Dr. Rajiv Oberoi Column | True Measures of National Progress & Growth

Dr. Rajeev Oberoi Author and Economist

Many experiences and examples of history teach us that progress cannot be measured by mere statistics. Arguably, economic growth is measured by indicators such as GDP, infrastructure, exports and technological progress. But these cannot present the complete picture of the progress of a nation.

The success of a country also depends on whether its political institutions, legal system, social beliefs, education and cultural values ​​are also developing equally or not. When all of these proceed in a balanced manner, society absorbs change more easily and stably. On the contrary, when there is an imbalance between them, then social and political tensions begin to emerge.

England provides an excellent example of this. From Magna Carta to the Glorious Revolution and the Industrial Revolution, constitutional systems, financial markets, parliamentary institutions and commercial expansion evolved over centuries. Along with economic progress, the rule of law, execution of contracts and representative institutions were also continuously strengthened.

The Japanese experience, though different, is equally instructive. During the Meiji Restoration, it carried out rapid modernization and made large investments in industry, education, and technology. At the same time, important elements of our cultural identity were also preserved. The process of reconstruction after the Second World War coordinated industrial policy, social discipline, excellent education and institutional stability.

America, on the other hand, may have enjoyed extraordinary economic expansion, but many of its profound social changes developed over several generations. Democratic institutions, public debate and constitutional processes became the medium through which society accepted major changes over time.

Rapid modernization during the Shah’s reign in Iran led to significant progress in economic development and infrastructure, but social and cultural imbalances ultimately led to the 1979 revolution. The experiences of many countries in Latin America and Venezuela also show that weak institutions cannot make economic achievements sustainable. Botswana in Africa achieved stability through strong institutions and prudent resource-management, while development in countries with weak governance did not last long.

These examples do not establish any universal rule, but they do show a common trend. That sustainable prosperity is based on a balanced coordination of economic policy, institutions, laws, education, social trust and cultural adaptation. This is an important message for policy-makers that infrastructure, investment and technology prove to be more effective only when they are accompanied by transparent governance, efficient institutions, quality education and public trust.

The history of nations ultimately teaches that prosperity is determined not only by the pace of economic growth, but also by how harmoniously institutions, culture, law and society develop. The real measure of progress is not merely rising incomes, but the ability of a society to develop collectively. (These are the author’s own views)

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