Special: New plan to maximize development Leverage

Thiruvananthapuram: Kerala has always prided in its high human development index and been hailed for its model of development, which is now under stress on account of huge costs involved in maintaining the level of achievements.

This has prompted development experts to look at new growth trajectories. While the Left always felt the Centre had been unsympathetic towards Kerala, the Congress-led Government realizes the State has to evolve its own growth targets by harnessing inherent strengths even as it argues for a scientific distribution of national revenues in tune with specific needs of each State. 

To address this challenge, the Planning Board has mooted Perspective Plan 2030, which has been drafted with the technical assistance of National Council for Applied Economic Research (NCAER). It aims at a quantum leap in all sectors on par with Nordic countries, especially Norway and Finland.

Why Nordic countries Finland and Norway are the benchmark? They lead on various indices such as environment performance, human development, prosperity (both in terms of income and wellbeing), knowledge economy and networked readiness (measures the propensity for countries to exploit opportunities offered by information and communications technology) as well as democracy index.

They are advanced welfare States. Welfare State is a concept which Kerala aims at and been a worthy but elusive goal.

Asian countries are not role models as most of them are authoritarian. Finland and Norway are liberal democracies.

Both attained independence a quarter century before India. Finland is the least on corruption index, in terms of gender equality ranks the sixth and Norway fifth whereas India ranks 130.

Planning Board member C P John says Kerala must aim at three Ds - development, democracy and disparity reduction. While Kerala has a per capita income of more than $ 4,000 on purchase power parity, Nordic countries average $19, 000.

Kerala has to redistribute and mobilize its resources so as to achieve this goal, drawing on the best international practices.

Perspective Plan 2030 has been formulated in consultation with policy makers, administrators, public, NGOs and other interest groups. The draft is but a draft, aimed at eliciting public opinion. The Planning Board is yet to take a final view on the plan.

John says the democracy index is based on 60 indicators grouped in five different categories: electoral process and pluralism, civil liberties, functioning of government, political participation, and political culture.

“I have not examined where Kerala ranks in the democracy index as I feel it is flawed. If we are not cautious, chances of foreign remittances hitting a rock bottom are true. We need to have a mission for economic, human, social and green prosperities and a vision that sets high standards”, says John.

To achieve Finland and Norway’s per capita income, Kerala has to grow at an average 7.5 percent but it is achievable.

However, experts doubt whether the ‘golden target’ is pragmatic owing to the historic, political and social differences between Nordic countries and a small State like Kerala.

According to Dr K. K. George, chairman of the Centre for Socio-economic and Environmental Studies (CSES) in Kochi, there are several constraints, mainly owing to Kerala being a part of the Union.

“Nordic countries belong to the welfare States’ group and it is doubtful whether we can reach the goal. Apart from the growth rate, gender parity is a major issue, which we have to overcome”, said Dr. George, who has been a visiting professor to various universities in Norway and Sweden.

But Prof K. J. Joseph of Centre for Development Studies says that achieving Nordic growth rate is not unattainable provided we have a clear-cut development policy. This is the first time Kerala has come up with a long vision plan.

“None of our political parties had returned to power for a consecutive second term, with the exception of the United Front Ministry in 1979. This prevented the parties from having a long-term perspective. It is always better to have some vision rather than no vision. Kerala’s growth rate has always been marginally higher than the national average. If we have a proper strategy in harnessing the development potential, eight percent target may not be difficult to achieve”, said Prof. Joseph to DC.

However, Dr. K. Ravi Raman, one of the directors of Institute of Applied Manpower Research under Central Planning Commission, feels that since Kerala has no financial autonomy it will be difficult to achieve the target set in the Perspective Plan.

“When the Raghuram Rajan committee report was published, the State Government slammed it without holding any public debate (Rajan evolved a development index for Central funds devolution to States).

“Kerala has got the highest inequality compared to other States in the country. Even in the context of Nordic States, it is very particular in retaining its social democratic tradition as those are liberal democracies”, said Dr. Raman to DC.

The Perspective Plan is in the public domain and the pace of its adoption by the Planning Board depends on the level of informed debates that follow.

Next: Meena wishes Kerala matched good life in Finland

Meena wishes Kerala matched good life in Finland

Three things Meena likes most about Finland are the people, nature and Christmas. She likes all this not because she married pen friend Jari Naukkarinen, took up a job and settled in Finland but they are a striking contrast to Kerala, which is trying to scale social indices already notched by the Nordic country.

I first came to Finland in early 1997 after the marriage, solemnized at Varkala Sivagiri. I was skeptical whether I would fit in, in a country severely cold unlike humid environs of my hometown, Paravoor in Kollam.

Jari had told me in advance about Finland. Armed with a science degree and then a law degree, I took up a course in Finnish, which enabled me to get a citizenship here.

I love this country because people here are awesome, they are so shy but once you break the initial barrier, they are friendly. I have been bowled over by the Finnish peoples’ punctuality in offices, trains, buses and their hard working nature.

                                  Jari and Meena Naukkarinen

Social security is exemplary. When you have a newborn, the couple can decide who will stay at home with the baby.  If it is the father, he can stay up to three years at home and his benefits are paid by Government.

Maternity leave is one year and the expectant mother’s needs are taken care of by authorities, including clothes for the baby. We can decide to choose between money and clothes. 

Everybody gets pension and healthcare. I doubt whether this will ever be possible in Kerala, given the size of the population.

Children go to school only at the age of 7 and that too, no uniforms. The State pays for the education. On Fridays, teachers don’t give homework so that students have a relaxed weekend.My husband and I work in a plywood factory, Metsa group in eastern part of Savonlinna as supervisors. We have three boys- Albin, 10, Emil, 8 and Kevin, 3.

I do miss temples and Onam. In my locality I have never come across any Malayali as majority are Finnish and Russian. People here are not overly religious; the majority are evangelic Lutherans.
Major industries here are paper and plywood, machine fabrication, ship building and electronics.

During the economic meltdown, one of the major industrial giants of Finland, Nokia, terminated many employees. But the company and the Government supported them, giving further training and now they are working in different companies.