Development Studies
Development Studies tests theories of development and their application to Sri Lanka's structural transformation, regional disparities and social protection.
Core concepts
- Growth is rising output; development includes capabilities, distribution, health, education and sustainability.
- Modernisation theory stresses structural shifts; dependency theory stresses external constraints; the capability approach focuses on freedoms.
- HDI combines health, education and income. SDGs set 17 global goals.
- ICOR = investment rate ÷ growth rate; it estimates how much investment is needed per unit of growth.
- Sri Lanka's plantation economy, remittances, tourism and regional inequality shape policy choices.
- Social protection: Samurdhi, disability allowances and school nutrition; targeting and leakage matter.
Worked example
Investment is 30% of GDP and ICOR is 5. Required growth = 30 ÷ 5 = 6%. If the ICOR rises to 6, the same investment yields 5% growth. Reasoning: ICOR is an average planning tool; it assumes a stable capital-output relationship and says nothing about distribution or efficiency.
Traps
- Equating GDP growth with development.
- Using HDI as a poverty measure.
- Ignoring inequality and gender when reading averages.
- Treating ICOR as a causal law.
- Assuming remittances are a substitute for productive investment.
- Applying a high-income model without Sri Lanka's institutional context.