Kerala, Fast Forward - Kerala This Week, Vol 6, December 2007

The Christmas season seems to have changed the ruling communist government's luck drastically, and looks like the red brigade is all set to fly the good times (No, this has nothing to do with Kingfisher or Mallya). The maestros of the present ruling party seem to be hitting brainwaves after brainwaves. Now isnt that breaking news?

Until very recently the pack has been suffering repeated humiliation by trying to do things that really didnt match their qualifications or intelligence levels. ISRO land to Smart City (Smart! how ironic..), and National Highways to important industrial projects, humiliation has come in many forms to the current government. Unspent "development" grants, absurd project reports, unimplemented plans, depleting funds..and add to it the very slowly but steadily increasing number of unemployed party workers trying to find a job for themselves due to peer pressure from the "foreign" aka the Gulf and Bangalore aka the new America ("God, what has this world come to!, why are all these able-bodied men trying to employ themselves..how can they be so disloyal to the party" - this was overheard at a recent party high-command meeting).

The only good thing for the government has been a totally sleepy and ineffective opposition, just making whimpers and whines occasionally. But all that changed over the last couple of weeks. Here are the brainwaves that topped the list:


Brainwave number 1: "Adopt Santa Claus as the official mascot of the red-brigade"

While there are many guesses as to why nobody thought of this idea until now (or did they?), it is almost certain that none of the present political leaders could think of something so intelligent. Large Santa cut-outs were seen outside a lot of communist party offices, merging with the Achuthanandan and Pinarayi cut-outs and the red flags.


Brainwave number 2: "Train Keralites to climb coconut trees and create an industrial revolution and economic boom"

Terming the UDF Government's decision to train monkeys to climb coconut trees as an attack on the common-man's right to livelihood, the government scrapped the policy since it unilaterally favored the monkeys and the bourgeois apes. Instead, the Government decided to set up a school to train malayalis to climb trees and pluck coconuts. In the wake of the economic boom riding on technology revolution and industrialization that requires education and soft-skills, the thought-leaders of the current government saw this as a perfect answer. Perfect reply rather.

This new policy will ensure that the party workers can climb trees during their free time (which is a lot since its their own party ruling the state and there is no real need for daily hartals), and come down immediately in the event of a sudden post-noon or evening hartal or strike call. The party also welcomed the decision and expected students from other states also to join this prestigious institution once it is open.

The school is expected to begin early in 2008, and initially two part-time (to suit the timings of busy party-workers) courses will be offered - a Post Graduate Diploma in Coconut Plucking (PGDCP) and a Post Graduate Diploma in Maram Keral (PGDMK). The prospectus says that the admissions will be purely on merit, and the candidates should have at least dropped out by Grade 10. Attendance below 50% in school, party work, destruction of public property, previous experience in related fields will be a plus. Trusted sources said the seats have been filled until 2009 already, and there is a proposal to grant the school a deemed university status.

Whats more heartening is that companies like the CPeye, INCee, CPeeM, DeyeC (K), RSPee, BJPee, IyouML and most other leading political business outfits have agreed to conduct campus-selection right from the first batch. And since the school will not require an actual campus, there is much cheer in the parties.

Brainwave number 3: "Make Monopoly the official game of Kerala"

This idea was kept highly confidential until very recently, although the present set of ministers and their associates were trained and made to practise the game every day before they assumed office. The results are evident from the Munnar and ISRO deals (or "debacles" as some folks with anti-common-man sentiments term them!). The government is fully into tearing down houses and hotels and taking over property (Munnar) and selling it elsewhere. This brainwave is the result of the sudden belief that all the land in Kerala belongs to the government. Its almost like one of the players in the game decided to become the bank and make his own rules.


Brainwave number 4: "Make alcohol the official drink of Kerala"

At a whopping 8.3 litres of alcohol per person a year (as per the latest stats), Keralites are the biggest drunkards in the country. And it shows.. in da house, in da street, in da work (what work?), in da movies..everywhere. And what better time to prove this than Christmas and New Years. The alcohol sales (minus the more commonly used illicit liquor) in Kerala just on Christmas eve supposedly crossed Rs 18.6 crore this year.


Brainwave number 5: "'Common-man' can make pirated CDs and use pirated software"

This idea was brought to the fore after officials from Microsoft, along with police officials, raided locations across the state and captured pirated versions of Windows software. In protest, the poor "common-man" organized hartals to protest against such actions that curb their right to earn illegally. After all its the government of the poor "windows-loving common-man" ruling the state, and the rest of the state needs to run only on Linux.


