Government Policy Initiatives

Policy is a generic term used in describing a set of conditions and rules laid over achieving a specific outcome. In the case of government, any government is bound to provide/ maintain certain policies in social and industrial perspectives.

Social Welfare Policy: is a set of rules set in confirming the fabric of the community’s well being. It contributes its final outcome in polishing the public welfare in away bringing in a relief to certain vulnerable issues of the public.

Industrial Policy (IP): is responsible in cooperating to the development of the industrial sector. This policy may take forms of Fiscal or Monetary policies.

Monetary Policy: - is a measurement used by the government to regulate the rate of money circulation in country in order to prevent any inflationary situation.

Fiscal Policy: - is another measure taken in regulating inflationary situations by monitoring the purchasing power of the consumer.

Social Welfare Policy in UK

Social Care in Education: UK has a wide spread community service in Education where many strategies are being followed in developing the literacy rate of UK. Education policy sets out programs in providing theoretical and practical fluency in different streams. Main target behind this policy is to minimize the potential unemployment rate of UK due to lack of professioncy at work. It also concentrates in providing special education service to those who has disabilities in getting them self employed in the future.

Social Care in Health: UK is a country which makes strong decisions in developing mental health parallel to the physical health of the working public. This is because; they believe that no task can be successfully accomplished with no healthy mind set. Therefore, when its working force is performing well, it could lead to a minimizing of potential unemployment rate of UK. (eg: Mental health & Employment providence)

Social Welfare Policy in Sri Lanka

Social Care in Education: As another measure of public service, SL government executes projects in providing free education facilities to its younger generation in trimming the expenditure of its people. This facility is more focused on improving the literacy rate of its younger generation in competing with the other nations of the world and serving for the well being of the country’s economy in future.

Uthuru Wasanthaya: is a projection of humanity for those who have been affected from war in the North province of Sri Lanka. The SL government paid its complete attention on developing the living standards of war victims once the war ended. Government provided necessary food, education, medicine, sanitary facilities and accommodation facilities for the families of North province in stepping in to and maintaining a life a quality.

Industrial Policy of UK

Monetary Policy: As a measure of controlling the money circulation of UK, in March 2009, the monetary policy committee announced that the bank rate will be set to 0.5% in order to make an inflow o money in to the UK economy in achieving inflation targets.

Fiscal Policy: “The Golden Rule states that over the full economic cycle, the government should borrow to invest only for future needs. Current needs should be met by tax revenues. This should allow for stable finances as defined by the ratios of public sector net worth, debt and current expenditure to national income.In conjunction with the Golden Rule, the UK government also seeks to follow the Sustainable Investment Rule, which should keep national debt at a prudent level currently set at 40 per cent of GDP.By the end of 2008 estimated public debt had already risen to 42 per cent, and could rise to 70 per cent of GDP by 2010, meaning that the Sustainable Investment Rule has been broken. The justification is that a severe recession needs Keynesian stimulus to revive it, and that balancing the books should only be sought once the economic recovery begins.” (http://www.economywatch.com/world_economy/united-kingdom/bank-of-england-monetary-fiscal-policy.html)

Industrial Policy of Sri Lanka

Monetary Policy: In present, the Central Bank of Sri Lanka (CBSL) manipulates its monetary policy under an Open Market Operation (OMO). Its key features are; an interest rate path, daily auction for liquidity and outright transactions. In setting upper and lower boundaries to interest rates, CBSL work out interest rates back and forth in the money market.

Fiscal Policy: “Fiscal Balance of Sri Lanka has registered the deficit since the 1970s due to lower revenue and higher expenditure. From 1990 to 2008, the fiscal deficit averaged around 9% of GDP, which is relatively higher than other developing countries. Most of the government revenue comes from tax collection, and the government uses domestic or foreign borrowings to finance the budget deficit” (http://www.roubini.com/briefings/49234.php)