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Development must mean human development

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Image courtesy Ruminations

Neo-liberal economists assess economic development using parameters like GDP growth, inflation rate, interest rates, debt/GDP ratio and such and recommend measures to improve these expecting a resultant improvement in poverty rates, employment and household income, but this seldom happens as revealed by increasing inequality, decline in real incomes, malnutrition and school dropouts. Increased GDP doesn’t always translate into improved living standards or reduced poverty if benefits aren’t shared.

Quality of life has to be measured in terms of health, education, morals, satisfying employment and cultural activity. Further the society and environment of humans must be conducive for achieving a satisfactory quality of life. Present development models designed to fit the global neoliberalism focus on the development of the economy often at the expense of poor lives, labour, environment, morals and culture.

Human Development

Development must mean human development because true progress focuses on expanding people’s freedoms, capabilities (health, education, skills), and choices, rather than just economic growth (GDP). It’s a people-centered process that ensures individuals can lead fulfilling, productive lives, requiring inclusive policies, social equity, environmental stewardship, and empowerment for meaningful participation in society, moving beyond mere income increases to holistic well-being and human potential. True development addresses social, cultural, political, and environmental aspects alongside economic progress for sustainable well-being. Development, at its core, is about the expansion of human potential and rights, ensuring everyone has a chance to achieve their full potential.

It’s a transformative process that prioritizes people, their freedoms, and their ability to shape their own lives, making it a fundamental human right and the true measure of societal progress. Investing in education, healthcare, and culture has a powerful multiplier effect on families and societies

If Sri Lanka is taken as an example, over the 70 years since independence economic, social, health and education disparity between the rich and the poor has increased. Poverty rate at present is 24%, malnutrition is hovering around 15%, school dropout rates are alarmingly high, environment and climate vulnerability as experienced recently is frightening, regarding morals less spoken the better, and debt pressure is uncontrollable despite IMF.

Global Scene

Global scene is no better with inequality rising even in countries like the US, Europe, except in China and Vietnam. Poverty rate in the US is 11% and  in Europe 12%. In contrast, China and Vietnam, which are not wholly linked to the neo-liberal economic system, have poverty rates below 1% and 4%, respectively. India still has a substantial number below an income level of USD 3.65 per day amounting to about 40% though extreme poverty (income below USD 2.5 a day) has reduced to about 2%. The upper 10% in the countries with more than 10% poverty own more than 60% of the wealth. One may argue that poverty cannot be totally eliminated, however it needs only 0.3% of the global GDP to eradicate poverty  of people living below an income level of USD 2.5 per day. The rich  don’t seem to care about this sad situation.

Wealth inequality in Sri Lanka is severe, with recent UNDP reports (2023) placing it among the top five most unequal countries in Asia-Pacific, where the richest 1% own about 31% of wealth, while the poorest 50% own less than 4%; this concentration of assets, coupled with the recent economic crisis, exacerbates deep gaps between rich and poor. Income gaps are stark, with Colombo district seeing the richest group hold over 72% of household income, compared to lower-income areas. Despite easing inflation and reasonable GDP growth, food prices more than doubled between 2021 and 2024, contributing to elevated malnutrition and food insecurity and real wages remain below their 2019 levels.

These facts and figures clearly show that neo-liberal policies have failed in human development in Sri Lanka as well as all countries in the grip of neoliberalism. A quarter of the population is in decline in health, education, real income, employment, morals, culture and all other good aspects of living. On the other hand, in countries which are not bound by the neo-liberal global system poor people are not on the decline but are well incorporated in the inclusive system of governance. Martin Jacques a British journalist and author of When China Rules the World: The End of the Western World and the Birth of a New Global Order, has lauded the Chinese model for its economic success and argued that it represents a distinct, effective approach to governance.

Broad-based investment

Sourabh Gupta, a senior fellow at the Washington-based Institute for China-America Studies, has praised China’s governance model for its “broad-based” investment in people, including healthcare, education, and infrastructure. China’s governance model prioritizes stability and long-term policy continuity, positioning it as an adaptable and effective system in certain non-Western contexts. The model’s emphasis on performance-based governance, continuous public engagement through consultative mechanisms, and controlled media strategies presents a unique approach that aligns well with the developmental needs of some emerging economies (M Y Abesha, B F Kebede, 2024). Similarly praise for the Vietnamese system of government, often centers on its political stability, the success of its Đổi Mới (Renovation) economic reforms, and its ability to maintain rapid, sustained growth.

