Article

PrintPrint EmailEmail ShareShare CiteCite
Style:MLAAPAChicagoClose

loading...

Gujarat Promises Continued, Accelerated and All-Around Progress

Author: Jagdish N. Bhagwati, Senior Fellow for International Economics
January 2, 2013
The Economic Times

Share

Why do you want to compare the Kerala model of development with the Gujarat model of development?

"Kerala Model" in our book is a metaphor for a primarily redistribution and statedriven development while "Gujarat Model" is the metaphor for a primarily growth and private-entrepreneurship driven development. As such the Kerala Model vs. Gujarat Model debate is a longstanding one. We show in our book, "India's Tryst with Destiny," that it is ultimately the Gujarat Model that has delivered in Kerala. Contrary to common claims, Kerala has been a rapidly growing state in the post-Independence era, which is the reason it ranks fourth among the larger states, according to per-capita gross state domestic product and first according to per-capita expenditure.

It also suffers from the highest level of inequality among the larger states. So growth, and not redistribution, largely explains low levels of poverty. In health, Kerala's per-capita private expenditures are nearly eight times its percapita public expenditures. In education, excluding two or three tiny northeastern states, at 53%, rural Kerala has by far the highest proportion of students between ages 7 and 16 in private schools. The nearest rival, rural Haryana, has 40% of these students in private schools.

View full text of article.

More on This Topic

Book

Why Growth Matters

Authors: Jagdish N. Bhagwati and Arvind Panagariya

Two preeminent experts on the Indian economy argue that despite myriad development strategies, only one can succeed in alleviating poverty:...