Basically lack of investments. A good amount of investments are made across the border in Tamil Nadu, where minimum wages and the like are less restrictive than Kerala's. Entrepreneurship in the usual sense is weak in Kerala although Malayalis have produced their share of entrepreneurs outside the state. Also, Kerala is a small state bounded by the Malabar coast and uncultivable land for food crops due to the undulating western ghats leading into the Arabian sea. Cash crops, however, like tea can be found in the higher altitudes and other tropical products such as coconuts and rubber. But the main reason is lack of investments, which is due to lack of any real investment outlets in industry combined with the left environment. Two industries have been now targeted: IT and tourism.
Most well-educated Malayalis (including teachers and nurses) leave Kerala to work elsehere in India and abroad (including the Middle East by semiskilled workers).
cheers, anthony
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Anthony P. D'Costa, Professor Comparative International Development South Asian and International Studies Programs University of Washington Campus Box 358436 1900 Commerce Street Tacoma, WA 98402, USA
Phone: (253) 692-4462 Fax : (253) 692-5718 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On Sat, 27 Nov 2004, Michael Perelman wrote:
Why hasn't equality in Kerala generated more economic growth? -- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
