Peace for the World

Peace for the World
First democratic leader of Justice the Godfather of the Sri Lankan Tamil Struggle: Honourable Samuel James Veluppillai Chelvanayakam

Monday, June 29, 2015

Choices: How Should We Govern Ourselves?


By Rohan Samarajiva –June 29, 2015
Prof. Rohan Samarajiva
Prof. Rohan Samarajiva
Colombo Telegraph
This central question of civilization has assumed greater salience in the aftermath of the Presidential Election of 8 January 2015. This article seeks to shed a little light upon it, with aid of illustrations from recent Constitutional-reform efforts.
Autocracy or democracy?
Two hundred years after the fall of the Kandyan Kingdom, we carry within us thinking from that decadent feudal time. We yearn for a benevolent king who will be decisive and fair, but do not grasp what is required to assure continued benevolence. We do not buy into the concept of checks and balances among clearly defined branches of government. The Kandyan political culture did not separate the executive and legislative functions and while some judicial functions were separate, the lines were porous.
Like the Kings of old, some of our leaders fail to distinguish between what belongs to the state and what belongs to them. They scheme to work around them what checks and balances that exist.
MaithripalaIn January, the choice was made in favor of democracy and governance concepts that are alien to our inherited Kandyan political culture. We have been engaged with the modern world long enough for this to happen, but all signs in the past twenty years were against it. But the shift was not irreversible; the tension between the old feudal culture and modern democratic culture persists.
Decisive or messy?
Separation of powers, along with checks and balances, is messy. Outcomes cannot be predicted in advance. The President of the United States is seen as the most powerful person in the world today, but in many instances he is stymied either by the legislature, by the courts or even by lower-level state governments.
Our current President appears comfortable with the notion that he cannot determine the outcomes of all political events. He leaves room for the agency of other members of his coalition as well as his party. To many, this appears a lack of leadership. They cannot understand how the President could be deeply committed to electoral reform without specifying the exact outcome he desires.Read More
Harin vows to give up politics if MS joins MR

2015-06-29
I will resign from politicsiIf President Maithripala Sirisena joins former President Mahinda Rajapaksa, Uva Chief Minister Harin Fernando said. 

“I firmly believe that President Maithripala Sirisena will never stoop to second class political activities. The former president is attempting to come to power so that he could take revenge from the people and his opponents and not to develop the country,” he said at a meeting in Badulla. 

Mr. Fernando said he received 1,450 permits for jobs while there were 4,301 applicants from the entire district. He assured that everyone would be given jobs. 

“I have done Rs.700 million worth of work in the Uva Province, and during the 100 days I allocated one million rupees to each Grama Niladhari area. The 100-day programme was not meant to provide employment. It seems that, those who worked for President Maithripala Sirisena's victory are left out while those who obstructed him at every turn are gathering round him. It is shameless to see the former president visiting temples. Instead of the sound of Sadhu, what you hear now at these temples are the sound of Jayawewa, Jayawewa.

” Mr. Fernando also handed over cash donations of Rs.50,000 to each of the Daham Pasals in the Badulla Secretariat Division. 

He also handed over Rs.2,500 to the pre-school teachers of Badulla. (Prasad Rukmal) - See more at: http://www.dailymirror.lk/77973/harin-vows-to-give-up-politics-if-ms-joins-mr#sthash.TIbtjwKA.dpuf

Week of suspense ends, but SLFP-UPFA still in turmoil

In one of the first ceremonies after the dissolution of Parliament at midnight on Friday, President Maithripala Sirisena as Commander-in-Chief of the armed forces, presided at a graduation ceremony for Army officers at Diyatalawa yesterday. Pic by Pradeep Pathirana
The Sunday Times Sri Lanka
  • Details of Sirisena-Rajapaksa meeting on Thursday kept secret , but former President still pushing for PM’s post
  • Dissolution gives reprieve to UNP on major issues, party goes into confident election mode, despite mismanagement charges
After toiling for weeks to win majority support from his Sri Lanka Freedom Party (SLFP) and failing, President Maithripala Sirisena did the next best thing – he dissolved Parliament from midnight Friday.  He had come under pressure and run out of options. That saves him the ignominy of further isolation from his own party, his minority United National Party (UNP) Government and even the international community.

