[I am not at all well read in this area but...]

1)  Kerala's colonial legacy might be compared to Cuba's colonial legacy -
large plantations with a "proletarianized'" work force, well educated and
politically mobilized population by regional standards.

2) In Kerala's case this helped lead to high investments in basic
education, basic health and a number of other "basic needs" areas.  Many
point to the recent political movements as having pushed this (see Jim C's
post) but one should also point out that plantation export industries
facilitate tax mobilization (if the political inclination is there).  In
any event much of Kerala's human investment was locally financed,
facilitated by India's structure of state financing for these sectors.

3) But basic human needs are not expensive to meet (just politically
difficult) and the "big" money for economic transformation could not be
mobilized locally (again, think of Cuba with its dependence on sugar
plantations and tobacco).  And, as Jim points out, "big" money was not
going to come from the central govt.  The limited achievements in basic
human needs deserve serious praise and make a big difference to the people
affected.  They also have a high "rate of return" economically and
socially. But, in themselves, they can't transform and economy.

4) BTW, I am assuming that by "equality" you meant in terms of basic human
needs.  Income equality in Kerala is nothing to greatly boast of.  The Gini
coefficient is right on the national average (although the Gini is horribly
misleading due to the fallacy of averages).  From my own limited visits to
the state one certainly sees less of the destitution one sees in other
parts, and that is appreciated.  And of course less of the new-new rich who
would find it provincial and aren't from the South.  But my sense is that
the inequality between the typical worker or peasant and the local elite is
about the same as elsewhere in India.

5) A philosophical digression: more and more I ask myself how much ANY
*currently available* growth strategy affects the long long run.  How many
countries have dramatically changed their "place" in the economic hierarchy
from a hundred years ago (or in some cases two hundred years)?  Admittedly,
I am thinking of a fairly big band and a long time frame.  There has been
great excitement over spurts (remember when Japan was poised to overtake
the U.S.) but then people drop back.  There have been big lags (colonialism
for S. and E. Asia; devastation from war or political collapse) but then
people catch up.  Is there an enormous weight of history (hysterisis, path
dependency, whatever) in capitalist international hierarchies?

Paul

At 08:42 AM 11/29/2004 -0800, you wrote:
Why hasn't equality in Kerala generated more economic growth?
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu

Response Jim C: As someone who has lived and taught in Kerala for
several years and as someone who can read, write and speak Malayalam
fluently, I take exception to this summary assertion or predicate that
there is significant equality (presumably in distributions of wealth and
income) prevailing in Kerala. I have seen Western academics, often
leftists, go on a kind of "Potemkin Village" tour of Kerala and then
come back to write about Kerala as some kind of beacon or shining
example of equality and socialism standing out in the middle of the
social formation of India.

First of all, the inequalitites in Kerala are also glaring (less than in
other parts of India but glaring nonetheless). Some of the more glaring
manifestations of grossly unqual distributions of wealth and income are
less manifest visibly because of more extensive practices of communal
sharing and communal cohesion that prevail mostly in the rural areas
leaving people to appear visibly better off than they really are.

Next, there is the historic relationship with the central governments
going back to Emergency Measures (and farther back than that even), the
historic assaults on the Naxalites, regional tensions and jealousies etc
that resulted in the south, particularly Kerala, parts of Madras, Tamil
Nadu and Andra Predesh getting only the scraps from central government
disbursements and being left isolated out of central government
development programs.

There is also the historic concentrations and roles of CPI and CPM in
Kerala and alternating CPM versus Congress-I provincial governments that
caused the central governments to leave Kerala and parts of the south
out of any comprehensive development programs on the national level as
forms of revenge when they brought CPM in as the state government.

Further, although the inter-party and inter-faith forms of violence have
not been as pronounced in Kerala as in the rest of India, class, skin
color/tone, caste, and gender still play important roles in perpetuating
social divisions that interfere with physical, human and social capital
formation. Further, there is the issue of Indigenous Peoples such as the
Dalits, in extensive numbers in Kerala and in the south who remain poor,
marginalized, locked into Indigenous and "Scheduled Caste" colonies and
exploited and whose talents are not brought into the development
processes.

I could go on with this but this should suffice for the moment.

Jim C.

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