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Is There a Conflict Between Growth and Welfarism? The Significance of the Sri Lanka Debate

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  • S.R. Osmani

Abstract

This article seeks to derive some general lessons regarding the relationship between growth and welfarism by undertaking a reassessment of Sri Lanka's long experience with interventions in social spheres. While Sri Lanka has been hailed by many for pursuing the welfarist strategy with apparently spectacular results, several critics have recently suggested that she would have been better off by diverting resources away from welfare interventions towards investment for growth. They have argued that the interventions were not terribly effective anyway, and further that welfarism involved a conflict with growth which eventually undermined the very sustainability of welfarist strategy. This article contests these criticisms, and argues in its turn that the Sri Lankan experience offers a lesson not in the conflict but in the complementarity between growth and welfarism.

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  • S.R. Osmani, 1994. "Is There a Conflict Between Growth and Welfarism? The Significance of the Sri Lanka Debate," Development and Change, International Institute of Social Studies, vol. 25(2), pages 387-421, April.
    • Handle: RePEc:bla:devchg:v:25:y:1994:i:2:p:387-421
    DOI: 10.1111/j.1467-7660.1994.tb00520.x
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    References listed on IDEAS

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    1. Isenman, Paul, 1980. "Basic needs: The case of Sri Lanka," World Development, Elsevier, vol. 8(3), pages 237-258, March.
    2. Sen, Amartya, 1981. "Public Action and the Quality of Life in Developing Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 43(4), pages 287-319, November.
    3. Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
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    Cited by:

    1. Siddiqur Osmani, 2009. "Explaining Growth in South Asia," Chapters, in: Gary McMahon & Hadi Salehi Esfahani & Lyn Squire (ed.), Diversity in Economic Growth, chapter 3, Edward Elgar Publishing.
    2. Chandranath Amarasekara & Bernard Njindan Iyke & Paresh Kumar Narayan, 2022. "The role of R&D and economic policy uncertainty in Sri Lanka’s economic growth," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-19, December.
    3. Ramani Gunatilaka & Duangkamon Chotikapanich & Brett Inder, 2006. "Impact of Structural Change in Education, Industry and Infrastructure on Income Distribution in Sri Lanka," Monash Econometrics and Business Statistics Working Papers 21/06, Monash University, Department of Econometrics and Business Statistics.
    4. S. R. Osmani, 2018. "Socio-economic development in South Asia: The past 50 years," WIDER Working Paper Series wp-2018-105, World Institute for Development Economic Research (UNU-WIDER).
    5. Yiping Huang & Jian Chang & Prema-Chandra Athukorala & Sisira Jayasuriya, 2013. "Economic Policy Shifts in Sri Lanka: The Post-Conflict Development Challenge," Asian Economic Papers, MIT Press, vol. 12(2), pages 1-28, Summer.
    6. S.R. Osmani, 2018. "Socio-economic development in South Asia: The past 50 years," WIDER Working Paper Series 105, World Institute for Development Economic Research (UNU-WIDER).
    7. Laksiri Jayasuriya, 2001. "Rethinking Social Development: Towards an Equitable Future for Sri Lankaâ€," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 2(1), pages 105-121, March.

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