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Kerala economy: The NRI money pile

This post is inspired by an article on NRI remittances to Kerala in the Malayala Manorama of December 27. The thought provoking piece is written by C Sarathchandran who is Advisor to the World Bank – Indian Operations. You could possibly access it on Manorama Online.

The writer points out that 1.8 million Keralite NRIs (Non-Resident Indians) who work in other countries without the pressures of the political ideologies that plague their home state remitted Rs.64,400 crores in 2006. How much is that in US money? $16.1 billion? The estimated income in the current Kerala budget is only Rs.21,000 crores!

What happens to this colossal amount? Only a fraction of it is used in the state and the rest goes to other parts of India. The explanation for this is the dearth of bankable projects in Kerala. Why is it so? One reason is that Keralites generally lack entrepreneurship. They are still oriented towards land and in building fabulous houses with their hard earned money.

The second reason is that most Keralites do not feel secure about investing in industrial ventures in their State. The major contributing factor for this apprehension seems to be the State’s history of industrial unrest. Since Apollo Tyres in the late 1970s, has another private sector project of that magnitude come up in Kerala?

The successful implementation of the Apollo Tyres project was made possible, apart from other factors, because of the total cooperation by the State Government led by C Achutha Menon and the people of the State. In the equity base of Rs7.5 crores, the State Government invested Rs.50 lacs and individuals Rs.50 lacs more, under the Promoters’ Quota.

The approximately 100 acres of land identified for the project at Perambra, Trichur District belonged to forty-two people. A Special Thahasildar was appointed for land acquisition. The owners were magnanimous in giving us advance possession of their properties. Construction started even before the land acquisition process was completed.

In an era when ‘Single Window Clearance’ was unheard of, TV Thomas, the then Industries Minister convened a meeting of all Department heads, with the full support of the Cabinet. He instructed that Apollo Tyres files should be given top priority. Not a single hitch came up during the project implementation.

There was a time like that in Kerala – just three decades back, when so much money was not floating around.

What about today?

Ends.

Also see:

Quo Vadis, Kerala?

Money matters

Sometimes I get worried about the money power that is so visible in India today. In the times of changing values money has become the king. Make the moolah no matter how and one has steamrolling power. The clout is used in many ways.

Businessmen grease palms with money and get things done which ordinary citizens find impossible, and politicians use money to buy or liquidate their opponents. No political party can survive without funds of different hues. And so on.

‘Quotation Raj’ (paying a price to beat up or kill a man or torch his house or kidnap someone) rules the day. The goon world is used even by the major banks to twist the arms of, say, a poor citizen who defaults a Rs.10,000 installment on a house loan.

The Reserve Bank of India (RBI) has recently brought in regulations to control such criminal methods used by financial institutions, but how effective they would be remains to be seen. This might sound pessimistic but the banks could even offer ‘bill collection service’ to its customers at low charges. After all, they already have the infrastructure.

It is good to have money. Like these anonymous lines say,

‘Money is honey, my little sonny,

And a rich man’s joke is always funny.’

But what prompted me to write this piece was another poem. Though it mentions England, it has universal implication:

Wealth, howsoever got, in England makes
Lords of mechanics, gentlemen of rakes;
Antiquity and birth are needless here;
‘Tis impudence and money makes a peer.

This was written three hundred years ago by Daniel Defoe (1660 – 1731).

Ends.

Also see: Tax savings & doing good

The Benazir tragedy: is Pakistan a failed State?

Benazir Bhutto, 52, a former Prime Minister of Pakistan was shockingly assassinated yesterday at the same venue where that country’s first Prime Minister Liaquat Ali Khan was shot dead in 1951. During the 56-year span between the two tragic incidents, what has happened to Pakistan? Has it stood still or gone backwards?

India too had its share of assassinations and terrorists attacks. But so far the country has managed to absorb shocks and tragedies and carry on. In spite of the looming threats and vicissitudes, India has stuck with democracy. The divisive forces that are becoming increasingly active have not yet succeeded in severely disrupting that yet.

