Hurdles to overcome

 Since the world is changing so fast that the governments will not be as effec­tive as rule-makers or policy-makers; rather as enablers and facilitators. The US economy remains weak and Europe struggles with its debt crisis, growth in Asia has been relatively robust, with fundamentals much stronger than when the region was hit by severe financial turmoil more than 15 years ago.

According to Mr. Min Zhu, Deputy Managing Director of the Internation­al Monetary Fund (IMF), Washington DC during World Economic Forum’s Annual Meeting of the New Champions, “Asia has to be the global growth engine for decades, at Tianjin, People’s Republic of China, “The challenge for the Asian region is not to survive but rather to remain leading global growth. To be able to lead, Asia obviously has to do more. Not just China or India but the whole region has to move more to a domestic consumption model.”

Asia’s success and its resilience in the face of the crisis could lead to a flag­ging zeal for reform, warned Mr. N. K. Singh, Member of Parliament, India. “There is a tendency for Asia to become complacent. Asia cannot automati­cally assume that it has arrived as the driver of the 21st century.” He called for better management of monetary and fiscal policies, noting that “sensible economics have for too long been trumped by sensible politics.” Singh stressed the need for improving education and healthcare. The goal should be sustain­able and inclusive growth, while not allowing the savings rate to slow. “The first priority must be macroeconomic stability” and managing fiscal deficits, he advised, adding that Asian economies should be cautious about becoming “entitlement societies”.

The current scenario of Kerala is also in the same way. After the Emerging Kerala event which sets clear targets and vision to achieve the goals for the future of the state is still waiting for the green signal which is blocked by the global slow down of economy. Even though Kerala has impressive socio-de­velopment indicators including high literacy, high life expectancy, low infant mortality, high degree of women empowerment and above all enormous hu­man resource potential we have hurdles to overcome to reach the next level.

Ravisankar K.V

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