Development challenges

Economists love to measure development by indices such as Gross Domestic Product, per capita income etc. The fault of such measurement is that it does not take into account the human side of development. It does not answer how equitable such development had been or whether the fruits of development had benefited the masses. They call it the 'trickle down' effect. The very word signifies that nothing big is expected to reach the lower strata of society. Obviously capitalist development is for the capitalists and not workers. That's why the benefits could only trickle down. It is also as an insurance cover for the perpetuation of the system.

The current revolutions in the Arab lands have drawn a point which would be useful here. Both Tunisia and Egypt had comparatively favourable rates of growth. The GDP growths were impressive. It was not an economic crisis that led to the revolts of the masses.

The problem was the lack of equity and justice. Neo-liberal development had fattened a class of rich and new rich while there was mass unemployment. The system was kept by suppression of rights of the people. It was a rule by an iron fist which tested the patience of the masses for far too long.

This shows that development sans social justice is bound to fail sooner or later. In other words the rulers should guarantee a minimum living standard for the masses and a minimum degree of freedom. Anyone who transgresses that limit would run the risk of being thrown out.

The world is facing a severe food scarcity. Food prices, especially cereal prices have gone up and are likely to go up further. The world financial crisis has led to curtailed production in Europe and America our traditional trade partners. In addition the turmoil in West Asia has driven fuel prices up. The latter would have a cumulative effect on the prices of all goods and services, including those manufactured locally.

This would make life increasingly difficult for the poor. Already the poor, whether rural, urban or estate suffer from chronic malnutrition. In a situation of escalating food prices and food scarcity the challenge of overcoming malnutrition among the poor would be still bigger. Under five child malnutrition is the worst.

These challenges make it imperative to have a holistic view of development without depending solely on the rise in the GDP and the stock exchange as a measure of success. As emphasized in this column many a time it is imperative to increase savings and investment and raise productivity.

Obviously this calls for thrift, prudence and innovation. It is essential to minimize if not eliminate wastage and corruption. All extravagant expenditure, those that promote ostentation should be halted. However, no signs of such restraint are seen either from the public or from the private sector.

What is criminal is the waste of energy and foreign exchange. One could remember that during the energy crisis of the 1980's an effort was made to make better use of the abundant sunlight that is available. Then street lights were switched on later and switched off earlier. What we find today in the city and elsewhere are street lights being switched on a good hour or hour and half earlier and switched off at least an hour later while some keep burning even at noon.

There is a feeling that the end of the war justifies unlimited feasts. There is no thought that the new war, war for development demands more thrift, more economy and more sacrifice. In sacrificing one cannot sacrifice the basics or what is essential to sustain life. That is why development to be long lasting and stable needs a safety net for the lower strata of society and maximum sacrifice from everybody.

It is time that the message is clearly understood that there is no development without sacrifice and no meaning of sacrifice without development. In face of the impending world food crisis it is also imperative to ensure a minimum living standard and a minimum nutrition level for the population in that development.

It is only then that the bold initiatives envisaged in the Mahinda Chintana to make Sri Lanka a multiple economic hub could be realized and Sri Lanka made a Wonder of Asia. It is only then we could bequeath to the next generation a prosperous and promising country.