVATE INDUSTRIES THAN PUBLIC. Srilanka people are never business minded and just rely on government for jobs. Then who will build industries and give Jobs to people? They think government should give jobs too... That's where the problem comes from
God I love this channel, no BS, no click bait, no exaggerations to generate "clicks". Just real, honest, relatable, understandable information. THANK YOU!
@@jimbocho660 I liked when he ended the WEF video by saying "anyway don't worry about it, they're just harmless billionaires and state leaders passing the time by having a book club haha"
I’ve been watching your videos for years and seeing my country in the context of your videos actually put things in perspective. We are at rock bottom but will rebuild stronger and in a more resilient way. 💪
It's so cool to see the material I learned last semester in International Finance be applied to yet another Financial Crisis. Props to EE for boiling it down to the basics 🙌
I can assure you, the video is b!ulc!RAP. It's nothing but the corruption by the politicians. You get a loan of 10 billion, and 8 billion is going to politicians, and 2 billion is invested on useless stuff like government education, especially the university education. ++.+++.++.
Thank you for sharing another great video. As a Sri Lankan, I am thankful to you for making this video. I am sharing this to every Sri Lankan I know to educate them on what went wrong.One more thing I would like to point out that was not highlighted in your video is that the huge amount of money poured in to maintaining the welfare system in Sri Lanka. Politicians used this to gain and maintain their political power and majority of the public approved that. As a result, Now we all are suffering as the government cannot supply that no longer and people are so used to that they cannot sustain their life style without that. What happened to Sri Lanka is a good example to other countries that are heading in the same direction.
I can assure you, the video is b!ulc!RAP. It's nothing but the corruption by the politicians. You get a loan of 10 billion, and 8 billion is going to politicians, and 2 billion is invested on useless stuff like government education, especially the university education. +.+.+.+.
In the chapter "Limits To Development" - I find it a bold leap from the case study of Sri Lanka to declaring the world simply doesn't have enough resources to allow all economies to become advanced. While that may be true given the current definition of those terms, we cannot predict what future economic activities, and definitions of economic success, may become. Certainly in recent years all the basic tenets of capitalism have been subject to re-evaluation, with respect to the well-being of individual agents in an economy.
It’s obviously unsupported and contrary to all we know about economics. If this were true then the earth population would have capped during the Middle Ages when all the wealth was held by a few kings and rulers and the vast majority of the population were serfs, slaves and desperate poors. Weird to see such an economic myth being pushed on economics explained.
23 But what does mankind want to prove to God? What do evangelical churches want to prove to God? That the woman that God minimizes is capable of many things? That woman is as efficient and intelligent as man? That a woman as priest, evangelist, apostle, pastor or song leader could have achieved her mission better than any man? She certainly can! But we, children of God, we oppose that, not by contempt or that she would be incapable in the eyes of men but because God did not give her to do it. [Ed: The congregation says, “Amen!”]. Let’s read 1 Timothy 2:11-12 after the outpouring of the Holy Spirit: "... Let a woman learn in quietness in all subjection; but I do not suffer a woman to teach nor to exercise authority over man, but to be in quietness;" You see? If God has to enter in a church led by a woman, that woman must be thrown out, the pulpit must be thrown out and the church must be washed. Why? Because it is a cursed church. [Ed: The congregation says, “Amen!”]. God has never given to a woman to be a priest and no man of God can give this place to a woman. Philippekacou.org
When the bell tells me you have uploaded, I scroll my homepage until I spot your videos so I can contribute to your click through rate. More people need quality economic information sources. ❤️
To be honest. I believe the opposite. All countries can become advanced economies. It just cannot be quick and easy, it cannot depend on debt. And it cannot be done blindly copying others. What I do believe though is that economic hardships are inescapable for economies that are growing fast. Japan, Ireland, ASEAN states, Sri Lanka, Turkey and many others come to mind. Up until now, there has been absolutely no economy that grew fast forever.
Sri Lanka has been an excellent case study of how not to run an economy. The point you made about not every developing country transitioning into a developed one, really opened my eyes. Gotta admit that Sri Lanka is one of them forever underdeveloped countries, unless a miracle happens.
@@chamchamz98 sure the right for tamils to have self determination. at that point you don't have worry about 15% of the population and what they do on their own land and can focus on yours and not controlling us.
@@GrokEight you mean just giving away our land to an ethnic group comprising of only 10% of the country for no reason at all. And that’s supposed to help the economy? What an incredible take right there
@@ashandesilva9455 Not giving lol. that land was always ours. no the acknowledgement of eelam tamil self determination. and it's more closer to 15% then 10%. Give the land back, and your country will grow. plain and simple
Nothing about this seems inevitable. Seems like dumb luck meets mismanagement. You didn't really support your central idea that "there's only so much room at the top". You brought up loans vs. investment, but not why no further countries can get foreign investment to escape the middle-income trap. Actually, I don't think you even brought up the middle-income trap which would be a much better argument to support your thesis.
I would like to point out an editing mistake at 4:23 , the title of the chart says 'Oil reserves by country', but is showing the literacy rates instead, The title is wrong.
