Public institutions and assets have been sold to the corporate sector as well. State governments have imposed various taxes to other fields. Over the decades, user pay system has been introduced to various services.Ī General services Tax (GST) of 10 percent is applied to many consumer goods in addition to personal income tax. Government (federal and State) relies heavily on company taxes from export earnings and royalties from mining and exploration companies. coal, iron ore, meat, fish, agricultural products. As a country that produces various resources for export, it relies heavily on such exports for earnings e.g. Since then, many free trade agreements have been signed with other countries. Australia adopted a free trade policy several decades ago when former Prime Minister introduced deregulation of the economy. Cost of living has become a major issue for the people due to high prices of utilities, food and medicine, transport, housing etc.Ĭountries like Australia is no exception. Instead, due to the taking off the controls, prices and taxes have sky rocketed.

There is no tangible development dividend. Ultimately, countries like Sri Lanka have reached the bottom in terms of not only so-called development but also very ability of people and institutions including governance to survive. Some borrowings are for projects such as improving the standards of various government owned institutions e.g. In the case of developing countries, more local and international) borrowings to construct mega projects-whether they be transport infrastructure, water irrigation and hydro dam construction, agriculture, education, health, housing, telecommunications, or tourism – did take place.

Governments have been formed, changed and re-formed on the basis of various promises including the promise of a better future or country for the people. Such policies have been promoted by governments and multilateral bodies under labels such as globalisation, free trade, opening economies and societies for business and migration, free movement of people, goods and ideas. Since the neoliberal economic policies were implemented by governments around the world a few decades ago, countries have faced numerous economic and social problems.

Capitalism ii manual