With its unique resources, both natural and human, Kerala has the potential to match the increasing effects of globalization (Nair, and Balakrishan, 1994). The core difference between a manufacturing industry and a service-oriented industry is not only restricted to the way in which business is carried out, but also extends to various dimensions such as its organizational culture. Companies that have made a transition from a predominantly manufacturing-industry attitude to a service-industry attitude have had to adjust to the phenomenal changes in attitude and culture that goes along with the change.
Perhaps, the most important factor that comes into play is how human resources are aligned to respond to the challenges posed by such transitions. Within the past two decades, Kerala has increasingly cemented its position as one of the world’s popular tourist locations in India. Kerala, which had, and still has, a lot of unexploited tourism potential is one of the most popular destinations in the world and each year an ever increasing number of people are flocking into Kerala, as a result of concerted tourist marketing effects.
However the tourist boom has been counterproductive in that it has contributed to cultural degradation of the cultural values, hence an indicator that, indeed globalization has had a toll on Kerala’s culture. In terms of other factors that encourage business, a survey by the Confederation of Indian Industry (CII) (Kerala government policy, 2006)), which covered 18 states in India, indicates that Kerala stands 13th as far as its investment climate is concerned. However, Kerala ranks first in law and order and education, and ranks high as far as affluence and social sector are concerned.
All this indicates without doubt that Kerala has all the potential to attract foreign investment. Kerala’s stature with regard to globalization Opponents of globalization argue that much has changed in the state that had been a model of development to the world. Today, reports show that the economy of the state is on the decline and that the advantages that the state had gained in terms of social equality and wealth distribution has been lost due to the negative effects of globalization.
The advantages that the natives had gained as an agrarian and self-reliant economy were quickly eroded. Social and political indicators point to the fact that the state has undergone a considerable change in terms of development and expansion. Today, Kerala is a tourist hub and is developing in a manner that is similar to other third world tourist destinations such as Thailand and Singapore. The social system has broken down and people are no more connected to each other as a few decades before.
Kerala is unique politically because it had instilled one of the first democratically elected communist regimes in India. It must be said that the spirit of the communist ideology is fairly deep rooted in the state. The ideologies of the pioneers of the communism in the state are also largely responsible for the social improvements that the state has so far witnessed. Other challenges in maintaining social welfare in Kerala Ironically, economic factors are one of the major facts that could affect social welfare in the state of Kerala.
Without the flow of money that critics attribute as the ill effects of globalization, social order in Kerala will be very much affected and governments will find it difficult to maintain social order in the state. For example, many experts have mentioned that Kerala in its zeal to maintain its position with regard to health and education has incurred huge financial deficits that cannot be easily solved without the advantages of globalization. Similarly, the ageing population of Kerala will negatively affect productivity. Conclusion.
Post-colonialism Kerala has achieved high levels of human development indicators, as compared to the other states of India. This has been a major achievement in terms of social development and social welfare for the state. Globalization is having a vast impact on Kerala’s development and future human development success. The pressures of the external world on Kerala are challenges that Kerala must overcome and rise above. The state of Kerala has been able to so far select the advantages derived from globalization and reject most of the bad effects it might bring to a country’s overall economy.
However, it will not be long before the state will start succumbing to pure market-oriented practices that can destroy the carefully created social advantages the state enjoys today. The state has much to offer in terms of both its rich cultural heritage and highly proficient workforce but it has to shade off the negative effects of globalization that keep threatening the status quo.
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