TRIMA

4 Feb 2011

K.N.Harilal
Member Kerala State Planning Board Thiruvananthapuram

The Context y Idea of Inclusive Growth Gaining Respect y y y y y Worsening Inequalities Neo-liberal Economic Reforms Washington Consensus Retreat of the State Reversal of Welfare State Policies y Failure of Trickle Down Hypothesis y Global Economic Crisis y Re-inventing Welfare State Policies .

Growth and Exclusion: India and Kerala y India is Growing Fast y Inequalities too are Growing Fast y Across Sectors. Groups of People y Story is Same in Kerala y Kerala is Among the Fast Growing States y Inequalities too are Growing in the State . Regions.

Inclusive Growth Old and New y Strong Case for Inclusive Growth in Kerala y The Idea is not Anything New in the State y The legend of Onam and Mahabali y The Legacy of Welfare Kingdoms y The Tradition of Public Action y Making of the Kerala Model of Development y Kerala Model as Inclusive Model .

health It was not mere redistribution: Making production more Equitable . Human Rights. wages. land.Kerala Model y Was not a Closed Economy Model y Neither was it Opposed to Markets y Evolved through Markets and in a Globalised Environment y Role of the State and Regulation of Markets y Role of Collective Intervention/Public Action y Collective Action for Freedom. education. Justice.

Is Kerala Model Redundant? y Why Bother about New Inclusive Models if Kerala model is working? y Is the Model Failing to Support Growth? y Is it Failing to Sustain High Quality of Life? y The State has Moved on to a Higher Trajectory of Growth y It is Consistently Improving Quality of Life .

1991.Proof of the Pudding y In HDI Kerala Ranked First in 1981.2001 In Production State Used to Remain Backward But it is an Old Story! y State Overtook National Average in Per Capita SDP y From Late 1980s State Sustaining High Growth y Recent Data on Growth More Encouraging y Why Production? Expenditure Data Even More Reassuring .

09 7.90 8.Year India Growth rateKerala GSDPat India GDP (2004-05) prices Per of GSDP (%) constant Kerala Per (%) capita capita GDP income (Rs) 2005-06 2006-07 2007-08 2008-09 2009-10 10.73 9.77 7.2 6.4 39601 42382 45732 48655 52984 (Rs) 23624 25529 34213 36005 38155 .7 7.22 9.5 9.7 9.

81 266.5 70.8 9.00 914.00 494.00 981.78 624.00 1203.7 28.0 66.36 493.2 22.80 249.71 841.00 1052.0 80.5 33.64 1300.10 202.36 1170.89 1565.40 765.0 81.50 932.91 530.70 855.6 57.2 7.47 261.75 457.4 6.59 1681.60 1312 .00 1290.12 281.31 881.0 165.94 1022.1 1983-84 (38th) 1987-88 (43rd) 1990-91 (46th) 1993-94 (50th) 1999-00 (55th) 2000-01 (56th) 2002-03 (58th) 2003 (59th) 2004-05 (61st) 2005-06 (62nd) 2006-07 (63rd) 145.61 1250 112.58 1011.31 158.00 1013.3 69.7 33.2 27.60 486.8 29.74 554.44 211.0 77.0 Kerala Urban % Variation of Kerala over 8.93 317.5 38.15 1055.00 558.81 369.0 31.6 25.85 390.Trends in Average Consumer Expenditure per person for a period of 30 days in various NSS Rounds (in Rupees) Year & Rounds of NSS Rural Kerala % Variation of Kerala over 29.53 695 179.8 16.65 1266.

income) y Shift Towards Neo-Liberal Policies in India Since 1990 and Kerala Since 2001 y All the more Important to Emphasize Inclusive Policies y Need to Uphold Virtues of Kerala Model .Case for Inclusive Policies y Growth in Inequalities Underlines the Need for Inclusive Policies y What is Perpetrating Inequalities? y Globalisation Making Many Things Beyond our Collective Control (Assets. jobs.

Strengthen Our Inclusive Model y We Need Strong State and Efficient Markets y Sufficiently Big State Government y Size and Effectiveness of State Government is a Sign of our Collective Control y Uphold the Legacy of Collective Action y The State /Society Should Ensure Basic Necessities and Social Security to All y Form and Content of collective Action May Need Change Thank You! .