Rajapaksa Regime spent Rs. 2 Billion on International PR firms to enhance the poor reputation that they created for themselves. Mangala Reply to G.L. Peiris


LEN logo(Lanka-e-News- 28.June.2015, 11.30PM)   I explained to this House yesterday, in response to questions raised by the Hon. Leader of Opposition, that the US State Department Report titled ‘Country Reports on Terrorism and Patterns of Global Terrorism’ that was released this month is not something new. It has followed other Reports of this nature which the US State Department is bound by law, to submit annually, and has been submitting since 2004.
DESIGN ELECTION MANIFESTOS FOR 

POST-ELECTION PROBLEM SOLVING
29 June 2015
The dissolution of Parliament became necessary due to the political deadlock between the government and opposition. The UNP-led government appointed by President Maithripala Sirisena was unable to get through the necessary legislation to govern effectively. The president was not able to deliver on some of the important promises he made in his election manifesto, including the passage of the 20th Amendment and the Right to Information Act due to the lack of cooperation between the government and opposition. As a result most of the unresolved issues that existed prior to the presidential election continue to be relevant, such as the need for a Freedom of Information Act. In particular, the main conflict that Sri Lanka has grappled with since its independence, the ethnic conflict, remains unresolved. The chances of a durable peace in Sri Lanka will be slim as long as feuding politicians do not resolve the issues but use the unresolved conflict as part of their political arsenal.

The brief lived UNP-led government that was formed after the presidential election gave an indication of the progress that is possible in taking the country in a new direction in terms of conflict transformation. In particular, the lifting of the fear psychosis that held society in thrall and the steps towards the reintegration of the ethnic and religious minorities into the mainstream of society were virtually instantaneous, due to the shift in the policy and outlook of the new president and the government. Both of them publicly acknowledged the multi ethnic and multi religious nature of the polity and the value of adhering to internationally recognised systems of good governance.

General elections are expected to take place in mid August. Election campaigns provide the greatest opportunity for public education. The National Peace Council urges the political parties to address the key issues that Sri Lanka as a country needs to resolve in their party manifestos. These are the issues of a just political solution to the ethnic conflict and the dealing with the problems of accountability for war time violations of people’s rights. We recognise that these are sensitive issues. However, the resolution of these problems must be done in consultation with the people and not by ignoring or bypassing them. The solutions should not be sprung on the people after the elections. Technical solutions of power sharing and truth and reconciliation commissions are as important as the practice of genuine democracy and good governance at all levels which gives legitimacy to the decisions of the government.

Governing Council
The National Peace Council is an independent and non partisan organization that works towards a negotiated political solution to the ethnic conflict in Sri Lanka. It has a vision of a peaceful and prosperous Sri Lanka in which the freedom, human rights and democratic rights of all the communities are respected. The policy of the National Peace Council is determined by its Governing Council of 20 members who are drawn from diverse walks of life and belong to all the main ethnic and religious communities in the country.

Hallowed Memories Of Eminence


Colombo TelegraphBy S. Sivathasan –June 29, 2015
S. Sivathasan
S. Sivathasan
In a single line cryptic and exquisite, a great Tamil poet, grammarian and scholar Tholkaapiar said “The world is of the learned”. For over two thousand years several generations have attested to the truism of the statement. With critical thought and reflection for three decades after the passing away of Principal St. John’s College, Jaffna, we have realised what a void men of eminence have left by their demise. Among those few was Mr. Anandarajan.
It was amidst political changes in the aftermath of the 1977 pogrom that he lived through eight of his nine years as Principal. Politics had its inevitable impact on society, which could not avoid the process of fraying. Together with political unpredictability came social instability and both grew apace. The structure of values that knit Jaffna society together began to lose its hold. The student community had begun to drift without direction. To complete the process, the government forced the traditional political leadership of the Tamils out of the country with the Sixth Amendment. A situation of chaos was enveloping the country and the North was affected most.
Mr. C. E. Anandarajan
Mr. C. E. Anandarajan
In a situation as challenging as this, some possessed of leadership qualities anchored themselves in defence of all that was valued by society. In the early eighties Anandarajan came forward as a man with a mission. Never neglecting his primary call towards the college, he got on to the stage marked out by destiny where too his contribution seemed called. He did so in the most trying situation. He had the courage and the commitment to be a leader in society.
In the post 1983 environment, when the student community and youth faced arrest and endless difficulties, society looked up to him for help. He had the courage to approach the military to have them released. His intercessions made him a leader chalking out his own path. His emergence was a reproach to those who were far too lusterless in comparison. More irksome was his fearlessness even in the face of arms and their senseless use. It may well be said that he knew no fear and feared not death. Even when cautioned it was not in him to retract. To impetuous youth it was a challenge if not an affront.
It was not before midgets that he strode tall. He once met the highest in the land to correct a wrong at the AL examination and thereby secured justice for the students.
At this point of time when thirty years are past, political turmoil has run its course and social upheaval has lost its steam at least momentarily, society is picking up the threads again. Movement is steady though the pace may be slow. A much desired leadership which men with a mission can provide is now rightly recognized. Our thoughts go to a Principal who stood apart.   Read More      

