Presentation on the kerala model of development


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An insightful presentation lead by Natasha Chhabra, a researcher on social policy at the International Policy Centre for Inclusive Growth (IPC-IG) outlined the Kerala Model of Development and analyzed the short and long-term implications and effects of this development model on the local economy.

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Presentation on the kerala model of development

  1. 1. The Kerala Model of Development <ul><li>Social protection in Kerala and its effects on the economy. </li></ul>
  2. 2. What is the Kerala Model of Development? <ul><li>Gained attention due the presence of the ‘paradox’ of high indicators of social development and comparatively low economic growth. </li></ul><ul><li>Promoted as a ‘Cheap’ Model of Development- No need to achieve economic growth first. </li></ul><ul><li>Amartya Sen and Jean Dreze’s favourite example– Receives a mention in a lot of their work but they started to express concern about its low economic growth too! </li></ul>
  3. 3. Social Protection Programmes in Kerala <ul><li>Land Reforms in Kerala- Equity as its goal. </li></ul><ul><li>Democratisation of Education </li></ul><ul><li>Universal Health Care </li></ul>
  4. 4. The Positive Social Development Indicators <ul><li>Reduction in Fertility– attributed to Education and gender equality </li></ul><ul><li>Demographic transition– as a result of Reduction in Fertility </li></ul><ul><li>High Literacy rates </li></ul><ul><li>Health as a ‘Right’ </li></ul><ul><li>Public Distribution in Kerala most effective– Food security seen as ‘access’ to food. </li></ul>
  5. 5. Economy of Kerala <ul><li>The Low Economic growth that made Kerala a ‘paradox’. </li></ul><ul><li>The Fiscal Crisis of the State </li></ul><ul><li>The implementation of reforms. </li></ul><ul><li>The turnaround in Economic Growth. </li></ul>
  6. 6. The Role of Remittances and Migration. <ul><li>Lack of jobs in the state propelled migration to Gulf countries. </li></ul><ul><li>Positive Effects on Remittances: </li></ul><ul><li>- Poverty reduction. </li></ul><ul><li>- Highest per capita consumption expenditure in the country. </li></ul><ul><li>- Propelled the growth of the tertiary sector? </li></ul>
  7. 7. The Role of Remittances and Migration <ul><li>Negative Effects: </li></ul><ul><li>- Unemployment and Industrial Stagnation. </li></ul><ul><li>- Lack Of Solidarity in Society. </li></ul><ul><li>- Kerala the new ‘Gulf’ and the phenomenon of ‘Replacement Migration’. </li></ul><ul><li>- Remittances not translated to investments to any significant extent. </li></ul>
  8. 8. The different phases in the development of Kerala <ul><li>To summarise: </li></ul><ul><li>- Kerala went from being a ‘model’ of development to a state in crisis which raised the head of liberalism in the state. </li></ul><ul><li>- The wave of reforms implemented ‘decentralisation’ in Governance in the first phase and Economic reforms thereafter. </li></ul><ul><li>- There is a claim to a ‘turnaround’ in economic growth of Kerala. </li></ul>
  9. 9. The achievements of the Kerala Model Of Development <ul><li>Fighting the caste system– unintended effect. </li></ul><ul><li>Agency Of Women </li></ul><ul><li>Achievements of ‘Public Action’. </li></ul>
  10. 10. However,.. <ul><li>E.M.S Namboodripad, “ The praise that scholars shower on Kerala for its achievements divert attention from the intense economic crisis that we face. We are behind other states of India in respect of economic growth, and the solution to this problem brooks no delay.” – The First Chief Minister of Kerala, at the International Congress on Kerala Studies. </li></ul>
  11. 11. The drawbacks of the Kerala Model of Development <ul><li>Public Action as a Double-Edged Sword. </li></ul><ul><li>Questioning of the Sustainability of the Kerala Model of Development. </li></ul><ul><li>Population Ageing as a major concern. </li></ul><ul><li>Superficial Social Development? </li></ul><ul><li>Lack of Productive Base in the Economy. </li></ul><ul><li>Very high rates of ‘Educated’ unemployment. </li></ul>
