ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Economic CrisisSubscribe to Economic Crisis

The Sri Lankan Crisis

Many have argued that the current Sri Lankan crisis was caused by the economic impact of the COVID-19 pandemic and the Ukraine war, and the country’s overdependence on predatory Chinese lending. Sri Lanka’s problems are more deep-rooted and have their origins in economic policy that focused on providing fi scal sops and a family-run political establishment that enabled the government to ignore sound advice.

The People’s Uprising and the Challenges of Transition in Sri Lanka

The intersection of the political upheaval and economic crisis can transform the state and society in Sri Lanka.

Authoritarian Populism, Illiberal Democracy and the Making of an Economic Crisis

The authoritarian populist tendencies of an excessive personalisation of power, curtailment of civil liberties, circumvention of the rule of law, and increasing militarisation of state apparatus have exacerbated Sri Lanka’s lurch towards illiberal democracy, thereby precipitating the grave economic and humanitarian crises.

Sri Lanka Stumbles into a Solvency Problem

Majoritarianism and excessive centralisation of powers are the primary reasons for the economic turmoil.

Reviving the Lending Appetite of Banks

The flow of bank credit is crucial to revive the economy. The fear of potential asset quality woes has reduced the risk appetite of banks. Going beyond the restructuring support, banks need policy support by relaxations in prudential norms in the near term to be normalised in the next four–fi ve years. Coping with the adversities of the pandemic needs a collaborative policy support of all stakeholders to step up the lending appetite.

The Impact of COVID-19 on the Stock Market and Corporate Firms

This paper highlights the possible consequences of the pandemic on the stock markets. It notes that higher profitability in the past years, better growth opportunities in the stock market, and being a stand-alone firm have a favourable impact on stock price reactions to COVID-19 shocks and, hence, they make such firms more resilient.

Technology Diffusion through Foreign Direct Investment

This study examines technology diffusion resulting from foreign direct investment in the domestic manufacturing sector in India, by employing unit-level panel data from 2000 to 2007, covering all medium- and large-size manufacturing enterprises. The attempt is to empirically capture evidence of FDI technology spillover effects through two key mechanisms: horizontal spillover and vertical spillover. Vertical spillover effects can be further divided into backward linkages and forward linkages. Technology diffusion can also be the result of both short- and long-term spillover effects.

The Need for Saving Livelihoods for Saving Lives

The pandemic has led to the loss of many livelihoods due to the economic crisis. In order to curb the ongoing economic crisis from aggravating further, an international fiscal coordination worldwide is the need of the hour.

The Challenge of LDC Debt

A challenge set by the Covid-19-induced economic crisis that would be difficult to address is the external debt crisis engulfing developing countries. While the G-20 with its Debt Service Suspension Initiative appeared to recognise the problem, the evidence indicates that the international community is unwilling to do what is needed. There are enough proposals on the table, but inadequate commitment among those sitting around it.

How Has India Dealt With Global Economic Recession in the Past?

Whether or not the Indian economy is going into recession remains debatable. But without a correct diagnosis, measures to counteract the problems will be ineffective.

Deceleration of Economic Growth in Punjab

Since its phenomenal growth in the 1960s, Punjab is now facing an economic crisis of unprecedented scale. The decelerating economic growth is essentially rooted in the irrational pattern of investment and declining developmental expenditure and compounded by the crisis in agriculture, due to marginalisation of the small farmer and population pressure on land. The need at the outset, is a dire need to reorient the government's investment planning and strategy, along with implementation of change in the organisational pattern of production.
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