Bond scam: UNP rejects COPE report as biased

‘Govt. MPs did not endorse the document’


article_image
By Shamindra Ferdinando-

Alleging that Chairman of Committee on Public Enterprises (COPE) D. E. W. Gunasekera, had unfairly used unsubstantiated information available to a Special Parliamentary Investigation Committee that probed alleged insider trading and favouritism in a recent mega treasury bond issue to undermine the UNP, Deputy Justice Minister Sujeewa Senasinghe insisted the report couldn’t be presented in Parliament for want of a unanimous agreement.

Colombo District MP Senasinghe, who represented the UNP in the 13-member committee, said that he had strongly objected to the tabling of the report due to serious flaws therein.

Polls Chief Mahinda Deshapriya yesterday said that those who held portfolios retained them in spite of the dissolution of Parliament.

The committee comprised Chairman of the Committee on Public Enterprises (COPE) and General Secretary of the Communist Party, D. E.W. Gunasekera, UPFA MP Susil Premajayantha, Minister of Health and Indigenous Medicine Rajitha Senaratne, UPFA MP Lasantha Alagiyawanna, Democratic National Alliance MP Sunil Handunetti, Minister of Ports, Shipping and Aviation Arjuna Ranatunga, UPFA MP Hassan Ali, Deputy Minister of Highways and Investment Promotion Eran Wickramaratna, Prof. Rajiva Wijesinha, Deputy Minister of Justice Sujeewa Senasinghe, UPFA MP Weerakumara Dissanyake, Illankai Tamil Arasu Kadchi (ITAK) MP E. Saravanapavan and State Minister of Child Development Rosy Senanayake.

Senasinghe was responding on behalf of the UNP to front-page lead story ‘COPE inquiry finds Mahendran had intervened in bond issue’ in yesterday’s issue of The Sunday Island.

The UNPer said that during last Friday’s deliberations among members of the committee he had asked whether the report was being prepared in the kitchen of former Central Bank Governor Ajith Nivard Cabraal. Senasinghe also revealed that the report had been prepared at the residence of UPFA General Secretary Susil Premjayantha.

Responding to a query by The Island, the Deputy Minister alleged that the COPE Chairman and head of the special committee had cooperated with a section of the SLFP conspiring against the UNP to sling mud at the UNP. Senasinghe claimed that this was part of their general election campaign.

The report on Central Bank bond issue was nothing but a gimmick, Senasinghe alleged, adding that the inquiry was meant to identify main issues relevant to accusations directed at the Governor.

Senasinghe alleged that evidence available to the committee couldn’t be used as a tool to tarnish the image of a political party.

Asked whether he had opposed the release of the report during the committee’s last session before the dissolution, Senasinghe said that he successfully countered accusations among those outsiders present on that occasion were Attorney General as well as Lionel Fernando, a veteran civil servant. During deliberations, Senasinghe accused D. E. W. Gunasekera of being in an indecent hurry to release the report. The General Secretary of the Communist Party of Sri Lanka had been playing politics and working overtime to propagate the Opposition line for the benefit of those who had robbed the national economy with impunity. The recent investigations undertaken by the Financial Crimes Investigation Division (FCID) had exposed unprecedented waste, corruption and irregularities in the public sector, the DM said.

Senasinghe pointed out that Premier Ranil Wickremesinghe had in no uncertain terms questioned the impartiality of the COPE during a speech he delivered at the Central Bank auditorium at Rajagiriya last Thursday. The premier, quite rightly asserted that the COPE was pursuing an agenda of its own therefore its findings couldn’t be acceptable.

