bloggggg

Home  |  Live  |  Science  |  Lifestyle  |  Entertainment  |  Broadcast  |  Games  |  eBooks  |  Astounds  |  Adbite  |  Cricbell  |  Cyber  |  Idea  |  Digital  |  Privacy  |  Publish  |  ePaper  |  Contact  .Subscribe.Subscribe.Subscribe.Subscribe.Subscribe.Subscribe.Subscribe.Subscribe.Subscribe
Subscribe

Friday, 17 January 2025

World Bank looks to fresh beginning in Sri Lanka

World Bank Senior Country Economist for Sri Lanka and Maldives Richard Walker 

Top multilateral donor agency starts talks with new Govt. to spur economy

By Charumini de Silva: The World Bank last week confirmed that there is no new financial support pending for Sri Lanka, but discussions with the new Government have commenced to outline future plans for collaboration.

World Bank Senior Country Economist for Sri Lanka and Maldives Richard Walker affirmed that no new budgetary or program-related assistance is currently in the pipeline.

“There is no budget support or other pending programs at the moment. Of course, we need to have a conversation with the new Government, understand their plans and thinking. Then, on our side, we can also formulate the type of support that we can offer – whether it is budgetary assistance or other forms of operations. This is a discussion that needs to take place and it is just beginning now,” he said in response to a query posed by journalists at the Sri Lanka Development Update report launch last Thursday.

The beginning of discussions between the multilateral donor agency and the Government signals a potential fresh start, as Sri Lanka seeks to stabilise its economy amid ongoing recovery efforts.

The new Government led by President Anura Kumara Dissanayake, is expected to focus on securing international support and building stronger ties with multilateral institutions like World Bank to drive economic recovery post-crisis.

He noted that a recently signed $ 200 million loan agreement has been completed and further steps will depend on the outcome of the ongoing no talks between the World Bank and the Government.

On 8 October, the World Bank and the Government of Sri Lanka signed the Second Resilience, Stability, and Economic Turnaround (RESET) Development Policy Operation (DPO) for $ 200 million.

This is the second operation in a two-part series that began in 2022. The first operation, totalling $500 million, was disbursed in June and December 2023.

The Second RESET DPO aims to support reforms that improve economic governance, enhance growth and competitiveness, and protect the poor and vulnerable, helping to build Sri Lanka’s resilience and fostering an equitable economy.

When asked about the impact of elections on the economic outlook, Walker acknowledged that credit growth has been slow, whilst expressing confidence that it will gain momentum post-elections, provided there is policy consistency.

“While there may be some uncertainty during election times, business sentiment seems optimistic. Credit growth has been slow but is expected to pick up after the election with policy consistency moving forward,” he added.

The World Bank in its latest projections announced that the country’s economy has shown signs of stabilisation, whilst doubling its earlier estimate to reach 4.4% in 2024.

This positive outlook follows four consecutive quarters of growth, primarily driven by the industrial and tourism sectors. Despite expected gradual improvements, poverty levels are predicted to remain above 20% till 2026, while inflation is anticipated to stay below Central Bank’s target of 5% in 2024, before gradually increasing as demand picks up. Tourism and remittances are expected to keep the Current Account surplus through 2024.

It projects Sri Lanka’s economy to grow at a more modest pace of 3.5% in 2025, as a result of the adverse impacts of the economic crisis. World Bank looks to fresh beginning in Sri Lanka | Daily FT

Tuesday, 10 December 2024

World Bank announces record $100bn support for world's poorest countries

NEW YORK - The World Bank announced that it had raised close to $24-billion to provide loans and grants for some of the world's poorest nations, which it can leverage to generate a record $100-billion in total spending power.

Donor countries committed $23.7-billion to replenish the bank's concessional lending arm, known as the International Development Association (IDA), a World Bank spokesperson told AFP, marking a slight increase from the roughly $23.5--billion pledged during the last fundraising round three years ago.

The Bank can use this money to borrow on financial markets, allowing it to leverage the amount raised by around four times, unlocking around $100-billion in new loans and grants, up from $93-billion in 2021.

"We believe the historic success of this IDA21 replenishment is a vote of confidence and support from donors and clients," a World Bank statement read, referring to the current IDA funding round.

"This funding will be deployed to support the 78 countries that need it most," World Bank President Ajay Banga said in a separate statement, referring to the developing countries that are eligible for IDA support.

It would, he added, help provide "resources to invest in health, education, infrastructure, and climate resilience," as well as helping to stabilize economies and create jobs.

The World Bank's announcement follows two days of talks in the South Korean capital, Seoul, a city still reeling after President Yoon Suk Yeol declared martial law late on Tuesday local time, before backtracking under pressure from lawmakers.

IDA has become the single largest source of concessional, or below-market, climate finance, and around two-thirds of all IDA funding over the past decade has gone to support countries in Africa, according to the World Bank.

IDA replenishment is a crucial part of the Bank's operations, and happens once every three years, with much of the funding coming from the United States, Japan and several European countries including the United Kingdom, Germany and France.

This year, the United States announced ahead of time that it would commit a record $4 billion in new funding to the IDA, while other countries -- including Norway and Spain -- also significantly stepped up their financial support. Thirty-five former recipients of IDA assistance have graduated from developing economy status in recent decades, including China, Turkey and South Korea, with many of them now donors to the fund. World Bank announces record $100bn support for world's poorest countries

Thursday, 28 November 2024

International banks express support for nuclear expansion

The Financing the Tripling of Nuclear Energy event (Image: Hechler Photographers)

A group of 14 global financial institutions have expressed their support for the call to action to triple nuclear energy capacity by 2050.

Last December, the United Nations Climate Change Conference (COP28) in Dubai saw the 198 signatory countries to the UN Framework Convention on Climate Change call for accelerating the deployment of low-emission energy technologies including nuclear power for deep and rapid decarbonisation, particularly in hard-to-abate sectors such as industry. In addition, 25 countries at COP28 pledged to work towards tripling global nuclear power capacity to reach net-zero by 2050.

At New York Climate Week, a group of 14 financial institutions on Monday stated their recognition that global civil nuclear energy projects have an important role to play in the transition to a low-carbon economy. They further expressed support for long-term objectives of growing nuclear power generation and expanding the broader nuclear industry to accelerate the generation of clean electrons to support the energy transition.

The institutions include: Abu Dhabi Commercial Bank, Ares Management, Bank of America, Barclays, BNP Paribas, Brookfield, Citi, Credit Agricole CIB, Goldman Sachs, Guggenheim Securities LLC, Morgan Stanley, Rothschild & Co, Segra Capital Management, and Societe Generale.

"Capital markets and financing can play a critical role in developing and growing nuclear energy projects worldwide. Financial institutions can provide experience, global presence, services and solutions to support the industry," according to World Nuclear Association.

Opening the event, John Podesta, Senior Advisor for International Climate Policy to President Biden, said: "Our collective mission is clear - nuclear energy is clean energy, and if we are to ensure a liveable planet, build secure, sustainable supply chains for clean energy and bolster prosperity around the world, we need to make sure that nuclear energy does its part. I know we can make it happen - as long as we work together."

Slovenian Prime Minister Robert Golob added, "The only riddle left to solve is the financial side, the financial costs. Financial markets need to adapt and develop new financial instruments in order for nuclear energy to become competitive with other CO2-free energy sources."

"It is time to take concrete action towards necessary expansion of nuclear energy," said Sweden's Minister for Energy, Business and Industry and Deputy Prime Minister Ebba Busch. "The Swedish government is exploring a proposed financing model which includes government-backed loans, contracts-for-difference (CfDs) and risk-sharing mechanisms. The aim of the proposal is to significantly improve the conditions for nuclear new build in Sweden and with it, a more sustainable future."

