Hello,
Hope you all are doing good!
Recently we heard about a tragic crisis that took place at President's Residence in Sri Lanka. People captured the official residence and created chaos. The ordinary citizen of Sri Lanka is facing the worst situation just due to poor decisions made by the Sri Lankan government. We will discuss it further. But there is history that we never learn from the 'history'. India should also worry about the situation and consider a future scenario. Let's see why we are linking the situation of Indian states with Sri Lanka.
We all know Sri Lanka is suffering from a heavy economic crisis where inflation went to the highest of this decade which is nearly 54.6%. The price of onion went to Rs 200 per kilogram (Sri Lankan Rupee), and the potato's rate rose to Rs 220 per kilogram. The island of 22 million people is wilting under a severe foreign exchange shortage that has left it struggling to pay for essential imports of fuel, fertilizer, food, and medicine and the situation pushed people to take to the streets in protests. But why is it so?
Major economic think tanks predicted that this situation in Sri Lanka is due to blind decision-making by Government. This may include:
1. No diversification in government earnings: Before the Covid, the Sri Lankan government used to make most of its money through the tourism sector. As covid ruptured tourism all over the world, the government faced a huge economic deficit.
2. Compulsory 100% Organic Farming: Fertilizer enhances the production of the farmer within a small period. Whereas organic farming is very costly and time-consuming. This ultimately leads to a shortage of food and food at a higher rate.
Food inflation reached 80.1 percent year on year in June
3. Blind loans: Rather than considering the economy, the government blindly distributed loans at the lowest interest rates and huge subsidies. That crunched national funds.
4. Worthless projects: Hambantota port, International Airport (on which rarely any flight lands), International Cricket Stadium, (is so remote that arriving teams face the risk of wildlife attacks), Development of unused roads. These are some projects on which the government spent more than 1.5 billion USD. Why? No one knows!!!
Coming to Pakistan, this nation is also on the doorstep to become the next Sri Lanka! Former prime minister Imran Khan also spent tonnes of money on such worthless projects and pushed the country into a debt trap. CPEC is the largest example of it. China Pakistan Economic Corridor has become a white elephant for Pakistan. Also in addition to this, just to be famous all the time and remain popular in the country, Imran Khan forgave structural reforms and adopted fancy reforms. Pakistan also hung the fruit of heavy subsidies and free amenities in front of the common man. And the common man falls to it. Let's understand the political game!
Imran Khan gave an ocean of subsidies and free amenities to people without considering whether the Pakistani economy would bear it or not. Now due to blind and fancy decisions started action on the economy, and people started feeling that inflation is getting worse day by day, and subsidies are not enough, the PM would divert their mindset by poking India. The strategy works out for while. But the scene got worst day by day and at last Imran's government collapsed due to political instability. Shahbaz Sharif the new PM of Pakistan would have to take a bold decision that won't be in favor of the common man but in favor of the economy. And on the other hand, Imran Khan is constantly opposing the decision taken by Shahbaz's Government to revive his popularity and charm!
But how does it is relating to India?
Have you listened about one political party is promising free electricity, free water, free home, free public transport, free bla bla bla? In contrast to that recently, Tamilnadu is complaining that the state is not getting money from the center, give money or Tamilnadu will be separated from India. Giving something for free to some million people is ultimately pulling out a huge amount of money from the national income. But promising fancy doctrine is a fashion nowadays in politics to attain publicity. Tamilnadu state is complaining about low funds from the center whereas GST collection in Tamilnadu was much higher in comparison to funds allocated. Did Tamilnadu made mistake by collecting more GST? For example, in one family there are 2 sons. One gets Rs. 10,000 salary after working very hard and very honestly. He keeps 3,000 for his expenses and gave remaining 7,000 to his parents. The second son spends his whole salary on luxurious life and does not give anything to his parents. Then it's obvious that the first son will get discomfort and he will be having a problem with the behavior of 2nd son.
That's the actual scenario in India. Some states are spending so much money for political gain only and this is hampering not only the state's economy but the whole country's economy.
Conclusion
We as young Indians should prioritize our needs and expectations from political leaders. We fall into the trap and hence they are planning it. We should be awake, we should know what my country needs, what my state needs, what I need. If we are used to being happy all the time if it gets anything free then it's a mistake that we are doing. We are coming from different states across India. But after all, we all are Indians first. We have live examples of two neighboring nations and how poor decisions can ruin the whole country.
"Free ka hajam nahi hota boss!"
And every 'IITan' is not supposed to be an expert in economics, they have to learn it!
The Sri Lankan model and the upcoming Pakistan model are extremely important to work on ourselves, our policies, and political commonsense.
Jai Hind!
- Aditya More
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