In the grip of neo-liberalism

It is not that the countries caught in the grip of neo-liberalism have not made special attempts to improve the lot of the poor and it is also true that there had been significant improvements but the gains are not stable,   and are very much vulnerable to external vagaries such as Trump and his tariffs, climate disasters, etc. as recently observed in Sri Lanka where poverty jumped from 14% to 24%. This is the fault of the system we are caught in and not so much in the intentions or competence of governments. Having said that, the onus however, is on the rulers to try and develop alternate systems that address poverty and human development.

The greed dependent, consumerism driven, profit motivated neo-liberal systems focus on capital accumulation and expect benefits to trickle down to the poor, but as seen so often the amounts that trickle down are woefully inadequate to solve poverty. This is why the national poverty statistics show that the richest country in the world, the US has 11% poor people while China has almost none. This is despite continuous effort by the US government to solve and overcome the problem.

This predicament is common to all poor countries in the global south, they are all in the neo-liberal trap. Individual countries cannot escape even if they want to. If they attempt it what could happen could be seen when one looks around. Vietnam had to pay a heavy price to defeat two imperial powers and fortunately they had Ho Chi Minh which made all the difference. Iraq, Libya, Syria, Venezuela lost but their people may still harbour anti-imperial fervour and one day may rise up.

Need for new World Order

Instead of waiting for that day what has to be done, as I have repeatedly said in my earlier letters in these columns, is for the global south to join forces and develop a new world order based on an economic system that would emphasize on human development rather than GDP, which would have the capacity to face up  to the might of imperialism. Together they would be a force that could fearlessly face up to the hegemony of the global north. The new world order must jettison the export led economic model and instead make self- sufficiency in each country the common goal. Instead of competition between these countries to produce for export to the global north, there should be cooperation to help each other to achieve self-sufficiency and human development. If countries of the global south become self-sufficient in essential needs neo-liberalism will be eradicated and human development would take precedence.

by N. A. de S. Amaratunga



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Features

Ranking public services with AI — A roadmap to reviving institutions like SriLankan Airlines

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Efficacy measures an organisation’s capacity to achieve its mission and intended outcomes under planned or optimal conditions. It differs from efficiency, which focuses on achieving objectives with minimal resources, and effectiveness, which evaluates results in real-world conditions. Today, modern AI tools, using publicly available data, enable objective assessment of the efficacy of Sri Lanka’s government institutions.

Among key public bodies, the Supreme Court of Sri Lanka emerges as the most efficacious, outperforming the Department of Inland Revenue, Sri Lanka Customs, the Election Commission, and Parliament. In the financial and regulatory sector, the Central Bank of Sri Lanka (CBSL) ranks highest, ahead of the Securities and Exchange Commission, the Public Utilities Commission, the Telecommunications Regulatory Commission, the Insurance Regulatory Commission, and the Sri Lanka Standards Institution.

Among state-owned enterprises, the Sri Lanka Ports Authority (SLPA) leads in efficacy, followed by Bank of Ceylon and People’s Bank. Other institutions assessed included the State Pharmaceuticals Corporation, the National Water Supply and Drainage Board, the Ceylon Electricity Board, the Ceylon Petroleum Corporation, and the Sri Lanka Transport Board. At the lower end of the spectrum were Lanka Sathosa and Sri Lankan Airlines, highlighting a critical challenge for the national economy.

Sri Lankan Airlines, consistently ranked at the bottom, has long been a financial drain. Despite successive governments’ reform attempts, sustainable solutions remain elusive.

Globally, the most profitable airlines operate as highly integrated, technology-enabled ecosystems rather than as fragmented departments. Operations, finance, fleet management, route planning, engineering, marketing, and customer service are closely coordinated, sharing real-time data to maximise efficiency, safety, and profitability.

The challenge for Sri Lankan Airlines is structural. Its operations are fragmented, overly hierarchical, and poorly aligned. Simply replacing the CEO or senior leadership will not address these deep-seated weaknesses. What the airline needs is a cohesive, integrated organisational ecosystem that leverages technology for cross-functional planning and real-time decision-making.

The government must urgently consider restructuring Sri Lankan Airlines to encourage:

=Joint planning across operational divisions

=Data-driven, evidence-based decision-making

=Continuous cross-functional consultation

=Collaborative strategic decisions on route rationalisation, fleet renewal, partnerships, and cost management, rather than exclusive top-down mandates

Sustainable reform requires systemic change. Without modernised organisational structures, stronger accountability, and aligned incentives across divisions, financial recovery will remain out of reach. An integrated, performance-oriented model offers the most realistic path to operational efficiency and long-term viability.

Reforming loss-making institutions like Sri Lankan Airlines is not merely a matter of leadership change — it is a structural overhaul essential to ensuring these entities contribute productively to the national economy rather than remain perpetual burdens.