Brainwave number 6: "Keep all major projects in the 'feasibility study' and 'consultation' phase for as long as possible"

Be it Smart City project or the Vizhinjam Port, the government stumbled upon this wonderful brainwave by chance. They have now discovered the beauty of keeping all big developmental and employment-generating projects in a literal state of suspended animation. This is done by releasing press notes every couple of weeks on some such big project, and then doing nothing about it. A "6-lane road is going to developed in Kuttipuram", "1001 bridges and flyovers coming very soon", "Vizhinjam port will become a reality", "all districts will have tech-parks".. the list is endless. These occasional outbursts of publicity seem to be enough to fool the literate-but-literally-uneducated Keralite public and keep them dreaming of a better tomorrow, and to fool the common-man into thinking that participating in a hartal today will win their children bread tomorrow.

But reality is far from it. Vizhinjam port has been in the form of a tender for many years now, Kerala was thrown out of the highway projects (but apparently got back in with some sense prevailing somewhere), Smart City is yet to take off despite the deal being signed, and crores of rupees received as funds from various organizations for development and health care remain under-utilized or non-utilized due to the exceptional inefficiency of the state government (or their inability to understand logic or take educated and intelligent decisions).


Looks like we have lots to look forward to the next 3.5 years or so of this government. Can somebody please Fast Forward?.
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Kerala This Week, Vol 4, August 2007

The last few weeks have been rife with examples of illiterate leaders ruling over a supposedly literate Kerala, a state full of people who are ever willing to be donkeys for the sake of politicians and the all powerful, invisble, super power, called the society.

Topping the list, and creating headlines (pushing aside the Munnar rampage and the demolition squad which fizzled out in front of the AKG center and "party offices") was the release of a Madani. Charged on some 23 accounts related to the Coimbatore blasts some years ago, the beloved leader is now back directly from jail to front page politics, as though he fought for India's independence. And the state politicians have been wooing him with utmost devotion. His "rally" in Trivandrum was "emotional" and "fiery", and was chaired by two ministers. I have nothing against or for Madani, but the ministry "rallying" with him is a bit shameful in my opinion. And the government is sponsoring his "treatment", that too in a private hospital.

This is the same government thats "helpless" when its people are dying because of some fever which they are yet debating and referring textbooks for, the same set of leaders that blame the central government while doing nothing for its flood ravaged people. So where does all that concern they have for Madani disappear when it comes to the people of Kerala?

The other most interesting show happening now is the "fight against retail chains". We have had hartals, demonstrations, threats, stone-throwing, etc against Reliance, Walmart and other retail chains entering Kerala. While on one hand we gloat that we have Spencer's (since decades) and Margin Frees', in the same breath we also oppose these new companies (just like we opposed Coca Cola and Pepsi while drowning ourselves in alcohol and smoking beedis). The reason? That we still need to be mistreated by the local shopkeeper, and his total lack of interest in us as customers (or even your existence in his shop when you go to buy something!), and that we still need to be forced to take only what the Vyapari Vyepasaris dictate.

There was a debate on "Nammal Thammil" on Asianet last night. One educated (not literate, mind you) professor argued that over Rs. 100,000 crore worth produce is wasted ever year in India due to lack of proper distribution, sales or exports, and that these retail chains will only boost sales and reduce this wastage. The men from the VV samithi, dressed in the evil khader uniform, as usual responded with their snideful retort, saying "we all know" that Reliance and the likes have paid money to educated people to speak like this and argue on their behalf in public forums. You can never argue and win a point with such people, forget making them understand. Like they say, never argue with idiots, because they will drag you down to their level and beat you with experience.

It is the same "experience" that wins accolades for leaders in Kerala for being irresponsible. Take for example, how our minister shirked responsibility and said he will picket the PMs house if the central government doesnt help the flood hit state. He pretended he had nothing to do with the state, he said its all the center's fault, and we, the people, clapped. It is also the same experience that sent Special Task Forces to demolish buildings across the state, ruining crores of rupees, instead of acquiring them and running them as government buildings. (The STF is now without its two poster boys; both have been sent on extended leaves for "treatment")

Some from the VV samithi say, only at Narayanan's shop do we get the local feel and homely atmosphere, but not at any retail chain. But not everyone wants to hear Narayanan or Keshavan or George or whoever gossip anymore, or waste our money on substandard stuff, or even sniff the stink of local politics anymore. And for those who do, Narayanan will surely be there. He doesnt survive on sales of Kellogs or Dove. It is the same irrational fear that was instilled when Telecom and the airlines were privatised. Today majority of the people use mobile phones, and that includes the likes of Narayanan. Indian Airlines has become cheaper and at least tries to offer better service.