Strongly denying accusations directed at him and his son-in-law Arjun Aloysius formerly of Perpetual Treasuries as contained in the special investigation report, Central Bank Governor Mahendran told The Island that he had nothing to hide. Referring to specific accusation that he had intervened in the process by entering the Public Debt Department on the day of the controversial bond auction, Mahendran said that he had spoken to the head of that department in the presence of two Deputy Governors of the Central Bank regarding the requirement to obtain Rs 10 billion. The official insisted that as he had explained his actions to the special parliamentary committee he believed there was no room for misinterpretations.

Protest outside Suwasiripaya



2015-06-29
Demanding solutions to several issues that they are suffering with, the Government Pharmacists' Association today launched a protest demonstration outside the Suwasiripaya, Health Ministry in Colombo 10. Pix by Pradeep Dilrukshana 


Sarath Abrew becomes boisterous again

sarath abrew
Monday, 29 June 2015
Report reaching us conforms that Supreme Court Judge Sarath Abrew has assaulted and injured a domestic maid who was working in his house.

The domestic servant is currently admitted to the Kalubowila Hospital and getting treatment. This domestic servant named Nilusha Damayanthi a 37 year old femal has come to work to the Supreme Court judge Sarath Abrew’s house last 15th.
Sarath Abrew who has been a high court in Kalutara had been appointed as an appeal court judge by the former president Mahinda Rajapaksa.
Now he is serving as one of the Supreme Court Judges.
This domestic servant has been entrusted a job to look after a sick child and the child has frequently assaulted this servant. When the servant has complained this to the judge Abrew, he also has assaulted her. The servant has told the police that judge Abrew assaulted her with a gun. The judge has not allowed her to leave the house after 15 days of her joining to work.
The judge has come to the Kalubowila Hospital several times and influenced the director of the hospital and tried to discharge the servant by force. Currently the servant has been given police protection and prevented the judge of meeting her.
Four such similar assaulting incidents were reported about this judge before. That was against another domestic maid and three police officers. There is a terrible reputation about this judge in the legal circle and there is a controversy that this judge has been affected by a psychiatric disorder.

Buddhist Monk BBS Gnanasara Eats Pan Fried Monkfish


Colombo TelegraphJune 28, 2015
AnAs an organization the leadership of the Bodu Bala Sena and its Secretary General, Buddhist monk Galagoda Atte Gnanasara are famous for setting controversial trends, such as introducing a new tradition for Buddhist Monks to consume their alms in restaurants.
Monk Gnanasara is pictured here enjoying a “Pan Fried Monkfish” meal at the famous Barefoot Garden Café in the presence of an acquaintance.
GnanasaraThe trendy upmarket garden restaurant Barefoot, states in its website “The Garden café is an oasis in the heart of Colombo and an ideal venue to relax with friends. The blackboard menu displays the daily lunch specials. Try the legendary Black Pork Curry or the notable Spinach Quiche and we also have a fine selection of wines and beers. We have live Jazz every Friday evening and on Sunday afternoons. The famous Colombo Pub Quiz takes place on Wednesdays from 8 pm. The space is also used to host cultural events, private dinners and parties at night”.                                                                Read More
Saudi Pilot Commits Suicide for Massacring Yemeni Children
Saudi Pilot Commits Suicide for Massacring Yemeni Children
A Saudi pilot reportedly committed suicide after feeling guilty of massacring Yemeni children, Al-Alam News Network reports.


AlalamtvAlalamtv-24 June 2015 16:50
According to Arab media, a TV network called al-Mostaqella quoted reliable sources in Saudi king office that Mohammed Omar al-Anzi who was a fighter plane pilot committed suicide after seeing the photos of the children who were massacred in a brutal way during an air attacks he was involved in.
Before committing suicide, he sent a letter to a number of his friends in which he said that war in Yemen was a big crime against defenseless people.
He said in his letter “We have forgotten Islam, we were forced to shed the blood of Muslims the way Christian or Jewish pilots do. Muhammad Bin Salman has pushed us into a war which is already doomed to failure.”
Bin Salman is the defense minister of the Saudi Arabia.
Al-Anzi further wondered in his letter, “I don’t know why we should endanger the interests of our own country because of what America or Jews say. Muhammad Bin Salman has grabbed the power and is pushing the country towards of an engulfing crisis.”
He went on to stress that “I see no way to save myself but death. If live, they will force me to take part in the massacre of defenseless Yemeni people again.”

