Kerala - Kottayam   

Patnaik calls for regulating pace of structural change

Staff Reporter

To contain burgeoning labour reserves

KOTTAYAM: Prabhat Patnaik, Vice-Chairman, Planning Board, has called for regulating the pace of technological and structural change to contain the burgeoning labour reserves.

Delivering his lecture on `Illusion about economic growth' organised by the Vichara School of People's Economics here on Saturday, Prof. Patnaik said the neo-liberal polices followed by the Governments resulted in growth of the manufacturing sector marked by reduction in employment in real terms.

With market forces given a free hand in the decision-making process, new technologies which enhanced the productivity were being employed. This did not result in corresponding increase in the income of the labour force as these technologies reduced the number of job opportunities. On the other hand, the agriculture sector and the petty production sector were crumbling on account of the rollback of the State from the rural sector. Together, they resulted in much higher inequality and increase in poverty, Prof. Patnaik said.

Empower State

This unequalising model of growth was self-perpetuating, and given the paradigm of growth the efforts in increasing the growth rate would result in more poverty. To make growth meaningful, there should be shift in the paradigm.

To start with, there should be a halt to the rollback of the State and ways should be found to empower the State. Once the State finds its space, it would be able to support the peasantry, the petty production sector, the agriculture sector and the rural masses. "Through the defence of these sectors, we would be able to effect a paradigm shift in the model for growth, which will be more meaningful," Prof. Patnaik said.

Answering a query, he said Kerala should take steps to contain its dependence on cash crops in the agriculture sector. A minimum quantity of food crops, which would ensure the minimum food security of the State, should be produced indigenously, he said.

Lauds job scheme

To another question, he said the National Rural Employment Guarantee Scheme was an ideal piece of legislation, but the Government itself was trying to water down the effectiveness of the scheme.

Dr. B. Ekbal, former Vice-Chancellor, Kerala University, presided over the function. John M. Itty, P.J. Philip, Mathew Kurian and others spoke.

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