Mercantilism for Firefighting Sri Lanka?

A mercantilist or neo mercantilist stance is what helped economies like China, India, Japan etc to rise to be the economic powerhouses they are today. it was also the cause behind most of the greatest empires ever seen on earth, and is the root of American industrial power.

It involves a bit of protectionism of course; no doubt angering most liberal thinkers on matters concernig the economy, but mostly this will involve a genuinely cooperative relationship between business and government.

We are talking about reduced red tape and corruption. The whole structure of the government should be geared to help business. Its more than just a set of policy actions; its a mindset of its own.

Right now the government is strapped for cash. 90% of current government revenue is also spent on servicing our debt. that is, our existing debt.

This is resulting in the crippling of business funds for certain essential industries like Tea and Coconut, which rely on reinvestment of the revenue they bring in to develop their industries, having a severe effect on the long term profitability of these businesses.

The government is absorbing cash fom any and every avenue they have access to and this is having disturbing and distorting effects on the economy. The recent stock market bull run has also now slowed as foreign investors begin to sell to cash in on their profits.

Draconian laws and pointless regulation cripple industry and business on many fronts and these will have to be eliminated. Most importantly the mentality of public servants must be changed and the public sector itself must be put through a restructuring process.

Special instances should be managed outside the normal vertical rigid structure of government. for example, this is how Malaysia coped through the Asian Crisis.

Right now all the government seems to be doing is fire fighting away; thats quite understandable seeuing as we just emerged from conflict. heres hoping we find out some concrete and practical vision like a Mahinda Chinthanaya for the economy soon.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: