This Article originally appeared on The NUALS Observer.
During
the 2014 Lok Sabha elections, one of BJP’s (read Modi’s) key campaign themes
was to bring the “Gujarat Model development” all over India. Political opponents, of course, dispute its results,
pointing out the abysmal social indicators[1], and
pointing out the “Kerala Model of Development” as an alternative.[2] I do
not seek to muddle these water again, as the purpose of my article is to
analyse how the Kerala Model of Development has resulted in the best HDI
Indicators in India, in a state with or little or no industrialization, heavily
dependent on Remittances from NRIs and the Service Sector[3], and
how this Model is reaching its peak and is tail spinning to a halt.
The
Kerala Model of Development is characterised by intensive investment in social
welfare/ Education/ Public Healthcare, resulting in low infant mortality, low
birth rates, high life expectancy[4], and
high literacy.
The
Past
The
foundation for this was laid in the form of a multitude of Social reformers in
the Pre-Independence Days, like Sree Narayana Guru, Chattambi Swamikal,
Ayyankali, V.T. Bhattathiripad and innumerable others[5]. This
“Kerala Renaissance” heralded by these reformers resulted in high political
awareness among the General Population and the permeation of Western
Educational Institutions in Kerala.
The
Communist Movement in Kerala, meanwhile, gradually acquired considerable
strength, and by end of World War II, rivalled the Congress party in strength
and support from the public. Things came to a head in October 1946, in the
“Punappara – Vayalar Uprising”[6] which
lead to death of more than a 1,000. (Unconfirmed/no official statistics).
By
the time Kerala was mad out of the Travancore-Cochin Province and the Malabar
District of the Madras Presidency, the Undivided Communist Party was the
singularly largest party in Kerala. Its political opponents were the Congress –
Muslim League alliance (No relation to Jinnah’s League)[7]. In the 1956 State Assembly Elections, Kerala
gave the world the first democratically elected Communist Government. Headed by
the venerable EMS Namboodiripad, the government initiated a spate of reforms,
most important of which was Land Reforms.[8] These
reforms antagonized organizations with strong political interest and backing,
such as the Nair Service Society, The Muslim League and the Syrian Catholic
Church. The political unrest with upheaval in the result of the proposed Kerala
Education Bill, 1957, which sought to regulate appointments and conditions of
teachers. Salaries of teachers were to be paid through the treasury. There was
a provision of takeover of management of educational institutions. The so
called “Liberation Struggle” (വിമോചന സമരം) began, which
characterised itself as a struggle against “tyranny of the communists”. The
Union Government led by Nehru was sceptical of these protests, but he (Nehru)
was convinced by Indira Gandhi to use the controversial Article 356 of the
Constitution to dismiss the State Government, alleging “breakdown of
Constitutional Machinery”[9]. (Funnily enough, the major provisions of the
Education Bill came to be implemented by both Congress governments and
Communist Governments that succeeded the First EMS ministry.)[10]
The
succeeding Pattom Thannu Pillai Ministry and R.Shankar ministry curiously
implemented the same reforms purposed by the earlier communist government. The
Second EMS ministry (1967-69) however passed the most wide reaching reforms in
1969 which completely eliminated the Feudal relationship that existed between
the Landlord and Tenant, and made it a more equitable one.[11] In
1970, as the new Achutha Menon ministry[12] came
into power, the “Kerala Model of Development”[13] came
into focus, when the new Chief Minister ordered a study on Kerala Economy by KN
Raj under the Centre for Development Studies. The recommendations became the
cornerstone of the Kerala model of Development, focussing on land reforms,
poverty reduction, educational access and child welfare.
Meanwhile
the Home Minister of the Achutha Menon Ministry, K Karunakaran, now the
undisputed Leader of the Congress State in Kerala, over the course of next 5
years of Political instability in Kerala (1977-1982), formed the United
Democratic Front (UDF). In its roof was the Muslim League and Kerala Congress.
