Showing posts with label Goan economy. Show all posts
Showing posts with label Goan economy. Show all posts

Thursday, November 5, 2020

‘AMKA NAKA’: IIT, COAL HUB, AND DEVELOPMENT

 

From Canacona to Sattari, the chorus is loud and clear: ‘Amka Naka.’ Goans once again in large numbers are saying no to ‘mega projects,’ be it an IIT (that was shifted from Canancona to Sanguem) in Sattari, or the expansion of the coal hub in Mormugao with the supplementary project of double-tracking the South-Western railway line. Underlying these vociferous protests is a rejection of an economic model, called ‘development,’ that destroys the livelihoods and landscape of Goans, and a political establishment that promotes such crony capitalist ventures. This development makes Goans and Goa disposable in the interest of (inter)national businesses.

 

Of course, this is not the first time that Goans have said no to such development. From the 1970s, the Goan economy began to change from one based on mining to one that diversified into tourism. Mining did not stop, of course, to the extent that mining and tourism became the joint ‘backbone’ of the Goan economy. The then MGP government, though not necessarily open to external capital, and which focused much of its energies on domestic agrarian reforms, nonetheless promoted tourism to boost the Goan economy. In both industries, particularly in the new tourism industry, conflicts over land control and ownership were rampant.

 


But, from the 1980s, the tourism industry was the chief site where these conflicts over land control and ownership were played out. It was an old conflict, no doubt, between the bhatcars and mundcars, but the difference now was that Goa was open to national and global capital. The fanfare around the Commonwealth Heads of Government Meeting (CHOGM) in New Delhi in 1983, with a retreat organized in Goa, is a watershed moment that ushered widespread urbanization and tourism-related conflicts in Goan coastal villages.

 

The takeover of land by the tourism industry was resisted right from the start. Back in 1983, it was widely reported that Goans were resisting. Josephine Lobo and Preciosa Menezes, then in their seventies, fought against the expansion plans of a starred resort in Candolim. While the fight predated the CHOGM event, the starred hotel in question seemed to use the opportunity provided by CHOGM, with the massive government investment and interest to ‘get things done’, to finally acquire some coconut orchards owned by the two septuagenarians mentioned above.

 

Things only got worse in the 1990s. The promotion of tourism required more starred hotels and more land, especially from the mundcars, who had become owners of small holdings thanks to the Bandodkarite land reforms of 1964. One could think of the well-known case of a Japanese retirement village that was opposed successfully, which also brought tourism’s links to land use to the fore. Simultaneously with the conflicts over land, there were deep-seated cultural changes that the coastal towns experienced. Studies and surveys that document these changes highlight how the school dropout rates increased by leaps and bounds in the 1990s.

 

In the 2000s, while tourism continued to grow unsustainably, the demand for iron ore increased due to the Beijing Olympics. The result was one of the wholesale destruction of the forested regions of Goa. The mining companies promoted local Goans to invest in trucks to transport the ore. The illegalities in the sector and the destructive extraction of the ore led to an investigation under Justice Shah. Mining thus came to a sudden halt due to the order of the Supreme Court. Those Goans who had invested in trucks were the ones who were severely affected, not to mention as well the agrarian communities in the mining belt whose fields were affected due to the waste from nearby mines.

 

But despite such obvious experience of how destructive the economy of Goa was, successive governments—be it Congress or BJP—pushed for a more significant share of tourism, and showed no interest or initiative to recover the dues of the illegally-extracted iron ores from the defaulting companies. At the very least, the political establishment could have tried to redeem themselves by formulating better economic policies in the wake of massive scandals and illegalities in these ‘backbone’ sectors. In other words, they could have thought about a better alternative and worked towards its realization through policymaking. Instead, we were given more mega projects in the form of IITs and coal hubs!

 

I have focused only on the major economic trends and the protests against them. There were other equally essential protests such as the Ramponnkar’s agitation against mechanized fishing, the bitter opposition to the Konkan Railway single track, or the movement against turning Goa into a Special Economic Zone (SEZ). Nonetheless, it is clear that since the early 1970s—that is after Goa was made a part of the Indian Union—successive governments have pushed Goa and Goans to the brink of an economic and environmental crisis.

 

Since the 1970s (at least), Goa has been experiencing the fallout of ‘development.’ Such a model, with its emphasis on infrastructure and industry, was touted as a solution to global poverty, especially after WWII. In simpler terms, or the common parlance of election discourse in Goa, ‘development’ means roads, water supply, and other necessary services. But to understand what development truly means, one must look at the destruction of Goa’s man-made and natural infrastructure by the mining and tourism sectors. There is no better way of doing business in the ‘development’ model.

