Towards Kerala’s sustainable development

A major part of expenditure is for maintenance such as pension. Running the state with a large percentage of borrowed money will lead to a crisis similar to the one in Lanka.

By G Madhavan Nair

It is heartening to note that Thiruvananthapuram and Kochi have found their place among the top five in the urban sustainable development goal index released by NITI Aayog. The quality of life is better in these cities compared to others. This is thanks to the investment made from the time of Maharajas and later by the alternate regimes of UDF and LDF, who have paid attention to education and healthcare. But these gains alone are not sufficient to provide sustainable development for the people of Kerala.

The development plans in the past emphasised education, healthcare and gender parity. The high standard of life is mostly centered around major cities like Thiruvananthapuram, Kochi and Kozhikode, whereas a large number of people in other parts of the state are yet to benefit. The poverty reduction is brought about by the PDS and free distribution of grains to people below poverty line.

Kerala is blessed with fertile land, heavy rainfall, rivers, lakes and above all an educated population. Proper utilisation of these natural resources for sustainable development is the need of the hour. Back in 2006, Dr Abdul Kalam, then President of India, carefully analysed the strengths and weaknesses of the state, and placed a 10-point agenda for its development before the Assembly. His main thrust was development of a knowledge society and expansion of the service sector. The priority missions recommended by him included tourism, smart waterways, pharmaceutical products (mainly from ayurveda) and training of nurses and paramedics. Though the Legislature welcomed his ideas, not much has happened.

Later in 2013, a committee headed by K M Chandrashekar, the former cabinet secretary to the GoI and vice-chairman of state planning board, submitted a 2030 Vision plan for Kerala, and the UDF regime gave its approval. Its contents were similar to Kalam’s vision. However the present government seems to or pretends to be unaware of these recommendations. Instead, it believes that the K-Rail project—which has become irrelevant in the light of Vande Bharat Express—is the panacea for development of Kerala.

As per the Chandrasekhar committee report, by implementing the 2030 development plan, per capita income could be increased from the then $4,700 to $19,000 by 2030 and unemployment rate, one of the highest in the country, reduced to less than 2%. The above two vision documents that stress on human development must be taken forward through economic development. It should ensure economic growth and social upliftment by making use of human and natural resources in an optimum manner to generate wealth.

The state’s most valuable resource is its nearly one crore youth. It can be proud of achieving almost 100% literacy. But of late, many coming out of the conventional education system are not employable and often have to be retrained. This is a contributing factor for the high unemployment rate, with lakhs of educated youth lacking a proper job.

Finding job opportunities for these people should be topmost in the agenda. Service sector seems to be a major source of income and employment in the state. Investment in tourism, healthcare and education can create largescale employment opportunities. The contribution of the manufacturing sector is insignificant compared to other states. Setting up manufacturing units and making use of the highly skilled labour can help tackle unemployment. Kerala was the first to set up an IT park in the country, but the sector is currently not doing well in the state. Investment in this sector and facilitating major IT players to set up their plants in Kerala can stop the drain of IT professionals.

In this globalised economy, we need to nurture youth to be well-qualified workers who can perform complex tasks and adapt rapidly to the changing environment and technology. The knowledge economy also needs highly qualified persons for research and innovation. It is high time the education system is revamped to equip them for better employment prospects.

Higher education should be based on research and practical work. The education policy recently announced by the Centre provides a framework to implement such schemes, but it demands largescale investment in lab facilities as well as retraining of teachers. The universities should be turned into centres of excellence with a research-oriented learning process.

Management of the economy to enhance revenue and cut down expenditure so that there are adequate resources for development activities is a must. The state of the economy is in a bad shape as seen in the 2022 Budget document. A major part of expenditure is for maintenance such as pension. Running the state with a large percentage of borrowed money will lead to a crisis similar to the one in Sri Lanka today.

The per capita income of Kerala is high and mainly dependent on the flow of funds from Keralites working abroad. In the Gulf market, people from Lanka, Thailand, the Philippines, etc., are providing better services at a lower cost. Only the high-end jobs of skilled professionals are available to Keralites. The result is that NRI remittance also is coming down. Hardly 30% of income is from agriculture and industrial production within the state. More than 60% is from the service sector and tourism. Hence, massive efforts are required to enhance the revenue from these sources.

Strict financial discipline is needed for sustainable economic growth. First, we must reduce expenditure on non-productive activities. The state spends nearly 40% of its Budget on salaries and running expenses. This is very high compared to other states. The administrative reforms commission headed by Achuthanandan had made many recommendations. These can lead to a more efficient administrative set-up.

Though there is a huge government machinery eating up nearly 40% of the budget, most projects face delays in implementation. The funds for the creation of infrastructure projects have been left unutilised. Even the much hyped Rebuild Kerala Project after Ochki and the heavy floods is yet to take off.

Physical connectivity is most important for development. Sanctioned projects like doubling rail lines and development of a six-line highway from Kasaragod to Thiruvananthapuram are moving at a snail’s pace. A comprehensive plan for modernising state highways and urban roads is urgently needed.

Climate change is a major concern for Kerala. In the past five years, the state has felt its severe impact. Last year alone, we have seen continuous rainfall deviating from traditional monsoon patterns in the region. Severe drought in some parts of the state along with heavy floods in the low-lying area has become very common. It is high time action is taken to condition the state for climate proofing.

Several studies and projects were formulated in the past to tackle flooding. Most dams and reservoirs are filled with silt, which has reduced the storage capacity by more than 50%. Similarly, the riverbeds are filled with sand, which obstructs the free flow of water. Comprehensive plan of action for desilting the reservoirs and removing sand from the riverbeds can be undertaken in such a way that the cost can be recovered by sale of sand.

There are many problems to be tackled on a war footing. At the same time, only a long-term perspective can lead to sustainable development. Both the document by Dr Kalam and the 2030 vision by Chandrasekhar talk about the thrust areas for development. The starting point should be the revision of a ten-year vision plan for a Nava Kerala. Recommendations of the Chandrasekhar committee report are still valid. The state planning board can review these, taking into account inputs from stakeholders including panchayats and public to bring out the new 10-year vision document at the earliest. Once approved by the Assembly and government, it should be taken seriously by all. One should work tirelessly for implementation of the programme to take Kerala to the levels seen in developed nations by 2030.

G Madhavan Nair

Former ISRO chairman 

https://www.newindianexpress.com/opinions/2022/jun/03/towards-keralas-sustainable-development-2461117.html