This video was really good and it helped understand situation in Shri Lanka a lot better. It's really crazy how couple mistakes can affect whole country. I also stumbled on a fact that there was terrorist attack last year in Shri Lanka which added to the bad situation about tourism which they heavily dependent on. Would also love to see in future video about Serbia since we are one county in developing and would love to see how far on your scale we would be
Would like to point out countries in the West increased their wealth by Looting and Exploiting their colonies which also in turn funded their Industrialization.
Glad to hear the things you talk about in the intro. I don't trust any economist who's unwilling or incapable of recognizing that. If you think there's a sure formula to development, you're saying that poor countries are necesssarily to blame, which is objectively wrong. This is one reason; there are many others.
great video as always. would love to see a video about some of the counties in the middle east - Lebanon, Egypt, Tunisia Algiers, ... to see where they rank in the world leader board.
>be me >starts watching this channel a while back >"man I wish my country would be featured here one day" >my country's economy collapse : ( >economics explained finally feature my country in a video on how some countries will never become developed advance economies >pain ಥ‿ಥ
I can assure you, the video is b!ulc!RAP. It's nothing but the corruption by the politicians. You get a loan of 10 billion, and 8 billion is going to politicians, and 2 billion is invested on useless stuff like government education, especially the university education. +.++.
Honestly surprised that the food shortage sparked by Vadana Shiva barely got a mention. As someone who knows a few people living in Sri Lanka, on the ground this is seen as a much larger issue
@@sojourner99 Yeah that's why I say it "barely got a mention". It was a substantial factor in the daily lives of everyone, and likely one of the largest economic factors, and yet it is merely included as a small aside.
@@funtechu hmm he says the government barely had a choice as they couldn't afford the fertilizers they needed, so they masked it as recommending 'organic' food instead
Please do South Africa?? It would be perfect timing seeing as we're just about start going insane due to the absolute economic catastrophe that is going on
No mention of loan provider - China. How tactfully did he avoid the single major point of collapse of Sri Lanka and blamed it on loans but not the loan provider and it’s insane conditions.
China also loaned Sri Lanka to build a worthless stadium that few went to -- built by China of course. Vice News has a video of a massive bribing operation run by China in South America, Guyana to be exact. They basically pay the decision makers to take the project and loan.
I'm honestly not convinced by the final conclusion. Sri Lanka's growth into a developed economy didn't tank because of inequalities built into the global economic system. It tanked because they borrowed more than they could afford to. If an individual borrows a lot to increase their standard of living without sustainably increasing their income to cover those borrowing costs they'll go bankrupt too and it's not because the system is unfairly stacked against them. It may have been a much slower growth trajectory, but I see no reason why they couldn't grow into a developed economy if they made better, more disciplined decisions.
Why are economies so fragile ? Things going great , a few mistakes and suddenly the whole thing collapses. Perhaps larger economies grow slowly but are far more robust.
Just ask yourself how easy it is to smash ceramic vase to peaces vs the hours put into making it. Same goes for economies, its hard to create, easy to destroy.
Economics is like the weather: even the experts don't know how it actually works. They might know how it has worked, but every prediction is at best to a leap of faith. So, if not even the experts can get it right most of the time, imagine all the other people who _aren't_ experts at all and then think of all that other people that, simply being more numerous, end up in charge of entire countries and enterprises...
Sri Lanka’s issues are not necessarily issues that all developing countries face. The main problem was that Sri Lanka spent loan money on government jobs in infrastructure and other relatively unproductive parts of the economy rather than growing their private sector or getting foreign businesses to set up shop there. When their tourism industry collapsed due to the pandemic, the loans that they were misusing became unpayable. A lot of other fast growing developing nations are investing more into their private sectors and thus would be far more resilient to shocks.
Rightly said. Too often I see people wrongfully generalise the issues of a developing country to issues of the developing world. That's just a clear lack of insight on their part into country specific issues.
EE made a good point about foreign aid being mostly food & goods instead of money because governments often waste it. However I think it would be an amazing video to look at direct cash transfers to people in the poorest countries versus the governments of those countries. Guaranteed income is looking (take GiveDirectly for example) to be a finally more cost-effective way to help people get what they need. Oftentimes current aid damages local food production and is not particularly effective.
@@Doo_Doo_Patrol I feel compelled to let you know that cash transfer experiments to date have led to more & better employment on average. The only people that work less are students and new mothers. Also, consider homeless people. I have a few friends who are homeless who would love to work, but can't because jobs require housing addresses, clean clothes, and it's difficult to work when you're forced to sleep on the streets. Money, UBI or not, would empower them to get back on their feet.
@@Croz89 It's possible, but every experiment so far has caused no noticable inflation. It's also possible that having more cash would empower consumers to seek lower prices (cook at home vs get fast food, or have more time to shop around for example). UBI most certainly would have inflationary & deflationary effects, but no comprehensive studies have been done yet.
@@michae1simm It's a question of available supply. In an economy with poor industry, infrastructure and supply chains, giving the locals a bunch of cash will just make prices rise. The money in that case would be better spent on industry and infrastructure, roads, electrical grids, water supplies etc, which would lower the price of goods by making them cheaper to produce and transport.
