Sameera Casmod | sameerac@radioislam.co.za
14 December 2023 | 12:57 CAT
2-min read

In this week’s Asia-Pacific Report, Ashraf Patel, a Master of Arts graduate from the Graduate School of Public and Development Management at WITS, discusses IMF pressures in Sri Lanka, Asia’s economic resurgence and the growing debate on corporate influence in SA politics.

Sri Lanka, an important nation-state in Southeast Asia, is experiencing economic challenges, marked by deepening levels of poverty. In July last year, the Rajapaska dynasty, described as an authoritarian and corrupt governing force, was replaced by an interim government after a year of mass social unrest in Sri Lanka. The International Monetary Fund (IMF) approved the release of a $2,9 billion bailout package to supposedly help Sri Lanka recover from its economic crisis.

Patel notes that the IMF bailout, while seen as a potential economic stabiliser, comes with its own set of hurdles, including privatisation mandates and public service expenditure constraints. Patel observes a recurring pattern in developing countries, wherein external economic assistance is accompanied by stringent conditions. The primary beneficiaries tend to be the ruling or global elite, leaving the ordinary people, middle class and working class in either stagnant or deteriorating conditions. This trend further exacerbates social disparities.

Speaking on Sri Lanka’s path to recovery, Patel notes, “Well, the problem is at a political government level. Getting rid of the Rajapaska dynasty was deemed positive. But they’re moving now into wha tis called a neoliberal capitalist model, which also has its challenges.”

The focus of the interview shifted to China’s economic recovery. Despite some slowdown in manufacturing output, the growth of the middle class and the region’s demographic advantages position Asia as a key player in global economic trade, with a projected growth rate of 4.9%, Patel said.

The interview highlights Asia’s prime position to lead in green technologies, especially in electronic vehicles, amid COP28 outcomes emphasising a just energy transition. With the largest population and significant vehicular density, Asia is poised for rapid mass production and distribution of EVs, potentially driving economic recovery and sustainability efforts.

Shifting the focus to South Africa, Patel discusses the political developments, especially as the country approaches an election year. Concerns are raised over potential corporate influence in politics, with Dr Iqbal Survé’s exposé pointing to big business backing new political parties. The article explores the broader debate on whether South African electoral politics will be captured by large corporations.

The interview acknowledges the contradictions of capitalism, also called bourgeois democracy in political science. This addresses the self-serving nature of political elites, who enter the public domain to support political parties whose economic policy frameworks align with their ideals. The debate intensifies as questions arise about the influence of big business on various political parties. The importance of transparency, evident through the IEC’s publication of political party funding, is emphasised. Furthermore, the need for voter education is underscored as South Africa heads into the challenging terrain of the 2024 elections.

Listen to the Asia-Pacific Report on Sabaahul Muslim with Moulana Sulaimaan Ravat.