Democratic, yet corporate takeover of panchayat

Though many businessmen have been elected to power, it may be the first time that people overwhelmingly vote for a corporate initiative and virtually entrust the administration of their local panchayat to a corporate House.

The voters of Kizhakkambalam panchayat in Ernakulam district have voted Twenty/20, a non-government organization sponsored by the Anna-Kitex group, to power. A record 90.47 per cent of the electors turned up to vote in the civic polls on November 5 and 17/19 of the candidates fielded by Twenty/20 won when the results were announced on Saturday. The only other winners were a UDF independent and a candidate of Social Democratic Party of India (SDPI) which accused the company of polluting the environment. (Twenty/20 could not make much of a foray into Kavungaparambu, where the SDPI was having a strong hold, even for campaigning).

In a sense, Twenty/20 has a captive electorate. About two third of the 8500 families have at least a member employed by the company or a beneficiary. However, it is not this alone that has catapulted Twenty/20 as their favourite. The organization is promising to make Kizhakkambalam the best panchayat in India with all kinds of amenities. This is not just the kind of promise that politicians make. The company has spent lavishly from its corporate responsibility fund (around Rs. 28 crore) for the panchayat that it exceeded what the panchayat itself had spent in four years. They set up civic amenities ranging from drinking water plant to roads. A market functions to supply provisions and other articles at fair price. Twenty/20 is also offering scholarships and medical assistance to the needy. It is said that the organization has extended help to almost every villager in the panchayat.

The promoters of the Kitex group live in the panchayat and were at odds with UDF-ruled panchayat regarding various clearances for their garment making unit. The LDF was supportive as the family was considered to be leftist sympathizers, but changed tune when Twenty/20 announced that it would be fielding candidates in all the wards.

One of the accusations faced by the company was that it was planning to set up a bleaching plant which would pollute the environment. Incidentally, the company is one making garments for new-born babies and exporting them to the United States and Europe. It is in the Forbes list to top 200 companies from Asia-pacific and its shares are highly valued in Indian bourses. 

Company Managing Director Sabu M. Jacob sought to counter this pointing out that he would require 36 licences to start a new factory, of which 25 were to be obtained from State government and 10 from Centre. Only permission to operate the plant was required from the panchayat. “Do you think that LDF or UDF would give the clearances?” he asked the voters.

Besides importers will blacklist the company if it caused any environmental degradation. His product had GOTS (organic) certificate from UK which indicated that the company’s inputs were organic. Besides, his own family was living in the area and would be affected by any degradation of environment.

It seems the voters have accepted his arguments— they have handed over the panchayat administration to an arm of the corporate House with a thumping majority.