Social Policy In Economic Policy

Introduction

The decision on resource allocation is considered as one of the main components in determines the economic policy of any country. The economic and social policies are defines based on the answers for questions such as allocation of resource to whom, by whom, and how it should be distributed. The decision on resource allocation derive by market in capitalist economies whilst in socialist economies, centralized planning committee decide it. Many State including capitalist still believes that the social policy and provision of social goods is the responsibility of the States. They had the policy of deliver the social goods by the State and believed that it can be best mechanism to ensure the benefit of the economy reach the people

Private sector play a second fiddle role in social policy, in the recent time its influence on implementation of social policy is very much noticeable. Specially through operation of private institution and programmes such as hospitals, schools, welfare programmes (Martin, 1990, Hacker, 2004). Further, the role of private sector no need to limited with provision of social goods, particularly institutions foundations and intellectuals are on remains important source of idea for develop the social policy in the state funded state oriented countries (Martin, 1990). As Ostrander (1985) explains these private foundations can be helps the state for reform the social policy, non-profit agencies can play a role in identify the public needs, thereby it contributes to democratize and decentralize towards people oriented social

Food rationing was begun in 1942; primary education was nominally compulsory since 1901 though it was in practice. The investment in human development was paid off, for example in 1946, life expectancy in Ceylon was 43 while in India it just 32 %, similarly adult literacy rate was 58% while in India total literacy was only 17 % and also benefited from benevolent ecological situation. Which is influence in the decision of the rulers to continue the same approach in social policy even after independence(Isenman, 1980, Tudawe, 2001). Often Sri Lanka criticizes for sacrifice the growth of output and employment for achieve social objective and believes investment in human development. These social programmes are implement more for responding to the political pressures than a typical basic needs since these programmes are available to all population rather than just to those had not been met(Isenman, 1980).

Though Sri Lanka is the lower middle-income country and shown steady economic growth of 6.4 percent over last 10 years, It has achieved the most of the Millennium development goals even before the targeted period, like reduce chronicle poverty from 28.8 percent to 6.7 percent in 2013 mainly due to its social policy (World Bank, 2014a). Adding, Sri Lanka has exceptionally good record of living standard, in relation to per capita income on life expectancy, literature rates, infant mortality and fertility