Its time literate Kerala went back to school and realized that our illiterate leaders are simply taking us for a ride. There are scores of promises and projects that are "proposed" and "planned". But what has happened in reality? Nothing! Except for all the investments the private companies make. Smart City (which was claimed as a victory), Vizhinjam Port, Technocity, Road projects..all are still being planned and destroyed. Planned for maximum benefit for the leaders? What change did the new government bring? Did the farmers benefit? No. Did the fisherfolks benefit? No. Only the party and the political goons and criminals benefitted and continue to benefit. And if we dont realize and change, its not that change is not going to happen. It will. Its just that we will be the losers. And the politicians will be the only people who gain.

The Central Government took over the Rajiv Gandhi Center for Biotechnology in Trivandrum couple of days ago, and saved it from the politicians in Kerala, who have not even completed school but desperately fought to become its Chairman (for what??). Wonder why these people want to infiltrate all domains and positions. Havent they messed up enough? Its similar to Pawarji who cant even walk straight being the president of the cricket council, and ensuring that Indian cricket is a mess.
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Securing Kerala

In recent weeks, Kerala Chief Minister Achuthanthan has caught the state by surprise by sending earthmovers and bulldozers to Munnar to remove illegal encroachments, including properties owned by politicians of all hues. In the process, his actions have won the hearts of some of his staunchest critics among the public. Around the same time that Achuthanthan decided to move against what has come to be known as the "land mafia", he also announced plans to reverse paddy reclamation projects throughout the state. As rice has fallen out of favour with Kerala farmers, paddy fields have given way to other crops and commercial enterprises. Expressing concern for the state's food security, Achuthanthan has proposed actions against real estate firms who buy paddy fields and convert them for alternative purposes. Unfortunately, what he does not realize that this latter plan is going to backfire and threaten his very efforts to curb illegal encroachments.

Illegal encroachments are consequences of an economy with increasing disposable income but comparatively few investment opportunties. And whether we're talking about non-resident Keralites sending home more and more remittances every year or real estate firms reacting to economic opportunities in Kerala, the reality is that Kerala has to proactively react to the demands of an increasingly wealthy population. And this is where it is falling behind today.

First, let us give Achuthanthan credit where he is due. Forest lands are government property for the very reason that free markets are imperfect. Forest lands have enormous positive externalities, because they are an important link in the biological cycle. Some of the Munnar forests contain the most pristine vegetation in Kerala. They are habitats to wild animals that form an important part of the food chain. They potentially harbor plants whose medicinal value are inadequately documented. Forests also act as carbon dioxide reservoirs, playing increasingly significant roles as the world searches for solutions to air pollution. They hold more benefits to society than can be accounted for, and thus do not compensate private holders as they should. In private hands, they would not be conserved as they mean more to society as a whole than to private individuals. Their viability are best left to a public authority appointed by society. However, forest departments and land revenue departments can be lax when there are not enough incentives in place to maintain healthy forests. Let us not forget that it is the political class which is responsible for many instances of illegal encroachments, so change should begin at the top. So, let us hope that our Chief Minister also turns his attention to the systemic flaws that lead to the misuse of public lands.

In contrast, the Chief Minister's plans for paddy fields, have very little to do with the reality of a growing Kerala and owes more to his fixation on food security. This unhealthy obssession is partly rooted in Kerala’s history. In particular, the political class in Kerala still suffers a hangover from the food crisis in 1964, when the existing Communist government was booted out and the state was placed under Central rule. The four states of Andhra Pradesh, Karnataka, Tamil Nadu and Kerala were then consolidated into a single food trading zone. Instead of letting food prices prevail at market rates and intervening for the most marginalized consumers, the Central government placed price ceilings on the stocks it purchased in the name of rationing. So while wealthier consumers in Kerala were able to pay the rates that Andhra suppliers demanded, ration ships ran out of stock as the State government refused to budge on prices. Kerala tided over the crisis temporarily with imports from countries including the U.S. and Pakistan and over time developed a more efficient distribution system. So, Achuthanthan's concern for rice’s dwindling prospects in Kerala almost seem justified. Almost.

It is difficult to justify a labor-intensive crop like rice in a state that has near 100% literacy and is better off by putting its human resources in more productive industries. Kerala's achievements in educating its people are precisely why paddy fields are dwindling from their peak in the 1970s. The mass spread of education, pre- and post-Independence, opened up alternative sources of employment for millions of Keralites within the short span of two or three generations. Workers from communities that historically depended on agriculture suddenly found more lucrative opportunities in retail, education, civil service, construction, tourism etc. It's the classic textbook case of economic diversification within an increasingly skilled workforce. Meanwhile, rice's viability as a crop has diminished significantly with rising labor costs.

