In development economics we speak about forward and backward linkage effects. They bring in development through a network of contracts.A big central government establishment attracts several private initiatives in manufacturing, services and even in agriculture. Apart from the direct employment provisions, thousands will get indirect employment.Consider the Chennai centred Southern Railway zone. It gives direct and indirect employment opportunities to thousands.
In a state like Kerala, which suffers from widespread unemployment, establishment of a new zone will generate employment, income and opportunities. However, here we see the intervention of politics and lobbying. We have past experience that to protect the party's power hold at Coimbatore, the leading party did not object the bifurcation of Palakkad division and the formation of Salem division.Such petty politics will not help in safeguarding the interests of the sate of Kerala.Therefore, inorder to speed up the development of our State, it is necessary to exert a unified ifluence at the Centre for establishing a new railway zone in Kerala.
Saturday, May 29, 2010
Friday, March 27, 2009
Economics of Traditional Fruit Bearing Trees
Tall and age old mango and jack fruit trees were very common even in our towns until recently.They used to feed all family members during seasons and relieved them from buying vegetables from the market.For example, during mango season the fruit in its various stages served as ingredient to pickles, curries, etc.So is the case of jack fruit trees.Not only the tree's owner benefitted, neighbours also got positive externalities from, say, a big tall mango tree.But mad rush for urbanisation and changes in food habits led to merciless cutting of these nature's treasures.
Thus, there was an economics of self sufficiency, food security and environmental sustainability in the good old days.And that can be considered as the good effects of joint family of the olden days.
But what is happening today?Kerala state which turns out bumper crop of jack fruit, for example,
does not consume much of it.Extreme food habits of our society and a dislike for our traditional food items has made our state dependent on non-local vegetables and fruits.Surprisingly, no person is interested in analysing supply trends from traditional fruit trees and the conservation of traditional fruit trees.Our state's agricultural department must learn lessons from Vancouver city's fruit gardens, community agricultural fields and orchards, school gardens and the like.
Thus, there was an economics of self sufficiency, food security and environmental sustainability in the good old days.And that can be considered as the good effects of joint family of the olden days.
But what is happening today?Kerala state which turns out bumper crop of jack fruit, for example,
does not consume much of it.Extreme food habits of our society and a dislike for our traditional food items has made our state dependent on non-local vegetables and fruits.Surprisingly, no person is interested in analysing supply trends from traditional fruit trees and the conservation of traditional fruit trees.Our state's agricultural department must learn lessons from Vancouver city's fruit gardens, community agricultural fields and orchards, school gardens and the like.
Friday, March 20, 2009
Whom You Support?
A widely publicised and exaggerated viewpoint in Kerala is that we depend on NRI money.
But what about the poor farmers and cultivators in the highranges who produce our traditional export items like pepper etc?
Keynesian identity states that in an an open economy
Y=C+I+G+Nx+K,
where Nx is net exports and K is capital inflow.
NRIs add to K and a good part of it is spent on consumption, especially conspicuous consumption.
Poor cultivators add to Nx.
Now the recession has adversely affected both K and Nx.But our politicians, journalists and others exaggerate the case of NRI returnees and forget about the poor farmers who are badly affected by both globalisation and recession.Moreover, their income adds to productive capital and not to conspicuous consumption.
There is a powerful NRI mafia. No persons, except some NGOs, cry for farmers.
Now whom do you support? The NRIs or the farmers?
But what about the poor farmers and cultivators in the highranges who produce our traditional export items like pepper etc?
Keynesian identity states that in an an open economy
Y=C+I+G+Nx+K,
where Nx is net exports and K is capital inflow.
NRIs add to K and a good part of it is spent on consumption, especially conspicuous consumption.
Poor cultivators add to Nx.
Now the recession has adversely affected both K and Nx.But our politicians, journalists and others exaggerate the case of NRI returnees and forget about the poor farmers who are badly affected by both globalisation and recession.Moreover, their income adds to productive capital and not to conspicuous consumption.
There is a powerful NRI mafia. No persons, except some NGOs, cry for farmers.
Now whom do you support? The NRIs or the farmers?
Thursday, March 19, 2009
Music's DMU
Music purifies your mind and soul.
Hearing song of a cuckoo in the summer afternoons brings happy thoughts to one's mind.
But too much vulgar music and imitations interferes our daily life in our state.All channels and private FM radios throughout telecast and broadcast reality shows.Even third rate singers and composers are treated as celebrities.Even worst songs are rated as exemplarary.The body language, egoistic appearances etc of the singers is nauseating.It seems that Kerala society is giving too much importance to music than other fields.
The age old law of DMU is applicable in the case of music nowadays.
Hearing song of a cuckoo in the summer afternoons brings happy thoughts to one's mind.
But too much vulgar music and imitations interferes our daily life in our state.All channels and private FM radios throughout telecast and broadcast reality shows.Even third rate singers and composers are treated as celebrities.Even worst songs are rated as exemplarary.The body language, egoistic appearances etc of the singers is nauseating.It seems that Kerala society is giving too much importance to music than other fields.
The age old law of DMU is applicable in the case of music nowadays.
Kerala's Backwardness
Why Kerala is backward compared to other states?
My answer is that psycho, social and political factors play leading roles than economic factors. Some of them are
1.A highly egoistic psychic society suffering from neurosis,
2.Consuming culture and luxury fever,
3.Dominance of religious capital,
4.Absence of political plurality, that is, no alternative for the right-left coalitions,
5.Powerful mafias and interest groups everywhere, even in arts, literature and sports,
etc
My answer is that psycho, social and political factors play leading roles than economic factors. Some of them are
1.A highly egoistic psychic society suffering from neurosis,
2.Consuming culture and luxury fever,
3.Dominance of religious capital,
4.Absence of political plurality, that is, no alternative for the right-left coalitions,
5.Powerful mafias and interest groups everywhere, even in arts, literature and sports,
etc
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