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A troubled economy

Sandesh Prabhudesai
7 May 2003

It is a million dollar question to debate upon whether Goa's politicians have ruined the local economy or the limited local resources have compelled the selfish politicians to break all the records in India, as far as defections, morality and corruption is concerned. To speak about politics, is it necessary to speak aloud? Politicians are respected, but out of fear and not because they are felt dear. We have had 14 chief ministers in 13 years since 1990; @0.93 CM per annum! One of them lasted for only four days. The only criteria left to judge them is which one is less corrupt and more 'friendly'.

Crisis is the second name for Goan economy. The one-time backbone called mining is presently counting its days as underground stocks are getting exhausted. Tourism is still waiting for seasonal sustainability, while tourists are being attracted by more professionally run and decent destinations. The annual interest on state loans this year is Rs 300.93 crore, against the total debt amounting to Rs 1784.80 crore. In spite of chief minister Manohar Parrikar working brilliantly on the revenue generation front, he has no option other than pleading with the centre for a one-time grant of Rs 100 crore.

As per the latest Economic Survey 2002-03 released by the Government of Goa, there are 6679 small scale industries registered permanently in the state with an investment of Rs 298.33 crore, providing employment to 45,635. However (and this 'however' is important), states the report, the number of SSIs actually functioning, the sick units and the causes of sickness are not known. In case of medium and large industries, 337 units have been cleared, but only 148 are functioning. Where have the remaining 189 disappeared?

The scene in agriculture is really pathetic. As per the latest census report, 60 per cent workforce was engaged in cultivation in 1960-61, which has reduced to 9.7 per cent in 2001. Agriculture's 16.5 per cent contribution to the State Domestic Product has declined to a mere 8 per cent. Within a decade since 1991, the number of cultivators have reduced from 68,663 to 50,663 (down 26.2 per cent) and agricultural labourers have reduced by 19 per cent. Traditional rice production has reduced by 15,600 tonnes within a year from 1,42,123 tonnes last year, a massive reduction of almost 11 per cent. A substantial decline has also been witnessed in agro products like ragi, pulses, groundnut, mango and other fruits. The only silver lining in this cloud of gloom is the rise seen in sugarcane, cashewnut, arecanut and banana.

No Goan can live without fish (excuse me, vegetarians!) while thousands live on fishing along the coastal belt. But the fish catch, in the last six years, has reduced from 94,547 tonnes to 71,247 tonnes - a steep decline of almost 25 per cent. "Non-observance of ban period and overexploitation has been the major cause for declining fish production in the last few years," states the Economic Survey. Similar is the case with several other traditional occupations like poultry, dairy, piggery and others.

This is perhaps the reason why Mr Kidar Nath Sahani, Governor of Goa, has raised concern over the deteriorating situation by astutely analysing the socio-economic scenario in the state within four months of his arrival here. His observation that youngsters are shying away from casual jobs is being disputed by many, but there is no denying the fact that the preference of today's youth is for urban jobs, first in the government, otherwise in the banks, then private firms and then factories. The trend to seek employment than running a business and also towards urbanisation since no attractive opportunities are made available in the villages. This has obviously upset the whole socio-economic balance of Goa.

Influx Indicators

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