A discussion of the causes for the divide between economic investment and social development in Kerala, India.
This paper discusses possible causes for the disparity found in Kerala between economic and social development. The principle causes examined here are socialist- and communist-influenced government policies, the impact of migrant remittances, the influence of labor unions, and the overall lack of infrastructure in the economy to facilitate investment.
“Historians, development experts, and political scientists praise the accomplishments of the Indian state of Kerala. Once home to poor education and healthcare, Kerala now boasts literacy rates and life expectancy rates surpassing all the states of India and on par with the developed world. What Kerala lacks, however, is a developed economy able to financially sustain its population without outside assistance. Kerala has an abundant supply of educated, healthy individuals but not enough demand for skilled labor to support an industrial, self-sustaining economy. The main reasons behind the disparity between the high degree of social achievement in Kerala and the low degree of economic achievement are government policies influenced by socialist and communist ideologies, the impact of migrant remittances, the power of labor unions, and a poorly developed overall economic infrastructure.”