The fourteenth legislative assembly elections is on its
way to elect members of the 140
constituencies in Kerala. In the past
elections, with out fail we have seen the political bias of the people of
Kerala swinging between the Congress led UDF and the Communist led LDF.
So this year if we go by the past trend and supported by the plethora of media
result predictions, LDF is likely to
rule the state. It is widely predicted that the BJP will create history and may
open an account for the first time in Kerala.
This article is not an attempt to go
into the merit of electing any particular front, rather it focuses on the
current state of affairs of Kerala which lags way behind other states in India
and how to make economic progress going forward.
Kerala is known around the world
for its beautiful green landscapes, sandy beaches, and
sublime backwaters. Kerala is different from any other state
of India with comparatively fewer people below poverty line, and a
very high human development index. That is not all, though. Kerala
has the lowest infant mortality in India, highest life expectancy,
and lowest school dropout rate in the country. These are
all qualities par with that of a developed country.
Yet,
Kerala has a laggard economy which depends heavily
on tourism and the money from the Gulf, sent in by 2 million of
Malayalis who work abroad. Lack of job opportunities is a
huge concern in the state. There is not much of a manufacturing base
to this state thanks to the militant labor unions supported by political
parties. So job opportunities in Kerala are far lesser compared to
other states like Maharashtra, Andhra Pradesh, Uttar Pradesh,
West Bengal, Tripura and Delhi—where there is a lot more
manufacturing competitiveness.
People from Kerala are forced to migrate
because there are no jobs at home. “Manufacturing in Kerala is a
sector which is almost dead. This state is too focused on the
service industry, such as tourism.
Some analysts say that the problem
starts from the fact that Kerala is an overpoliticized and
“over-extended state”. They debate that radical unions, encouraged by
successive communist governments, have acted as “pressure groups
advancing particular vested interests”. Amartya Sen, Nobel laureate
economist says Kerala has to “learn from the world”. Its famed model
of development, which is still hyped as the most inclusive one,
appears to have hit the buffers. Economists say that the Kerala model
is grinding to a halt because the social and political groups having
fulfilled their original agenda now have no new agendas. Society has lost
its capacity to set collective goals.
Having said that the ASSOCHAM (Associated chambers of commerce
and Industry of India) economic research bureau has recently made the following
recommendations to propel the economic growth of Kerala which the politicians taking
the office need pay attention and set their focus on.
Agro-based
and Food Processing
The
food processing industry has been recognized as a potential area for
development of enterprises
in the state. Food processing industry can play a significant role in the
Kerala economy.
It not only would contribute to the food requirements of the state it has an
employment orientation too as it is highly labor intensive.
Textile
and Garments
The
textile industry undoubtedly is also one of the important segments of the State
economy. The need of the hour is to further strengthen this industry, enabling
it to fully exploit available opportunities in the domestic & export
markets, and realize its full potential.
Rubber Industry
Rubber is another key industry providing employment
opportunities for the farming community. The State must act as a facilitator
towards their better growth prospects. A few possible ways to help them could
be the following:
Given the nature of rubber plantations, institutional
credit is scarcely available to rubber plantation sector. As rubber plantation requires large
capital in the first year of plantation itself, the growers face lot of hardship in generating
their own capital. Greater availability of finance will encourage more farmers to take up rubber
plantation, who are otherwise not able to do so due to inability to self-finance the
activity.
Rubber prices are subject to wild fluctuations owing to
both domestic and international factors. The State government must try to provide some
sort of stability to this.
Rubber plantation farmers often do not realize fair
selling price. The middlemen marketing chains affect the profitability of small
holders. Rising labor costs, volatile fertilizer prices are the two other severe challenges
faced by rubber farmers. The price instability is driving the small farmers to indebtedness.
Promoting farmer producer societies that function as self help group and empowers
the farmers economically needs to be encouraged.
Tourism
Tourism sector plays significant role in the
social-economic development of Kerala. As we have seen significant growth has
been recorded in terms of tourist arrival and foreign exchange earning of the
state. State should ensure upon providing adequate infrastructure facility and encourage
private sector participation for the tourism sector development.
In conclusion, a stable and reliable government are key
to achieving the above goals. If the incumbent government focuses on the
development of the state their primary goal, the result will speak for itself
and political stability can be assured. Policies that do work need to be cemented
rather than overturned by the next government taking the office. The people of
Kerala will thank them and keep them voting back to power.
Politicians need to realize that outdated ideologies or rather
bankrupt ideologies have no place in the present scenario.
