Economic growth and social development
IMPERATIVES FOR ECONOMIC DEVELOPMENT
By Nimal Sanderatne
The trade-off between economic growth and social welfare has been a much debated issue. Last weeks column made reference to this in the discussion on poverty issues raised at the Centre for Poverty Analysis (CEPA) Colloquium. The pertinent issue in the context of the current higher economic growth trajectory is whether it would enable the countrys social indicators to improve.
There are some concerns that the path, process and priorities of economic growth may be neglectful of the social welfare of the country. These concerns are not without a basis. The expenditure on education and health, as a percentage of GDP, is declining and woefully inadequate to sustain the achievements in these areas. Besides, there are new concerns in the post war era. The rehabilitation of the people whose livelihoods have been shattered by the war and the large number of orphans and displaced persons and persons physically maimed and in traumatic mental conditions that require medical attention and welfare measures pose serious challenges. And then there are the emerging problems of a rapidly ageing population.
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In contrast to the countrys modest economic growth in the past, social attainments have been impressive. This was especially so during the first three decades after independence (1948-1977), when economic growth was slow but improvements in social indicators were outstanding. Since then human development indicators have improved steadily, but at a lesser momentum than the expectations generated by the initial successes. Nevertheless in the first five decades after independence when the economy grew on average by only 4.2 per cent per annum, the social attainments were good owing to the impressive early improvements. Sri Lankas social indicators in the entire post independent period when the economy grew by 4.9 per cent per year (1950-2010) are commendable.
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IMPERATIVES FOR ECONOMIC DEVELOPMENT
By Nimal Sanderatne
The trade-off between economic growth and social welfare has been a much debated issue. Last weeks column made reference to this in the discussion on poverty issues raised at the Centre for Poverty Analysis (CEPA) Colloquium. The pertinent issue in the context of the current higher economic growth trajectory is whether it would enable the countrys social indicators to improve.
There are some concerns that the path, process and priorities of economic growth may be neglectful of the social welfare of the country. These concerns are not without a basis. The expenditure on education and health, as a percentage of GDP, is declining and woefully inadequate to sustain the achievements in these areas. Besides, there are new concerns in the post war era. The rehabilitation of the people whose livelihoods have been shattered by the war and the large number of orphans and displaced persons and persons physically maimed and in traumatic mental conditions that require medical attention and welfare measures pose serious challenges. And then there are the emerging problems of a rapidly ageing population.
.
.
.
.
In contrast to the countrys modest economic growth in the past, social attainments have been impressive. This was especially so during the first three decades after independence (1948-1977), when economic growth was slow but improvements in social indicators were outstanding. Since then human development indicators have improved steadily, but at a lesser momentum than the expectations generated by the initial successes. Nevertheless in the first five decades after independence when the economy grew on average by only 4.2 per cent per annum, the social attainments were good owing to the impressive early improvements. Sri Lankas social indicators in the entire post independent period when the economy grew by 4.9 per cent per year (1950-2010) are commendable.
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