Special Correspondent

To tide over global economic crisis

Crisis not a temporary one: Vice-Chancellor

‘Social divide has widened along with economic growth’

KANNUR: Kannur University Vice-Chancellor P.K. Michael Tharakan has emphasised the importance of social empowerment measures in the State to equip society to face the global economic crisis.

He was presenting a paper on ‘New dimensions of capitalism’ at the one-day workshop on the global economic crisis organised by the Kerala Sasthra Sahithya Parishad (KSSP) here on Sunday.

Dr. Tharakan said the fact that the State economy was fully integrated with the global economy was a matter of concern during the financial crisis. Equally worrying were the social dimensions of the crisis as it was likely to affect different sections of people in varying degrees. Social divide had increased along with economic growth in the State. Hence, preparations for facing the crisis could not be restricted just to social security measures and other economic initiatives, he said, calling for a focus on social empowerment measures.

Dr. Tharakan said a report prepared by the Centre for Development Studies (CDS) on the global financial crisis and the Kerala economy cited that the economic crisis would affect the State’s economy in six sectors such as foreign remittance, credit available in the banking system, exports, flow of tourists, cost of intermediate inputs and cost of imported items. He said that the social security measures recommended by the report such as strengthening of the public distribution system, increase in food production, and increased investment in health care sector, among others, were welcome.

He said there was no room for optimism that the global crisis would not seriously affect the country. Some people still entertained the illusion that increase in liquidity and financial assistance could allow nations to overcome the crisis. This crisis was not a temporary one, he said. The upperhand enjoyed by finance capital in the economy was the cause of the present crisis, he said.

M. Prakasan, MLA, presided over the function. T. Gangadharan was the moderator. M.P. Parameswaran and T.P. Kunhikannan presented papers at the workshop.