Economic Development in Palanpur 1957-1993: A Sort of Growth
This paper asks why 30 years of economic development in the small north Indian village of Palanpur has been less positive than one might have hoped. While per capita incomes have risen and poverty has declined, progress has been painfully slow. Moreover there has been veritable stagnation in educational outcomes, and the village remains economically and socially stratified. Technological change in agriculture and non-farm diversification have been the main forces of economic growth during this period, but population growth has prevented per capita incomes from rising markedly. In addition, high and persistent levels of inequality in Palanpur have resulted in the capture of village-level collective institutions and the diversion of public programs. The village credit and tenancy markets have also evolved in response to the changing external economic environment. We suggest that over time the poor have become less able to participate in these markets.
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