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LATEST NEWS UPDATES | The Kerala Model at the crossroads -Subin Dennis

The Kerala Model at the crossroads -Subin Dennis

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published Published on Apr 5, 2021   modified Modified on Apr 5, 2021

-The Hindu

The role of planning and social oversight in the economic development of the State needs to expand further

Will the CPI(M)-led Left Democratic Front (LDF) be re-elected in the upcoming polls in Kerala, or will the Congress-led United Democratic Front (UDF) return to lead the government? The election results will have a major bearing on the path of development that the State would take in the coming years.

While Kerala’s achievements in human development are well-known, there is a widespread misconception that Kerala has not had much economic growth.

The ‘Kerala Model’ showed that a country or a region need not wait till it becomes rich to bring about significant improvements in people’s material conditions of living, and that people’s movements can be the driving force of such changes by forcing governments to adopt redistributive measures and other programmes.

When growth picked up

Economic stagnation in the 1970s and 1980s led many observers to predict the collapse of the Kerala model. They argued that the slow-growing State would not have the money to continue financing its welfare programmes.

But a fundamental change occurred by the late 1980s — Kerala’s economic growth picked up. Growth in agricultural incomes and in remittances provided the spur for a ‘long boom’ in the subsequent decades. While services grew the fastest, the secondary sector (which includes manufacturing, construction, etc.) also experienced significant growth; the proportion of the workforce engaged in the secondary sector, which was 20% in 1987-88, grew to 32% in 2018-19.

While Kerala’s per capita income was almost 10% lower than the all-India figure in 1989-90, it was 65% higher than the all-India figure in 2019-20.

During this period, Kerala’s education and health indicators continued to improve, and its social security programmes continued to expand. But public schools and public hospitals often fell into disrepair, with inadequate facilities forcing many people to turn towards private service providers. The number of students enrolled in public schools fell steeply.

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The Hindu, 5 April, 2021, https://www.thehindu.com/opinion/lead/the-kerala-model-at-the-crossroads/article34239506.ece?homepage=true


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