Economics Must Evolve to Address Global Crises, Scholar Argues

Economic science as currently practiced may be ill-equipped to address the complex challenges of global power dynamics and structural crises affecting nations worldwide, according to analysis from leading economic scholar Sumanasiri Liyanage.

Liyanage argues that traditional economic frameworks lack sufficient relevance and practical application for policymakers confronting unprecedented global uncertainty. The scholar's assessment reflects growing concerns among academics about whether mainstream economic theory adequately captures the interconnected nature of contemporary economic problems spanning geopolitics, trade tensions, and systemic instability.

The observation raises fundamental questions about economic education and policy formulation across South and Southeast Asia, where nations navigate complex trade relationships and structural economic transitions. Many developing economies in the region face pressures from shifting global power alignments while managing domestic economic priorities.

Liyanage's position suggests that economics requires substantial reformation to become a more effective tool for understanding and addressing the root causes of global instability. This perspective echoes broader academic debate about whether economic models developed in different historical contexts remain valid for contemporary policy decisions.

The challenge for policymakers, scholars suggest, lies in either reformulating economic theory or developing complementary analytical frameworks that better account for geopolitical realities and structural economic vulnerabilities that traditional approaches may overlook.