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| Monday, 8 March 2004 |
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Heavy foreign loans, a burden on future - Athauda Seneviratne by Shirajiv Sirimane Providing loans to poor countries for development is a very lucrative business, said the former Minister of Labour and Kegalle District MP Athauda Seneviratne. He said that whichever government is in power, the developed countries would not hesitate to provide loans since it is a profitable investment. All developed countries need a market place and by awarding loans they indirectly create a market in the developing countries. This is why it is important not to abide by any conditions when taking foreign loans since it leads to various problems for the economy. It can even have a bad impact on the economic policies of a country and this should not be done. Donor countries are not interested as to which party is in power. What most countries want is to get back their money with the interest. None of the third world countries could survive without foreign aid. However foreign aid should be obtained with caution and one must always consider the method of paying it back. "It is not a victory to say that the government had obtained the highest loans for the history. Accumulated foreign aid which causes major problems to the future generation have negative impact to the economy. What a country should do is to take a few foreign loans and settle them soon," he said. Seneviratne said that Thailand had settled all their foreign debts and the former Foreign Minister N. M. Perera too had settled all foreign debts during his tenure. "This is the example Sri Lanka should follow," he said. In today's global business climate, none of the developing countries can survive in a closed economic climate. Russia, Cuba, Vietnam and India have realized this and have opened their economies. China, which too changed their economic policies has become a global economic giant. It is predicted that India too would be a developed country in two decades due to its new economic policies. "This is because all these countries are adopting a mixed economy and Sri Lanka should follow this example," he said. Sri Lanka is strategically located and with its educated workforce and other facilities it has become an ideal country for investors. What the investors want is a educated workforce, infrastructure for their investments. "They are not keen to find out which party is in power," he said. The governments must also look at the welfare of the labour since it is a vital component. He said that the former government had ignored this area, which had resulted in their labour unrests and strikes. |
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