By Chula Goonasekera – Citizen Analyst

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Features

Why Pi Day?

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International Day of Mathematics falls tomorrow

The approximate value of Pi (π) is 3.14 in mathematics. Therefore, the day 14 March is celebrated as the Pi Day. In 2019, UNESCO proclaimed 14 March as the International Day of Mathematics.

Ancient Babylonians and Egyptians figured out that the circumference of a circle is slightly more than three times its diameter. But they could not come up with an exact value for this ratio although they knew that it is a constant. This constant was later named as π which is a letter in the Greek alphabet.

Archimedes

It was the Greek mathematician Archimedes (250 BC) who was able to find an upper bound and a lower bound for this constant. He drew a circle of diameter one unit and drew hexagons inside and outside the circle such that the sides of each hexagon touch the sides of the circle. In mathematics the circle passing through all vertices of a polygon is called a ‘circumcircle’ and the largest circle that fits inside a polygon tangent to all its sides is called an ‘incircle’. The total length of the smaller hexagon then becomes the lower bound of π and the length of the hexagon outside the circle is the upper bound. He realised that by increasing the number of sides of the polygon can make the bounds get closer to the value of Pi and increased the number of sides to 12,24,48 and 60. He argued that by increasing the number of sides will ultimately result in obtaining the original circle, thereby laying the foundation for the theory of limits. He ended up with the lower bound as 22/7 and the upper bound 223/71. He could not continue his research as his hometown Syracuse was invaded by Romans and was killed by one of the soldiers. His last words were ‘do not disturb my circles’, perhaps a reference to his continuing efforts to find the value of π to a greater accuracy.

Archimedes can be considered as the father of geometry. His contributions revolutionised geometry and his methods anticipated integral calculus. He invented the pulley and the hydraulic screw for drawing water from a well. He also discovered the law of hydrostatics. He formulated the law of levers which states that a smaller weight placed farther from a pivot can balance a much heavier weight closer to it. He famously said “Give me a lever long enough and a place to stand and I will move the earth”.

Mathematicians have found many expressions for π as a sum of infinite series that converge to its value. One such famous series is the Leibniz Series found in 1674 by the German mathematician Gottfried Leibniz, which is given below.

π = 4 ( 1 – 1/3 + 1/5 – 1/7 + 1/9 – ………….)

The Indian mathematical genius Ramanujan came up with a magnificent formula in 1910. The short form of the formula is as follows.

π = 9801/(1103 √8)

For practical applications an approximation is sufficient. Even NASA uses only the approximation 3.141592653589793 for its interplanetary navigation calculations.

It is not just an interesting and curious number. It is used for calculations in navigation, encryption, space exploration, video game development and even in medicine. As π is fundamental to spherical geometry, it is at the heart of positioning systems in GPS navigations. It also contributes significantly to cybersecurity. As it is an irrational number it is an excellent foundation for generating randomness required in encryption and securing communications. In the medical field, it helps to calculate blood flow rates and pressure differentials. In diagnostic tools such as CT scans and MRI, pi is an important component in mathematical algorithms and signal processing techniques.

This elegant, never-ending number demonstrates how mathematics transforms into practical applications that shape our world. The possibilities of what it can do are infinite as the number itself. It has become a symbol of beauty and complexity in mathematics. “It matters little who first arrives at an idea, rather what is significant is how far that idea can go.” said Sophie Germain.

Mathematics fans are intrigued by this irrational number and attempt to calculate it as far as they can. In March 2022, Emma Haruka Iwao of Japan calculated it to 100 trillion decimal places in Google Cloud. It had taken 157 days. The Guinness World Record for reciting the number from memory is held by Rajveer Meena of India for 70000 decimal places over 10 hours.

Happy Pi Day!

The author is a senior examiner of the International Baccalaureate in the UK and an educational consultant at the Overseas School of Colombo.

by R N A de Silva

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Features

Sheer rise of Realpolitik making the world see the brink

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A combined US-Israel attack on Iran.(BBC)

The recent humanly costly torpedoing of an Iranian naval vessel in Sri Lanka’s Exclusive Economic Zone by a US submarine has raised a number of issues of great importance to international political discourse and law that call for elucidation. It is best that enlightened commentary is brought to bear in such discussions because at present misleading and uninformed speculation on questions arising from the incident are being aired by particularly jingoistic politicians of Sri Lanka’s South which could prove deleterious.

As matters stand, there seems to be no credible evidence that the Indian state was aware of the impending torpedoing of the Iranian vessel but these acerbic-tongued politicians of Sri Lanka’s South would have the local public believe that the tragedy was triggered with India’s connivance. Likewise, India is accused of ‘embroiling’ Sri Lanka in the incident on account of seemingly having prior knowledge of it and not warning Sri Lanka about the impending disaster.