 

With all of us facing the ill-effects of COVID, this destructive economic model patronised by the political establishment is untenable. Hence, when localized protests assert that “Amka naka IIT,” or “Amka naka kollso,” they should also unanimously assert that “Amka naka development.”

 

(First published in O Heraldo, dt: 5 November, 2020)

Wednesday, October 7, 2020

THIS CRISIS WAS FORETOLD

 

The current COVID-19 crisis and the financial unpreparedness of governments worldwide in dealing with it are a cautionary parable. In Goa, the situation is no different. If there is a difference, the situation here is undoubtedly worse than in other places.

Be it the global financial crisis of 2008 or the Corona crisis now, it is certain that the poorly-paid workers are the first and the most affected of the lot. Though performing the most essential tasks for society, such as cleaning, these workers are treated as dispensable. Nowhere was this more apparent, and willfully ignored, as in India. The daily-wage workers’ barefoot attempts to return to their villages due to the lockdown should have haunted the country’s collective conscience.

But it didn’t! And the reasons are not hard to guess. The centuries-old and fossilized attitudes born out of an essential high and low within the caste hierarchy has seen most people condemned to remain poor and socially inferior. Of course, there have been moments when the underclass has rebelled, but the casteist system has survived, one way or the other.

 


In Goa, we hardly hear about how the pandemic has affected daily wage workers. In the grand narratives of megaprojects, like marinas, IITs, and coal hubs, these are precisely the people who are willfully ignored. Moreover, the government and big businesses want the land that belongs to agrarian, fishing, and daily-wage earning communities. The pandemic has surely deepened the financial problems for this section of our society.

And it seems that the pandemic and the financial crisis is ripping through the lives of even those who are not exactly poor or socially inferior. Recently, we read that in a small state like Goa, about 200 small businesses have asked for their trade licenses to be canceled. It is not surprising, though understandable, why small businesses made such a move. They are simply unable to stay afloat.

Also not surprising (as well as not ironic) is that while small businesses shut due to a mismanaged crisis, big businesses are expanding as if we are not in the middle of a health and financial crisis. News is trickling in of a major corporation, believed to be close to the ruling party, is planning to expand into e-retail, telecommunications, agriculture, and education. Another corporation wants to increase the volume of coal transported through Goa for generating power.

The state appears to favor big corporations unjustly. Nowhere is this partisan attitude more glaringly obvious than with the mining companies. Ever since the Justice M. B. Shah Commission made the startling revelations that Goa’s illegal ore extraction was worth Rs. 35,000 crores, the government has been unwilling to hold accountable any of the companies involved. After about eight years from the first revelations, it is now reported that the state can at least recover about Rs 466 crores. It is a fraction of what was alleged in the Shah Commission report, but it appears that the state will once again drag its feet.

Today when small businesses are shutting down, and people are losing their jobs, the treasury could have enjoyed some fiscal stability from these 466 crores at the very least. The resulting benefits from this stability could have been passed onto the people of Goa. For instance, the recovered cash could have been easily used for medical equipment and life-saving drugs against COVID-19. But alas, all these measures are ‘could have beens.’

Before or after COVID-19, the state never ensured that the exchequer was in good health. There were repeated warnings that the Goan economy was hurtling towards a crisis. For instance, the tourism industry’s performance and management were sure signs of what was to come. The mismanagement of the shack allocations every year, the taxi operators’ issue, and a general environmental crisis that is tourism-related took Goa to the tipping point.

Since the 1980s, successive governments have ignored warnings and recommendations that the carrying capacity—the number of people a tourist destination can serve yearly without environmental and cultural damage—should not be exceeded. But the governments want to increase the number of people visiting Goa each year continuously. Even at the peak of COVID-19 infections, both in Goa and the rest of the country, the Goa government announced that it was opening the borders for Indian tourists—even if they traveled from the Corona hotspots—while Goa itself had zero cases.

The role of the government in averting any crisis, with or without a pandemic, is central. If governmental policies make no provisions to withstand shocks and crises, then the government fails in its duties towards its people. Merely promoting multi-crore projects is a sure indication that more disasters will happen in the future. We are living in one now!

If one considers the last two decades of financial crisis and mismanagement, one gets the eerie feeling that our current crisis was foretold. True that there are some things that the government cannot fix; a vaccine takes about 18 months to be safely administered to the people, for instance. But be it a vaccine or safeguarding jobs and the economy, the government needs to be held accountable for an utter lack of fiscal stability. While people are suffering a pandemic and a financial crisis, the government cannot start building new monuments, like a parliament building or a Governor’s residence. The government demonstrates its accountability by prioritizing its spending. For instance, now, it needs to spend on healthcare.

It isn’t doing it now, just like it didn’t do it then. So, a future and worse crisis is already foretold today, if the Government does not reverse these actions.