Exclusive: In turf war with Afghan Taliban, Islamic State loyalists gain ground

The rising sun lights smoke in the air as a man crosses the street near Forward Operating Base Fenty in the Nangarhar province of Afghanistan December 19, 2014. REUTERS/Lucas Jackson/FilesThe rising sun lights smoke in the air as a man crosses the street near Forward Operating Base Fenty in the Nangarhar province of Afghanistan December 19, 2014.
ReutersSURKH DEWAL, AFGHANISTAN Mon Jun 29, 2015
Fighters loyal to Islamic State have seized substantial territory in Afghanistan for the first time, witnesses and officials said, wresting areas in the east from rival Taliban insurgents in a new threat to stability.
Witnesses who fled fighting in Nangarhar province told Reuters that hundreds of insurgents pledging allegiance to Islamic State pushed out the Taliban, scorching opium poppy fields that help to fund the Taliban's campaign to overthrow the Afghan government.
They also distributed directives purportedly from Islamic State's Middle East-based chief Abu Bakr al-Baghdadi, although it was not clear whether he issued them for the Afghan theatre or if previous edicts may have been translated.
"They (IS loyalists) came in on many white pickup trucks mounted with big machine guns and fought the Taliban. The Taliban could not resist and fled," said Haji Abdul Jan, a tribal elder from Achin district.
 
Jan, who saw the early June clashes before fleeing to the provincial capital of Jalalabad, said some villagers welcomed the new arrivals.
"Unlike the Taliban, they (IS) don't force villagers to feed and house them. Instead, they have lots of cash in their pockets and spend it on food and luring young villagers to join them."
Their accounts are the clearest sign yet that, beyond a few defections by low-level Taliban leaders and sporadic attacks, Islamic State sympathisers pose a more persistent threat.
IS loyalists, mostly former Taliban disillusioned by the movement's unsuccessful bid to return to power in Kabul, are accompanied by dozens of foreign fighters, witnesses said.
The IS' black flag has been hoisted in some areas, and foreign fighters preach in mosques through translators.
The identity of the non-Afghan insurgents is not known. Hundreds of militants from around the world already hide out along the Afghan-Pakistan border.

OMINOUS SIGNS
Local officials said fighters following IS have seized some territory from the Taliban in at least six of 21 Nangarhar districts.
They are Kot, Achin, Deh Bala, Naziyan, Rodat and Chaparhar, according to provincial council chief Ahmad Ali Hazrat and Nangarhar member of parliament Haji Hazrat Ali. Local army spokesman Noman Atefi said IS had established a presence in "seven or eight" districts.
Battles between the rival militants are ongoing in Khogyani and Pachir Agam districts, they said.
While the central government controls the vast majority of Afghanistan, events in Nangarhar are ominous for security forces struggling to contain the Taliban insurgency after most NATO forces withdrew six months ago.
IS supporters have proved ruthless, reportedly beheading several Taliban commanders, and IS' success in taking over swathes of Iraq and Syria underlines the risks to Afghanistan.
Government officials and the U.S.-led training force question whether IS can gain a significant foothold in Afghanistan, given that direct links with the Middle East have not been proven and the Taliban remains dominant.
However, IS loyalists in Nangarhar are described as organised and well funded.
Under the shade of a mud wall in a makeshift refugee camp in Surkh Dewal outside Jalalabad city, about 30 men recalled encounters with IS fighters. The areas they come from are considered too dangerous for journalists to visit.
Abdul Wali, a green-eyed refugee from Achin in his 20s, said he listened to foreign fighters preaching in Arabic in local mosques through translators.
"They tell them about Islam and what people should do and should not do," Wali said.
IS fighters also distribute pamphlets "to warn the people against many crimes", said tribal elder Haji Abdul Hakim from Kot district.
One letter smuggled from Pachir Agam district was purportedly from Baghdadi.
"All Mujahideen fighters are invited to carry out this holy war under one flag, which is the Islamic State," it said.

