A major factor that impacts on enterprise culture in a society is public policy. Where public policy is evidence based and rooted in sound economic rationality, it promotes enterprise culture. On the other hand, when public policy carries with it ideological baggage, it loses economic rationality and the policies formulated often stifles enterprise culture. The public policy pursued by Kerala in the sixties and seventies shaped the world famous ‘Kerala model of development’. The social sector investments in health and education produced a generation of relatively healthy and educated individuals. Though the domestic economy stagnated, people could migrate in large numbers. Kerala’s achievements in physical quality of life and human development owe a great deal to external remittances.
But Kerala is now at a cross road. External remittances are fast getting dried up. The agricultural and industrial sectors have not overcome the stagnation which started in the late 1970s. The remittance dependent service sector led growth is facing serious problems with return migration. Kerala long lost ‘demographic dividend’ and the proportion of aged population is fast increasing. The state has been undergoing fiscal stress during the last 38 years. The state is finding it difficult to continue with public policies which by and large has been incentivizing people to depend on government. Studies show that Kerala is the state where inequality is increasing at the fastest rate. But the State does not have the wherewithal to address this serious issue.
The Covid-19 pandemic has added a new dimension to Kerala’s urgency. Time is ripe for pursuing a public policy which incentivizes people to take ownership of their destinies. Unfortunately, the political environment in Kerala cannot overcome the old mindset. The state is desperately trying to protect the crumbling edifices of public provision whether it be in education, health, transport or infrastructure. It is against this backdrop that IECED has identified public policy as a major thrust area. IECED seeks to intervene in public policy debates and deepen peoples’ understanding of public policy issues through in-depth academic research, popular articles, and reliable data.