Business

Focus on the flip side of `Kerala model'

Special Correspondent

Study by Centre for Socio-economic and Environmental Studies

Kochi: The flip side of the `Kerala model' of development is not taken into consideration by funding agencies like the Finance Commissions in their awards and this has affected the State adversely, a recent study by the Kochi-based Centre for Socio-economic and Environmental Studies (CSES) has said.

Of the grants under the substantive provision of Article 275 of the Constitution meant for States "in need of assistance," the State received only 0.8 per cent.

The Twelfth Finance Commission provides no grant for upgrading the State's health or education services while giving Rs.16,059 crores to other States. Kerala's share in grants for upgradation of all social services put together is just 0.1 per cent of the total upgradation grants of Rs.16,684 crores to all States. The State obviously is being penalised for its success in attaining above average standards in social services sectors such as education and health care, the study noted.

The Twelfth Finance Commission, like its predecessors, has taken cognizance of only Kerala's strengths and major achievements.

For instance, while looking at the educational development of the State, the Commission has failed to appreciate that there is a flip side to Kerala's much-lauded achievements.

Most of Kerala's achievements in education have been on the literary front and in school education.

The Commission, the study said, has failed to take note of both the qualitative and quantitative backwardness of Kerala's higher education, technical education and the research front. Likewise, while making no allocation at all in upgradation grants for the health sector of the State, the Twelfth Finance Commission, like the previous ones, has failed to take note of the increasing demand for expenditure on health services as a result of the aging of the State's population, which is changing the disease profile of the State. As is well known, the diseases of the old, unlike those of children and the youth, call for higher investment by the State in diagnostic equipment, hospitalisation, treatment, recovery and rehabilitation.

The Commissions has not taken congnizance of the variety of special problems in the State arising out of the much eulogised and unique Kerala model. It is often acclaimed that some of Kerala's achievements are comparable to those of developed countries.

But these successes have also brought in its wake some of the developed countries' problems. Unlike these countries, the State does not have the financial ability to tackle them all by itself. Since these problems are unique to the State, they have not received the national attention and priority they deserve. While agencies like the Finance Commissions are still grappling with the first generation problems in education, health care and social security in other parts of the country, Kerala is saddled with second-generation problems resulting from its very success in attaining higher levels of social development. Moreover, this very success has huge implications on the State's increasing expenditure needs, the study said.

The lengthening life expectancy, for instance, has resulted in the aging of population, which tends to inflate the volume of social security payments and health-care expenditure.

It has also implications on the quantum of service pensions which accounts for nearly 17 per cent of State's revenue expenditure. Similarly, in the sphere of education, the universalisation of schooling has boosted the demand for higher education and technical education.

None of the Finance Commissions, including the 12th one, has treated the problem of insufficient capacity in higher and technical education in the State as a special problem arising out of the State's very success in attaining universal schooling. Higher school level education has also changed the character of unemployment in the State to that of the educated.

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