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Two Faces of Participation: The Story of Kerala

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  • Patricia Justino

    ()
    (Poverty Research Unit at Sussex, Department of Economics, University of Sussex)

Abstract

This paper analysis the impact of collective action and political participation on the economic development of the south Indian state of Kerala over the last three decades. Despite its low economic basis, Kerala’s successive governments have implemented a large redistributive programme that resulted in impressive levels of social development. Kerala’s success has been largely attributed to the actions of organised collective movements, both in the formal and informal sectors, in the form of militant peasants associations and labour unions. Collective actions have, however, also contributed towards political instability, increase in the risk of investment and uncertainty in labour productivity. This paper examines the effects of collective actions on Kerala’s economic growth during the last three decades using time-series analysis techniques, considering in turn collective action and redistributive policies to be external and then endogenous variables to the process of economic growth in Kerala. The results show that while some forms of collective action can contribute towards the decrease of poverty and increase in state income, other forms harm economic growth. We compare these results with those obtained for a panel of 14 major Indian states.

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Bibliographic Info

Paper provided by Poverty Research Unit at Sussex, University of Sussex in its series PRUS Working Papers with number 19.

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Length: 31 pages
Date of creation: Sep 2003
Date of revision:
Handle: RePEc:pru:wpaper:19

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Keywords: Redistribution; industrial disputes; collective action; participation; social development; economic growth; Kerala; India;

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  1. Roubini, Nouriel & Swagel, Phillip & Ozler, Sule & Alesina, Alberto, 1996. "Political Instability and Economic Growth," Scholarly Articles 4553024, Harvard University Department of Economics.
  2. Standing, Guy, 1992. "Do Unions Impede or Accelerate Structural Adjustment? Industrial versus Company Unions in an Industrialising Labour Market," Cambridge Journal of Economics, Oxford University Press, vol. 16(3), pages 327-54, September.
  3. repec:fth:coluec:625 is not listed on IDEAS
  4. Alberto Alesina & Roberto Perotti, 1993. "Income Distribution, Political Instability, and Investment," NBER Working Papers 4486, National Bureau of Economic Research, Inc.
  5. M. H. Suryanarayana, 2001. "Economic reform versus food security: Kerala's Gordian knot," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(2), pages 239-253.
  6. Heller, Patrick, 1996. "Social capital as a product of class mobilization and state intervention: Industrial workers in Kerala, India," World Development, Elsevier, vol. 24(6), pages 1055-1071, June.
  7. Alesina, Alberto, et al, 1996. " Political Instability and Economic Growth," Journal of Economic Growth, Springer, vol. 1(2), pages 189-211, June.
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