The Hindu Business Line : `Two-pronged growth strategy for Kerala vital'

Thiruvananthapuram April 2 While there have been changes for the better in Kerala over the past 50 years, this growth is not sustainable either economically or socially, said the State Finance Minister, Dr T.M. Thomas Isaac.

The State needs to evolve a strategy of sustainable, equitable and rapid economic growth, he said while speaking on `Kerala's Economy' at a conference on `Kerala in the Global Economy' here on Monday. To achieve such growth, Kerala has to follow a two-pronged development strategy, he added.

STRATEGY

Firstly, the State should create increased public support for rejuvenating its agriculture and traditional industries and also upgrade investments in social infrastructure such as health and education, he emphasised.

Secondly, the State should look at much better investments in knowledge, skill or service-based industries where it has a competitive advantage, he said.

Investments in knowledge and service-based sectors should come from the private sector and the Government will play the role of a facilitator here, the Minister added.

`Need for change'

Earlier, addressing the gathering on the `Challenges Facing India's Economy', Dr T.N. Srinivasan, Professor, Yale University, said some basic economic and political institutions in India needed to be changed.

The Planning Commission, for instance, should be turned into a Public Investment Board with the Centre and State Government as shareholders, he suggested. This body could then accept project proposals from the Centre and the States, evaluate each proposal and make investments based on the merits of each project, he added.

Organised by the Asian School of Business, Stanford Centre for International Development, TiE Kerala and Kerala Global Support Network, the two-day event is intended to help determine a strategy to put Kerala on the path to sustained growth, explained Mr Arun M. Kumar of the Kerala Global Support Network.

Chinese factor

In his presentation to the gathering, Mr Nicholas Hope, Deputy Director, Stanford Centre for International Development, said that Indian States could learn several lessons from the Chinese development experience.

For instance, Indian States could look at avoiding policies that favour specific localities and should foster market integration through efficient communication and transportation systems, he said.

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