"THIEVES AND THUGS"
The Taliban, who issued their own warning to IS not to interfere in Afghanistan, acknowledged losing ground in Nangarhar, but said their rivals were not Islamic State.
"They are thieves and thugs ... We will soon clear those areas and free the villagers," said Taliban spokesman Zabihullah Mujahid. The movement ruled Afghanistan from the mid-1990s until 2001, when a U.S.-led campaign helped oust it from power.
Witnesses said IS fighters had established a stricter regime in Nangarhar than the Taliban, who, while still harsh, softened their rule to gain popular support, said Malek Jan, a tribal elder who fled Spinghar, another affected area.
"They (IS) burned poppy fields in Shadal village and banned shops from selling cigarettes," Jan said.
Opium smuggling and taxing poppy production are key sources of Taliban revenue.
IS loyalists in Nangarhar appeared to have other sources of money. Several people said they had plenty of cash, and some heard militants were selling gold, unusual for the area.
It is unclear where the money is coming from.
While there is little evidence of direct links between IS in the Middle East and militants fighting under its banner in Afghanistan, officials in Kabul worry that money and personnel may begin to flow, taking the war to a new level.
The NATO-led military assistance force said it viewed reports of more money flowing to IS offshoots as "exaggerated", spokesman Col. Brian Tribus said.
He added NATO had "not seen any indication" that IS had completely driven out the Taliban from parts of Nangarhar, and said any foreign fighters were likely to be global jihadists established in the region, and not newcomers.

AFGHAN FORCES HOLDING BACK?
Government forces in Nangarhar confirmed clashes between the Taliban and IS offshoots, but army spokesman Atefi said they were not targeting IS militants.
Achin's district chief, Malek Islam, also said Afghan forces were not confronting IS fighters, who he said were "almost everywhere in the district", but were targeting the Taliban.
"They (IS) haven't attacked us, and we haven't engaged them either," he said.
Islam spoke by phone from Achin's district centre, which the government holds despite having limited control beyond, as is the case in several districts in Afghanistan's east and south.
Interior Minister Noor ul-Haq Olomi, however, said police had engaged the militants.
"We have launched a couple of clearance operations in some districts of Nangarhar and we will continue to do so to deny any terrorist group territory," Olomi said in a statement.
Michael Kugelman, a South Asia scholar at the Woodrow Wilson International Center in Washington, said while most Afghan militants remained loyal to the Taliban, the IS "brand" of more brutal tactics appealed to some younger fighters.
Adding money into the mix could add to the attraction.
"For some hardened and impressionable radicals, bling could be as appealing as barbarity," he said.

(Additional reporting by Rafiq Sherzad; Writing by Kay Johnson; Editing by Mike Collett-White)

