Dr. Pulapre Balakrishnan

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“Post COVID-19 Economy: Considerations from the Experience of Kerala”
by Pulapre Balakrishnan

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Covid-19 has brought about an enormous amount of change in the geography of India. The virus has created a topsy-turvy in the lives of people, especially the administrative system which is entrusted with the responsibility of curbing the venomous threat it poses. On this parameter, we have observed the performance of different states in comparison to the center. Kerala amongst all has emerged as a winner and has attracted international recognition for the handling of the infection by its government. Kerala was able to flatten the curve at a much faster rate compared to the country the large. Kerala has maintained a great level of consistency in flattening the curve. The major reason behind this being an effective and active role of the government and the Public health Infrastructure. Quality and commitment are two major takeaways from the administration of Kerala. Kerala from its erstwhile experience of the deadly Nipah virus was aware of the process. The state operating system, especially the health personnel and the police were extremely efficient. The efficacy of public policy in strategizing ensuring early screening, isolation, and quarantining, social distancing and most importantly contact tracing were exemplarily navigated. Thus Kerala showcased a human development orientation of public policy. Another important feature of Kerala is visible in the sense of responsibility within its citizens. The population of Kerala ensured self-regulation, this justifies the high literacy rate of the country. This in entirety highlights the medical victory from Kerala’s end.

Focusing on the Economic angle Kerala state government has established a financial outlay in the state relief package which is much more than the centers' contribution. Proper expenditure on Public Health infrastructure has shown justified financial distribution. However looking at this situation for a longer period Kerala is set to face a massive economic crisis as the state (and the country) at large depends upon the remittances from the Gulf Countries, this will lead to reverse migration impacting the GDP of the country, this will also impact the covid-19 numbers because people returning will contribute in the increase of the virus spread. This situation will also see an upsurge in the unemployment rate and state population growth; ultimately putting establishing a situation of surplus labor and also the wages subsequently impacting the profitability of the production. Kerala as a state has been facing issues with Food deficit for the longest period due to lack of labor force in the agriculture sector, The issue with the supply chain from other states will make it difficult for Kerala to meet its food demands domestically. To understand; the state’s political leadership tries to maintain the welfare aspect in the times of Global Capitalism, however, the state requires a strong production base.

Conclusion::

In conclusion, there are 4 takeaways from the situation in Kerala :

Firstly, A great Public Health Infrastructure is the most important component for the development of a state. Wealth does not guarantee Health (considering Mumbai is one of the richest states and also the economic capital) and the crisis of Covid-19 has not been handled properly.

Secondly, The concept of welfare is different from that of distributism. Focus on Public Health is a component of Public health and Kerala has properly focused on the component of the Welfare state giving a hint of its government ideology of communism. Thirdly, a lasting welfare state derives its strength from the productive capacity of the economy.

Lastly, The success of the government is overcoming a medical emergency, It is important to gain the trust of the citizens in an efficient and even-handed manner for an effective administration. Kerala in many ways has achieved that responsibly and this has thus helped them in achieving greater successes.