Last month, a Swedish government study proposed that state aid be given to companies for investments in new nuclear power following an application procedure. It said a new legislative act should regulate conditions for receiving the support, the support measures, and what an application must contain.

James Schaefer, senior managing director of Guggenheim Securities, said: "New nuclear power is both clean and safe, and more importantly proven, with a number of nations now operating highly advanced and commercially viable third and fourth-generation fission technologies. It is essential that we accelerate the progression of planned projects into plants on the ground given the huge demand coming down the line for data centres and AI technologies. This will require nuclear companies, plant owners, data centre and technology companies, together with banks and financial institutions to collaborate closely."

"Including nuclear energy as a zero-carbon technology alongside renewables is essential to meeting the world's carbon reduction goals and ensuring that heavy industrial manufacturers like Nucor have a reliable and clean electricity supply to continue growing, prospering, and providing high-paying jobs," said Benjamin Pickett, vice president and general manager of public affairs and government relations at Nucor Corporation.

"Since COP28 in Dubai last year, we have witnessed a step change in momentum across the nuclear sector, buoyed by a significant increase in demand for clean electrons for data centres and AI, with global power demand for this sector alone set to double by 2026," said Mohamed Al Hammadi, Managing Director and CEO of the Emirates Nuclear Energy Corporation and chairman of World Nuclear Association.

"With the support of 14 global banks and financial institutions witnessed this morning on the sidelines of New York Climate Week, it is clear that not only is nuclear energy viewed as a crucial enabler to decarbonise the power sector, but it also fits the profile for sustainable and transition financing, especially as we now see multiple nuclear plants being delivered efficiently, providing confidence to the market and a clear market signal that nuclear is a proven, bankable route to energy security and net zero in parallel."

Last week, ten industry associations issued a communiqué during the second Roadmaps to New Nuclear conference in Paris, organised by the OECD Nuclear Energy Agency. They called on all OECD member states to set out clear plans for nuclear energy deployment. Among the eight key areas highlighted by the associations were: ensuring ready access to national and international climate finance mechanisms for nuclear development; ensuring that multilateral financial institutions include nuclear energy in their investment portfolios; and providing clarity to investors on the funding and investment recovery mechanisms available for nuclear projects and including nuclear energy in clean energy financing mechanisms.

Sama Bilbao y León, Director General of World Nuclear Association, welcomed Monday's announcement from leaders in the global finance community. "Now we need to see today's commitment translate to changes in lending policies and greater access for nuclear to sustainable finance mechanisms. Nuclear offers investors long-term returns and a means of tackling the world's urgent and growing need for abundant, affordable, 24/7 clean energy."Today was a major step forward. Meeting the goal of tripling nuclear output will require the commitment and ingenuity of policy makers, financial leaders, the nuclear industry, and many others in a coalition of the ambitious." International banks express support for nuclear expansion

Thursday, 24 October 2024

International banks express support for nuclear expansion

.
The Financing the Tripling of Nuclear Energy event (Image: Hechler Photographers)

A group of 14 global financial institutions have expressed their support for the call to action to triple nuclear energy capacity by 2050

Last December, the United Nations Climate Change Conference (COP28) in Dubai saw the 198 signatory countries to the UN Framework Convention on Climate Change call for accelerating the deployment of low-emission energy technologies including nuclear power for deep and rapid decarbonisation, particularly in hard-to-abate sectors such as industry. In addition, 25 countries at COP28 pledged to work towards tripling global nuclear power capacity to reach net-zero by 2050.

At New York Climate Week, a group of 14 financial institutions on Monday stated their recognition that global civil nuclear energy projects have an important role to play in the transition to a low-carbon economy. They further expressed support for long-term objectives of growing nuclear power generation and expanding the broader nuclear industry to accelerate the generation of clean electrons to support the energy transition.

The institutions include: Abu Dhabi Commercial Bank, Ares Management, Bank of America, Barclays, BNP Paribas, Brookfield, Citi, Credit Agricole CIB, Goldman Sachs, Guggenheim Securities LLC, Morgan Stanley, Rothschild & Co, Segra Capital Management, and Societe Generale.

"Capital markets and financing can play a critical role in developing and growing nuclear energy projects worldwide. Financial institutions can provide experience, global presence, services and solutions to support the industry," according to World Nuclear Association.

Opening the event, John Podesta, Senior Advisor for International Climate Policy to President Biden, said: "Our collective mission is clear - nuclear energy is clean energy, and if we are to ensure a liveable planet, build secure, sustainable supply chains for clean energy and bolster prosperity around the world, we need to make sure that nuclear energy does its part. I know we can make it happen - as long as we work together."

Slovenian Prime Minister Robert Golob added, "The only riddle left to solve is the financial side, the financial costs. Financial markets need to adapt and develop new financial instruments in order for nuclear energy to become competitive with other CO2-free energy sources."

"It is time to take concrete action towards necessary expansion of nuclear energy," said Sweden's Minister for Energy, Business and Industry and Deputy Prime Minister Ebba Busch. "The Swedish government is exploring a proposed financing model which includes government-backed loans, contracts-for-difference (CfDs) and risk-sharing mechanisms. The aim of the proposal is to significantly improve the conditions for nuclear new build in Sweden and with it, a more sustainable future."

Last month, a Swedish government study proposed that state aid be given to companies for investments in new nuclear power following an application procedure. It said a new legislative act should regulate conditions for receiving the support, the support measures, and what an application must contain.

James Schaefer, senior managing director of Guggenheim Securities, said: "New nuclear power is both clean and safe, and more importantly proven, with a number of nations now operating highly advanced and commercially viable third and fourth-generation fission technologies. It is essential that we accelerate the progression of planned projects into plants on the ground given the huge demand coming down the line for data centres and AI technologies. This will require nuclear companies, plant owners, data centre and technology companies, together with banks and financial institutions to collaborate closely."

"Including nuclear energy as a zero-carbon technology alongside renewables is essential to meeting the world's carbon reduction goals and ensuring that heavy industrial manufacturers like Nucor have a reliable and clean electricity supply to continue growing, prospering, and providing high-paying jobs," said Benjamin Pickett, vice president and general manager of public affairs and government relations at Nucor Corporation.

"Since COP28 in Dubai last year, we have witnessed a step change in momentum across the nuclear sector, buoyed by a significant increase in demand for clean electrons for data centres and AI, with global power demand for this sector alone set to double by 2026," said Mohamed Al Hammadi, Managing Director and CEO of the Emirates Nuclear Energy Corporation and chairman of World Nuclear Association.

"With the support of 14 global banks and financial institutions witnessed this morning on the sidelines of New York Climate Week, it is clear that not only is nuclear energy viewed as a crucial enabler to decarbonise the power sector, but it also fits the profile for sustainable and transition financing, especially as we now see multiple nuclear plants being delivered efficiently, providing confidence to the market and a clear market signal that nuclear is a proven, bankable route to energy security and net zero in parallel."

Last week, ten industry associations issued a communiqué during the second Roadmaps to New Nuclear conference in Paris, organised by the OECD Nuclear Energy Agency. They called on all OECD member states to set out clear plans for nuclear energy deployment. Among the eight key areas highlighted by the associations were: ensuring ready access to national and international climate finance mechanisms for nuclear development; ensuring that multilateral financial institutions include nuclear energy in their investment portfolios; and providing clarity to investors on the funding and investment recovery mechanisms available for nuclear projects and including nuclear energy in clean energy financing mechanisms.

