S.Mahendra Dev: Kerala's Development Experience: Economic Growth And Human Development. July, 2000.

The main objective of this paper is to examine the experience of Kerala in terms of economic growth and human development since the early 1970's. Specifically, this study addresses the following questions

1. What has been the growth experience particularly in agriculture and industrial sectors?

2. How developed is the physical, economic and social infrastructure in the state?

3. Has there been relationship between the observed trends in economic growth and infrastructure?

4. What are the reasons for the poverty decline in Kerala in spite of the stagnant economic growth?

5. What are the roles of remittances from gulf countries and public action in reducing poverty in the state?

6. What is the role of non-economic factors (social movements) in the observed trends in economic growth and human development?

7. How significant is the role of the historical factors in improving human development?

8. What are the emerging problems in Kerala's economy?

9. Are the labour relations hindering the growth?

10. Would the decentralized planning (upto village level) help achieve higher economic growth?

Economic growth has been stagnant in the 1970s and large parts of the 1980s. Since the late 1980s, however, there seems to be a 'turn around' in the growth of SDP and all sectors of the economy although the performance of economic components is still weak in the state. Despite decades of low income and low productivity growth, Kerala has made substantial gains in human development. Policies and some non-economic factors are responsible for these achievements. Since the early 1970s, income poverty has also declined significantly. A pressing challenge remains - the crisis of unemployment and growth in production. In recent years, the commodity production (agriculture and industry) has also showed high growth rates. It is not however clear whether it can be sustained. Some analysts also argue that labour relations are hindering growth in the state. Other problems of Kerala are fiscal crisis and equality of primary education. It is necessary to channel gulf remittances for productive investments. The high level of human development should be accompanied by higher economic growth. Otherwise it would be difficult to improve employment opportunities and incomes of the population and sustain achievements in human development. In other words, there is a need to strengthen links between human development and economic growth (Working paper No.39).