The question is not quite formulated correctly. In general there is only a loose relationship between equality and growth. So much so that they can be considered, if not independent variables, at least independent policies.
>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 >> > >
