Question

What is the actual observed trade-off in Kerala, with nearly 2% rise in GINI coefficient?

• A. A per capita income growth of around 5% per annum.
• B. A per capita income growth of over 10% per annum.
• C. A per capita income decline.
• D. Stagnant per capita income.

Answer 1

Answer:

A. A per capita income growth of around 5% per annum.

• As expected, growth-led poverty decline is compromised to some extent due to rising inequality levels although in comparison with other states Kerala has registered a notable decline in poverty levels defined in terms of Central government's official norms.

• The inequality-growth trade off (which ideally should be 1 per cent growth in GINI coefficient to be accomplished with 5.02 per cent income growth in Kerala context) is found to be less impressive with a nearly 2 percent rise in the value of GINI coefficient accompanied with only a per capita income growth of around 5 percent per annum.

• These and other findings emerging from our analysis of Kerala experience with rising inequality along with high growth point at some worrisome trends and hence call for introspection among celebrators of fast economic growth