Sama Bilbao y León, Director General of World Nuclear Association, welcomed Monday's announcement from leaders in the global finance community. "Now we need to see today's commitment translate to changes in lending policies and greater access for nuclear to sustainable finance mechanisms. Nuclear offers investors long-term returns and a means of tackling the world's urgent and growing need for abundant, affordable, 24/7 clean energy."Today was a major step forward. Meeting the goal of tripling nuclear output will require the commitment and ingenuity of policy makers, financial leaders, the nuclear industry, and many others in a coalition of the ambitious." International banks express support for nuclear expansion

Monday, 14 October 2024

EU backs tougher tax rules on crypto transactions

BRUSSELS - EU ministers agreed stronger rules Tuesday to crack down on the use of cryptocurrencies in tax fraud, as Brussels bolsters its efforts to regulate the volatile sector.

Regulators worldwide are increasingly worried about the lack of oversight of the digital currency sector but the European Union has already taken steps to protect investors.

The 27-member bloc's parliament last month approved the world's first comprehensive rules covering crypto assets, which include cryptocurrencies such as bitcoin and ethereum and tradable tokens whose value is secured using blockchain technology, such as NFTs.

During a meeting of EU economy and finance ministers on Tuesday, they agreed on rules to go after individuals who stash their cash where tax authorities have no oversight.

The rules will close loopholes that allow people to avoid taxation on their income using crypto assets, Swedish Finance Minister Elisabeth Svantesson said.

"This reduces the risk of crypto assets being used as a safe haven for tax avoidance and tax fraud," she added in a statement.

The European Commission, the EU's executive arm charged with implementing EU laws and regulations, welcomed the ministers' approval, adding that it would also help curb tax evasion.

Tax authorities in the EU currently lack the information they need to monitor proceeds from crypto assets, which are easily traded across borders, it said.

As a result, member states are deprived of important tax revenues, the commission added.

The rules will force all crypto asset providers (CASPs) based in the EU, regardless of their size, to report the transactions of clients who reside in the bloc.

There will also be an automatic exchange of tax rulings within the EU relating to the wealthiest individuals to target attempts to hide money from the taxman.

The directive will come into force on January 1, 2026 after the European Parliament adopts its position.

The ministers also backed the Markets in Crypto Assets (MiCA) regulation that will ensure crypto asset service providers protect customers' digital wallets, and a second on fund transfers that will lead to greater oversight of crypto assets trades.The EU says this will make it harder for criminals to use cryptocurrencies for illegal activity such as money laundering. The rules will progressively come into force from July 2024. EU backs tougher tax rules on crypto transactions

Saturday, 29 June 2024

Bangladesh receives 1.15 billion dollars from IMF

Bangladesh received 1.15 billion dollars from the International Monetary Fund (IMF) on Thursday, marking the third tranche of a 4.7 billion dollars loan package. Besides the IMF funds, Bangladesh also received around 900 million dollars from other sources including the International Bank for Reconstruction and Development (IBRD). The gross forex reserve of Bangladesh will be around 26 billion dollars, said Spokesperson of Bangladesh Bank on Thursday.

Since the middle of 2022, the Bangladesh economy has been facing a crisis. To mitigate the liquidity and forex issue, Bangladesh took preventative steps in 2022 and reached out to the International Monetary Fund (IMF) and other international lenders to avert a meltdown. The poor corporate governance, a culture of willful loan defaults, fuel and electricity price hikes, customs evasion and money laundering all play a significant role in exacerbating the economic challenges of Bangladesh.

On June 24, the IMF executive board approved the release of the third installment of the 4.7 billion dollars loan, reports UNB.

The IMF approved the first tranche of the loan package on January 30, 2023, with Bangladesh receiving 447.8 million dollars on 2nd February, 2023. The entire IMF loan will be disbursed to Bangladesh in seven installments over three and a half years, concluding in 2026, Bangladesh receives 1.15 billion dollars from IMF

Wednesday, 26 June 2024

World Bank says 80% of global population will experience slower growth than in pre-COVID decade

  • Latest Global Economic Prospects report acknowledges global growth stabilising for first time in three years
  • The global economy is expected to stabilise for the first time in three years in 2024—but at a level that is weak by recent historical standards, according to the World Bank’s latest Global Economic Prospects report released on Thursday.
  • Global growth is projected to hold steady at 2.6% in 2024 before edging up to an average of 2.7% in 2025-26. That is well below the 3.1% average in the decade before COVID-19. The forecast implies that over the course of 2024-26 countries that collectively account for more than 80% of the world’s population and global GDP would still be growing more slowly than they did in the decade before COVID-19.
  • Overall, developing economies are projected to grow 4% on average over 2024-25, slightly slower than in 2023. Growth in low-income economies is expected to accelerate to 5% in 2024 from 3.8% in 2023. However, the forecasts for 2024 growth reflect downgrades in three out of every four low-income economies since January. In advanced economies, growth is set to remain steady at 1.5% in 2024 before rising to 1.7% in 2025.
  • “Four years after the upheavals caused by the pandemic, conflicts, inflation, and monetary tightening, it appears that global economic growth is steadying,” said World Bank Group’s Chief Economist and Senior Vice President Indermit Gill. “However, growth is at lower levels than before 2020. Prospects for the world’s poorest economies are even more worrisome. They face punishing levels of debt service, constricting trade possibilities, and costly climate events. Developing economies will have to find ways to encourage private investment, reduce public debt, and improve education, health, and basic infrastructure. The poorest among them—especially the 75 countries eligible for concessional assistance from the International Development Association—will not be able to do this without international support.”
  • This year, one in four developing economies is expected to remain poorer than it was on the eve of the pandemic in 2019. This proportion is twice as high for countries in fragile- and conflict-affected situations. Moreover, the income gap between developing economies and advanced economies is set to widen in nearly half of developing economies over 2020-24—the highest share since the 1990s. Per capita income in these economies—an important indicator of living standards—is expected to grow by 3.0% on average through 2026, well below the average of 3.8% in the decade before COVID-19.
  • Global inflation is expected to moderate to 3.5% in 2024 and 2.9% in 2025, but the pace of decline is slower than was projected just six months ago. Many central banks, as a result, are expected to remain cautious in lowering policy interest rates. Global interest rates are likely to remain high by the standards of recent decades—averaging about 4% over 2025-26, roughly double the 2000-19 average.
  • “Although food and energy prices have moderated across the world, core inflation remains relatively high—and could stay that way,” said World Bank’s Deputy Chief Economist and Prospects Group Director Ayhan Kose. “That could prompt central banks in major advanced economies to delay interest-rate cuts. An environment of ‘higher-for-longer’ rates would mean tighter global financial conditions and much weaker growth in developing economies.”
  • The latest Global Economic Prospects report also features two analytical chapters of topical importance. The first outlines how public investment can be used to accelerate private investment and promote economic growth. It finds that public investment growth in developing economies has halved since the global financial crisis, dropping to an annual average of 5% in the past decade. Yet public investment can be a powerful policy lever. For developing economies with ample fiscal space and efficient government spending practices, scaling up public investment by 1% of GDP can increase the level of output by up to 1.6% over the medium term.
  • The second analytical chapter explores why small states—those with a population of around 1.5 million or less—suffer chronic fiscal difficulties. Two-fifths of the 35 developing economies that are small states are at high risk of debt distress or already in it. That’s roughly twice the share for other developing economies. Comprehensive reforms are needed to address the fiscal challenges of small states. Revenues could be drawn from a more stable and secure tax base. Spending efficiency could be improved—especially in health, education, and infrastructure. Fiscal frameworks could be adopted to manage the higher frequency of natural disasters and other shocks. Targeted and coordinated global policies can also help put these countries on a more sustainable fiscal path.World Bank says 80% of global population will experience slower growth than in pre-COVID decade | Daily FT

Sunday, 23 June 2024

World Bank announces new Country Director for Maldives, Nepal, and Sri Lanka

David Sislen

The World Bank has announced the appointment of David Sislen as the new Country Director for Maldives, Nepal and Sri Lanka. His appointment is effective from 1 July 2024.