It is plain that a process is once again afoot to raise anti-India hysteria in Sri Lanka. An obligation is cast on the Sri Lankan government to ensure that incendiary speculation of the above kind is defeated and India-Sri Lanka relations are prevented from being in any way harmed. Proactive measures are needed by the Sri Lankan government and well meaning quarters to ensure that public discourse in such matters have a factual and rational basis. ‘Knowledge gaps’ could prove hazardous.

Meanwhile, there could be no doubt that Sri Lanka’s sovereignty was violated by the US because the sinking of the Iranian vessel took place in Sri Lanka’s Exclusive Economic Zone. While there is no international decrying of the incident, and this is to be regretted, Sri Lanka’s helplessness and small player status would enable the US to ‘get away with it’.

Could anything be done by the international community to hold the US to account over the act of lawlessness in question? None is the answer at present. This is because in the current ‘Global Disorder’ major powers could commit the gravest international irregularities with impunity. As the threadbare cliché declares, ‘Might is Right’….. or so it seems.

Unfortunately, the UN could only merely verbally denounce any violations of International Law by the world’s foremost powers. It cannot use countervailing force against violators of the law, for example, on account of the divided nature of the UN Security Council, whose permanent members have shown incapability of seeing eye-to-eye on grave matters relating to International Law and order over the decades.

The foregoing considerations could force the conclusion on uncritical sections that Political Realism or Realpolitik has won out in the end. A basic premise of the school of thought known as Political Realism is that power or force wielded by states and international actors determine the shape, direction and substance of international relations. This school stands in marked contrast to political idealists who essentially proclaim that moral norms and values determine the nature of local and international politics.

While, British political scientist Thomas Hobbes, for instance, was a proponent of Political Realism, political idealism has its roots in the teachings of Socrates, Plato and latterly Friedrich Hegel of Germany, to name just few such notables.

On the face of it, therefore, there is no getting way from the conclusion that coercive force is the deciding factor in international politics. If this were not so, US President Donald Trump in collaboration with Israeli Rightist Premier Benjamin Natanyahu could not have wielded the ‘big stick’, so to speak, on Iran, killed its Supreme Head of State, terrorized the Iranian public and gone ‘scot-free’. That is, currently, the US’ impunity seems to be limitless.

Moreover, the evidence is that the Western bloc is reuniting in the face of Iran’s threats to stymie the flow of oil from West Asia to the rest of the world. The recent G7 summit witnessed a coming together of the foremost powers of the global North to ensure that the West does not suffer grave negative consequences from any future blocking of western oil supplies.

Meanwhile, Israel is having a ‘free run’ of the Middle East, so to speak, picking out perceived adversarial powers, such as Lebanon, and militarily neutralizing them; once again with impunity. On the other hand, Iran has been bringing under assault, with no questions asked, Gulf states that are seen as allying with the US and Israel. West Asia is facing a compounded crisis and International Law seems to be helplessly silent.

Wittingly or unwittingly, matters at the heart of International Law and peace are being obfuscated by some pro-Trump administration commentators meanwhile. For example, retired US Navy Captain Brent Sadler has cited Article 51 of the UN Charter, which provides for the right to self or collective self-defence of UN member states in the face of armed attacks, as justifying the US sinking of the Iranian vessel (See page 2 of The Island of March 10, 2026). But the Article makes it clear that such measures could be resorted to by UN members only ‘ if an armed attack occurs’ against them and under no other circumstances. But no such thing happened in the incident in question and the US acted under a sheer threat perception.

Clearly, the US has violated the Article through its action and has once again demonstrated its tendency to arbitrarily use military might. The general drift of Sadler’s thinking is that in the face of pressing national priorities, obligations of a state under International Law could be side-stepped. This is a sure recipe for international anarchy because in such a policy environment states could pursue their national interests, irrespective of their merits, disregarding in the process their obligations towards the international community.

Moreover, Article 51 repeatedly reiterates the authority of the UN Security Council and the obligation of those states that act in self-defence to report to the Council and be guided by it. Sadler, therefore, could be said to have cited the Article very selectively, whereas, right along member states’ commitments to the UNSC are stressed.

However, it is beyond doubt that international anarchy has strengthened its grip over the world. While the US set destabilizing precedents after the crumbling of the Cold War that paved the way for the current anarchic situation, Russia further aggravated these degenerative trends through its invasion of Ukraine. Stepping back from anarchy has thus emerged as the prime challenge for the world community.

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