The first Karunakaran Ministry was in power for 32 days, when he was forced to
resign due to the controversy regarding the Rajan case.[14]
The
“Leader” was succeeded by AK Antony, whose ministry lasted 550 days before it
fell again, and resulted in successively Ministries of CPI and Muslim League
under PK Vasudevan Nair and CH Mohammed Koya, both of which failed to last. The Sixth assembly of 1980-82 also failed to
last, the first EK Nayanar Ministry lasted 630 days, and the succeeding
Karunakaran Ministry lasted 31 days before it too fell.
(In
a parallel to the political stability that existed in Kerala, the first “Gulf
Migrations” happened during this time. The newly literate class due to the
1950s and 60s had become the working class. However, Kerala had no major
industries and was still primarily an Agricultural Economy. As a result, the
youth were forced to move to the “Gulf”.[15])
In
the Elections of 1982 however, the UDF was able to win a clear majority and
Karunakaran completed his full term. This Government was however, plagued by
scams and some controversial decisions, including TM Jacob’s decision to allow
private colleges and polytechnics.[16]
(Which indirectly has led to the constant issues with State Governments and
Private Educational institutions.[17])
The
CPI meanwhile, decided in its 1985 Congress that it would support the CPM in a
bid to thwart the UDF, and this resulted in the formation of Left Democratic
Front. The 1987 Elections resulted in
the first full term EK Nayanar Ministry. Under his ministry, decades of effort,
which began in the Education Bill of 1958 came to fruition as Kerala became a
fully literate state.[18]
Other Programmes such as combined farming, reforms in Public Distribution
System and major gains in the power sector.[19]
Major Social Welfare Legislations such as the The Kerala Coir workers Welfare
Fund Act, 1987, The Kerala Khadi Workers’ Welfare Fund Act, 1989, The Kerala
Abkari Workers Welfare Fund Act, 1989, The Kerala Construction workers’ Welfare
Fund Act, 1989 were enacted in this period.
Hoping
to take advantage of the good will that prevailed for the Communist Government,
Early elections were called in 1991. However, due to the assassination of
Rajeev Gandhi, Karunakaran Led UDF came into power again. Tarnished by the ISRO
Spy Scandal, Karunakaran resigned with one year left. His Bête noir, AK Anthony
became the Chief Minister again. This Ministry was also plagued by scandals
(including the still ongoing Palmoilen Scandal). However implemented successful projects to
improve infrastructure and the autonomous State Council for Educational
research and Training (SCERT) in 1994. [20]
The
1996 Elections hosted[21] EK
Nayanar as Chief Minister yet again. This Government implemented the radical
“People’s Plan” as a result of which 33% of State Budget was allotted to Local
Self Governing Bodies. This resulted in significant improvement of
Infrastructure and ensuring Social Security benefits for weaker sections.[22]
This
plan has been widely praised[23]. Directly or Indirectly, Kerala’s GDP almost
doubled by 2000. [24](Bear
in mind, this is also the high day for World Economy, with the Dotcom bubble
and Clinton Administration’s surplus budget). Continuing the earlier theme of
Social Welfare, Nayanar Government enacted legislations including the Kerala
Ration Dealer’s Welfare, Act, 1998, aiming to plug some holes that had occurred
over the course of his earlier reforms. The Administration also sought to
reform the Higher Educational Sector, with the establishing of Kannur
University. [25]
The
Election of 2001, was however won by the Congress led UDF, and AK Anthony
became Chief Minister. He implemented Unemployment Allowance, prohibited Arrack
and brought about steps to encourage tourism[26]. The
Government also tied up with the Asian Development Bank, to implement a
“Modernization of Government programme”.[27] After the dismal results of the 2004 Lok
Sabha elections, AK Antony stepped down, paving way for his former mentee,
Oomen Chandy to succeed him, while he later became Defence Minister in UPA-I.