Sislen succeeds Faris Hadad-Zervos, who will be taking on a new World Bank assignment.

“I am looking forward to my new role and meeting with all our stakeholders and partners soon. My key priority will be to lead the strategic dialogue to shape and implement operational engagements in line with the Bank’s focus on speed, scale, and impact, working closely with the Government, development partners, and diverse stakeholders,” Sislen said.

Sislen, a dual national of the US and Italy, joined the World Bank in 2001 as an Economist in the Urban Cluster Unit and has since held various operational and managerial positions in different regions. His most recent assignment is as Practice Manager for Urban, Disaster Risk Management and Land in the Latin America and Caribbean Region, based in Washington DC.

Sislen will oversee the World Bank portfolio in Maldives, Nepal and Sri Lanka of around $ 4.8 billion. World Bank announces new Country Director for Maldives, Nepal, and Sri Lanka | Daily FT

Wednesday, 19 June 2024

IMF Executive Board approves second review on SL

  • The Executive Board of the International Monetary Fund (IMF) yesterday passed the second review of Sri Lanka’s $ 3 billion Extended Fund Facility (EFF) program.
  • The move entails the release of $ SDR 254 million (about $ 337 million) bringing the total IMF financial support disbursed under the arrangement to SDR 762 million (about $ 1 billion).
  • The first review was held on 12 December last year
  • “All the Directors highly appreciate the authority’s commitment to the program which they say has yielded positive macroeconomic results,” said a Government source.
  • Based on the breakthrough though anticipated, President Ranil Wickremesinghe is scheduled to make a statement today along with a comprehensive economic update and referring to the remarkable International endorsement of Sri Lanka’s economic turnaround.
  • Foreign Affairs Minister Ali Sabry said the IMF approval was a testament to the Government’s dedication to driving forward economic reforms and securing a prosperous future for all Sri Lankans. State Minister of Finance Shehan Semasinghe is also scheduled to brief the media today morning. IMF Executive Board approves second review on SL | Daily FT

Saturday, 15 June 2024

Digital Wallets Are Popular in the UK While Demand for A2A Payments to Be Desired Finds WorldPay


Worldpay, the global paytech, has published the findings from its Global Payments Report 2024, revealing that digital wallets are expected to comprise half of all e-commerce spending in the UK, worth £203.5billion, by 2027.

The report, analysing payment landscapes across 40 countries, also found that usage of digital wallets will likely more than double at UK point-of-sale (POS). Usage will rise from 14 per cent to 29 per cent of transaction value over the next three years. This represents £493billion total transaction value, underscoring a seismic shift in consumer behaviour.

Pete Wickes, general manager, EMEA at Worldpay said, “Consumers are not just embracing digital wallets, they are driving a revolution in the payments landscape. The combined effect of the pandemic, alongside digital wallet technology reaching a level of maturity and implementation in recent years has driven a monumental rise in adoption both globally and locally in the UK.

“It is hard to deny the ease of use and convenience digital wallets provide whether shopping in store or online. From this basis, merchants now have a huge opportunity to diversify their payments choice to meet customer needs.”

Why digital wallets?

Digital wallets emerged in the late 1990s, steadily gaining in popularity from the mid-2000s, but it was the COVID-19 pandemic that provided the tipping point for adoption globally. Now established as a ‘go-to’ payment type for UK consumers, the maturity of the technology is giving consumers the confidence to try new ways to pay. Digital wallet use in the UK is providing a welcome boost to the world’s third-largest e-commerce market, which is expected to see seven per cent compound annual growth (CAGR) through 2027.

Underpinning digital wallet adoption in the UK, however, is the deep connection Britons have to traditional payment methods like credit and debit cards, which 69 per cent of consumers use to fund their wallets. Credit and debit card usage outside of digital wallets continues to be strong.

Credit and debit cards accounting for 46 per cent of e-commerce and 74 per cent of POS transaction value in 2023. The findings reveal how established payment preferences and behaviour is carrying over to new modalities, like digital wallets.

Kate Nightingale, consumer psychologist and founder of Humanising Brands
Commenting on the findings, Kate Nightingale, consumer psychologist and founder of Humanising Brands said, “Adoption of new payment methods is a complex cognitive and affective decision-making process. Outside a considered evaluation of benefits, like convenience, self-expression and brand incentives, and risks such as safety and privacy concerns, the most impactful promoter of adoption is trust.

Ensuring long-lasting usage

However, there is a difference between initial pre-adoption trust and continuation trust. Initial trust comprises the perceived integrity, benevolence and capability of a provider. Continuation trust relies on confirmation of a customer’s expectations, ongoing satisfaction levels and the perceived usefulness of a payment method.

Social factors cannot be ignored with word-of-mouth, prevalence of the payment method in a customer’s social circles, influence by authority figures as well as the impact of partnerships and sponsorships by already trusted organisations, all shaping consumer behaviour.

Those operators, merchants and financial institutions that understand how to navigate this complex behavioural matrix to drive consideration and adoption across a range of payment methods will come out on top.”

Not all tech is quickly adopted in the UK
While the UK has been a leader in adopting new payment technology, account-to-account (A2A) payments have been slow to take hold. For example, A2A accounted for just seven per cent of e-commerce transaction value in 2023 in the UK, the lowest adoption rate across Europe, lagging behind Poland (68 per cent), the Netherlands (64 per cent) and Finland (33 per cent).

A significant difference between these markets and the UK are government-backed initiatives designed to establish trust and encourage adoption, alongside supporting the development of infrastructure like real-time payments systems.

“We advocate for a varied and vibrant payments ecosystem, recognising that diversity in payment options enhances the customer experience, supports merchant growth and ultimately boosts commerce,” added Wickes. “It’s crucial for all players in the industry to come together to continue to innovate, while maintaining and building the consumer trust that has been pivotal to the seismic shift in commerce we have seen so far.” Digital Wallets Are Popular in the UK While Demand for A2A Payments to Be Desired Finds WorldPay

Monday, 3 June 2024

IMF hails Sri Lanka’s strong program performance

IMF Communications Department Director Julie Kozack
  • Next steps on debt restructuring are to conclude negotiations with external private creditors
  • Says official creditors side agreements in principle still need to be finalised
International Monetary Fund (IMF) Communications Department Director Julie Kozack on Thursday said overall program performance in Sri Lanka has been strong.

“With respect to Sri Lanka’s economic performance, macroeconomic policies in Sri Lanka are starting to bear fruit,” she said.

According to her, commendable outcomes include; a rapid decline in inflation, robust reserve accumulation and initial signs of economic growth, while also preserving stability in the financial system.

IMF staff and the Sri Lankan authorities have reached staff-level agreement on economic policies to conclude the second review of the 4-year EFF-supported program and the 2024 Article IV Consultation. Once the review is approved by IMF Management and completed by the IMF Executive Board, Sri Lanka will have access to about $ 337 million in financing.

She said the next steps with respect to the debt restructuring are to conclude negotiations with external private creditors and to implement the agreements in principle with Sri Lanka’s official creditors.

“The initial debt restructuring negotiations with external bondholders ended in mid-April without an agreement and discussions are continuing with a view to reaching agreement in principle. On the official creditors’ side, these agreements in principle still need to be finalised,” said Kozack.

She also said the domestic debt operations are largely completed. IMF hails Sri Lanka’s strong program performance | Daily FT

Wednesday, 22 May 2024

‘Investing in women is a human right issue’

Vishü Rita Krocha, Kohima , “If women have money, they would spend on health, education and very needful things. It is very important for women to have financial security in order to accelerate progress”, remarked Phutoli Shikhu Chingmak, Managing Director of the Eleutheros Christian Society (ECS), while asserting that investing in women is a human rights issue.

