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Economic pipedreams

The full dimensions of the September 11th terror attacks in the US are continuing to unravel, compelling discerning observers to predict a huge global economic downturn. Ominous signs are already emerging in what was hitherto the economic powerhouse of the West - the US. A Washington - based report we published yesterday said that the number of Americans collecting unemployment benefits is on the rise, thus pointing to a spreading economic recession.

It is significant that the demented September 11th terror attacks targetted a potent symbol of US economic power - the Twin Towers. Nothing can justify the spilling of innocent blood but it would be pertinent to probe whether economic marginalization and increasing disparities in wealth and power, globally as well as at the microscopic state level, trigger desperate but demonic acts. Economic historians are beginning to discern a pattern in the occurrence of conflicts and wars. Worldwide economic recession, for instance, led to World War I and II. Could the same be said of the present epoch ? We don't see the possibility of World War III, but we are certainly saddled with stepped-up turbulence and bloodshed - Afghanistan being a case in point.

All this points to bleak prospects for us in the Third World. The underlying logic of economic globalization is that when recession hits one part of the globe it spills over into the rest. Shrinking markets in the West for Sri Lanka's exports, for instance, are going to affect local plans to revamp the economy.

How realistic, then, are the UNP leader's hopes of bringing about an economic revival in this country within 100 days of his coming to power - if at all such an eventuality occurs? How is he going to resolve the unemployment problem when unemployment and joblessness is on the rise in the economic power centres of the West ?

When purchasing power shrinks in the West, there is unlikely to be a heavy demand for local exports, thereby leaving a debilitating impact on our own economy. If our economic prospects are going to be poor how is the leader of the UNP intending to put his grand scheme into operation of providing our youth an unemployment allowance of Rs. 2000?

The economy is, naturally, a key issue in the current election campaign. However, it is disheartening to note that no intelligent discourse is taking place publicly on the finer points in this vital area of concern. The truth will catch up on those instant experts who are entertaining pipedreams of showering us with goodies.

• Editorial of  The Observer - Poverty alleviation 20.11.2001:

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