What is the Mafia Economy? Why is it posing a threat to the Kerala Government? What is the Kerala Government doing to stop it? Kerala is the most literate state facing such an unimaginable issue. Dr. K.N Harilal is a former Planning Board member and professor at the Centre for Development Studies. According to him the Kerala model of development is currently experiencing significant challenges.
He noted that a fundamental component for the success of the Kerala model is the unity of the people, regardless of caste and creed. In the sixth lecture in a series dubbed ‘Kerala Economy in Transition,’ jointly organized by the Gulati Institute of Finance and Taxation and the Kerala Economic Association. therefore, any danger to this unity harms the state’s progress. Kerala’s burgeoning mafia economy is also posing a severe danger to the state’s progress. Harilal believes Kerala should make genuine steps to free its economy from the grip of the underground Mafia.
He stated that the state’s civil services have improved in quality over time but it is not keeping pace with the state’s rising needs. To keep up with the changing global economy, the public service should improve even more. A key barrier to Kerala’s transformation is the lack of leadership and knowledge in many government departments. The infiltration of legitimate business by the Mafia and the existence of legally owned mafia enterprises are just surging and causing a massive increase in the mafia economy. And also making things complicated from the growth perspective of the Kerala Government. The boost is overburdening the taxpayers and citizens of the state. Even the qualitative improvement in civil services is not at par with the growing needs of the state.