Speaking to The Morung Express on the occasion of the International Women’s Day (IWD), which falls on March 8, she added, “When the right of a woman is addressed, there is always progress in the society.”

‘Invest in women: Accelerate progress’ is the theme for IWD 2024.

Her work, over the past few decades, has revolutionised the lives of hundreds of rural women, enabling them to stand on their own feet and becoming financially secure through a banking concept she developed called ‘Edou Bank’ meaning ‘collectively working together.’

With over 600 Self Help Groups (SHGs) and 20 such micro banks self-managed by women spread across several districts of Nagaland, it is estimated that there are about Rs 7-8 crores in circulation among these rural women, who were once stricken with acute poverty. Through borrowing and investment in farming, the money keeps rotating within their groups.

Some of the SHGs are reported to have Rs 20-30 lakhs in circulation in their groups, while one in particular, comprising of groups from 3 villages, is said to have about Rs 70-80 lakhs in circulation. Some of the rural women have managed to buy lands for themselves, while some are running successful businesses.

Developed in 2003, Edou bank is a microfinance institution wherein loans are given for a group venture at 2% interest, the interest generated serving as dividends for the group members.

Conceptualised in 1997, it happened at a time when women entrepreneurship was almost unheard of. She and her husband, Chingmak had established The Eleutheros Christian Society (ECS) in 1993 with the prime objective of tackling the problem of drug abuse and rehabilitation of the affected youth.

Women can...
Seeing her concept bearing fruit, she said, “It is so amazing to see that women can do so much.” She however pointed that most of the government programmes are men-centric.

In this regard, she underscored the need of equity wherein the government should also purposely initiate programmes for women. “And when women take initiative, make sure that they are given financial security to implement,” she said.

She further noted a perceived lack of “handholding” in the many government programmes, which, she held, do not result in good outcome because of the lack of monitoring.

“Make every programme accountable, then people cannot take advantage of the resources and then only, there will be progress,” she maintained.Phutoli Shikhu Chingmak has a Post Graduate Diploma in Law from the University of London. She did her LLB from the same university. She is also a co-contributor of ‘Reparation to Indigenous Peoples: International & Comparative Perspectives’ published by Oxford University Press and a recipient of Governor’s Gold Medal for Distinguished Service in Health & Development.‘Investing in women is a human right issue’ | MorungExpress | morungexpress.com

Tuesday, 21 May 2024

What’s the difference between fiscal and monetary policy?

 

This article is part two of The Conversation’s “Business Basics” series where we ask leading experts to discuss key concepts in business, economics and finance.


How governments should manage their budgets, and how interest rates should be set, are two of the most important questions in economics.

Ideally, both work hand in hand to ensure the best outcomes for the economy as a whole. But they are enacted by different branches of government, and fall into different buckets within economics.

Budgeting – the way governments tax and spend – falls within the domain of fiscal policy. In contrast, the management of credit and interest rates falls into the domain of monetary policy.

With the recent federal budget handed down amid an ongoing battle to tackle inflation, both topics have dominated recent news coverage, so it’s important to understand the difference.

Fiscal policy

Paying tax is an unavoidable fact of life, but is needed to support spending on government services such as hospitals, roads, schools and defence. Taxation and spending decisions are made on different scales at every level of government, and form the basis of a government’s fiscal policy.

Traditionally, fiscal policy was seen as a very simple equation.

Governments should spend only as much as they earn through taxation, and only take on a small amount of debt for things like longer-term infrastructure projects.

But when economic growth falls, tax revenues also fall, forcing governments to cut spending to balance their budgets. Such spending cuts come at precisely the wrong time and are only likely to further worsen economic growth.

Noticing this pattern, economist John Maynard Keynes was the first to question this traditional wisdom, arguing that fiscal policy should be “countercyclical”.

According to Keynes, when economic growth falls, government spending should increase, only falling back as the economic recovery plays out.

Under a Keynesian approach, it’s therefore wholly appropriate for governments to issue debt to fund spending increases as the economy weakens.

The problem with this view of fiscal policy is that some governments have arguably abused their licence to spend, relying on ever-increasing levels of debt.

Greece famously suffered a spectacular debt crisis after the global financial crisis in 2008, but other European countries such as France, Italy, Portugal and Spain also have high and problematic levels of debt.

Chronically high debt can lead to higher interest payments on this debt, which in turn can limit a government’s ability to spend to support its economy.

Monetary policy

 
With the power to influence the cost of borrowing, interest rates are a powerful lever for regulating spending. Geometric Photography/Pexels

Monetary policy affects the economy via a different lever.

By changing the relative cost of borrowing money, changes in interest rates affect the aggregate level of spending in the economy.

This in turn can impact inflation – increases in the general level of prices.

Cuts in interest rates will tend to stimulate demand and push prices up, while rate increases reduce demand and push prices down.

Interest rates are typically set by a country’s central bank, whose primary role is to keep inflation low.

Our own central bank – the Reserve Bank of Australia, sets rates to meet an official inflation target of between 2% and 3%.

A combined Keynesian approach

Alongside Keynes’ writing on fiscal policy, he and other economists argued that interest rates should be reduced as an economy heads into recession, to support borrowing and spending by businesses and consumers.

Coupled with higher government spending, keeping interest rates lower in a recession should theoretically speed up economic recovery.

The merits of a Keynesian approach were borne out clearly in Australia in both the 2008 global financial crisis and the COVID pandemic.

 
Many central banks drastically lowered interest rates to boost spending during the pandemic. EyeofPaul/Shutterstock

Most recently, the pandemic saw the Reserve Bank cut interest rates to almost zero. Simultaneously, the government supported the economy with a wide range of spending programs, including big boosts to welfare payments and a generous JobKeeper program to mothball Australia’s workforce.

As a result, unemployment quickly returned to low levels and economic growth recovered following the lifting of restrictions.

Helping people pay their bills while taming spending is hard

Emergence from the pandemic left us with a different problem. Inflation surged and remained stubbornly above the Reserve Bank’s target range, forcing the bank to repeatedly raise rates to try to tame it.

At the same time, the government has been trying to support Australians through a cost-of-living crisis.

Now, critics of the government have argued that further spending to support Australians could unintentionally put further pressure on inflation and force the Reserve Bank to keep interest rates higher for longer.

Such challenges reflect the fact that our understanding of best practice for fiscal and monetary policy is constantly evolving.

Problems with burgeoning state debt have prompted debate on the former, and whether there should be limits on governments’ ability to issue debt.

These could include limits to public debt, or new oversight authorities to monitor levels of public spending.

And on monetary policy, a recent review of the Reserve Bank considered requiring a “dual mandate” that would force it to give equal consideration to employment and to inflation goals, as is currently required of the US Federal Reserve.The Conversation

Mark Crosby, Professor, Monash University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Saturday, 4 May 2024

Nestle baby food sugar study causes concern in India, Nestle India's shares fall

IANS: The baby-food brands sold by global giant Nestle in India contain high levels of added sugar, unlike the same products in the UK, Germany Switzerland, and other developed nations, revealed an investigation by Swiss organisation Public Eye and the International Baby Food Action Network (IBFAN), sparking concern in the country at the violation of health guidelines.

The Indian government is reportedly looking into the issue of sugar being added to baby food.

Meanwhile, the share price of Nestle India Ltd went down in the bourses on Thursday following the study.

At the BSE, on Thursday, Nestle India’s shares opened at Rs 2,539 (Wednesday closing price Rs 2,547.15) and went down to close at Rs.2,462.75.

