Question

Which of the following statements accurately describe the relationship between economic growth and inequality in Kerala, based on the provided overview?

1. Kerala's experience under a neo-liberal regime indicates a concerning imbalance between economic growth and the level of inequality.
2. High economic growth in Kerala has been achieved without any increase in inequality.
3. The analysis of growth and inequality trends before and after reforms in Kerala shows a consistent pattern across all Indian states.
4. Kerala's economic growth has led to a significant reduction in inequality.

• A. 3, 4
• B. All
• C. 4 only
• D. 1 only

Answer 1

Answer:

D. 1 only

• While some inequality is inevitable in a growing economy, Kerala's experience with high growth under a neo-liberal regime raises concerns about the imbalance between growth and inequality, and the sustainability of growth that overlooks distribution.

• This situation prompts critical questions about the nature, source, and inclusiveness of growth. Inequality must remain at a tolerable level that does not undermine pro-poor or inclusive development.

• The comparative analysis of growth and inequality before and after reforms shows no clear, consistent pattern across Indian states.