What went wrong with Pakistan? It followed the wrong path of India-centric hate, allowed the army to hold sway, and nurtured the ground for dictators who claimed to know what is good for their country better than anyone else. Well, that is the hallmark of a dictator. History is full of them. Some change from uniform to civilian suits or vice versa, but that is usually just cosmetic.

Pakistan too has elections. But how much conviction do they, like the present one, carry? The duly appointed Chief Justice is under house arrest, judges are changed at will, the Constitution is amended by executive orders, opposition candidates who could be inconvenient are disqualified, and so on.

Are only the Pakistanis to be blamed for this sad state of affairs? What about that country’s staunchest supporter, the United States? Since the Second World War that country seems to have been backing the wrong horses.

The Americans pour money and material on Pakistan to fight terrorism, which is undoubtedly the biggest threat to the world today. But does Pakistan have the right credentials to be a bulwark against the menace? Perhaps the Americans are convinced that their ally is fighting terrorism on its Western border. At the same time Pakistan seems to unleash terror across its Eastern border. Hate India appears to be the only policy that country follows consistently.

Will Benazir’s martyrdom open the eyes of the lotus eaters?

Ends.

Also see: Obituary: Common Sense

Christmas spirit in Kerala

In certain matters Kerala is definitely is on the march. Liquor consumption for instance. The sale of branded spirits during last Onam recorded a 28% increase over the previous year.

For Christmas, from December 20^th to 25, Kerala with an adult population of about 2.2 crores (22 million) spent Rs.85.48 crores (USD 21.37m) on liquor sold through official channels! The preference was, as usual, for rum (65%) followed by brandy, whiskey and vodka. This is an increase of 22% from last year. New Year sales are expected to surpass this.

As I said in the post Kerala: Onam goes up in spirit ‘never before has so much been done by so few (Apology, Winston Churchill)’.

Kerala: A Minister’s magic solution to food shortage (sequel)

The new menu suggested by the Kerala Food Minister – milk, eggs and chicken - is running into problems. Even if someone wants to out of patriotism or whatever, follow the Minister’s instructions, it is not easy. On top of the shortage for rice, Kerala is now facing a scarcity of milk. The government seems to have overlooked that fact that the State has to depend on Tamil Nadu, Andhra Pradesh and Karnataka for rice, milk, chicken, eggs, beef and vegetables.

Ends.

Also see: Un-ploughed lies my land

Obituary: Common Sense

[Narayanan Thmapi, a friend from Cochin sent me this. Thought I would share it with you.]

Today we mourn the passing of a beloved old friend, Common Sense, who has been with us for many years. No one knows for sure how old he was since his birth records were long ago lost in bureaucratic red tape.

He will be remembered as having cultivated such valuable lessons as knowing when to come in out of the rain, why the early bird gets the worm, life isn't always fair, and maybe it was my fault.

Common Sense lived by simple, sound financial policies (don't spend more than you earn) and reliable parenting strategies (adults, not children, are in charge).

His health began to deteriorate rapidly when well intentioned but overbearing regulations were set in place.

Reports of a six-year- old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouthwash after lunch; and a teacher fired for reprimanding an unruly student, only worsened his condition.

Common Sense lost ground when parents attacked teachers for doing the job they themselves failed to do in disciplining their unruly children.

It declined even further when schools were required to get parental consent to administer Panadol, sun lotion or a Band Aid to a student - but could not inform the parents when a student became pregnant and wanted to have an abortion.

Common Sense lost the will to live as the Ten Commandments became contraband, churches became businesses, and criminals received better treatment than their victims.

Common Sense took a beating when you couldn't defend yourself from a burglar in your own home and the burglar can sue you for assault.

Common Sense finally gave up the will to live after a woman failed to realize that a steaming cup of coffee was hot. She spilled a little in her lap, and was promptly awarded a huge settlement.

Common Sense was preceded in death by his parents, Truth and Trust; his wife, Discretion; his daughter, Responsibility; and his son, Reason.

He is survived by three stepbrothers; I Know My Rights, Someone Else is to Blame, and I'm A Victim.

Not many attended his funeral because so few realized he was gone.

Ends.

Also see: skip to maiskip to sidebarStatements with a twist.

Yuletide

Christmas at Olavipe

Merry Christmas