From economy to a careful balancing act: These are the top 5 challenges for new Kerala Chief Minister VD Satheesan

Congress leader VD Satheesan took oath as the new Chief Minister of Kerala on Monday, with many describing the moment as the start of a new era in the state. That is because the Congress is returning to power in Kerala after a ten-year gap, and there is considerable optimism among the rank-and-file party workers about fulfilling the promises made in the election manifesto. As Satheesan takes charge as the Chief Minister of Kerala, a post held in the past by Congress stalwarts like K Karunakaran, AK Antony and Oommen Chandy, he also faces several challenges. Here are some of them.

Holding the party together

Despite a clear mandate, with the UDF winning 102 out of the 140 seats in the assembly elections, the Congress had a tough time deciding on its Chief Minister for Kerala. While Satheesan, who was the Leader of the Opposition in the previous assembly and led the party’s election campaign, was the popular choice for the post, matters became complicated after AICC General Secretary KC Venugopal and veteran leader Ramesh Chennithala also staked claims for the post. After several days of back-and-forth discussions, the Congress leadership on Thursday officially announced Satheesan as its CM pick.

But the factionalism is far from settled, as loyalists of Venugopal and Chennithala have bagged most of the 11 cabinet posts in the Satheesan government, leaving him with little room.

A tough balancing act

The Indian Union Muslim League (IUML), the second-largest party in the UDF, has been given an unprecedented five cabinet posts. The BJP and several Hindu groups have alleged communal appeasement and claimed that the Congress has "surrendered to Islamists."

While IUML got five cabinet posts, the influential Latin Catholic Church and the Orthodox Church in Kerala are miffed over not having representation in the Satheesan government. The Latin Church hoped to see Kovalam MLA M. Vincent in the cabinet, while the Orthodox Church wanted Chandy Oommen, the son of former Kerala CM Oommen Chandy, in the government.

Another influential group that has been left disappointed by the cabinet formation is the Sivagiri Mutt in Varkala. The Sivagiri Mutt, founded by Sree Narayana Guru, was initially seeking six cabinet posts for the Ezhava community. After a meeting with Satheeshan, a representative of the Mutt, said nine persons in the UDF associated with Sree Narayana organisations have won the election, and at least 3-4 of them should be made ministers.

Managing the economy

The government has constituted a high-level special committee to prepare and release a comprehensive white paper on the state's current financial situation. Earlier, senior Congress leader AK Antony had said that the public should remain patient regarding the implementation of some of the popular policies in the Congress manifesto as “Kerala’s economy was bankrupt."

However, hours after assuming office, Satheesan announced free travel for women on KSRTC buses, the creation of a dedicated department for elderly welfare, and a ₹3,000 increase in the honorarium of ASHA workers. He further announced a monthly hike of ₹1,000 for Anganwadi workers and helpers, school cooking staff, pre-primary teachers, and ayahs.

Kerala’s ticking population time bomb

Due to a combination of factors, including low fertility rate, increased outward migration and longer life expectancy, Kerala is witnessing a population decline. The state has a Total Fertility Rate (TFR) of 1.35, far below the replacement level of 2.1. While birth rates have plummeted, the average life expectancy in Kerala is 75.1 years, meaning older people live much longer there than the national average. Making matters worse is the recent increase in outward migration of Kerala’s working-age population. Keeping this in mind, the new government has constituted a new department for older people.

Making Kerala business-friendly

Thanks to left-wing governments and strong labour rules, Kerala had, for a long time, a reputation as an investor-unfriendly state. Though this has changed in recent years and the state has improved its position in the Ease of Doing Business rankings, it continues to struggle to attract large investments. If the Satheesan government has to turn around the ‘bankrupt economy’ of the state and implement its populist schemes, Kerala will have to attract more investment beyond its traditional strengths, including tourism.