The
title seems to be atypical, since it is Kerala which seems to be the only place
in the world where Keralites seem to need to get some energizing .If we take a glimpse
around the globe, we get to see Keralites ubiquitously working very hard in
challenging and demanding jobs; from unskilled employees in the Middle-East to highly
valued researcher in USA, demonstrating their entrepreneurial talent and accomplishing
notable successes. Therefore one wonders what is that which prevents them to do
the same in their own home state. Is it lack of resources; attitude; developmental
model or state politics??Is it all of them put together??
It
is inquisitively surprising that Keralites are said to put in long hours of
work in places like Gulf, where their standing is very high due to their
reputation of being extremely reliable and hard working. Whereas back at home
in Kerala, they are said to be laid-back and prone to striking. How is it that the
people tend to behave completely different in two different places? The answer
is not difficult to guess – the reason is politicised milieu back at home. This
is a repute which is hurting Kerala. There is a certain popular story as to how
BMW had been convinced to set up their car manufacturing factory in the state
due to the initiative of the state government. When the higher ups of the car
manufacturer arrived in the state capital to ink the agreement, they were
welcomed by a state bandh. The state had been shut down, shops closed and cars
blocked on the streets. The reason was over some petty local politics. But BMW
executives beat a rapid withdrawal. The project was eventually awarded to
neighbouring state of Tamil Nadu.
There
are plenty of essential things which the state of Kerala has got it right. There
was a famous study in eighties which drew amazing parallels between USA and Kerala.
The expectancy of life of a male in States is about 72, whereas that of a
Kerala male is about 70.Literacy rates hovers around 99 % in Kerala, in US its
about 95 %.The birth rate in Kerala is 18000 and falling, whereas in America it’s
about 16000.Interestingly, the gender ratio is also similar; 1050 females in
United States and 1040 females in Kerala for every respective 1000 males; this
in a country like India where national ratio has dropped to 930 women for 1000
men. Other aspects which are comparable include death rates, number of
newspapers per lakh population and number of hospital beds proportionate to population.
However glaring mismatch arises with respect to annual per capita income; which
is about $400 in Kerala, whereas in US it’s seventy times as much, about
$23,500.
Due
to its excellent demographic indicators, state of Kerala is associated with ‘developed’
status. Popular in common parlance as “
Malayali Miracle”, it’s success in practising tolerance and openness; a state
where ethnic and religious diversity is a part of proud heritage rather than
social divisions; a state which overcame class divisions and caste
discrimination through land reforms, education and working political democracy;
a state which has honoured it women enabling them to lead empowered and
fulfilling lives; a state which has given its subjects rights and minimum wages
more than anywhere else in India. However, despite all its fortes, we cannot
deny the fact that Kerala has not meaningfully industrialised and moreover it
has gained a reputation as a place where investment is a bad idea. Business
community seems to have an opinion that Keralites are far too conscious of
their rights and not enough of their duties. Investors have an opinion that one
cannot get any work done by labour in Kerala due the presence of strong unions.
They have many examples to back them: Gwalior rayon plant in Mavur, the Premier
Tyre factory in Kalamassery and the Apollo Tyres plant in Chalakudi.
In
order to keep up with India’s success story, this has to change. This is the challenge.
Certain sections of political class support hartals and bandhs with reason that
such popular struggles were responsible for states advancement. It may be true
but it’s a thing of the past and any future advances require exertion and work
and not strikes. About 20% of the states income is dependent on remittances
from abroad, this is not sustainable. It takes about 210 days to start a
business in Kochi after taking approvals and permits, whereas the same process
would take 80 days in Hyderabad. It does not take long as to why the state
languishes in bottom of “Doing Business in India” charts published by World
Bank. Narrow roads are not widened because the state government lacks the
courage to tell the residents that roads have to be widened in public interest.
Per capita IT exports are one of the lowest (lesser than Orissa).This has
resulted in a scenario where the brightest of Keralites move out looking for
opportunities because of stifling of remunerative work opportunities by
domestic politics. Today the world is changing very fast. Old theories and
paradigms of economics have been unsettled by global changes. By opposing
modernisation, blocking land acquisition for public interest and preventing
economic reforms have only worked against the interest of the state. Strong commitment
to providing education and health and a stagnant economy have left the state
with huge budget deficit. Joseph Collins, a development expert calls it a
“bloated social welfare state without the economy to support it”, though he is
all praise for its progress on demographic indicators. A welfare culture which
is exceedingly populist where political parties promise more and more goodies
resulting in more deficits.
There
is nothing wrong with the state, its people or resources. It is the direction
which has been chosen to move forward. Excessive reliance on NRI remittances won’t
solve the problem, since it is personal savings and obviously will be spent on
consumption like building houses and purchasing land. The solution lies in
attracting investment by being hospitable to them. We won’t be betraying the labour,
but only giving them more opportunities. Not that we will become capitalistic,
but will use the profits to benefit the people. Not that existing values will
be compromised, it will only be enriched.