Findings showed that in India, all Cerelac baby products contain an average of nearly 3 grams of sugar per serving. The same product is being sold with no added sugar in Germany and the UK, while in Ethiopia and Thailand, it contains nearly 6 grams, the study said.

The report said that Nestle adds sugar to infant milk and cereal products in several countries which is a violation of international guidelines aimed at preventing obesity and chronic diseases. Violations were found only in Asian, African, and Latin American countries.

However, a Nestle India Ltd spokesperson said the company has reduced the total amount of added sugars in its infant cereals portfolio by 30 per cent over the past five years and it continues to "review" and "reformulate" products to reduce them further. "We believe in the nutritional quality of our products for early childhood and prioritise using high-quality ingredients."

On Wednesday, the leading UK paper The Guardian reported that the Swiss food giant adds sugar and honey to infant milk and cereal products sold in "poorer countries". It cited data from Public Eye and IBFAN that examined Nestle baby food brands sold in these markets. Public Eye examined 115 products sold in Nestle’s main markets in Africa, Asia and Latin America across two key brands -- Cerelac and Nodi.

In India, all Cerelac baby cereal products examined by Public Eye contained added sugar -- on average nearly 3 gm per serving.
“Almost all the Cerelac infant cereals examined contain added sugar -- nearly 4 grams per serving on average, equal to roughly a sugar cube -- although they are targeted at babies from six months of age. The highest amount -- 7.3 grams per serving -- was detected in a product sold in the Philippines," the report said.WHO expert Nigel Rollins was cited in media reports as saying that “this is a double standard that cannot be justified.”Nestle baby food sugar study causes concern in India, Nestle India's shares fall | MorungExpress | morungexpress.com

Thursday, 2 May 2024

Five Things Chinese Investment Means for Zimbabwe

  • By Fani Zvomuya Correspondent: President Mnangagwa recently toured the Manhize Steel Plant, a bustling investment near Mvuma that is the face of steel manufacturing revival in Zimbabwe; and the lofty position the country will attain as Africa's giant.
  • The Manhize Steel Plant is owned by Chinese company Tsingshan Holding's local subsidiary, DINSON Iron and Steel. The steel plant has just begun production of pig iron and will in the course of the year manufacture steel billets and bars, all necessary for the steel industry which supports various sectors of the economy such as construction, agriculture, mining and so on.
  • Dinson's Manhize plant will be the biggest in Africa at its peak, according to its projected phases; and this fact bears quite some symbolism, as China helps Zimbabwe to rise from the ashes and become a shining example.
  • The country's own steel manufacturing had been battered because of the collapse of a State entity, Ziscosteel; and massive de-industrialisation that has taken place in the past two decades, mostly due to sanctions imposed on Zimbabwe by Western countries. Zisco was among entities initially put under the embargo.
  • While addressing stakeholders during the Manhize Steel Plant, the President underlined the importance of Chinese investments in the southern African nation.
  • He said: "I applaud companies from the People's Republic of China for the continued investments in our economy. This investment through Dinson Iron and Steel Company signifies more than just financial support; it represents a shared vision for a brighter future between Zimbabwe and China."
  • This article unpacks the significance of Chinese investments in Zimbabwe, and the benefits of greater cooperation between the two countries.
  • In particular, there are five key attributes of Chinese investments that underline the importance of Chinese foreign direct investment as a function of the comprehensive strategic partnership between the two sides.
  • From size and speed, to spreading tentacles in Africa
  • The first key attribute of Chinese investments in Zimbabwe, which Manhize steel project signifies is size.
  • China is one of Zimbabwe's major source of Foreign Direct Investment, and it is no surprise that the biggest projects that the country has set up have come from China to the Manhize steel project is worth US$1.5 billion.
  • What is important to note is that it is at the apex of a value chain comprising of production of ferrochrome and coking coal, which means that Dinson is the only company with such a well-knit business concept, worth close to US$3 billion.
  • Dinson sister companies, Afrochine (ferrochrome) and Dinson Colliery (coking coal) have been the major producers and exporters of their respective products in Zimbabwe.
  • The Dinson group also owns Gwanda Lithium as it pivots to new energy materials as part of its investment portfolio, which may include other minerals such as copper.
  • Size matters. The Tsingshan group, the largest steelmaker and a Fortune 500 company, is showing the extent of Chinese investments in the country.
  • There are a number of investments that are also big in size and scale.
  • These include two major mining projects in the lithium sector through Sinomine Bikita Lithium, and Zhejiang Huayou Cobalt's Prospect Lithium Zimbabwe which have opened over the past two years.
  • The projects were worth close to US$2 billion combined in investments.
  • The biggest future and prospective investments in Zimbabwe will likely to be Chinese.
  • These include a battery manufacturing plant in Mapinga, Mashonaland West; as well as the US$1 billion floating solar farm in Kariba.
  • The second key attribute of Chinese investments in Zimbabwe is speed.
  • Many projects done by Chinese companies have been completed in record time, as they have breezed through construction to begin operations quickly and efficiently.
  • Rapid progress seen on Chinese projects has been seen by many locals as a thing of marvel.
  • It is China speed. Projects such as Prospect Lithium Zimbabwe's Arcadia lithium plant, which was constructed in under one year, when ordinarily it would take at least 18 months, have attested to the sense of urgency and purpose as well as unmatched work ethic of the Chinese.
  • The third attribute is that Chinese investments are impactful.
  • The impact of Chinese investments has been huge. Zimbabwe has over 100 large and medium scale companies involved in various significant economic endeavours.
  • China has also become an employer across various sectors. Apart from providing jobs and steering the economy through revenue streams to the fiscus, Chinese investments have come with social impact through corporate social responsibility assisting communities with education, health and other social needs.
  • Sinomine Bikita Minerals has in the past year drilled nearly 40 boreholes in Masvingo Province, as well as upgrading roads. The company will also build a bridge in Manicaland.
  • Bikita Minerals has also brought electricity to local businesses and homesteads, which are benefiting from its investment in power infrastructure valued at millions, something similar to what Dinson Iron and Steel has also done through a 90 kilometre 400kva power line from Sherwood in Kwekwe to the plant.
  • Bikita Minerals has a football team that won promotion into Zimbabwe's top flight, the Premier Soccer League, underlining the diversity of its impact portfolio, as football is not just a social force but also an employer in itself.
  • Chinese companies have also had impact on activities that have enhanced local value chains, becoming a key cog in running Zimbabwe's economy. Add to this, the transfer of skills and technologies that are benefiting local people.
  • Fourth, Chinese companies are transformative. Chinese companies are assisting Zimbabwe modernise its economy and pushing industrialisation, with Manhize steel being the metaphor for the industrialisation drive as steel is at the centre of development.
  • Historically, steel is a key driver of industrialisation and a Chinese company is at the centre of it all.
  • Dinson Iron and Steel managing director, Mr Benson Xui -- captured it succinctly when he described the transformation power of the company's investment, relating that: "I saw mountains of iron ore and saw an opportunity for us to achieve the steel project in Zimbabwe and for Zimbabwe." (This was corroborated by President Mnangagwa stating that, "Over the years, the full potential of our iron ore resources and value chains have remained largely untapped.
  • "However, under the Second Republic, the milestones we are realising through exceptional teamwork, focus and determination from both public and private sector have seen the establishment of this national strategic project."
  • He also said it was pleasing that Zimbabwe's iron ore will be fully exploited, value added and beneficiated locally so as to realise maximum benefits from local natural resources, while also capitalising on the value chains including processing, manufacturing and the supply of high-value finished steel goods and products.)
  • Value addition is key to economic transformation and this is being driven by Tsingshan investments in Zimbabwe, which has lots of natural resources and a yet to be realised value of unmined assets, added to vast human resources, a perfect climate and a huge repository of human capital.
  • In this process, there is massive development of infrastructure and support services, which are set to impact on the whole of southern Africa, particularly in the south and south east where a value addition park will be established and attracting interest globally.
  • Lastly, Chinese investments in Africa and in Zimbabwe particularly are stimulating and diffusional. Zimbabwe is thus positioned to become a nodal country, placing it firmly at the centre of the region, and becoming the gateway to Africa for investors attracted to opportunities linked to the exploitation and utilisation of natural resources.
  • Zimbabwe and Africa are rising, and this fits neatly into the global economic matrices espoused in concepts such as China's Belt and Road Initiative and Global Development Initiative.
  • Read the original article on The Herald.Five Things Chinese Investment Means for Zimbabwe

Friday, 5 April 2024

World Bank projects India’s economy to grow at 7.5 per cent in 2024

The Indian economy is projected to grow at 7.5 per cent in 2024, the World Bank has said, revising its earlier projections for the same period by 1.2 per cent.

