"Development: Not by Economics Alone," a monograph by Dr. Nimal Sanderatne, argues that true development cannot be understood or achieved through economic indicators like GDP alone. It emphasizes that human development, structural transformations, and socio-cultural factors—such as work ethic and education—are essential precursors to sustainable, long-term economic growth.
Key aspects of this holistic, non-economic approach include:
Beyond GDP: Focusing on social indicators like education, life expectancy, and inequality, rather than just income per capita, is crucial for assessing true societal progress.
Role of Human Capital: Quality of life is improved by focusing on health, education, and skills rather than purely financial gains.
Cultural Factors: Development is heavily influenced by societal values, including attitudes towards work, leisure, and savings.
Institutional & Political Factors: The success of economic policies is heavily dependent on the institutional frameworks and political stability of a country.
In essence, this perspective emphasizes that economic development fails to improve lives if it does not also prioritize, and is not supported by, social equity and human well-being, as noted in this article about the impact of the pandemic on human capital in Sri Lanka.