column BUSINESS ECONOMICS Dr. Kochurani Joseph drkochurani@gmail.com
Business is a market driven phenomenon and when consumption is reduced it will adversely affect the production.
A
REBUILDING KERALA: BUSINESS PERSPECTIVE
fter the devastation caused by incessant rains and flood waters, Kerala is gearing up to clear the debris and rebuild everything that was ravaged by the waters. Now the need of the hour is to rebuild Kerala to meet the challenging needs of the society because the pillars like plantation, tourism and real estate in have been badly affected. Public health facilities too face a crisis as the floods recede. The major risks the State faces include water-borne and mosquitoborne diseases. We need to rebuild the state wholesale into a New Kerala. There is also the need for more immediate issue of funds. The government has asked industrialists and business organisations to provide whatever help they feel is appropriate to facing a “humanitarian crisis”. Recovery efforts in various areas are about funds, inclusiveness and sustainability. In the business sector the greatest problem is reduction in consumption. Business is a market driven phenomenon and when consumption is reduced it will adversely affect the production. Eventually when
36
BRAND KERALA
production is less, it means decline in employment and hence the income generation will be hampered. So to boost up consumption is the immediate need. Follow a ‘‘new deal” plan as formulated by President Roosevelt to revive the economic depression that the American economy
KERALA NEEDS A NEW WORK CULTURE WITH THE STATE AS A CATALYST. GETTING THE FINANCIAL RESOURCES, EQUIPMENT AND MACHINERY IS NOT THE MOST DIFFICULT PART.
during the 1930’s. It was the application of Keynesian Economics, tackling macro problems at micro level. The money will be spent to repair and build roads and bridges, houses and business establishments, creating new jobs for carpenters, electricians, and engineers, which
SEPTEMBER 2018
will trigger a consumption boom. The following areas need to be focussed for a revival.
Infrastructure The incessant rains and floods led to widespread destruction of property and displacement, the extent of which is yet to unravel fully. An assessment of the destruction, the economic costs and impact of reconstruction is a challenge given the scale and extent of the damages. Among the various fields of renovation the construction sector is of prime importance. Especially the transport system because all other industries like tourism depends heavily on transport system. Kerala, an economy underpinned by construction, plantations and tourism is likely to face labour shortage owing to the sudden outflow of migrant labourers from the North East. Thousands have lost their jobs in construction, plantations, rice mills, factories and fish processing units. Kerala needs a new work culture with the State as a catalyst. Getting the financial resources, equipment and machinery is not the most difficult part. But getting people with the right skills
