Presentation on the kerala model of development

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.

1. The Kerala Model of Development
•Social protection in
Kerala and its effects
on the economy.

2. What is the Kerala Model of
Development?
•Gained attention due the presence of the
‘paradox’ of high indicators of social
development and comparatively low economic
growth.
•Promoted as a ‘Cheap’ Model of Development-
No need to achieve economic growth first.
•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!

3. Social Protection Programmes in
Kerala
•Land Reforms in Kerala- Equity as its
goal.
•Democratisation of Education
•Universal Health Care

4. The Positive Social Development
Indicators
•Reduction in Fertility– attributed to
Education and gender equality
•Demographic transition– as a result of
Reduction in Fertility
•High Literacy rates
•Health as a ‘Right’
•Public Distribution in Kerala most
effective– Food security seen as ‘access’
to food.

5. Economy of Kerala
•The Low Economic growth that made
Kerala a ‘paradox’.
•The Fiscal Crisis of the State
•The implementation of reforms.
•The turnaround in Economic Growth.

6. The Role of Remittances and
Migration.
•Lack of jobs in the state propelled
migration to Gulf countries.
•Positive Effects on Remittances:
•- Poverty reduction.
•- Highest per capita consumption
expenditure in the country.
•- Propelled the growth of the tertiary
sector?

7. The Role of Remittances and
Migration
•Negative Effects:
•- Unemployment and Industrial
Stagnation.
•- Lack Of Solidarity in Society.
•- Kerala the new ‘Gulf’ and the
phenomenon of ‘Replacement Migration’.
•- Remittances not translated to
investments to any significant extent.

8. The different phases in the
development of Kerala
•To summarise:
•- Kerala went from being a ‘model’ of
development to a state in crisis which
raised the head of liberalism in the state.
•- The wave of reforms implemented
‘decentralisation’ in Governance in the first
phase and Economic reforms thereafter.
•- There is a claim to a ‘turnaround’ in
economic growth of Kerala.

9. The achievements of the Kerala
Model Of Development
•Fighting the caste system– unintended
effect.
•Agency Of Women
•Achievements of ‘Public Action’.

10. However,..
•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.

11. The drawbacks of the Kerala Model
of Development
•Public Action as a Double-Edged Sword.
•Questioning of the Sustainability of the
Kerala Model of Development.
•Population Ageing as a major concern.
•Superficial Social Development?
•Lack of Productive Base in the Economy.
•Very high rates of ‘Educated’
unemployment.

12. No Paradox within a paradox–.
•The ‘Central’ and ‘Outlier’ Tendency..
-- John Kurien, ‘ There is no paradox within
the fishing community in Kerala which has
not received the ‘universal’ benefits- The
outlier tendecy.

13. Ill-effects of social development?
•Demographic transition– too soon?–
Population ageing seen as an added
burden on state expenses.
•Strikes and Trade Unions– Reason for
lack of investment?
•Over-politicisation?

14. Turnaround in Kerala’s economic
growth?
•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.
•There is still a lack of agricultural
productivity and industrial stagnation in the
state.
•The economy is not ‘robust’ claim some.

15. Conclusion
-Lessons to learn from Kerala?
-Public action (Dreze and Sen)
-Achievement of very high social indicators at low
levels of economic growth.
-However, a model to emulate? Is it really a
‘model’?
-What are the perils of neglecting investment in
productivity and growth?
-The Kerala Experience has a lot to teach as well
as much to learn.

16. References and Additional
Readings
•Drèze, J., Sen, A. K. (2002). India : development and participation, Oxford :
Oxford University Press.
•Drèze, J., Sen, A.K. (1997). Indian development : selected regional
perspectives, Oxford ; Delhi : Oxford University Press.

17. References and additional
readings
•Dreze, J., Sen, A. K. (1995). India: Economic Development and Social opportunity,
Oxford; Delhi: Oxford University Press.
•Dreze, J., Sen, A. K.( 1990). Hunger and public action, Oxford : Clarendon Press.
•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
•Jeromi, P. D, (2005). Economic Reforms in Kerala, Economic and Political Weekly,
40(30): 3267-3277.
• Jeromi, P. D. (2003). What ails Kerala’s economy: A Sectoral Exploration, Economic
and Political Weekly, 38(16): 1584-1600.
•Kannan, K. P. (2011). Agricultural Development in an emerging non-agrarian regional
economy: Kerala’s challenges, Economic and Political Weekly, 46(9): 64070.
•Kannan, K.P. (2005). Kerala's Turnaround in Growth: Role of Social Development,
Remittances and Reform, Economic and Political Weekly, 40(6): 548-554.
•Kurien J. (1995). The Kerala Model: Its Central Tendency and the Outlier',
Social Scientist, 23(1/3): 70-90.

18. Additional Readings
•Oommen, M. A. (2008). Reforms and the Kerala Model, Economic and
Political Weekly.
• Oommen, M.A. (2005). Is Kerala Changing from a 'Crisis' to a
'Turnaround'?, Economic and Political Weekly, 40(18): 1917-1919.
•Tharamangalam, J. (1998). The Perils of Development without Economic
Growth: The Development Debacle of Kerala, India, Bulletin of Concerned
Asian Scholars 30(1).
•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.
•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.