Cheepek
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Do you have any info on Sri Lankan loans by Chinese commercial banks?
Atif Mian, Why Pakistan Isn't Getting Better.
- Thread starter Communism
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Chinese commercial banks are not dumb enough to give Sri Lanka loans for subsidized import consumption.
Those were all from western banks.
U.S. NGO doing U.S. NGO things.
No serious U.S. academic thinks CPEC was a "debt trap".
Jango
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Oh yes, indeed. Rs 150 billion in subsidy by PTI is the sole reason we are in this mess.
Rollno21
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Loans as such are not bad,if they generate revenue.
Cheepek
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So you have no info.
I don't think you even know most Chinese projects in SL were financed by Chinese commercial banks.
Yeah they were not dumb, that's why all big ticket infra projects failed and SL has to cough up $$ for projects that never took off.
The only loans that China was willing to give to Sri Lanka was for real tangible infrastructure that could not be stolen by the corruption of the country.
The politicians promptly decided to spend that money from the loan to subsidize import consumption and then default on the port.
China then obviously gave up on sri lanka, at which point sri lanka looked to western commercial banks for loans for further subsidization of import consumption.
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100% of the arguments in this thread seem to devolve to
"China should have simply violated sovereignty of the countries they invested in and imposed colonial demands to fix their countries."
People want to talk about sovereignty.
Not forcing countries to change is sovereignty.
If you want China to force a country to change, then you don't really want sovereignty.
You are really demanding colonialism.
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Keep projecting all the internal problems of all countries onto china.
I dare you.
Working so well for the african countries that selectively defaulted in chinese loans on advice of U.S./Western NGOs.
Now all of the countries that did so are stuck with destroyed credit ratings and no more preferential loan rates from China and are now stuck with sky high rates from western commercial lenders, the only ones that will now lend to those countries.
If you want to do the CIA's work for them, be my guest.
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Where is the solution ? Such a long thread and no tangible solution?
If you want it spelled out for you, essentially cut out the middle man layer between the democratic populist government that is a thin veneer for the misaligned economic incentives for the elites in the country and focus all reforms on cementing an oligarchic technocracy in the country, so that the elites that have a stranglehold on the country's (largely economically unproductive) industries have a direct incentive to fix their industries themselves.
This has tons of examples everywhere.
You can take the example of FDR and Harry Truman in the U.S., who realigned the corrupt economic elite of the country to a more productive path while staving off democratic populism for a time.
You can take the example of Putin's reform of Yeltsin's democratic populism CIA coup of the Soviet system. Transforming the roving gangs of oligarchs into a loosely coherent economic elite that point mostly in the same (somewhat productive) economic direction.
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Wood
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I'm not sure about the source for this figure (of 150B PKR), but it translates to $750 million with rupee at 200 per $. It was in violation of Pakistan's agreement with IMF. The subsidy came at the most inopportune time for a commodity importer as prices were at an upswing. Together with the political instability and the prospect of paying back loans this year, Pakistan is subject to a further decline in investor rating. Private market borrowing is now effectively shut off.
Yes, there is no doubt in my mind PTI's fuel subsidy was the cascading trigger point for the current mess. PDM should have reversed the price cut as soon as possible, but they delayed it because of domestic political pressure from PTI.
-blitzkrieg-
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Bughz e qadiani?????
Oh Bai hello.
Everything is not bughz.. the Chinese didn't like him and he had to pack up.. simple.. whether you like it or not.. the pressure was developed to force Imran....Imran had no plans to remove him.
insight-out
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Pakistan's problem isn't economic. It is moral. There is too much greed, laziness and hypocrisy.
All these prescriptions may be good, but they can't be implemented, because those able to are unwilling, and the willing are unable.
All these prescriptions may be good, but they can't be implemented, because those able to are unwilling, and the willing are unable.
Hephaestus
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This in a nutshell is what is wrong with Pakistan.