The
UDF-LDF back and forth held ground in 2006, when the LDF won a historic
Majority, winning a historic 99 seats. VS Achuthanadan, the original Chief Minister
candidate for the 1996 Election, became Chief Minster. At this point, we have
reached recent past, with the UDF winning (barely) in 2011 and the impressive
comeback of the LDF Government in 2016.
The
last UDF Government under Oomen Chandy implemented a diverse variety of
infrastructure projects, while also trying to encouraging Technoparks and
Startups.
The
Present.
On
the whole, Kerala’s achievements are remarkable, achieved
over the course of continuous investment in social security, welfare and
education sectors. These investments resulted in direct benefit to the public. This
is also a result of the Economic Policies of LDF and UDF not antagonizing one
another until recent times. Stability in Economic policy meant that schemes
that were implemented by one were not bamboozled by another. An Example being
the Kudambhasree Programme. While the last Nayanar ministry began the project,
the succeeding UDF Ministry did not scrap it, rather supported the widely
praised project.[28]
However
there are various issue that confront Kerala’s Economic Growth and Social
Well-being.
- Increasing Debt: Kerala’s GSDP to Debt is at an all-time high, with most of the debt maturing in the coming years. A huge chunk of the Government’s expenditure is on pensions, which is set to increase.[29]
- Unemployment: Kerala’s Youth are forced, as is 20 years ago, to migrate for viable employment. While the manual labour in the state is done by the ever-growing migrants from North and West India.
- Reducing Remittances: Kerala’s economy is heavily dependent on remittances[30], and as the Gulf market loses its lustre, accommodating returning Expatriate Workers will become a head ache. Foreign remittances have reduced, and his should be sign for worry.[31]
- Lack of Permeation of Growth in some areas (As observed by me here ) While the social indicators of Kerala are compared to that of a Developed nations, Scheduled Castes and Tribes have been left out.
What is the solution? (Throwback to when Sreesanth
proposed the “Gujarat” model for Kerala. Non-Implementable, since we have
neither the land, the resources, nor the capital.) The revised Budget of
2016-17 proposes a slew of social welfare measures (Electricity, Housing for
all, and so on.[32])
While massively increasing Tax Burden[33].
(Talk about a Tax & Spend Liberal, eh). While Infrastructure Development
will be bought under the Kerala Infrastructure Investment Fund Board (KIIFB).[34]
There is no lack of thought and research into the
subject.[35]
One can only hope that the Pinarayi Ministry has hit the right notes to reform
the Kerala Model into a durable one. (Gita Gopinath’s Appointment as economic
advisor certainly shows that the government is willing to bring in Investment)
To a great future for Kerala!
~
Edited and Title Suggestion By: Shilpa Prasad.
Further
reading
[1]
“Gujurat Model: The real story” by Jayati Ghosh, Frontline Magazine available at : http://www.frontline.in/columns/Jayati_Ghosh/gujarat-model-the-real-story/article6279847.ece;
“The Gujrat Model” in The Economist, available at: http://www.economist.com/news/finance-and-economics/21638147-how-modi-nomics-was-forged-one-indias-most-business-friendly-states;
[2]
“The Gujurat Middle” by Jean Dreeze, 10 May 2014, updated on 26 May 2014, The
Hindu, http://www.thehindu.com/opinion/op-ed/the-gujarat-middle/article5993938.ece;
[3]
Archived Profile at Wayback of PPP website under Ministry of Finance, India. https://web.archive.org/web/20081203115007/http://www.pppinindia.com/states_kerala_state.asp;
[4]
Profile of Kerala in National Rural Health Mission; http://nrhm.gov.in/nrhm-in-state/state-wise-information/kerala.html#health_profile;
[5]
List of Social Reformers during Kerala Renaissance. http://www.keralapschelper.com/2013/07/renaissance-in-kerala-study-materials.html;
[6]“India’s
working class revolt: Punappra – Vayalar and the Communist “Conspiracy” of
1946” by Robin Jeffrey, Indian Economic
& Social History Review, Vol. 18, No. 2, 97-122 (1981), http://ier.sagepub.com/cgi/pdf_extract/18/2/97;
(Recommended to read)
[7] Ralhan, Om Prakash (1045). Encyclopaedia Of Political
Parties, Volumes 33-50. Anmol Publications. p. 13. ISBN 81-7488-865-9, ISBN 978-81-7488-865-5.