How Greece Became a Lesson in the Perils of No Rules

A whole continent is now making things up as it goes along — all because Brussels was unwilling to face the possibility of failure.
How Greece Became a Lesson in the Perils of No Rules
BY DANIEL ALTMAN-JUNE 29, 2015
Plenty of people will tell you what is going to happen with Greece in the coming week. The truth is, no one knows for sure. And that’s exactly the problem — with no rules to go by, the financial system is at the mercy of personalities, politics, and posturing.
After years of supposed deadlines and last-minute extensions, Greece is finally at the last-chance saloon. Its owes $1.7 billion to the International Monetary Fund on June 30, and the European Central Bank has refused to extend further aid to its banks. Default is looming, and bank runs andclosures have already begun, even before Greece’s July 5 referendum on the European Union’s latest proposal — a 10-page list of actions Greece must take to receive continued funding, from reforming its labor market and tax system to privatizing state assets and cutting corruption.
This is uncharted territory for the European Union, the eurozone, and even for the long history of governments defaulting on their debts. Greece is a country that entered a flawed monetary union under false pretenses and issued more debt than it could handle without any restraint from the monetary union’s central authorities. There’s plenty of blame to go around, and intelligent people can disagree about who should foot the bill for Greece’s profligacy, which was funded so eagerly in the good times by its fellow members of the eurozone.
Disagree they have, including at the negotiating table — and that’s dangerous. If you’re convinced that you’re right, you’ll naturally expect your counterparts on the other side to come around to your view eventually. When they don’t, you may well decide that they’re being unreasonable, that they’ll never see the light, and that it’s time to walk away.
This, apparently, is what Greek Prime Minister Alexis Tsipras did in calling for the referendum last week even as his team continued to negotiate in Brussels. It is what the European Central Bank did by choosing not to offer more support to Greek banks. It is also what the European Commission did by publishing its latest proposal, as if to say, “See? We’re the rational ones here.”
And this is how defaults happen. Greece had not yet exhausted all the available options for prolonging its financial limbo. As Willem Buiter of Citigroup and others have said, defaults in the eurozone happen when governments won’t pay, not when they can’t pay.
That a country in the eurozone would face this decision is not a surprise. The monetary union was not set up to deal with disparate economic cycles and divergent futures. Yet the descent into dissension still could have been avoided with three sets of firm and enforced rules: rules about how to get into the eurozone, rules about what countries could do in the eurozone, and, yes, rules about how to get out of the eurozone.
The first set of rules already existed when Greece joined in 2001, but they were not enforced. Instead, compelled by overriding political imperatives, Europe’s auditors were easily fooled by Greece’s fudged fiscal numbers. The second set of rules would have set stricter limits on budget deficits and debt — to be enforced even when flouted by countries like France and Germany. Even in the absence of the first set, the second set of rules would have stopped Greece from running up enormous euro-denominated debts. These rules only became a reality after the crisis that spread across the eurozone made their necessity obvious.
The third set of rules still does not exist, because the European Union refuses to countenance the idea that a country could leave the monetary union — the same monetary union that all EU members, bar those with special dispensations, are eventually expected to join.The politicians in Brussels and the bankers in Frankfurt have preferred to keep their vision pristine rather than making it complete, and now they are paying the price.
In a way, the world has been down this road before. After the failed bailout of Argentina in 2001 and its government’s subsequent dispute with its creditors — a dispute that continues today — financial authorities including the IMF considered the idea of a bankruptcy process for countries, sometimes called a sovereign debt workout mechanism. Under the mechanism, a central international agency would follow an established method for deciding who would be paid, in what order, how much, and when. The idea was that a country in default could restructure its debts in an orderly way without doing excessive harm to its economy. The rules would be transparent and applied equally to all.
The mechanism was opposed mainly by the United States and its financial allies, as well as Wall Street institutions fearing that it would favor debtors from poor countries over creditors from rich ones. George W. Bush’s administration was hostile to the idea of an international authority — much as it was to the International Criminal Court and other such entities — preferring to allow the private market to resolve its own problems through the terms attached to government bonds. Yet that same reliance on the private market is what has allowed Argentina’s debt crisis to drag on until today, with no possibility of the country returning to global credit markets until it is resolved. The fate of the government and the holders of its bonds has been bogged down in court proceedings in New York that even Washington has formally criticized.
If Greece defaults — or when — the aftermath could last just as long. Hedge funds from around the world, hoping for a better outcome, rushed to buy Greek bonds in recent months, and there’s no reason to believe they’ll be any less tenacious than the ones now battling Argentina. The claims will wind their way through the courts once again, and all because no one stepped in to enforce rules and impose order.
Photo credit: ANGELOS TZORTZINIS/AFP/Getty Images

Democracy activist Joshua Wong and girlfriend assaulted in Hong Kong

Prominent Hong Kong student protest leader Joshua Wong. Pic: AP.Prominent Hong Kong student protest leader Joshua Wong. Pic: AP.
By  Jun 29, 2015
One of Hong Kong’s best known student democracy activists Joshua Wong and his girlfriend Tiffany Chin Sze-man were attacked by an unknown assailant in the Tai Kok Tsui area early Monday.
Wong said on his Facebook page that the couple were passing a man and woman on the street when the man grabbed him by the neck and punched him in his left eye.
Wong and his girlfriend had just left Olympian City movie theater and were walking to Mong Kok MTR station to return home when the incident occurred.
The teenager posted a picture of his injuries on his Facebook account. His girlfriend received minor injuries to her leg after being pushed to the ground during the incident.
Joshua Wong posted a picture of his injuries to his Facebook page.
Joshua Wong posted a picture of his injuries to his Facebook page.
He was taken to a Hong Kong hospital for treatment early Monday, before telling reporters that he was convinced that the “shameful” attack was because of his pro-democracy activities and his involvement in last year’s ‘Umbrella Revolution’ protests.
The 18-year-old has long been a thorn in the side of authorities in Hong Kong and Beijing. In 2012 he led more than 100,000 on the streets of Hong Kong to protest against mandatory nationalistic education.  Wong won that battle, with Hong Kong Chief Executive CY Leung backing down on the planned education reforms.
Wong was denied entry to Malaysia last month after arriving in Penang to speak at a number of forums ahead the Tiananmen Square anniversary.
He said at the time: “Today I was invited by the civil society in Malaysia to share my experience and my views on the Umbrella movement and the June 4 incident. Now the Malaysian government has denied me entry and demanded I return to Hong Kong. I’m getting on the return flight.”
[Image via Facebook]