Saturday, May 29, 2010

Railway Zones and Linkage Effects

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.