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Salient. Victoria University Student Newspaper. Vol. 37, No 21. August 28, 1974

Outflow of capital

Outflow of capital

On the contrary, the development of our economy has been very much distorted to suit the needs of the imperialists. Every year, there is a massive outflow of capital from our country to the imperialist countries. According to the estimate by J.J. Puthucheary, between 1949-53, an average of $856.5 million flowed out of the country annually which is equivalent to about 15% of the GNP! Between 1957-61 according to E.L. Wheelwright, another $3017 million were taken out of country by Anglo-US imperialism. During the same period (i.e. the first Five Year Plan, 1956-60), the government expenditure on the public sector amounted to only $1007 million. Thus the amount of capital outflow was three times bigger than the government public expenditure in the same period! Has this outflow of capital stopped? Definitely not. In 1969, Edward Heath, the British Prime Minister admitted that every year Britain obtained 300 million pounds ($2,200 million) in the form of profits and dividends from Malaya and Singapore! Hence, instead of diminishing, the capital outflow has been increasing over these years. With such a massive capital outflow, it is not surprising that the country is always short of capital!