  12. 12. No Paradox within a paradox–. <ul><li>The ‘Central’ and ‘Outlier’ Tendency.. </li></ul><ul><li>-- John Kurien, ‘ There is no paradox within the fishing community in Kerala which has not received the ‘universal’ benefits- The outlier tendecy. </li></ul>
  13. 13. Ill-effects of social development? <ul><li>Demographic transition– too soon?– Population ageing seen as an added burden on state expenses. </li></ul><ul><li>Strikes and Trade Unions– Reason for lack of investment? </li></ul><ul><li>Over-politicisation? </li></ul>
  14. 14. Turnaround in Kerala’s economic growth? <ul><li>There has been a growth in the tertiary and service sectors of Kerala which is seen with hope and optimism by some and regarded as an effect of ‘remittances’ by others. </li></ul><ul><li>There is still a lack of agricultural productivity and industrial stagnation in the state. </li></ul><ul><li>The economy is not ‘robust’ claim some. </li></ul>
  15. 15. Conclusion <ul><li>Lessons to learn from Kerala? </li></ul><ul><li>Public action (Dreze and Sen) </li></ul><ul><li>Achievement of very high social indicators at low levels of economic growth. </li></ul><ul><li>However, a model to emulate? Is it really a ‘model’? </li></ul><ul><li>What are the perils of neglecting investment in productivity and growth? </li></ul><ul><li>The Kerala Experience has a lot to teach as well as much to learn. </li></ul>
  16. 16. References and Additional Readings <ul><li>Drèze, J., Sen, A. K. (2002). India : development and participation, Oxford : Oxford University Press.  </li></ul><ul><li>Drèze, J., Sen, A.K. (1997). Indian development : selected regional perspectives , Oxford ; Delhi : Oxford University Press. </li></ul>
  17. 17. References and additional readings <ul><li>Dreze, J., Sen, A. K. (1995). India: Economic Development and Social opportunity , Oxford; Delhi: Oxford University Press. </li></ul><ul><li>Dreze, J., Sen, A. K.( 1990). Hunger and public action , Oxford : Clarendon Press. </li></ul><ul><li>Isaac Thomas, T. M. (1997).Economic causes of Gulf migration. In: Zachariah, K. C., Irudaya R. S. (eds.) Kerala's demographic transition: determinants and consequences , New Delhi; Thousand Oaks, Calif. : Sage Publications </li></ul><ul><li>Jeromi, P. D, (2005). Economic Reforms in Kerala, Economic and Political Weekly , 40(30): 3267-3277. </li></ul><ul><li>  Jeromi, P. D. (2003). What ails Kerala’s economy: A Sectoral Exploration, Economic and Political Weekly , 38(16): 1584-1600. </li></ul><ul><li>Kannan, K. P. (2011). Agricultural Development in an emerging non-agrarian regional economy: Kerala’s challenges, E conomic and Political Weekly, 46(9): 64070 . </li></ul><ul><li>Kannan, K.P. (2005). Kerala's Turnaround in Growth: Role of Social Development, Remittances and Reform, Economic and Political Weekly , 40(6): 548-554. </li></ul><ul><li>Kurien J. (1995). The Kerala Model: Its Central Tendency and the Outlier', Social Scientist, 23(1/3): 70-90. </li></ul>
  18. 18. Additional Readings <ul><li>Oommen, M. A. (2008). Reforms and the Kerala Model, Economic and Political Weekly . </li></ul><ul><li>  Oommen, M.A. (2005). Is Kerala Changing from a 'Crisis' to a 'Turnaround'?, Economic and Political Weekly , 40(18): 1917-1919. </li></ul><ul><li>Tharamangalam, J. (1998). The Perils of Development without Economic Growth: The Development Debacle of Kerala, India, Bulletin of Concerned Asian Scholars 30(1). </li></ul><ul><li>Zachariah, K. C. (1997). Demographic transition: a response to official policies and programmes. In: Zachariah, K. C., Irudaya R. S. (eds.) Kerala's demographic transition: determinants and consequences , New Delhi ; Thousand Oaks, Calif. : Sage Publications. </li></ul><ul><li>Zachariah, K.C. and Rajan, I. (1997). Kerala's demographic transition: An overview. In: Zachariah, K. C., Irudaya R., S. (eds.) Kerala's demographic transition: determinants and consequences, New Delhi ; Thousand Oaks, Calif. : Sage Publications. </li></ul>