How to build a Trillion Dollar Economy?It's by thinking big& growing big economically
How to build a Trillion Dollar Economy? It is by thinking big and growing big economically.
In order to increase growth of a country should always think of job creation in mind. The country should have out of box thinking in order to create growth in a country. There so many missionary economists in a country but there are very few visionary economists in the whole wide world. The government should start recruiting these people into planning the economy. Government should think big to grow big economically. The government should thinking of starting up new business from scratch by issuing international IPO of ordinary shares of voting and nonvoting shares. One can take example from Ali Baba the chinese ecommerce company. The government does not need to be in debt to build it big economically!
A business transaction is the key to increase economic cycle of a country. The government should never tax business transactions in a country. This will decrease the speed of growth in a country. The stamp duty on property by a percentage margin is where it reduces people from making more real estate transactions. Besides that people tend to cheat by undercoating the property prices in order to reduce taxation. Ordinary people should not be made criminal. The government should replace it with a fee for each transaction.
The government has unlimited amount of funds in its pockets. Where it could privatise most parts of government assets which are highly commercial where there is no social benefit to the people by selling them in open stock market or by issuing IPO. It is not necessary to earn profit out of business for the government, because it can earn out of variable rate of taxation what it would normally get out of business.With the sale of Assets it would be flushed with cash which it should utilise in building up of new businesses and selling them. This is an economic cycle. It is like spinning a wheel of fortune but it would create more jobs, it would inevitably build up assets in the country and it would build up the economy of the country.
The government should not hold on to its assets because it does not increase wealth. Wealth is only created by letting it go and it is created by making business transaction by recycling its asset portfolio. It would be unwise to hold on to the assets, because it would not increase governments’ wealth. By building up assets in the country government would also increase government’s revenue stream through taxation. In the long run government can even reduce taxation rates.
Successful companies such as sole traders, partnership & limited companies which are in business for 10-15 years in business should be forced by the government to be made public limited company. They should issue new ordinary shares at least 10-25% of the company. This would make successful company not to demise at the demise of owner and it would also put end to family infighting after the expiry of the owner.
The bigger the business and they are harder to fail. There are so many public limited companies that are so small their capital size must be increased to at least 100 million dollars. Some of these companies are held by diversified conglomerates where they tend not to increase size of the capital because they do not want to lose their majority stake.
Successful policies of some countries should be implemented in this country if it is good for the economic prospects of this country. The government should not be dependent on World Bank and IMF to develop this country. If the country becomes a Tax heaven then the government would not need to look outside for funding projects. One should take a look at Singapore and Switzerland. Their currency is highly sought after. Their banking policy of privacy and secrecy should be implemented in this country too.
The government should knock off two zeros out of Sri Lankan Rupee and remove some electronic printed money out of circulation. Sri Lanka should revalue the Rupee. This would remove the pressure on Sri Lankan Rupee from importers. By devaluing a currency we are devaluing once self. The government should not devalue the currency due to exporters’ profitability. By devaluing ones currency the poor of this country would be poorer, because the cost of living would rise. We import more goods into the country than we export. Sri Lanka will always be an import dependent nation. We need a strong Sri Lankan rupee in order to beat our external trade imbalances, if we depreciate our currency our external trade balances would be much worse. A strong currency makes a big impression on the international scale. This would ease pressure on Sri Lankan Rupee.
The part of the stock exchange should think of holding share prices in US Dollar and Gold based prices in the stock market. Because it would make it easy for foreign investors to easily enter and exit the market without losing much money to unpredictable exchange rates.
Government should stop so many unwanted taxes in the country. It should combine taxes in order ease of paying and collecting taxes. The country should remove duty, cess & nation building tax and combine it to variable rate of Vat. The vat rate of normal consumer goods should be reduced to 5% and the government should repay the vat back if a foreigner or local Sri Lankan takes the good abroad. This would increase tourism in the country similar to Dubai, Singapore and Hong Kong. The government should also remove the vat for exporters to import raw material to manufacture for export. This would increase export out of this country, because goods would be cheaper from the country. The government should try to implement progressive rate of corporate tax instead of flat one. The super gain tax is highly popular move by the government. This tax should be incorporated into corporate tax.
The export processing zones should be converted to free trade zones in the country in order to make it cheaper to manufacture goods. The price of a good in Dubai, Singapore or Hong Kong is two to three times less compared to Sri Lanka. Because we do not have bulk goods break down from large whole sale to retail in this country. Buying goods in bulk whole sale at large scale and breaking it down is big business in Dubai, Singapore and Hong Kong. Those countries even export some of those goods too. The government should remove lot of unnecessary red tape for industries and businesses. Sri Lanka should focus on becoming a trading economy and a manufacturing hub.
