KERALABUDGET2014HARNESSINGTHEYOUTHPOTENTIALANDSUSTAINABLE YOUTHDEVELOPMENT

Background This perspective plan for Kerala youth is prepared with the involvement of various stakeholders from different walks oflifeincluding lawyers,engineers,students,doctorsandtheoreticaleconomists,forming a significant part of our economic dividend. We hope that our recommendations form as the basis for implementation of a series of initiativesaimedatfosteringsustainedgrowthoftheStateoverthenext 20 years. Weve been doing a comprehensive analysis of the economys strengths, challenges and opportunities, it sets developed country benchmarks for the state and has attempted to draw on the best local, regional, national and international practices. We envision a move away from traditional planning processes to outcome based strategic planning with an ultimate aim of creating a knowledgebased economy. We attempted to lookatpresenttransitionplanwhichaimstoimprovethe current set of policies to ones that triggers commensurate increase in productive capacities, structural transformation, enhanced economic competitiveness or improved institutions from a demographic perspective. NatureofGrowthSoFar Examining the data from the 1970s show that Keralas growth is mainly driven by construction transport, storage & communication trade, hotel and restaurants real estate ownership, business, and legal and other communication services. These services have low tradability and are mainly driven by domestic demand. Thefourfactorsthatdrivedomesticdemandare:Remittances,Tourism,Government welfare expenditures and the welfare role of social organisations. Kerala iscaughtinalowproductivity trap of GSDP and employment. There is relatively high personal and regional inequality in Kerala.The state is facing an aging population rapidly increasing urbanization, increasing pressures on natural resourcesandgriminvestmentandbusinessconditions.

TheGrowthPatternAhead The creation and growth of indigenous enterprises lowcost, highimpact approach to sustainable economic development by creating employment opportunities and generating incomes in the hands of the public. Using the inherent qualities of Kerala youth such as high literacy, high sociopolitical awareness, organizational awareness, their high potential in arts and sports,ability andwillingness togo abroad for employment opportunities, ability to intermix and partake in foreign cultures and ability to adapt to technological changes while creating opportunities in employment and their sociocultural development1.

ExistingPlans I. VocationalTrainingfortheyouth.

Visual Media Training by Kerala State Youth Welfare Board Video Editing, Graphic Animation, Video Journalism, Anchoring and News reading No information as where the coursesareconducted,ifatallthoseareconducted. Kerala State Centre for Advanced Printing & Training conducts training programmes in Multimedia, Animation, DTP, Computer Hardware & Networking and Offset Printing Technology Contains no information as to where the courses are conducted but only the contactdetailsoftheofficersfromthetrainingdivision. Centre forContinuingEducationKeralaCreationofacommunitycollegeusingMassiveOpen OnlineCourseresourcesavailableontheinternet. Identifieddevelopmentneeds I. BuildinganEntrepreneurialEcosystem.

Issues and challenges: Entrepreneurship is restricted to trade, transport and tourism, all of which are lowknowledgeintensivesectors.
1

Literal Translation of the text used under Strengths in Kerala StateYouthPolicy,releasedon12.12.12bySports

andYouthAffairsDepartment,GovernmentofKerala.

Abriefreviewofgovernmentpolicies: I. KeralaInstituteforEntrepreneurshipDevelopment(KIED). Attendance relaxation through Student Entrepreneurship Scheme for the Universities, CollegesandPolytechnicstudentsinKerala. II. TechnologyInnovationZoneinErnakulam Publicprivatepartnership model, in areas like data analytics, animation and gaming, nanotechnology and biotechnology. aims to incubate 1,000 product startups over 10 years and initiate the search for a billion dollar company from a college campus by the turnofthisdecade. III. Kerala State Self Entrepreneurship Development Mission and Kerala Chapter of the Indus Entrepreneurs. 10selectentrepreneursineachPanchayatuptoRs.20lakhtostartanenterprise. AvailoffinanceoneasytermsfromBanks/FinancialInstitutions Interstateandinternationalcomparisons I. Global Entrepreneurship Monitor (GEM) that ranks select countries on entrepreneurship is not availableforIndianstates.Entrepreneurshipatthestatelevel ismostoftenmeasuredbytheratio of selfemployed persons in the total workforce. This ratio does not distinguish between necessityandopportunitydrivenentrepreneurship. Issuesandchallenges I. Keralaisinthebottomtwo(afterTamilNadu)intermsofselfemployedworkforce.

Visionforthesector 1. Need to know pattern and explore the reasons behind lack of employment opportunities in urbanareasandthepredominanceofagricultureinruralareasandattempttoreversethetrend. 2. Creation of a inclusive and encompassing State Entrepreneurship Index to know our progress towardsentrepreneurialeconomy.

3. To remodel Keralas existing status as a wage economy into entrepreneurial economy, by equip studentswithpractical businessrelatedskillsaspartoftheregulareducational curriculum2 . 4. An alliance with International Labour Organization for initiating their flagship KAB (Know AboutBusiness)Programme3inKerala. 5. Imparting cross cultural learning experience for meritorious students, to youth graduates, or business owners with a strong business plan by giving them an opportunity, to travel to a developed nation and work with mentors thereforaperiodoftimeinordertoacquiretheskills requiredtosetuptheirownventures4. 6. Having Entrepreneur Award targeting entrepreneurs aged 18 to 40, who start businesses themselves from scratch, and have a deepsenseofsocialresponsibility.Forinspiringtherest,it is suggested that their accomplishments be published along with arranging a lecture tour for prospectivecandidates5. 7. Setting up of 24*7 web based support centre for entrepreneurs to foster private sector development and facilitatinghighqualityinformationexchangesupport,competentpolicyadvice and research, ensuring a wide dissemination of best practices of SME support in business community6.

Desiredresults

Inspired by INJAZ alArab. INJAZ alArab is a confederation of national operations operating in 12 countries

across the Middle East and North Africa region collaboratingwith corporate volunteersand MinistriesofEducation to provide experiential education and training to Arab youth in work readiness, financial literacy and entrepreneurship.Detailscanbeaccessedat:http://www.injazalarab.org/
3

It consists oftrainingmodulesandteachingmaterialforproviding entrepreneurialeducationtouniversitystudents.

Detailscanbeaccessedat:http://www.ilo.org/public/english/region/eurpro/moscow/areas/kab.htm
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Inspired by Young Entrepreneurship program (YEP) for South African Students who get a chance to spend six

weeks in USA under the mentorship businessleadersandexpertsinentrepreneurial studies.Detailscanbeaccessed at:http://www.youngentrepreneur.ie/

5 6

InspiredbyYoungChineseEntrepreneurAwardwasjointlysetupbytheChina. ModeledonRussiasSMEresourcecenter.Detailscanbeaccessedat:http://www.rcsme.ru/en

Continuousmonitoringandevaluation