Goa, once synonymous with pristine beaches, vibrant culture, and laid-back charm, the susegado life is grappling with a tourism model on the brink of collapse. Despite rising tourist arrivals, the underlying cracks are evident: visitor satisfaction has plummeted due to neglected infrastructure, overcrowded beaches, and environmental degradation. This paradox—growing numbers amid falling appeal—highlights a deeper malaise: a tourism sector dominated by big money and external corporations, primarily from Delhi, Mumbai, and beyond, that extract profits while sidelining local interests.
Drawing on the economic insights of Jagdish Bhagwati, this model exemplifies distorted globalization, where crony capitalism undermines true market benefits. To chart a sustainable path forward, the ideas of Amartya Sen and Abhijit Banerjee offer a compelling challenge, emphasizing capability enhancement and evidence-based interventions to foster Goan-driven tourism. The fire that took away twenty five innocent lives is manifesting tourism running down the slop of destruction.
Jagdish Bhagwati, a staunch advocate for globalization and free trade, has long argued that open markets can drive prosperity, but only when they operate without distortions like protectionism or elite capture. In his defense of globalization, Bhagwati posits that economic integration lifts nations out of poverty by fostering efficiency and innovation, yet he warns against scenarios where special interests hijack the process, leading to inequitable outcomes. Applied to Goa, this framework reveals how the reigning tourism model—fueled by large hotel chains and real estate developers from both inside and outside the state—has morphed into a form of crony capitalism that Bhagwati would critique as antithetical to genuine free-market .
The dominance of big business in Goa’s tourism is stark. Major players like large conglomerates operate sprawling resorts that cater to high-end tourists, often at the expense of local ecosystems and communities. These entities, backed by capital from outside Goa, control prime beachfront properties, pushing out small-scale Goan operators. Much of the growth is attributed to large-scale investments that prioritize volume over value, leading to economic leakage where profits flow back to external headquarters rather than circulating locally. Bhagwati’s ideas on India underscore this: economic reforms sparked growth, but uneven implementation allowed entrenched interests to dominate, stifling broad-based benefits. In Goa, this manifests as inflated land prices, displacement of fishing communities, high cost of living and environmental strain—issues Bhagwati might liken to the “immiserizing growth” he theorized, where expansion harms the vulnerable.
Signs of collapse are mounting. While arrivals have not so much increased, with domestic and international tourists showing caution, surveys and reports paint a grim picture. Beaches like Calangute and Baga, once idyllic, are now said to be littered with waste, as well as come under the control of Delhi lobby besides overdevelopment has eroded biodiversity. Mass tourism has strained local resources, inflating costs for residents and fostering resentment. This model fails Goa because it doesn’t serve its people: employment in big hotels is often low-wage and seasonal, with minimal skill transfer, while cultural heritage is commodified into party scenes that alienate locals. Bhagwati’s critique of pressure groups—environmentalists, unions, and others pushing back—echoes here, as local protests against mega-projects highlight how globalization, when captured by big money, breeds inefficiency and social discord. The result? A tourism bubble poised to burst, as competitors offer similar experiences with better sustainability, drawing away discerning travelers.
Transitioning to a sustainable future requires challenging this paradigm, and here Amartya Sen’s capability approach provides a transformative lens. Sen argues that development should not be measured solely by economic output like GDP or tourist numbers, but by the expansion of individuals’ capabilities—the real freedoms to achieve valued functionings, such as health, education, and cultural participation. In tourism contexts, this means evaluating how the industry enhances locals’ abilities to lead lives they value, rather than just generating revenue.
For Goa, Sen’s framework exposes the current model’s shortcomings: big-business tourism restricts capabilities by degrading the environment (limiting access to clean beaches for fishing or recreation) and exacerbating inequality (where external investors reap rewards while locals face job precarity). Models that prioritize community involvement, such as eco-tourism initiatives that build skills and preserve heritage, align with Sen’s ideas. Imagine Goan-driven homestays and cultural tours that empower residents to showcase their Konkani traditions, fostering capabilities like entrepreneurship and social mobility. Sen’s emphasis on sustainable freedom—where choices today don’t compromise future generations—aligns with regenerating Goa’s ecosystems, turning tourism into a tool for human development rather than exploitation.
Complementing Sen, Abhijit Banerjee’s evidence-based approach offers practical pathways to realize this vision. Banerjee, through randomized controlled trials (RCTs), has demonstrated how targeted interventions can alleviate poverty and promote sustainable growth, stressing the need to test policies rigorously before scaling. His work on multifaceted programs for the poor—combining assets, training, and support—has shown lasting impacts on income and well-being.
Applied to Goa, Banerjee’s methods could challenge the status quo by piloting Goan-centric tourism models. For instance, RCTs could test subsidies for local cooperatives running eco-lodges versus big-chain expansions, measuring impacts on employment, environmental health, and community satisfaction. Evidence from similar programs in rural India suggests that asset-building for the poor—like training in sustainable practices tied to agro-tourism—creates resilient economies. By focusing on inclusivity and sustainability, as Banerjee advocates, Goa could diversify into wellness retreats, heritage walks, and community festivals, ensuring benefits accrue locally. This counters the big-money model’s leakage, fostering evidence-backed policies that prioritize long-term viability over short-term gains.
Integrating these ideas, a Goan-driven tourism future can emerge: one where Bhagwati’s true globalization enables fair competition ( I do have questions about the way this this model is implemented in India) , Sen’s capabilities ensure equitable freedoms, and Banerjee’s rigor guarantees effective implementation. Policy shifts could include incentives for local ownership, stricter environmental regulations, and pilot programs evaluated through RCTs. For example, reviving traditional shacks and village tourism could boost capabilities while generating sustainable income.
In conclusion, Goa’s tourism is collapsing under the weight of external dominance that Bhagwati would decry as flawed capitalism. By embracing Sen’s human-centered development and Banerjee’s empirical tools, Goa can reclaim its narrative, building a resilient, locally empowered industry. This not only serves its people but sets a model for sustainable tourism worldwide, proving that economics, when thoughtfully applied, can heal rather than harm.
