Wednesday, September 19, 2012

Few More Thoughts on Emerging Kerala

In my previous posting,I had shared some of my thoughts on the issue.A few more points need to be added on to it.Now i would like to address a more fundamental question.The purpose of the event no doubt is development of the state,to put it in a nutshell.If that be true,then one has to ponder on what is development.Is it bringing a few more industries/business/facilities/establishments etc?Or is it creating employment?

Ideally,development should be defined as alround improvement of life in the state.In that case,improvement of economy is one of the key factors.If economy has to improve,all  activities in the state should improve.Agriculture,traditional Industries,new generation activities,service sector,infra structure,energy ,the list is not exhaustive,but only indicative.In today's situation,any activity should be globally competitive to survive on a long term basis.So first thing should be to identify which are the sectors where the state has locational,climatic,and natural resources advantage.
One also needs to analyse where the state has natural and man made weaknesses.This will lead to a realisation of threats and opportunities.(in Management jargon,SWOT analysis)

Looking at the strengths,educated manpower,conducive climatic factor,relatively better power situation,bounty full rainfall,Availability of good educational facilities across the state,good law and order situation are some of them.

There is the natural weakness of non availability and phenomenally high cost of land is the predominant factor.Absence of a community who are primarily entrepreneurs(like Chettiars in Tamilnadu,or Shetties in Karnataka,Khammas in Andhra,Marwadies in North India etc) is a weakness from a local entrepreneurial point of view.Volatile labour force could well be a disincentive for new industries.Absence of high quality education is another weakness

There are great opportunities on tourism and IT sectors. Developing sectors like Bio Technology,and similar research oriented projects present good opportunities.Imparting of technology in traditional Industries like Coir is another area of opportunity.Mechanisation of farming sector,value addition of cash crops are another major opportunity.

Real time threat is in the form of enviornmental damages,land scarcity becoming still larger threat,further depletion of labour from farming sector.

Emergence of Kerala as a better destination will depend on how these issues are tackled.By concentrating on our strengths,eradicating our weaknesses,addressing the threats, and utilising the opportunities.Unfortunately,the government does not seem focused on that kind of an exercise.The approach of the Government is like a wayside vendor calling all and sundry to buy what he has to sell.This certainly will send signals to the prospective enturpruners that the state is up for sale and they can make a killing by proper bargaining.

Monday, September 17, 2012

What is this Emerging Kerala?

The promotional event  Emerging Kerala has successfully been concluded.As an event,it was a success.Good arrangements,well organised,good participation-you can't ask fore from an event.It has generated good publicity for the efforts of Kerala Government on development of business in the state.
But if one is to evaluate the event on a more objective basis,one has to compare the objectives of the programme and its achievement.There has been contradictory statements from responsible quarters on the objectives.It varied from"generating feelgood factor"to "image building"to"finding investors for specific projects"and many more.This is an indication of the lack of clarity in thinking in the Government itself.There were enough indications to show that the emphasis of Chief Minister and his Industries minister were different.It could well be that they operate on cross purposes(or was it a struggle for limelight?)
Even at the end of the 3 day meet,there was no clarity as to the quantum of live projects generated.So many figures were thrown around.A figure of 40,thousand Crores was announced by CM,which was found to be incorrect before the press meet was over.The blame squarely went to the "Marketing Team",presumably the event managers. A good way of thanking the guys(and girls)who burnt a lot of midnight oil for conducting the mela.
The Chief Minister had eggs on his face the very next day when a News Channel reported that Volks Wagon has not even considered putting up the Engine assembly unit in Kerala.In fact it was the largest privet sector investment in the list announced by the CM!!!!A clarification came the next day stating that some other representative (identity undisclosed) of the company had come.This made things still worse.Can somebody walk into such a high level meeting claiming to represent a big company without any knowledge of the Corporation they claim to represent?If so what kind of verification of credentials have gone into the meet?
It appears that the meet was an image building exercise of the Government in general and CM and Industries Minister in particular.