Sri Lanka’s Economic Crisis
Dear Reader,
Hope you are doing well. In this edition of the Takshashila Dispatch, we bring to you our latest work on drawing lessons from Sri Lanka’s economic crisis, the need for a global no first use agreement among nuclear-weapons states, issues related to liquor policy reforms in India, and the utility of online mediation as a dispute resolution mechanism.
Sri Lanka’s Economic Crisis
The Sri Lankan economic crisis, which began in 2019, worsened in 2022, culminating in protestors storming the presidential palace in Colombo. The agitation of the people stems from acute shortages of food, fuel and other essential items, galloping inflation, long power cuts, and a collapsing economy.
In Takshashila Case Study: Sri Lanka’s Economic Crisis, our researchers Aarushi Kataria, Sarthak Pradhan and Anupam Manur examine the crisis by looking at the fundamental causes that date as far back as Sri Lanka’s independence – the lack of industrialisation, the economic price of the prolonged civil war, and the majoritarian leanings of policy. Terror attacks and the pandemic only exacerbated the crisis. Sri Lanka’s debt portfolio has also undergone a substantial change, with the tipping of balance towards costly external debt.
This case study brings out important lessons for developing economies from the Sri Lankan crisis, relating to the following aspects:
diversification of debt
industrialising the economy
shifting agricultural production practices
avoiding populist tax cuts that hurt the government’s balance sheets, and
cutting unnecessary public expenditure.
Global No First Use (GNFU) Policy
The 10th Review Conference of Parties to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) concluded last week without much consensus on any significant issue including nuclear disarmament. At The Takshashila Institution, we have argued that the NPT regime's efforts to achieve disarmament is an impractical goal, and instead the international community must focus on prohibition of first use through a GNFU mechanism. GNFU is a pragmatic solution to slow the spread of nuclear weapons and bring down risks of an accidental nuclear catastrophe.
In Takshashila Issue Brief - NPT RevCon Shows Why NPT Should Give Way to Global No First Use Policy, we compile our past research and recommendations on the no first use policy and why India must take the lead on promoting a GNFU treaty amongst the nuclear armed countries.
Nuclear Policy Debate in India
In an article for Hindustan Times, Adya Mahadevan and Aditya Ramanathan write on the missing public debate in India on nuclear use and policy:
In between a state’s leadership and the population lies a crucial middle layer of academic and policy analysts. Take, for instance, the debate over India’s no first use policy in 2019. After defence minister Rajnath Singh suggested the policy might be subject to change depending on circumstances, an ill-informed debate followed. While India’s no-first-use policy must be subject to periodic review, it is not, as some alleged, a sign of weakness. Indeed, no-first-use frees up cash for India’s conventional forces, and reduces nuclear escalation risks.
India now faces a growing Chinese nuclear arsenal, but there is little public debate about it. India will need an informed and engaged public, joined by experts and a vibrant popular culture to remind that nukes never went away. To leave the fate of many in the hands of a few is neither democratic nor wise.
India’s Participation in Vostok 2022
There are unconfirmed reports of India’s participation in the Russian-hosted military exercise Vostok 2022 slated from 30 August to 5 September this year, in which China will also take part. In his weekly column for The Print, Lt. Gen. Prakash Menon writes that India must seek a multipolar pathway by not getting dragged into the U.S.-Russia tussle, while at the same time assert its own interests:
Seeking a multipolar world order must continue to be India’s preferred pathway. Therefore, however incongruous India’s participation in Vostok 2022 might look in the light of China’s participation with troops and the aims of the military exercise, there is room for India to take part as an observer—a status that retains our presence while signalling distance. In the prevailing global geopolitical ambience, the observer status as a preferred choice would amount to strategic communication that could conform to India’s long-term vision of multipolar world order.
Liquor Reforms in India
The political histrionics over Delhi’s now-scrapped liquor policy have reached a crescendo over the last couple of weeks. Pranay Kotasthane writes in a column for the Times of India on the challenges liquor licensing policy reforms have faced in India:
First, liberalising a tightly regulated policy domain — one in which powerful rent-seekers have flourished for decades — is quite tricky. In this view, this reform is not very different from the scrapped farm laws reform. Both promised diffused benefits to many people at the expense of concentrated costs borne by a small yet politically powerful section. There is one additional issue with alcohol. Any policy that liberalises its sale becomes an easy target for conservative moralisers. By pausing the policy implementation midway, the Delhi government further played into the hands of these opponents.
China’s Global Security Initiative
Manoj Kewalramani appeared on the China Global Podcast hosted by Bonnie Glaser from the German Marshall Fund of the United States. They unpack the Global Security Initiative (GSI) announced by Xi Jinping on April 21 Described as “another global public good that contributes Chinese solutions and wisdom to addressing the world’s security challenges”, GSI is heavy on principles and light on concrete details.
Reimagining Justice Delivery in India through Online Mediation
Justice, one of the highest virtues of society, is riddled with myriad problems in our country. Equitable access to justice is a misnomer; filing a case in courts is both expensive and time-consuming. In last Tuesday’s episode of our daily podcast All Things Policy, Ritul Gaur and Shrikrishna Upadhyaya speak to Pranjal Sinha and Akshetha Ashok, the Co-founders of SAMA, an Online Dispute Resolution platform about the ways in which justice delivery can be effected outside courtrooms through online mediation.
Special Credit Course on Gene Drive: Understanding the Policy and Technology
The Takshashila Institution is offering a special credit course on Gene Drive meant for those who desire to understand this emerging technology and its potential use in India. The course will provide an introduction to the technical, regulatory, ethical and policy aspects of gene drives in India and across the globe.
The faculty for the course is Shambhavi Naik, Head of Research at The Takshashila Institution and the chairperson of the Advanced Biology programme.
The application deadline is September 7, 2022.
That’s all from us. Have a great week ahead!