[8]“The history of trade union movement
in Kerala” by K. Ramachandran Nair,
Kerala Institute of Labour and Employment,
Kerala Institute of Labour and Employment in association with Manak
Publications, 2006;
“Communism in Kerala: A Study in Political Adaptation” by Thomas Johnson Nossiter, University Of California Press, 1992.
“Communism in Kerala: A Study in Political Adaptation” by Thomas Johnson Nossiter, University Of California Press, 1992.
[9]
Moynihan, Dangerous Place, 41, Godbole,” Public Accountability and Transparency:
The Imperatives of Good Governance”, P.
84.( https://books.google.com/?id=mYTmd3Kc0uEC&pg=PA84)
[10] Indian Planning Commission
(2008). Kerala Development Report. New Delhi: Academic Foundation.
pp. 63–64. ISBN 978-81-7188-594-7.( https://books.google.co.in/books?id=Ul-OkF5gUJQC&pg=PA63&redir_esc=y#v=onepage&q&f=false)
[11] "KLR Act amendment could grave situation for result
fragment of estatesplantation sector" by Kiran, K P Sai (Nov 4,
2012). . http://timesofindia.indiatimes.com.
[12]
The Political climate of Kerala at this point was exceedingly bizarre: C
Achutha Menon was a senior leader of the Communist Party of India, while the
Leader of opposition was EMS Namboodiripad, erstwhile collegue of Achuta Menon,
till the Split of 1964. This led to a situation where the Economic policy of
either coalition ( CPI + Congress/CPM) varied little, leading to stability and
growth.
[13]
Note: The Kerala Model of development emphasised on increasing Tenant rights,
increased Government employment, increased spending on education and
healthcare. Increasing and retaining Pensions for Government employees, while
bringing teachers in Government aided schools in the ambit of Public
employment. Affordable healthcare is also a cornerstone of Kerala Model, with
Kerala having 330 beds per 1, 00,000 population, the highest in the country.
The Midday meal scheme for Schoolchildren (Originally conceptualized by MGR in
TN) is also a part. The Education Department’s IT@School, conceptualized in the
Third EK Narynar ministry also shines through as a part of this model.(
IT@School was introduced to increase E-Literacy and internet access in
schools.) The State Government only implemented an unemployment allowance in
2000s. The Government’s Akshaya Scheme, to promote E-Governance has also
simplified the use of Government services. The People’s Plan by the Last EK
Nayanar Ministry became a huge contributor to the Model as well. The widely
acclaimed Kudambhasree mission is now considered to be part of the Kerala Model
as well.
[14]Read
about the Rajan case here, http://www.pucl.org/from-archives/81oct/rajan.htm;
[15] Gulf Dream: For Indians The
Golden Beaches Still gleam, Malayala Manorama Yearbook 1990;
[16]
Link in Malayalam, Use google translate,” ചരിത്രത്തിലിടംനേടിയ 1987”
(the Historical Milestone of 1987), 10 March 2016, http://www.deshabhimani.com/election2016/news/view/43;
[17]
“Admission row: Government on a sticky wicket” by G Mahadevan, 28 August 2016,
The Hindu, http://www.thehindu.com/todays-paper/tp-national/tp-kerala/admission-muddle-govt-on-a-sticky-wicket/article9042061.ece;
[18]
Quite a Misnomer though. Kerala Achieved 90% literacy, “considered” to be 100%
literacy.