The admission that not every individual can get rich is at the heart of what I see as a problem in our economic systems. If only a few CAN achieve the top, then it's not equitable to allow any to hold that position. The fact that it must be a pyramid built on the lower levels in an admission that it is exploitative.
There are a number of countries that will have to rebuild their economies from the ground up. Sri Lanka joins Venezuela and Cuba in this club. Unfortunately the leadership in all of them is awful so step one would be a new government.
The notion of that not all of developing countries can prosper and come on par with the developed world is interesting. This is something that Robert Lucas talked about in the 90s. Basically he said that "that capital does not flow from developed countries to developing countries despite the fact that developing countries have lower levels of capital per worker". Hence we call it a Lucas Paradox
I hope you talk about the egypt currency crisis ,it is very similar to the situation sri lanke going through ,especially in infrastructure projects financed with debt i hope it will not lead to the same fate as sri lanka
Good video as always, but as always you failed to address a question that you put in the video. "Can all countries be rich". You didn't really explain that point detail which I would like. I notice that happens in a lot of EE video's where you ask a question, but never answer it. Other than that really impressed with the detail. Would have loved something to be mentioned about the genocide in the country committed by the government.
Sri Lanka can be excused for wanting to RAPIDLY install modern infrastructure two decades ago. I was there in 1980 and everything was in decay. Shortly afterwards, civil war broke out. Maybe they tried to do too much, too quickly. I think they will recover and, hopefully, become a prosperous nation.
As the maker of this video seems to be dancing around the issue, Sri Lanka got these high interest rates from China. This lead to the famous example of them taking the port for their own use/benefit on a 99 year lease, among other infrastructure projects. This is definitely not what I was expecting when I clicked on the video.
To be fair, if Sri Lanka had something similar to what Taiwan (1), then I think they could've had it far better right now. P.S.1 I mean TSMC here, but Sri Lanka's facility doesn't have to be capable of making complex stuff, instead they could be printing Arduino and Raspberry Pi tier stuff as well as 200nm microcontrollers and other "bulk" microelectronics, it's always in high demand, like that's why your car could have Russian-made microchip, situation was so bad that at some point Russia got contract just by bring able to deliver first shipment of microcontrollers twice as fast compared to TSMC (6 months vs full year), it happened in 2020-21-ish. Yes I know Arduino is quite obsolete microcontroller today, but it's easy to manufacture, is quite pricey (2) and extremely popular as "starter kit" for people who want to make their own devices like mp3 players etc. Oh yeah and it's open source architecture, meaning you only need to pay for license, if at all. P.S.2 on AliExpress it's even more expensive than better alternatives like... B32? E32? Something like that, basically a 2-core CPU on a board, super epic stuff compared to *the* "Arduino"
Sri Lanka was once on the right path but because of their government's obsession with race and correcting the "wrongs" of the past, they never made it. They should have recognised the fact that the country is ethnically diverse and made use of that instead of trying to homogenise it.
@EconomicsExplained can you please add a few more seconds to the end of your videos, or bring up the leaderboard a bit earlier, they mostly get blocked on the screen by the suggested videos.
Hey its not totally the Sri lankan people's fault. The powers behind the government have used corruption and manipulation fir centuries to bring SL to its knees. Be proud to be Sri Lankan and a human being on this planet. Fight the corrupt leaders.
Why not, their crash will make everything super cheap. And they surely would welcome your foreign pension money. It's a win win ? As long as you don't convert all your cash into the local currency?
Curious as to why there was no mention of China and the debt trap they instilled into Sri Lanka. Port, hospital, convention centre, airport and a seemingly endless supply of debt, that no wants, or uses any more
"Debt trap" is a bullshit statement. China didn't point the guns at Sri Lanka and forced them to loan or forced them to cooperate with China. They borrowed money form China, can't pay it back and they're fucked. That's on them, why blame China for this? If you borrowed something but don't have the ability to pay it back then don't do it in the first place.
Because only people like you still believe the propaganda when real stats have shown it is in fact western financial institutions are are the biggest source of Sri Lanka debt.
Being a Sri Lankan , our country can be taken as a case study. However, I think we need to add further input as why country got bankrupted. Corruption and wrong government and monetary policies have been ruining the country for more than seven decades, which was second best economy in Asia in 1950's. Recent tax cut down in 2019, printing money through quantatitve easing to suppress the interest rates and government debt financing without adding value, further having accomadative centeral bank policies, which will eventually raise up inflation and asset markets by investing on unproductive economic activities. This eventually dry up the central bank reserves by expanding the demand and collapsing value of currency. Government officials wanted to keep the interest rate down to pick up the private credit after covid19 but didn't understand the repercussions of impossible trinity. Further, government didn't go to IMF timely to restructure the loans considering the debt commitment and low income and waited till the bankrupting the nation. Only point to correct in the video, we have natural resources other gems but we only use it as a commodity rather we should make them as value added products. I should say it's a blessed country with natural resources but ruined due to political corruption and wrong policies.