The transhipment of goods can be made cheaper if the government combines sea and rail routes. The Indian exports can be off loaded in Kankasanturi and exported via Colombo, Hambantota and Tricomalee ports. Then the ships would not need to circle around the country this would reduce the fuel charges of transhipment. Similarly Imports goods to India can be imported via Hambantota, Trincomalee and Colombo and transported via rail to Kankasanturai. The government should try to build a rail and road bridge between India and Sri Lanka. This would increase the freight and passenger traffic between both countries. Look at Hong Kong and China they are inseparable economically and similar situation would arise for Sri Lanka and India too.
SrI Lanka should open up all of Domestic Airports to international flights. The government should expect natural airport expansion. The funds for expansion by can be gained by issuing IPO and making all of these airports public limited company. The funds would help it to expand runway, customs, baggage handling and providing security. There are so many domestic airports in this country which are lying idle.
Sri Lankan government should start business with collaboration with foreign companies. This would enable create more industries. Sri Lanka needs vehicle manufacturing, computer chip production plant, shipping, commercial aircraft engine making, commercial aircraft making, etc. Sri Lankan government should part privatize CPC and Sri Lankan Airlines too instead of selling it to foreign Airlines, it should issue IPO and sell it to Sri Lankan only. National Assets should not be sold to foreigners but to Sri Lankans at large. Defunct government companies should also be restarted with private capital too such as Kankasanturai cement factory, etc.
The government should give employees of public and private sector some breathing space by stopping the EPF and ETF payment from being discounted from employees’ salary. The burden should be shifted to the private and government companies from individual employees. The companies should pay whole stated salary amount and there should not be reduction of people’s salary. The government should charge 15% of people’s salary from company itself for EPF and ETF payment. The government should start a National Health and Education tax and charge 5% out of every person working and it should be paid by the company and not by the employees of the company. This would enable the government to give free education up to university level in the country. This would also make heart, kidney, liver, cancer operations free of cost since money can be derived out of this taxation.
The government should not be solely dependent on private sector alone to build successful business. The government should take the initiative to build business out of private funds. This would increase the growth of an economy. Debt serving economy in the long run would be a liability to any growing economy. One can take example out of Greece. Businesses are more likely to prosper as long as there is growing population around the world. Sri Lanka should think big to grow big economically. The country should start thinking of how to get to a Trillion Dollar Economy and How to move from there onwards. We need a Marshall Plan. It can only be achieved by issuing international IPO ordinary shares and building up companies from scratch. The country does not need to be in debt to build it big!
In order to increase growth of a country should always think of job creation in mind. The country should have out of box thinking in order to create growth in a country. There so many missionary economists in a country but there are very few visionary economists in the whole wide world. The government should start recruiting these people into planning the economy. Government should think big to grow big economically. The government should thinking of starting up new business from scratch by issuing international IPO of ordinary shares of voting and nonvoting shares. One can take example from Ali Baba the chinese ecommerce company. The government does not need to be in debt to build it big economically!
A business transaction is the key to increase economic cycle of a country. The government should never tax business transactions in a country. This will decrease the speed of growth in a country. The stamp duty on property by a percentage margin is where it reduces people from making more real estate transactions. Besides that people tend to cheat by undercoating the property prices in order to reduce taxation. Ordinary people should not be made criminal. The government should replace it with a fee for each transaction.
The government has unlimited amount of funds in its pockets. Where it could privatise most parts of government assets which are highly commercial where there is no social benefit to the people by selling them in open stock market or by issuing IPO. It is not necessary to earn profit out of business for the government, because it can earn out of variable rate of taxation what it would normally get out of business.With the sale of Assets it would be flushed with cash which it should utilise in building up of new businesses and selling them. This is an economic cycle. It is like spinning a wheel of fortune but it would create more jobs, it would inevitably build up assets in the country and it would build up the economy of the country.
The government should not hold on to its assets because it does not increase wealth. Wealth is only created by letting it go and it is created by making business transaction by recycling its asset portfolio. It would be unwise to hold on to the assets, because it would not increase governments’ wealth. By building up assets in the country government would also increase government’s revenue stream through taxation. In the long run government can even reduce taxation rates.
Successful companies such as sole traders, partnership & limited companies which are in business for 10-15 years in business should be forced by the government to be made public limited company. They should issue new ordinary shares at least 10-25% of the company. This would make successful company not to demise at the demise of owner and it would also put end to family infighting after the expiry of the owner.
The bigger the business and they are harder to fail. There are so many public limited companies that are so small their capital size must be increased to at least 100 million dollars. Some of these companies are held by diversified conglomerates where they tend not to increase size of the capital because they do not want to lose their majority stake.
