SATURDAY, JULY 27, 2024
Vivek Menezes
What kind of developmental model excludes the needs of its citizens? When will economic governance address the agonizing jobs crisis in India’s smallest state, after several 2023 rankings listed Goa either worst or second-worst in the country? The interesting thing about this moment in time is that it is dazzlingly clear things do not have to be this way: many other states are doing very well, and there is no good reason why it cannot happen here as well. It will take more than wishful thinking and tired ideas however, or the announcements earlier this week that the administration would “encourage entrepreneurs to set up their startup hubs in Goa by exploring the creation of working spaces on the state’s beaches and heritage locations.”
“We have to recognize the difference between digital nomads and startups,” says Varun Chawla of Candolim-based build3, which describes itself as “a creative, conscientious, community-powered startup studio” to “enable early-stage founders to journey from idea to scale.” Nowadays, many jobs and services allow people to work from their laptops and phones and they tend to gravitate towards tourism destinations with good weather and diverse leisure activities. Goa has already had an extensive wave of them, with less than desirable results: restofworld.org reported last year that “many businesses have benefited from the influx. But the local population is having to contend with skyrocketing prices fuelled by out-of-town salaries that eclipse their own.”
Chawla first came to Goa in 2017 with 91Springboard, the coworking spaces pioneer that used to be headquartered in New Delhi and has mushroomed three times its size since then, with 28 locations across 8 states. He told me everything began with a conversation about typhoid with the other founders, when they realized several colleagues were ill at the same time, and went on to chikungunya, dengue, asthma and pollution, two or three-hour daily commutes, and the rapidly deteriorating quality of life in the big Indian cities. “As responsible employers,” he says, “we asked ourselves whether we could move our business to a better alternative.” They needed someplace that would allow a good front office, with superior quality of life, and in-built attraction to visitors. Goa ticked all the boxes: “at the time it was a professional decision, but since then my relationship to health and wellness, and art and culture, has grown tremendously. It has been seven years. Loving it.”
35 people moved from New Delhi along with Chawla, and he estimates around 30% of the employees that have joined them since then are from the state: “I found Goans to be smart, hungry, hard-working people, especially those coming out of college right now, but opportunities seem to be lacking for them.” It’s the bottom line in Goa throughout the 21st century, where almost all the best, brightest and most qualified leave because there aren’t any of the right opportunities for them here, while migrants and guest workers pump up an economic bubble where almost all the gains flow right back outside the state.
“Goa has the right mix of skills and language to succeed in the global IT industry,” says Deelip Menezes, one of the state’s remarkable technology pioneers, whose innovative companies were acquired by the US-based 3D Systems in 2011 (and he still runs the India arm from Porvorim). He told me “the Goa government’s current startup policy would have helped me immensely when I started my software engineering company back in 1999. Back then the word “startup” wasn’t even in the industry lexicon. Unfortunately, the state’s tourist destination image clashes with its potential for being an IT hub, and due to the lack of high-quality opportunities, there is brain drain. Our best talent looks for opportunities outside Goa which then prevents companies from starting up or expanding here. This self-reinforcing loop needs to be broken.”
Menezes says “states can encourage digital nomads, but you can’t build an IT industry around them. They will leave as quickly as they came and take their business along with them. On the other hand, IT professionals take well-considered decisions to stay or move, and make new homes there for many years to come. Their spouses find jobs, and their kids will study and make friends there. Seeing this inflow, other aspects of the local economy offer products and services to support this type of workforce. I have been involved with the current government’s efforts to position Goa as a potential investment location for the IT industry and can say that the measures being taken align closely with starting up or inviting companies to Goa to create a long-term and self-sustaining ecosystem.”
According to Menezes, government can only be one part of the solutions: “any place can create a good state IT startup policy, and while a lot will depend on implementation, I don’t believe it is right to assume that good policy is enough. Generally, you’re offering financial incentives to companies but they also need other reasons to startup or expand. Companies need a ready pool of local talent, and a critical mass of similar establishments for a chance of lateral growth. Most importantly, the city or state needs to be perceived as a place where technology is born. This last aspect is often underestimated and ignored when creating policies. Cities like Bengaluru and Hyderabad have understood this and reaped the benefits. I think it’s possible in Goa, but the most important thing is to change the perception. When I travel across the country on work, and hand over my business card, when people see Goa they ask me “jokingly” how I manage to get any work done there. They think I sit on a beach the whole day, and sip on beer. Why would someone with that perception even think of starting up or expanding into Goa? I’m working with the government on initiatives to change this perception. Some may be more effective than others, but I’m confident we are moving in the right direction.”
(Vivek Menezes is a writer and co-founder of the Goa Arts and Literature Festival)
