Thomas Isaac bats for inclusive growth, gender justice and environment protection

Former finance minister T M Thomas Isaac does not resort to hyperboles while campaigning in his constituency, Alappuzha. He speaks about a new economic agenda with ‘sustainable growth’, which he feels is the way forward unlike the ‘fast-forward’ model envisaged by the UDF government.
For him, unbridled economic growth, based on markets, is a misplaced enterprise.“If the state provides land as incentive to lure private investment or make core sectors – such as education and health – tradable commodities, then we are moving in the wrong direction,” he said.
Isaac said that three constraints had to be considered before unveiling a new economic agenda. “Economic growth should be maximized within the important parameters that are unique to Kerala. They are mainstreaming of marginalized section, gender justice and environment. I would also add protection of public healthcare and education,” he said. Isaac agreed that Kerala is at the critical juncture of a developmental paradigm and some major challenges must be resolved to overcome the socio-economic crisis in the coming years.
“The crisis was fuelled by many factors such as recession in the Gulf and the return of migrants. The lack of good governance and wrong policies adopted by the UDF government are major problems.
If the fiscal crisis continues, it would be very difficult for Kerala to raise funds for long-term infrastructure projects through special purpose vehicles. Kerala needs to urgently shift its development path, focusing on core sectors where the state is competent,” he said.
This reorientation should be done on the basis of social consensus. “This can be achieved by giving total social security to traditional industrial workers, farmers and the fishing community,” he said. He added that core sectors which need to be revived are knowledge, service and skill-based industries and valueadded agriculture.
Unlike other economists, Isaac does not support the theory that Kerala’s developmental model – based on remittance economy – was flawed. “We had a unique development growth experience and the focus on social sector has not impeded growth – unlike what scholars thought in the 70s and 80s – and our remittance-driven economy can be seen as a secondary bank of human development strategy,” he said.
The problem is there are no jobs for literate Keralites. “The challenge is to preserve the gains we achieved in social and health sector and movetowards a knowledge-driven industry,” he said, adding that the state should improve the quality of education in tune with modern demands. “Kerala had a robust public health system which was more state-governed (akin to British system) unlike the cut-throat insurance system prevalent in America. Changing our system is like inviting disaster,” he said.
On the key issue of waste management, he said that the state should go for decentralized processing of organic waste through a bioprocess mechanism. “Even the European Union is thinking of removing subsidies for incinerators. USA is not allowing new incinerators,” he said.
On the issue of declining agriculture sector, he said the state should increase the productivity of fallow lands. “People today want good food. If you dislike organic food, go for safe food,” he said.
Isaac plans to tap the huge remittance by starting a Kerala investment fund, exclusively for NRIs. “We need to provide employment opportunities to those returning from the Gulf. One option is starting major joint venture projects and if a return migrant invests beyond the minimum amount, he will be guaranteed a job if he/she is qualified. In simple words, you buy your own job,” he said.