According to the World Bank’s most recent South Asia Development Update, overall growth in South Asia is forecast to be strong at 6 per cent in 2024, driven mostly by robust development in India and recoveries in Pakistan and Sri Lanka.

According to the report, South Asia is expected to remain the fastest-growing region in the world for the next two years, with growth projected to be 6.1 per cent in 2025.World Bank projects India’s economy to grow at 7.5 per cent in 2024

Saturday, 30 March 2024

Working from home is producing economic benefits return-to-office rules would quash

More of us have been in paid work this past year than ever before. A big part of that is because more of us have been able to work from home than ever before.

The proportion of Australians in paid work climbed above 64% in May last year, and has stayed there since. At the same time, unemployment has hovered around a half-century low of 4%.

In April last year, female unemployment fell to what is almost certainly an all-time low of 3.3%.

It’s working from home – actually, working from anywhere – that has been the game-changer, as the most enduring change to the way we work to have come out of the pandemic.

The jump in working from home

Before the pandemic, in 2019, the share of the workforce who usually work at least partly from home was 25%. Three years on in 2022, it was 36%.

These numbers from the latest Household, Income and Labour Dynamics in Australia (HILDA) Survey show there’s also been a shift in who’s working from home.

Before the pandemic, a greater share of men than women worked from home. Now it’s a greater share of women.



Among both women and men, the biggest jump has been among parents with young children.

The proportion of mothers with children under five working at least partly from home has leapt from 31% to 43%.

The working-from-home rate for fathers with children under five has jumped from 29% to 39%.

Which workers, which jobs?

Before the pandemic, managers and professionals were the workers most likely to work from home. They still are, with up to 60% dialling in from the home office for at least part of their work week.

But it’s clerical and administrative workers – occupations that are about three-quarters female – who had the biggest jump in working from home. Their pre-pandemic rate of 18% has soared to 42%.



In terms of industries, finance and insurance led the pack before the pandemic and still do, with rates doubling to 85%.

Working from home is now also the norm in information media and telecommunications (74%) and public administration and safety (72%).



In the traditionally male industry of construction, women’s working-from-home rates have soared from 34% to 45%.

It’s well above the men’s rate of 24%, which is largely unchanged.

While this reflects the different types of jobs that men and women do in construction, it also suggests working from home is a way to boost women’s involvement, even in this industry.

More workers, better-matched

The benefit of working from home for the economy has been fewer obstacles getting in the way of matching jobseekers to employers. Distance and location are no longer the deal-breakers they were.

Better job-matching means less unemployment, and the heightened prospect of finding a good job match encourages jobseekers who in earlier times might have given up.

In finance and insurance – the industry with the biggest and fastest-growing rate of working from home – the proportion of jobs that were vacant fell from 2.5% before the pandemic to just 1.7% by the end of 2023.

Return-to-office mandates would set us back

Making workers return to the office for jobs that can be effectively done from home would unravel the economic benefits that have been achieved.

Fewer people, especially women and parents with young children, would put themselves forward for work. The pool of skills that employers are looking for would shrink. And job-matching in the labour market becomes less efficient.

The result would be more Australians unemployed, and more Australians dropping out of the paid workforce, than if we had continued to embrace working from home.

Working from home still comes with challenges. Workers who are less visible in the office are more likely to be overlooked.

But it has a wider economic benefit we have a chance to hold on to.

The extraordinary transformation of our labour market means it shouldn’t be seen as a “favour” to workers, but as a favour to us all.The Conversation

Leonora Risse, Associate Professor in Economics, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Friday, 29 March 2024

What is the worth of one human being?

By Surya Vishwa: What is the worth of one single human being? Can it be measured in gold or any other monetary assessment? In short, what is the price of life? We see around us how some people who spend their whole life being preoccupied by accumulating riches alone, at the cost of conscience, knowledge, love, freedom or happiness, spending it all in a day, especially at the mid or last stage of their life on a hospital bill; and that too one that would not change the health situation.

So, what is the price of one single human life? Answer could be that it is priceless. This answer is realised by most when it is too late.

A single human life, if appreciated, loved, respected and is in supreme bliss, can create the same situation and this feeling will be multiplied.

It is unfortunately not realised when all wrong policies are made and deathly results are realised, it is not realised when religion without its wisdom essence is pursued and the spirit (prana) within its core philosophy is not absorbed by the mind, it is not realised when information is mistaken for knowledge and it is not realised when one has lived an entire life merely implementing what others tells one to, whether it is appropriate to the self or not.

Each individual, like each country (a unique geographical location or earth with its own plant, animal and human species) and where this uniqueness created differently prioritised cities and knowledge structures. It is this difference that we have to thank for when we study how ancient Greek civilisation was different to ancient Egypt and how ancient Egypt was different to the Germanic or to the Indus people and the systems of knowledge they created.

One of the key drawbacks of modernity is that we have allowed globalisation to create a one-size-fits-all thinking that permeates all branches of life beginning with education. *Or else countries which never have apples growing in their soil, will not be teaching children that A is for apples!

The worth of one human life is linked to the worth of each and every resource which is in the land upon which that human life is birthed upon. When that land resource is not valued, or belittled or abandoned, the human life upon which it was birthed becomes equally abandoned.

However, some geographical locations (countries) which have learnt (often the hard way and after many atrocious mistakes) the value of maximising each life potential, making each human being feel loved, respected, cared for and appreciated, may benefit greatly by creating an opportunity or an atmosphere for any life to reach its full potential in a host soil (a foreign country).

Sometimes with well-meaning intention, these others, as neighbours sometimes do, for many diverse reasons, prescribe to other neighbour’s formulas and methodologies on how to care for the lives that are lived in, in other lands.

This is a most prevalent outcome of modern policy creation, where if a set of people disintegrate, feeling unhappy or sad about something in their own home or family where they feel their life potential is not maximised, they may ask the neighbours to tell their family members what they should do, or the neighbours will do in on their own, as they see fit. This may lead to new problems and most likely not be the solution.

A country is nothing but a large collective of individuals living in a setting of valuable resources and great potential.

We sometimes see a set of people pulling together to make countries which have very little naturally given resources, for example, like Singapore.

The value of one single human being cannot be priced because for better or worse, they can bring absolute prosperity or absolute disaster upon themselves or their surroundings. They do it by thinking uniquely, by thinking wisely and realising the importance of the mammoth and fragile task of preventing a feeling or hurt or resentment in a human being.

For example, one single human being such as Lee Kuan Yew, sat and thought deeply, and realised that whatever that is available (port resource) or the territory he and other people of that land lives, should be maximised and made successful enough to fill the gap of not having much other resources.

He did not get depressed that Sri Lanka was far more richer in natural resources and infrastructure at that time that Singapore, but carefully and methodically analysed the shortfalls that may occur if even a single person was hurt when setting forth the rules upon which to live each life in the particular land (policies of a nation).

