A ‘honeymoon read’ for the VD Satheesan government

Honeymoon days for the new Kerala government: an initial blissful period following the grand swearing-in, marked by goodwill, high expectations, and a political grace period during which sharp criticism is often held back. Campaign promises, however unrealistic, are still taken at a romantic spirit, with their chances of delivery viewed with hope rather than skepticism.

The early euphoria of a newly elected government soon gives way to the hard realities of governance. It is then that results begin to matter more than promises – much like in married life.

Regardless, the honeymoon phase is crucial for any government to build credibility and set the course for future governance. There could be no better time to think imaginatively and explore out-of-the-box solutions to Kerala’s economic challenges. 

Department for senior citizens
One of the major campaign promises of the UDF was the creation of a dedicated department for senior citizens in Kerala, which has one of the highest proportions of elderly people in the country. According to a report released earlier this year by the Reserve Bank of India, 18.7% of Kerala’s population is aged 60 years and above. 

After the first Cabinet meeting, Chief Minister VD Satheesan declared the government’s intention to establish a Japan-style elderly welfare department – the first of its kind in the country – to care for the state’s ageing population. 

Though unfamiliar to many Indians, standalone ministries and departments for senior citizens exist in several parts of the world, particularly in advanced nations. The reasoning is simple: without an exclusive institution, issues affecting senior citizens often get lost within the broader agendas of social justice, women’s affairs, and health departments. 

As the Chief Minister rightly said, Kerala has much to learn from the Japanese. This is especially true of their long-term healthcare system and institutional mechanisms, such as the Health and Welfare Bureau for the Elderly and the Ageing Society Policy Council, headed by the Prime Minister.

Japan is widely regarded as a global leader in preventive geriatrics, with a strong focus on preventing or delaying age-related health complications and thereby maximising healthy life expectancy. Japan’s success in institutionalising healthy ageing through a community-based approach makes it a particularly relevant model for Kerala, given the state’s exceptional track record in decentralised, grassroots-driven development. 

In countries like Denmark, the Ministry for Senior Citizens is taking elderly care to the next level by framing policies that transform age-friendly societies into a public movement. Outside Europe and North America, countries like Barbados have separate administrative establishments for elderly affairs, and such an initiative would certainly be welcome in an ageing society like Kerala. 

A separate department for senior citizens in Kerala will definitely help prioritise elderly issues and better coordinate and channelise the welfare benefits provided by the state and central governments. However, beyond ensuring the welfare of its own ageing population, can the new Kerala government envision something more transformative in economic terms? 

Retirement migration 
The elderly are often imagined or portrayed in Kerala as physically helpless, isolated and, in many cases, financially deprived people who need support. The UDF hoardings seen across Kerala during the campaign are themselves a good illustration of this, depicting a physically disabled elderly couple struggling to walk while being assisted by a few young people. Caring for an ageing population is thus perceived merely as the establishment of support systems that place a heavy burden on the state exchequer.

In fact, that is just one side of the story. If planned well, the proposed Department for Senior Citizens could transform Kerala into an age-friendly society and ignite a powerful “Retire in Kerala” boom – a potential panacea for the state’s worsening economic crisis.

Globally, life after retirement is a high-stakes economic activity. It is a massive industry with prolonged consumer phases, as people live longer due to medical interventions and healthier lifestyles.

Most people who worked in advanced economies retire affluently, thanks to decades of investment in public and private pension funds, many of which are extraordinarily large. For instance, the largest fund ever created in human history is Norway’s Government Pension Fund Global, currently valued at more than 2 trillion US dollars.

Florida model
Florida is an American state that resembles Kerala in many ways – the tropical climate, lush greenery with coconut trees and palms, a long stretch of coastline, year-round sunshine, and a “hurricane season” that can resemble our monsoon. The “Sunshine State” has long adopted policies to brand itself as a premier retirement destination for Americans, in addition to offering tax exemptions. 

The Florida model demonstrates how favourable weather, healthcare access, tourism infrastructure, and retiree-friendly policies can collectively transform a region’s economy through retirement migration. 

Countries such as Panama, Portugal, Spain, and Costa Rica, and in Asia, Malaysia and Thailand, have also tapped into this opportunity and emerged as global retirement destinations through exclusive visa schemes. Apart from energising the real estate sector and thereby boosting the state exchequer, retirement migration has strengthened the economies of these countries by fostering a vibrant ‘silver economy’ that generates substantial employment opportunities.

 In academic parlance, the silver economy refers to the range of economic activities catering to the lifestyle, leisure, and healthcare needs of the elderly population. In India, besides Goa, cities such as Coimbatore and Pune have, to some extent, tapped into the economic opportunities generated by retirement migration. 

A large number of non-resident Malayalis working across the world have either retired or reached the later stages of their careers. If the proposed department, in collaboration with the private sector, plans and implements policies that transform Kerala into an attractive place to retire, there is a strong possibility that many of them will return to their homeland and invest in pursuit of a fulfilling post-retirement life.

If “Retire in Kerala” becomes a popular choice among non-resident Malayalis, the government could further develop this idea by branding Kerala as a retirement destination for people from Indian cities grappling with severe pollution, as well as from other parts of the world.

Need game changers
The new government assumed office at a time of severe economic strain, as Kerala’s finances reel under an intense fiscal crunch caused by shrinking central tax shares, the cessation of GST compensation, heavy social spending, and mounting debt. Remittances from Gulf countries, which served as a reliable economic cushion for Kerala for nearly half a century, are now witnessing a decline amid the ongoing crisis in the Middle East. 

At this critical juncture, Kerala calls for a Department for Senior Citizens that not only cares for its ageing population but also functions as a visionary institution. By leveraging the state’s favourable geography and developmental achievements, such a department could launch a revenue-generating “Retire in Kerala” initiative capable of revitalising the struggling economy. 

The state already possesses commendable infrastructure, connectivity, extensive healthcare facilities, and tourist destinations ranging from beaches to hill stations, making it a strong candidate to emerge as a global retirement destination.

Major building groups in Kerala have already begun developing apartments and senior citizen townships with elderly-friendly features such as umbrella holders, senior-friendly TV units, and wheelchair-accessible kitchens. Recent years have also witnessed a considerable increase in the number of retirement homes in Kerala offering senior living facilities of various types. The new government can further promote such projects by providing tax incentives. 

Very few places in the world can offer retirees the range of choices that Kerala can: bustling yet less polluted cities, dynamic mid-sized towns, and an abundance of lush, tranquil landscapes, along with relatively well-developed infrastructural facilities suited to a laid-back retirement life.

Back to the honeymoon days. It is true that not every dream or plan shared by newlywed couples will fully materialise. Yet those hopeful conversations and shared imaginings often lay the emotional foundation for a meaningful and enduring married life. Likewise, the honeymoon phase of a newly elected government is not merely symbolic – it is the rare moment when leaders can think boldly and imaginatively about addressing society’s fundamental problems and shaping a long-term vision for the future.

VD Satheesan is known as a man gifted with the rare acumen for sharp thinking and innovative ideas. Good luck to the new Kerala Chief Minister and his team!