Apr 12, 2011 (LBO) – State infrastructure projects in power, ports, roads and water supply, especially in the war torn north and east of the country has laid a foundation for higher growth, Sri Lanka’s President Mahinda Rajapaksa said. “On the other had in the north – which had regressed 30-year during the war – and the East, we have started large projects. We did this despite fighting a war.”
Sri Lanka’s long-running civil war ended in May 2009 with the wiping out of Tamil Tiger separatists. A state extracts money from the people through various taxes to spend.
By building infrastructure and other public services rulers give a return to all the people making an economic more efficient and laying the ground work to extract more taxes from the people from future growth.
Administrations that do not build enough infrastructure but spends more resources on maintaining itself such as through subsidies and income re-distribution to vocal favoured sections of society, eventually undermine productive people.
Good infrastructure makes economies efficient and competitive.
Countries in Europe, North America, Japan, Australia and New Zealand developed early by using tax money justly to build good infrastructure which ben