Hence, we can say that Lee Kuan Yew and his life cannot ever be measured in monetary value because then it would have to be priced far more than what the country he created is worth because he maximised the potential of his mind to create this country upon which people are happy, healthy, thinking for itself and working hard. Of course, sometimes some may grumble as there will be critics of anything, this being earth of humans and not heaven of angels.

Why is this above reflection important today for Sri Lanka and Sri Lankans?

It is important because we have to start asking ourselves whether we are thinking or whether we are ‘thought for’ by our neighbours, irrespective of whether such a stance is taken in the best of intentions which is often the case. What good intentions is a family member who must put the house right. A solution given by an outsider often aggravates the situation.

Each individual will fail in the overall task of living a fulfilling life if they merely follow the framework a neighbour gives them. Likewise, a country will fail if they follow a framework that is merely given by others.

A country that is to maximise its potential is hinged on the thinking power of its people; beginning with each and every single human being. The power of one, is the power (or detriment) of all, as the lived in life of this world and its experiences show us.

We are now beginning to be caught in a storm brewing around the 13th Amendment to the Sri Lankan Constitution as introduced with Indian intervention in 1987.

Today there are different people holding different views on what a full implementation of such a policy would mean.

Leaving these debates aside, is it not useful to think anew at how all rural areas in all of the country could reach its fullest heights in wellbeing, education, creativity, innovation, invention, self-sufficiency, happiness and monetary as well as spiritual realisation and thus achieve true sustainable development as villages of this nation always had traditionally achieved?

Today all children learn about Colebrook and Cameron commissions which were initiatives of Colonial rule. The tradition of villages governing itself dates back to the earliest heritage accounts of Sri Lanka but today as with all knowledge of the policies of our ancient kings this knowledge is lost. We look to others before learning from our own monarchs.

The wisdom of our monarchs, of our physicians and the incredulous feats they achieved for our nation remains in the tombs of our minds. The village administrative models around the concept of village councils are very old in this civilisation. From the time of Kuweni, it is known for those who relentlessly search for this knowledge, that villages in all of the island were administered as suited to its particular human and land resource.

The greatest model of pluralism of the Buddhist philosophy as preached by the Enlightened Human Being the Buddha, remains unexplored by our minds.

Great sages such as the Buddha, Jesus, Mahavira, Mohammed and multitude of other saints of a Hindu and Sufi and other traditions spent their entire lives improving the value of their heart and mind, the two conjoined machines that power each single human life, by creating the attitudes and actions.

These were single human beings who thought for themselves and beyond the existing normality. They were social leaders while being spiritual masters. This country has much to learn from the individual actions of great Sinhala kings who created an incredulous hydraulic civilisation and stamped upon our consciousness the importance of sustainable policies.

Yet, today, unlike the gurukulam system of yesteryear, we are unaware of these great individuals. Likewise, the greater picture of why we are learning anything is lost upon us. In the same way, the fact that each of us can be a great vessel of unique productivity for our nation is not impressed upon us.

Thus, most of us and our countries in this modern world, copy and become photocopy versions of others, whether these versions are suited to us or not. Our education system gives us information but very little space to think, reflect and be wise in order to create the best version for each of our lives so that we do not create unhappy, frustrated, unkind, unempathetic lives for either ourselves, others or the land upon which our sustenance depends. Yet we are all books of knowledge. Each day of our lives such knowledge is written for us and this is called life experience. The challenges our country has faced is part of this experience we have lived through. As we see new challenges emerge, let us think for ourselves anew, how we can create solutions and those that last so that we are truly independent individuals and living is a country that creates its own solutions. Each thinking human being is a priceless treasure for this nation and as such able to move ahead of herd based thinking or emotion.

NOTE: This article is the first of a series of creating a possible platform to start a discourse on ancient village administrative systems of Sri Lanka, to glean what is useful for today’s context. What is the worth of one human being? | Daily FT

Wednesday, 28 February 2024

Sustainable Energy Authority approves permit for $ 355 m Adani Green Energy in Pooneryn

  • Indian giant ignites green revolution with 234 MW wind energy project
  • In a groundbreaking stride towards a greener tomorrow, Sri Lanka Sustainable Energy Authority (SLSEA) has approved to grant the Energy Permit to Adani Green Energy (Sri Lanka) Ltd., for its monumental $ 355 million, 234MW Pooneryn Wind Energy Power Project, nestled in the picturesque Northern Province of Sri Lanka.
  • This landmark endeavour not only marks Sri Lanka’s largest single location wind energy project, but also heralds a new era of renewable energy dominance, addressing critical issues like the energy crisis, economic recovery, and environmental sustainability.
  • This $ 355 million, 234MW, Pooneryn Wind Energy Power Project stands tall as a testament to Adani Green Energy’s unwavering commitment to pioneering sustainable solutions. This colossal initiative not only cements its status as Sri Lanka’s largest wind energy project at a single location but also emerges as a beacon of hope, addressing critical concerns such as the energy security, economic revitalisation, and environmental stewardship.
  • The Pooneryn Wind Energy Power Project is set to become a beacon of sustainable energy in the region. With a capacity of 234MW, it is poised to contribute substantially to Sri Lanka’s renewable energy capacity. The project aligns seamlessly with global efforts to combat climate change by reducing carbon emissions, as wind power is renowned for its clean and green attributes. Adani Green Energy’s commitment to environmental stewardship is evident in this endeavour, making strides towards a cleaner and more sustainable future.
  • Sri Lanka has been grappling with an energy crisis, facing challenges of energy security and sustainability. The Pooneryn project emerges as a beacon of hope, offering a reliable and renewable solution to the nation’s energy woes. By harnessing the power of wind, this project promises to diversify Sri Lanka’s energy mix, reducing dependence on fossil fuels and mitigating the risks associated with fluctuating energy prices and supply shortages.
  • Amid the economic turmoil wrought, the $ 355 million Pooneryn Wind Energy Power Project serves as a ray of economic optimism and a vote of confidence in Sri Lanka. Adani Green Energy’s bold investment in this transformative project not only injects vital Foreign Direct Investment (FDI) into Sri Lanka’s economy but also sends a resounding message of confidence to investors worldwide. This influx of capital is poised to catalyse economic growth, create jobs, and stimulate local businesses, laying the groundwork for a robust and resilient post economic pandemic recovery.
  • The Pooneryn Wind Energy Power Project brings with it a boon of employment opportunities, particularly in the Northern Province. The construction, operation, and maintenance of the facility will create a multitude of jobs, contributing to the economic upliftment of the region. This strategic focus on the Northern Province underscores Adani Green Energy’s commitment to inclusive growth, fostering a sense of community and empowerment among the local population.
  • At its core, the Pooneryn Wind Energy Power Project embodies Adani Green Energy’s unwavering commitment to environmental stewardship. By harnessing the limitless power of wind, the project is set to significantly reduce Sri Lanka’s carbon footprint, paving the way for a cleaner, greener future.
  • With stringent environmental measures and best practices in place, Adani Green Energy is not only mitigating environmental impact but also setting a gold standard for responsible and sustainable development in the energy sector. The integration of sustainable practices in energy generation aligns with global efforts to preserve natural resources and protect the delicate balance of our ecosystems.
  • The Pooneryn Wind Energy Power Project is much more than just a power plant; it’s a symbol of hope, progress, and possibility. As it takes shape against the backdrop of the Northern Province’s majestic landscapes, it stands as a beacon of Sri Lanka’s commitment to a brighter, more sustainable future. With Adani Green Energy leading the charge, the journey towards a greener tomorrow has never looked more promising. Sustainable Energy Authority approves permit for $ 355 m Adani Green Energy in Pooneryn | Daily FT