A worldwide crisis

Reports that the public in oil rich Kuwait are reeling from the high cost of living and are being crushed by high inflation may be a surprising phenomenon to many countries like Sri Lanka where the current world price hikes in petroleum has dealt a blow to the country's economy and in return to the consumer public.

According to a report in our inside pages yesterday Kuwaiti families are suffering major budget crunches as inflation in the oil rich state climbs to new heights.

It says that prices of basic goods have surged by as much as 40 per cent over the past three months. Expatriate workers in Kuwait are the most exposed to escalating prices for basic food and commodities.

Not only that the cost of basmathi rice the staple for hundreds of thousands expat workers in Kuwait had leapt by as much as 50 per cent. Even with their fat cheques if they are feeling the pinch it certainly must be a serious situation over there in the tiny desert Emirate.

What this shows is that even oil rich states- never mind the developed countries- are today vulnerable to the vagaries of world market trends and are finding it difficult on the domestic front. Some blame the rising prices on multinational food distributors overpowering local cooperatives - a common refrain here in Sri Lanka.

There is also a clamour in that country for regulating market forces, another development that has an echo is Sri Lanka where the Trade Minister is being bombarded from all fronts for the steeping prices in almost all commodities.

What is to be borne in mind here is that even strong economies are being caught up today in the vice like grip of world market prices and other determinants of worlds commerce and related trends which is having an overarching influence on the economic stability and the welfare of entire societies.

Today Sri Lanka too is placed in a similar dilemma where the Government is fighting against the tide to soften the blow on the public dealt by these same forces.

Those who criticise the Government would do well to take cognisance of the larger picture and act with circumspection especially at a time when the Government has committed a substantial portion of its resources to rid the country of terrorism and steer it on the path of economic development.

In this respect Sri Lanka can be justly proud of its social welfare programmes where the most vulnerable section of society has been insulated from the body blows dealt by the vagaries of international market forces and the economic fall out of a war.

While the cost of living is certainly high and the public find it hard going there is no alarming trends suggesting that the people are being pushed to dire straits or deprivation. The substantial wage hikes periodically granted by the Government to the working class have to a large extent succeeded in cushioning the effects of the high cost of living.

The Government should be commended for these moves to ameliorate the hardships of the people while retaining subsidies and other welfare measures.

While the world powers too are subject to the prevailing economic crunch it is a laudable that amidst the present difficulties the Government has been able to record a seven per cent economic growth while going ahead with ambitious development programmes to benefit the country and its people.

The case against Kosovo

The Government's decision to oppose the UDI declaration by Kosovo from the Serbian Republic was a most appropriate move and should be followed by all States who value their independence and sovereignty lest the phenomenon catches on globally threatening the existence of States as cohesive entities.

Sri Lanka which more than most nations has had experience of battling terrorism especially - an outfit dubbed as the most ruthless band of terrorists in the world - is well aware of the pangs and emotions attached to protecting the country as a sovereign State and is eminently qualified to be heard and taken seriously by other nations who are yet to make a decision in this regard.

It is only those countries waging war against secession who bear testimony to the value and importance attached to nationhood and it is incumbent on States who have been spared the horrors of such an experience to make common cause with such countries battling to protect their Statehood, particularly so with terrorism now being a global phenomenon threatening to cut across all boundaries to dismember States.

We hope Sri Lanka and those countries who have voiced opposition to the latest development would prove a catalyst in the fight against emerging trends to undermine nations through the agency of terrorism.