But despite the diminishing contribution of rice to the local economy, Achuthanthan believes that Kerala should spend valuable taxpayers' money on increasing the cultivation of rice in the name of food security. If we define food security as a state where people are capable of feeding themselves, Kerala is not facing a food crisis by any measure. If anything, most Keralites are employed in those jobs where they are most productive and can earn enough to feed themselves. The only need for an intervention would be for those marginalized consumers, or "non-consumers", for whom the price of rice puts it effectively out of their reach. It is conceivable that these non-consumers have grown in number in recent times as food prices have risen. Yet, is forcing farmers and industrialists to switch to paddy the most effective way to feed these marginalized people?

If Achuthananthan's true goal is food security, he has two options:
1) procure food at market rates and subsidize them for the marginalized consumers or
2) grow food locally and provide it to the needy.

The latter is far more disruptive because it ignores the merits of a competitive market and creates a deadweight loss to the state. With option 1, he can obtain rice at the cheapest rates possible from other sources. With option 2, he forces farmers to grow rice in the place of more valuable and less-labor intensive crops and thus reduces their incomes. But, even if he were to subsidize those farmers and prevent any loss of income to them, Kerala would be paying for a relatively expensive crop, creating an even greater bill for taxpayers. So, one has to assume that Achuthanthan believes that there is some intangible benefit the balances the cost of encouraging paddy growth. Therein lies the unspoken, irrational fears that "food security" have come to represent.

Food security as an argument belies many of the irrational fears that politicians hold about free trade and farming constituencies. Achuthanthan’s paddy project is inherently about his staunch belief that Kerala should produce its own food and his insecurity with free markets. According to our leaders, we should support rice farmers even if we have to pay more for their rice and create fields when there is no need for more. This irrational argument ignores the very basic fact that Kerala consumers are not restricted to Kerala’s products and should be able to choose from the larger Indian and world markets. The hype around "food security" also ignores Kerala’s ability to focus on more productive sectors of the economy so that it can create more wealth and its people can eat more than a daily plate of gruel. In a nutshell, paddy reclamation is a wasteful exercise for a state with better things to do.

Yet, there is no dearth for meaningful reforms if Achuthanthan seriously wishes to pursue greater food security for Kerala. For example, he can begin by reforming one of the most antiquated laws in Kerala agriculture, the Kerala Land Utilisation Order of 1967. The 1967 legislation was passed with the express intention to lock up agricultural land in Kerala, including paddy fields, within agriculture. Passed in the hindsight of the ’64 crisis, the Order introduced tremendous restrictions in converting fallow paddy fields to commercial usage. However, as rice prices have fallen and labor costs risen since the Act was passed, huge swathes of paddy fields have been converted surreptiously or left barren in the absence of government permission. In the process, environmental activists have lost considerably in their fight to reforest paddy fields and restore pre-agriculture ecosystems as needed. Owners of smaller landholdings have been unable to take advantage of much needed capital investment and consolidation. And illegal encroachments have proliferated as scrupulous dealers have turned their eyes to less well protected public lands in the absence of commercially zoned real estate. The ’67 Order is increasingly endangering the delicate relationship between public and private lands. Ironically, it has even failed to play any substantial role in increasing food security. Because in a market like India, where people are free to trade across state borders, food security has little to do with local crops and more to do with economic security.

Kerala's food crisis in 1964 was only superficially the result of inadequate agricultural output. The 1964 crisis was in part driven by Kerala’s impoverishment and lack of economic diversification. A community’s dependence on agriculture leaves it exposed to a considerable amount of risk, for e.g. the risk that a bad drought will bring a poor harvest. Kerala's lack of value-added products and a largely unskilled workforce in the 1970s left a large section of society exposed to the highly variable price of a commoditized product. So in the past, local food insecurity has always fed economic insecurity and vice versa – i.e. a fall in food production often led to a loss in income for a large portion of Keralites, thus reducing the ability to buy food and so on. Today, the situation is very different with Kerala having diversified significantly into the services sector and a large proportion of skilled and unskilled workforce having migrated overseas. The debilitating link between food production and economic insecurity has weakened considerably. Most Keralites no longer rely on the comparatively cheaper and inferior rice from public distribution system as they are generally wealthier than their predecessors and can afford to buy better quality rice at prevailing rates. Ultimately, Achuthanthan's paddy reclamation initiative is not only a solution to a non-existant problem; it also does little to improve Kerala's economic security, which as history shown, is the best driver of food security.

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