Kerala 2005 - of Planning Commission

CHAPTER 8
LOOKING AHEAD: POSSIBILITIES AND STRATEGIES
141
the traditional low technology way. However, modern
methods of processing have demonstrated the feasibility
of using this wood for a variety of construction purposes
as well as in furniture.
Although Kerala is a land of coconuts, the use of this as
raw material is limited to a few activities such as extraction
of oil and animal feed. A few modern units have come
to produce a variety of other products such as activated
carbon (from the coconut shell), coconut milk and powder,
concentrated coconut water, vinegar and so on. A number
of products can be made out of coconut. These avenues
call for specialised knowledge, technology and assessment
of market demand, etc.
Another area that can be exploited is the manufacture of
consumables which can be produced on a small scale for
the automotive parts and accessories, linked to the fast(est)
growing transport sector and the heavy density of vehicles
on Kerala roads. It may be noted that parts and accessories
worth Rs. 2,000 crore were needed for vehicles in the State
in 2003-04. If the Government promotes rural production of
such parts, with the help of the locally available unemployed
labour force, its likely impact on the educated unemployed
is substantial. The challenges are (1) the selection of parts
and accessories from a list of about 90 items for local
production, (2) marketing, and (3) public R&D expenditure
for the innovations in processes and organisational set-up
at the household level, facilitating female participation and
the spread of rural industries.
All these call for pro-active policies and initiatives. A part
of it will have to come from the Government, especially
in the collection and dissemination of information,
availability of infrastructure and policy framework.
A welcome initiative in this direction is the initiation of
sector studies, which are general and preliminary in nature
at the moment. More specialised studies will have to be
undertaken on the basis of identification of priority areas.
Another parallel initiative is the setting up of industrial
parks providing land and other common facility. This
can overcome the limitations of quick availability of
land and other complementary factors as power. Table
8.3 shows that 14 industrial parks have been planned
and many of them are in varying states of progress.
Apart from land and power, many common facilities
are planned to be provided that will include common
testing facility, waste treatment facility, packaging units,
and research and development centres. It appears that
the need for introducing modern technology, identifying
niche markets, and standardisation and focus on high
quality are being emphasised in the development of
these industrial parks. It is important to emphasise here
the need to ensure training of workers and professional
employees to impart specialised skills and knowledge
even if they have acquired formal qualifications.
3. Concluding Observations
This chapter examined the possibilities for a qualitative
transformation of Kerala’s development experience that, in
our opinion, will not only address some of the pressing and
persisting problems (such as educated unemployment) but
also go a long way in strengthening the potential linkages
between human development and economic growth. In an
earlier chapter, the need for a qualitative improvement of
educational capabilities has been discussed, which should
give a further impetus to the possibilities discussed here.
The emphasis on education is to highlight its foundational
nature in which there is need for concerted public action.
But the problem of moving from quantity to quality is
a generic one that should encompass a wider canvas of
economic variables and hence the emphasis on all-round
technological change. The social terrain in Kerala is
such that no meaningful and gainful employment will be
created for the vast army of educated labour force without
a system-wide emphasis on technological change. In such
a scenario, it is important to keep in mind, as discussed
in this chapter, the limitations of a regional economy.
This has led us to make a distinction between ‘traded’
and ‘non-traded’ sectors/activities where the former is
subject to competition. Given the rapid growth of the