(First published in O Heraldo, dt: 7 October, 2020)

Tuesday, November 5, 2019

MISPLACED PRIORITIES: PROFIT AT THE EXPENSE OF GOA


Of all the misplaced priorities of successive Goan governments, the most recent is the Vibrant Goa summit. The summit aimed to attract investment in the areas of pharma, tourism, IT, and real estate. Even a cursory glance at the industries that the Goan government is promoting should make the alarm bells ring. For it is precisely these industries and their unregulated promotion that causes economic, social, and cultural problems in Goa.

The problem with the government’s promotion of such business schemes lies in the non-recognition of the environmental cost on Goa and its people. Some weeks back, a tanker carrying the poisonous naphtha chemical, docked at the port in Vasco, drifted and ran aground in Dona Paula, posing a severe threat to the lives and livelihoods. We are still anxiously hoping that the poisonous chemical will not leak in the Goan waters, which are already polluted by MPT’s coal handling. The tanker drifted because the October retreating monsoons brought with it the cyclone Kyarr, causing much damage to life (in addition to trees and animals) and property.

The government’s response to disasters, whether man-made or natural, is inadequate. Governmental authorities do not display the initiative that one expects of their government to regulate and prevent disasters. It is not the first time that a ship has run aground. The infamous MV River Princess at Candolim and the barge hired for a wedding reception at Arossim have cause irreparable sand erosion at both these places. Cyclone Kyarr is not the first time that cyclonic winds have battered the coastline of Goa as well as caused floods. The government’s preparedness is almost nonexistent, which is to say that in times of crisis Goans can only depend on good fortune and the divine.

When the government is so inefficient to provide disaster management as well as the usual utilities like clean water (recall that Ilhas had no drinking water for 8-9 days in August and Ponda for even more this year) and regular electricity, it is beyond ridiculous that it promotes business and investment in Goa. How do you expect people to work if they do not have clean water to drink?

A note also on the Vibrant summits, the brainchild of the Prime Minister, Narendra Modi, and a ‘Gujarat model of development’ is in order here. The claims of economic boost through the Vibrant Gujarat summit are at odds with the realities on ground. There is simply no accountability of the investment brought in by the thousands of MoUs signed in Gujarat. Compared to Goa’s 17 MoUs, Gujarat Vibrant summits have signed thousands of MoUs with business houses since its inception in 2003. The most recent assessment of the Vibrant Gujarat summit, with about 28,000 MoUs, confirms that it has not delivered on its lofty promises. And so, the question emerges: why does the government, assisted by the business community, engage in such shambolic ‘development’ and business practices?

The answer is startlingly simple: profit at any cost. By ‘profit,’ I do not only mean ‘greed’ of individuals but also a systemic problem wherein the social and political order rests on the extraction of natural resources by displacing the poor communities and an absence of fair redistribution of wealth. Demands for job creation or abysmal employment rates are then used as a smokescreen to promote businesses that do not care about worker rights and welfare. The government also does not display any seriousness in protecting worker rights. The result is an economic system that can collapse at any moment with catastrophic effects. Hence, it is a systemic problem that causes the most damage. Here’s how.

The government makes laws, such as those that create Special Economic Zones (SEZs) or Investment Promotion Boards, which give businesses incentives like tax breaks and a free hand to operate how they choose. Through its policies, such as trying to attract investment, the government abdicates its regulatory role—otherwise business houses refuse to participate in ‘boosting’ the economy. The government, as well as the business houses, circumvent the will and consent of the people on whose lands or in whose immediate vicinity these industries are established. Ignoring the irregularities, or rather actively promoting them, leads to massive losses to the exchequer. The exchequer also loses cash if the projects fail as the government, through a contractual binding, frees the business houses of all liabilities. In the case of the failed SEZs in Goa, the Goan government owes damages worth crores to the private business houses!

The systemic promotion of profit through law and policy is today, unfortunately, sustained by electoral democracy. Most people participate in the electoral democracy for basic amenities such as water, electricity, roads, and job security. But the result is opposite: both the government and business houses fail to deliver a stable economic system. Hence, the blame that individual voters are responsible for voting for the wrong guy by taking bribes, even if it is the case, does not explain the cause of my present situation. The vote of the honest voter also results in a systemic failure. Every government in power does the same thing, without fail.

Thus, we need to change our thinking about profit and economic growth. Stock market statistics are not a sign of progress and prosperity. As long as businesses demand unfair incentives, and as long as the government (party affiliation notwithstanding) humors such demands, the economic and social ills will continue unabated. Both the government and business houses must think of a ‘slower economy of life,’ meaning not a slow down of economic progress but a stable system that offers redistributive justice.

(First published in O Heraldo, dt: 6 November, 2019)