Showing posts with label remittances. Show all posts
Showing posts with label remittances. Show all posts

Saturday, July 3, 2010

God's Own Country


Kerala is God’s own country. It is a model state for its excellent human development record. With a population of 3.18 Cr, Kerala’s economy mostly hinges on remittances from its 2 million migrants who work in all weather conditions to send back approximately $ 20 billion which constitute roughly 13% of India’s Foreign Exchange Reserves. Kerala’s per capita income (Rs 24,053) at current prices has surpassed the national average (Rs 20,989) 2003-4. The central investment in the state (Rs 19,144 Cr) is 2.44% of India’s total central investment (Rs 7.83 lakh Crore). This is the state which accounts for India’s 25% of branded jewellery, more than 50% of the population do not have employment, there are around 5 million in the waiting list of the Employment exchanges, in a day, about 26 persons take their life (18 men and 8 women) and per capita consumption of alcohol is 8.3 litres (first state in India) against Punjab’s 7.9litres.

Kerala has hardly seen any industrialization, and the industrial growth last year was (-) 4.44% at constant prices and (-) 2.88% at current prices. But an eight period average (2000-1 to 2007-8) will show that at constant prices, it was 4.9% and 8.5% at current prices. This was largely due to the performance of Rubber, Spices, Tea (was mostly negative), marine products (off and on positive), cashew kernels, Coir and Coconut products (better performance in the last 2/3 years), Special Economic Zone in Kakkanad also showed some impressive returns.

Former Minister of State for External Affairs and MP from Thiruvanathapuram, Shri Shashi Tharoor, mobilized industrialists from Gulf, and made their Rendezvous Sports Club to bid US $ 333.3 million for the IPL. This with the Sahara who bid $ 370 million accounted more than the bid of all the other 8 teams in the IPL. It is, indeed, a great gesture from Shri Tharoor, who has brought IPL to Kochi, using his mighty influence. Had he prevailed on some industrialists who are in the Gulf and other countries to set up units here like Shri Dyanidhi maran did in Tamilnadu, he would have created gainful employment and provided a window for industrial growth.

Does this mean, the priority of Kerala and its men are different? These figures will reveal why?

The State Commercial Tax estimates annual gold sales at Rs 10,000 Cr. Even though gold jewelers would have been caught in the price cross current of a commodity that is both a symbol of conspicuous consumption and prized investment, have no fear seeing the surging of Customers to the Jewellery shops. The national markets for gem and jewellery has hit $ 20 billion (this year) and expected to touch $ 30 billion (2015). Branded jewellery is growing at a steady 40%. Of this, Kerala account for nearly a fourth of India’s 900 tonne gold sales.

According to statistics provided by Kerala State Beverages Corporation, the liquor sales fetched Rs 4600 Cr in 2008-9 against Rs 3,670 Cr (in the previous year). Accordingly 2 million Keralite drink every day while 7 million drink atleast once in a month. Kerala’s per capita consumption of liquor which stands at 8.3 litres is the highest in India. During the Onam week, people purchased liquor worth Rs 154.44 Cr (against Rs 126.07 Cr) last year, a growth rate of 41.53%, and on the Onam eve, Rs 34 Cr liquor was purchased and consumed, the highest in a day during the year

The state has the highest suicide rate. In a day, 26 persons take their life which includes 8 women. This is more than double of the national average. The malaise is spread throughout Kerala, urban and rural, towns and villages, young, middle aged, aged and those who find life miserable take away their life.

Is there a distortion of priorities, or is it a baffle that people do not know how their knowledge and wealth can be used wisely. Like the Minister, who could have used his connections to bring in lot of industries which would be a perennial source of income, or promote Kerala’s rich tapestry of products for increasing its exports? They dilute Kerala’s needs. And the result, there is tortoise growth.