[19]
Link in Malayalam, Use google Translate, “സഹതാപം ജയിച്ച 1991; അധികാരം ജനങ്ങളിലെത്തിയ 1996
“, 16 March 2016, http://www.deshabhimani.com/election2016/news/view/44;
[20]
Available under “Citizen’s Charter” in the SCERT website - http://www.scert.kerala.gov.in/;
[21]
EK Nayanar was not the original Chief Minsiteral candidate, it was VS
Achuthanadan, who lost, as a result of which the State party had to choose
between EK Naynar and Susheela Gopalan, urban (and rural) legend being that
Susheela lost by one vote. (In reality, she lost because of two abstentions and
one cross-vote. It was the closest any Woman has come to being
the Kerala CM)
[22] https://en.wikipedia.org/wiki/People%27s_Planning_in_Kerala
[23] “
Local Democracy and Development: The Kerala People's Campaign for
Decentralization” By T. M. Thomas Isaac, Richard W. Franke; “Democratic
Decentralisation and the Planning Principle:The Transition from Below” By C.P.
Chandrasekhar,Centre for Economic Studies & Planning, Jawaharlal Nehru
University available at: http://www.networkideas.org/alt/nov2002/CPC.pdf;
[24] "Kerala economy climbs to $23b by 2005". Specials.rediff.com.
31 March 2009.
[25]
Evidenced by Legislations: The Malabar University Bill, 1996 (Act 22 of 1996), The
Kerala Agricultural University (Amendment) Bill, 1997 (Act 7 of 1997)., The
Calicut University (Amendment) Bill, 1997 (Act 2 of 1998)., The Kannur
University (Amendment) Bill, 1998 (Act 11 of 1998). Available at http://www.niyamasabha.org/codes/bus_11_10.htm;
[29]
Budget Speech of Thomas Issac, 2016-17(Revised), http://finance.kerala.gov.in/index.php?option=com_docman&task=doc_download&gid=8776&Itemid=57;
[30]Deparle,
Jason (7 September 2007). "Jobs
Abroad Support 'Model' State in India". New
York Times. ; K.P. Kannan, K.S. Hari (2002). "Kerala's
Gulf connection: Emigration, remittances and their macroeconomic impact
1972-2000"; Irudaya Rajan, K.C. Zachariah (2007). "Remittances
and its impact on the Kerala Economy and Society"
[31]
“Why Kerala not buying cars is something Modi shouldn’t ignore” by By Ruchi
Bambha, 23 August 2016, Economic Times, http://economictimes.indiatimes.com/news/economy/policy/why-kerala-not-buying-enough-cars-is-something-modi-shouldnt-ignore/articleshow/53824849.cms;
[32]
“Kerala’s LDF Government goes all out on sops and promises”, Indian
Express, 8 July, 2016, http://indianexpress.com/article/india/india-news-india/kerala-ldf-government-goes-all-out-on-sops-promises-free-housing-water-and-power-2901223/;
[33]
“Kerala budget: Makaan for all, but roti and kapda to cost more” , Manoram
Online, 08 July, 2016, http://english.manoramaonline.com/news/just-in/ldf-budget-2016-thomas-isaac-pinarayi-kerala.html;
[34] “State
raises the bar for infra funds” by Girish Menon, 28 August, 2016, http://www.thehindu.com/news/national/kerala/state-raises-the-bar-for-infra-funding/article9040708.ece;
[35]“Need
to re-orient Kerala’s Development Model” by Akshanya Mukul, 11 June 2016, Times
of India, http://timesofindia.indiatimes.com/india/Need-to-reorient-Keralas-development-model/articleshow/50525687.cms;
“How Kerala can be a model state again” by Jayan Jose Thomas, 15 August 2016, http://www.thehindu.com/opinion/op-ed/how-can-kerala-be-a-model-state-again/article8988827.ece;
“Time for a Kerala Model 2.0” by Uday Balakrishnan, 25 August 2016, http://www.thehindubusinessline.com/opinion/time-for-a-kerala-model-20/article7579369.ece;
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