Successful policies of some countries should be implemented in this country if it is good for the economic prospects of this country. The government should not be dependent on World Bank and IMF to develop this country. If the country becomes a Tax heaven then the government would not need to look outside for funding projects. One should take a look at Singapore and Switzerland. Their currency is highly sought after. Their banking policy of privacy and secrecy should be implemented in this country too.
The government should knock off two zeros out of Sri Lankan Rupee and remove some electronic printed money out of circulation. Sri Lanka should revalue the Rupee. This would remove the pressure on Sri Lankan Rupee from importers. By devaluing a currency we are devaluing once self. The government should not devalue the currency due to exporters’ profitability. By devaluing ones currency the poor of this country would be poorer, because the cost of living would rise. We import more goods into the country than we export. Sri Lanka will always be an import dependent nation. We need a strong Sri Lankan rupee in order to beat our external trade imbalances, if we depreciate our currency our external trade balances would be much worse. A strong currency makes a big impression on the international scale. This would ease pressure on Sri Lankan Rupee.
The part of the stock exchange should think of holding share prices in US Dollar and Gold based prices in the stock market. Because it would make it easy for foreign investors to easily enter and exit the market without losing much money to unpredictable exchange rates.
Government should stop so many unwanted taxes in the country. It should combine taxes in order ease of paying and collecting taxes. The country should remove duty, cess & nation building tax and combine it to variable rate of Vat. The vat rate of normal consumer goods should be reduced to 5% and the government should repay the vat back if a foreigner or local Sri Lankan takes the good abroad. This would increase tourism in the country similar to Dubai, Singapore and Hong Kong. The government should also remove the vat for exporters to import raw material to manufacture for export. This would increase export out of this country, because goods would be cheaper from the country. The government should try to implement progressive rate of corporate tax instead of flat one. The super gain tax is highly popular move by the government. This tax should be incorporated into corporate tax.
The export processing zones should be converted to free trade zones in the country in order to make it cheaper to manufacture goods. The price of a good in Dubai, Singapore or Hong Kong is two to three times less compared to Sri Lanka. Because we do not have bulk goods break down from large whole sale to retail in this country. Buying goods in bulk whole sale at large scale and breaking it down is big business in Dubai, Singapore and Hong Kong. Those countries even export some of those goods too. The government should remove lot of unnecessary red tape for industries and businesses. Sri Lanka should focus on becoming a trading economy and a manufacturing hub.
The transhipment of goods can be made cheaper if the government combines sea and rail routes. The Indian exports can be off loaded in Kankasanturi and exported via Colombo, Hambantota and Tricomalee ports. Then the ships would not need to circle around the country this would reduce the fuel charges of transhipment. Similarly Imports goods to India can be imported via Hambantota, Trincomalee and Colombo and transported via rail to Kankasanturai. The government should try to build a rail and road bridge between India and Sri Lanka. This would increase the freight and passenger traffic between both countries. Look at Hong Kong and China they are inseparable economically and similar situation would arise for Sri Lanka and India too.
SrI Lanka should open up all of Domestic Airports to international flights. The government should expect natural airport expansion. The funds for expansion by can be gained by issuing IPO and making all of these airports public limited company. The funds would help it to expand runway, customs, baggage handling and providing security. There are so many domestic airports in this country which are lying idle.
Sri Lankan government should start business with collaboration with foreign companies. This would enable create more industries. Sri Lanka needs vehicle manufacturing, computer chip production plant, shipping, commercial aircraft engine making, commercial aircraft making, etc. Sri Lankan government should part privatize CPC and Sri Lankan Airlines too instead of selling it to foreign Airlines, it should issue IPO and sell it to Sri Lankan only. National Assets should not be sold to foreigners but to Sri Lankans at large. Defunct government companies should also be restarted with private capital too such as Kankasanturai cement factory, etc.
The government should give employees of public and private sector some breathing space by stopping the EPF and ETF payment from being discounted from employees’ salary. The burden should be shifted to the private and government companies from individual employees. The companies should pay whole stated salary amount and there should not be reduction of people’s salary. The government should charge 15% of people’s salary from company itself for EPF and ETF payment. The government should start a National Health and Education tax and charge 5% out of every person working and it should be paid by the company and not by the employees of the company. This would enable the government to give free education up to university level in the country. This would also make heart, kidney, liver, cancer operations free of cost since money can be derived out of this taxation.
The government should not be solely dependent on private sector alone to build successful business. The government should take the initiative to build business out of private funds. This would increase the growth of an economy. Debt serving economy in the long run would be a liability to any growing economy. One can take example out of Greece. Businesses are more likely to prosper as long as there is growing population around the world. Sri Lanka should think big to grow big economically. The country should start thinking of how to get to a Trillion Dollar Economy and How to move from there onwards. We need a Marshall Plan. It can only be achieved by issuing international IPO ordinary shares and building up companies from scratch. The country does not need to be in debt to build it big!