Friday, July 2, 2010

I want a Peon's Post

In this era of macro development , fast communications through e-mails, swift breakfast meetings at London, and evening meal at Chicago and night halt at Toronto, in the God’s Own Country, having the highest literacy including gender literacy, highly educated and the sophisticated prefer a local job in a Government office and that too, the Post of a ‘Peon’.

In answer to an advertisement by the Kerala State Planning Commission seeking applications from candidates for the Post of Peons in the various Government offices and departments numbering 12,000 for the next five years, the Commission received over 12 lakh applications(12,31,499), the largest ever applications received by it. It means, per one Peon’s post there are 100 applicants. The minimum educational qualification fixed by the Commission for the Post was: the ability to read and write Malayalam, VII Pass. But those who applied included a girl, who had an M.Phil (Zoology) with a BEd, MSc with Bed, doctoral researchers, college graduates, Post graduates, etc.

The lure of Government Job, be it the job of a Peon or the lowliest in the Government hierarchy, which offers guaranteed security, light work, intermittent holidays due to strike, bundhs, fixed holidays, restricted holidays, Casual leave, medical leave, maternity leave(for woman), Child care leave for woman (2 years leave with pay). If a staff lands into problems, the Unions will take care off, has attracted highly qualified unemployed to apply for the post of the lowly Peon’s position.

The 12.31 lakh applicants constitute roughly 4% of Kerala’s population of 3.18 Cr. The fact that the applicant’s are in the 18-40 age group reveal that more than 10% of the young population have applied.

The highest number of applications came from Thiruvanathapuram (1.75 lakhs) where job opportunities are less compared to Kochi, the Commercial capital which accounted for 1.11 lakhs, Kozhikode 1.25 lakhs, and Kerala’s border districts like Wayanad (35,000) which had few opportunities and Kasargod(40,000) bordering Mangalore.

The candidates who have applied for the peon’s post have joined coaching classes that prepares the last grade prospects for the Job test.

One of the spin offs of the Post is that, whenever Government LDC vacancies would arise, 10% are earmarked for the last grade employees who just need to score just a pass mark to clear the clerical job test.

Kerala has around 38 lakhs unemployed registered with the Employment Exchanges (9.1%) even though Goa has the highest employment rate (11.4%). In Kerala, there is more than 15% voluntary unemployment(a unique feature of Kerala) , as their kith and kin work in the Arabian Peninsula, Europe and America who send remittances back home regularly. There are around 509.3 million employed in India. The labour force grew at a quicker rate of 2.84% than the workforce, unemployment has risen rapidly. The private sector accounted for a percentage growth from 0.44% to 0.92% while employment opportunities decreased in the Public sector from 1.53% to 0.54%. There are ban on recruitment in most of the Government, autonomous, semi-autonomous bodies. Another factor which pushed up the growth of unemployment was the decrease in employment elasticity from 0.41% to 0.15% (from 1993-94 to 2000). For the period 2004-5,t he aggregate elasticity has tripped from a low of 0.15 to 0.48 (that was the employment elasticity in 1993-94!). We talk about an economic growth of 8.4% for 2009-10. However, the labour force growth was 2.93%, which was more than the population growth rate.

Globalization has seen that 26% of US technological firms founded by immigrants have more than 13% contributed by Indians and the rest combined contributed by UK, China, Taiwan, and Japan. Kerala has immigrants in most parts of the globe which is more than 1 million.

Human development or not, Kerala’s Gross State Domestic Product is heavily dependent on remittances from abroad which constitute 50% of India’s total remittance received from expatriates. Kerala’s exports constitute 2.4% of India’s total $ 185 billion. The Central sector public undertakings are a pie in the ocean of development. Kochi Port, heralded as the Queen of the Arabian Sea is worth a dozen Gold fields; its wealth is inexhaustible. Yet, the state which has the highest consumerism depends upon other states even for vegetables. This is because there is a need to study the structural unemployment scenario with special emphasis on the education scenario. Is it productive? Protective? Need-based? Meeting the challenges of the times?