The
change has started a sign of things to come. Recently, Cochin Shipyard built
trader class ships for a South American country ahead of schedule. This is an
example where labour, though unionised to the last man turned out to be a great
asset and not a liability. Techno Park in Trivandrum, a pioneer in the state,
has demonstrated that the state has started to succeed in attracting and
retaining industries. Good quality of local Engineering graduates coupled with
the beauty of the place has worked to the advantage. Investors would rather
prefer Kerala rather than ploughing in pollution and traffic congestion of Mumbai,
Delhi or Bangalore.
This
potential can and must be tapped. Kerala must take initiative to develop its
creaking infrastructure, exploit services sector, expand its IT exports and
become a knowledge economy. If a small IT company in Bangalore can design
products for Microsoft, then why can’t the next world beating invention come
from Keralite brains in the state? Therefore just remittances from abroad are
not enough. It means that MNCs from abroad and private players must think that
investing in Kerala is good idea and must expect rich dividends. Therefore
there must be a change in mindsets.
In
order to be a knowledge economy, the state has to open up its mental horizon
and become more open to new ideas and ideologies. This is possible by
organising literature festivals, conferences and so on. Recently such events
have been organised and has been received enthusiastically by the people. This
reflects their hunger to be part of today’s world and be its leaders. With its
imposing literacy levels Kerala can be the intellectual centre of India. It is really
surprising that Trivandrum Tech park which is the oldest in the country is also
the least global in terms of its organisation. This despite the fact that there
is a large pool of educated people, good working environment and low
operational cost. Hence efforts to bring in biggies to set up shop in our state
must be undertaken. Redistribution in Kerala has been successful, now the focus
has to shift towards management, formulating new policies towards production. However
this knowledge economy cannot employ all Keralites. Therefore agriculture has
to be improved especially cereal, fruit and vegetable production. This in turn
can boost exports. Efforts must be taken to develop industries beyond construction
of houses for NRKs!
Not
that there are only negative aspects about the economy. Even without much
economic growth, redistribution has made Kerala a good place to live proving
that sharing works. Also, there are certain facets where Kerala has done
amazingly well and must continue to do so: especially in “Sustainable
Development”. To give an example, the model of “People's Resource Mapping
Program”; which goes beyond the concept of ‘literacy’ to the domain of ‘land
literacy’. In rural areas of Kerala, the residents have begun mapping the land in
a detailed manner showing depth to the water table, topography, soil type and
depth to the bed rock. Looking at the maps, they can decide where the planting
has to be done to prevent erosion. Also during the dry season, paddy owners
lease their land to grow vegetables referring to soil types. Otherwise
unemployed youth tend the land. As a result, vegetables are grown and sold at
local markets at a rate far less than vegetables imported from elsewhere in
India. It shows the effective combination of literacy, cooperation, participation
and democracy. This also represents economic growth per se that does no harm. The
amount of money spent on transport, packaging and advertising goes down
drastically.
What
is admirable about Kerala is that with its high levels of education and it’s
and embedded commitment to fairness, it has a stabilized population; it does
not sprint simply to stay in place. It is a state that has managed to put more
of its people in employment for liveable though low wages. Keralites grow their
own food, manufacture items they need and take part in the world economy
modestly by attracting large number of tourists, exporting rich cash crops like
spices and sending workers abroad. Food scientist Will Alexander says “Kerala
is the one large human population on earth that currently meets the
sustainability criteria of simultaneous small families and low consumption."
In
today’s world Gross national product is often used to measure a nation’s
achievement. How effective is the method is not the subject of discussion. It
is said that for every dollar spent in US or its equivalent anywhere in the
world, a litre of oil is used for production and packing the goods. So it’s
like half the income means half the damage to the planet. We can infer that if
US and Kerala have managed the same quality of life, Kerala is far more
successful society. In the light of growing awareness about environment, Kerala
sends a strong message: stagnant but stable economy that serves its people
well. Kerala has also been a pioneer in PPPs in 1994 with the construction of
Cochin International Airport at Nedumbassery. This model of development was
emulated only a decade later in the rest of the country.
Kerala
has already demonstrated that a low level economy can create good life for its
people abundant in things which matter –education, community, democratic
pluralism, participation and health creating less waste and making use of fewer
resources. What is now required for the state heading for future is be open to
the ideas and unafraid of confluence of the outside world, liberate and
unfetter the creative energy of its people. This is possible if we can the
attitudes and work with resoluteness to accomplish it. As Shashi Tharoor puts
it “God’s Own Country no longer deserves the business reputation of being the
devil’s playground.”
The End
