REVIEW OF LITERATURE

CHAPTER - I1

REVIEW OF LITERATURE

Development was the foremost concern of all classical

political theorists from Petty and Hume. via Smith and Ricardo, to

Mill and Marx (Frank. 1996). It is a multidimensional process

involving the reorganization and reorientation of entire economic

and social systems. The massive amount of literature on economic

devclopnlent suggests diverse fom~ulae to attain the universally

accepted objective of' how to develop. Economic historians have

supplied data to help analyze the Issue of whether the agricultural or

the industrial sector should be relied upon as the driving force in

developmcnt. It 1s apparent that development over ttlc long run is

not likely to occur if it is tied to either an agricultural or an ~ndustrial

foundation. Global development has never been un~li)rni. It has

centered in one or a few places and these places and peoples enjoyed

privileged p a 4 o n s in the socio-economic ladder relative to their

counter parts. The places or regions, which were at a comparatively

disadvantaged position, were categorized as less developed or third

world countries. It is imperative that the nations of the third world

must play a very significant role In the reconstruction of the world

system.

Plantation is a commonly used terminology in the writings on

third world economic development and under development, mainly

because plantation agriculture engrosses most of the arable land in

such countries. A perusal of the literature on plantation reveals that

plantations have occupied an equivocal position in the economic

development plans and strategies of less developed countries.

Plantation agriculture has been subjected to wide range of adverse

criticism. But it can be seen that most of the criticisms are leveled

not against plantations as such but against its enclave nature and

alien ownership. Plantation agriculture was alleged as a colonially

inspired, traditionally export oriented, monocultural activity, wli~cli

produces wealth for its metropolitan owners. This has arisen

because plantations were set up to produce export crops for the

metropolis by people and capital, which came from the metropolis.

But such an extreme definition canncrt be applied to present day

plantations. Thereforc, attempts were niade to reassess the character

of the plantation, to redefine its functions and to assess its potential

~ a l u e to host countries and to the world economy.

Since the study touches a number of inter related topics, the

present chapter is structured in three sections. In the first section, we

situate the problem by examining the role played by plantation

agriculture in regional development. The second section focuses

attention on the part played by internal migration in the growth of

plantations in Kerala. The extent of regional inequalities in

development is reviewed in the final section.

Plantations and Regional Development

Douglass North (1970) argues that a successful agricultural

export trade can and has induced urbanization, improvements in the

factor market and a more effective allocation of investment funds.

However, the pattern of regional development will depend upon the

nature of agricultural crop exported. If the export commodity is a

plantation crop in which there are significant returns to scale, then

there will tend to result an extremely unequal distribution of income

with the bulk of the population devoting most of their income to

food stuffs and simple necessaries. At the other end of the income

scale, the plantation owners will tend to spend most of their income

upon luxury consumption goods, wh~ch will be imported. Wlth the

more equitable distribut~on of Incomes, there will tend to develop

trading centres to prov~de a wide variety of goods and services, in

contrast to the plantation economy which will merely develop a Sew

urban areas devoted to the export of the staple commodity and the

distribution of imports.

Baldwin's (1956) Work analyses the development potential

of two hypothetical regions- one region specializing in the

cultivation of a plantation- type crop and the other region, which

produces a non- plantation type crop. The author contends that the

obstacles to the vigorous expansion of the plantation economy into a

developed, higher per capita income economy are much greater than

with the non- plantation economy.

Courtenay (1980) analyses the impact of plantations on the

economic development of Malaysia. He asserts that the plantation

sector has played a major role in Malayasian economy slnce 1870s.

He considers local ownership of plantations as neither a necessary

nor a sufficient condition for them to play a substantial role in

economic development. Apart from their contribution to GNP,

plantat~ons have major significance In reg~onal development, both as

employers and as markets for local goods and services. Many small

country towns have developed on the basis of their surrounding

plantations.

Dos Santos (1996) asserts that the thclne of under

development has had an enduring hold on Latin Amer~ca.

Backwardnesi: was the result of the specialization of Latin American

economies that concentrated on the exportation of primary products.

Under development was seen as an economic, social, political and

cultural condition made up of negative processes such as 'enclave',

'monoculture', internal colonialism and economic dualism. A

country can hope to advance only if it breaks out of this vicious

circle. Plantations were shown to be the generator of socio-

economic inequality and a block to the development of the peasantry

and creation of a domestic market. The role played by the export

sector was considered as the main obstacle to economic

development.

Peiris (1996) analyses the spatial dimensions of colonial

economic change in Sri Lanka in a geographical perspective. The

author asserts that agrarian policies pursued by the British in Sri

Lanka were, both directly and indirectly, aimed at the promotion of

plantation enterprise. Persistent efforts were made to maintain a

steady flow of land to the plantation sector. At the same tinic, a

large chunk of government revenue was channeled into the

development of infrastructure required by the plantations. The

expansion of plantation agriculture is considered both cause as well

as the result of transport development. The nodal points of the road

and rail network attractcd tertiary economic activities such as

government administration, services in health care, education and

commerce and trade.

Shanumugaratnam (1981) while analyzing the impact of the

colonial plantation system of production on the native economy of

Sri Lanka concludes that the imposition of the plantation system

disrupted the mode of production based on use value without

however in any way facilitating the emergence of more progressive

forms of capitalist production. The imposition of the plantation

system introduced a bimodal society. On one side there was the

emergence of new classes based on landed property, on export-

oriented cash crops and on the ancillaries of the plantation sector

including the exports trade. On the other side was a progressive

deterioration of the native agrarian economy leading to a

disintegration of the peasantry characterized by increasingly

exploitative forms of feudalistic tenancy, disinvestments and

landlessness. The highly organized commercialized plantation

sector- the so- called 'modem sector'- did not serve as a

'development pole' or 'growth centre' which generated its

'centrifugal' and 'centripetal' mechanisms leading to

'agglomeration' and 'trickling down' or spread effects to induce

development on a wide scale.

Karunatilakc (1971) lraces the close links that the plantation

sector had on the urban economy of Sri Lanka. He asserts that the

developed sector of the economy, the plantation was closely linked

to the urban economy. The development of roads, railways, post and

telegraph syslcm was associated with the need to ensure better

communications with the plantation economy.

Vasant Gandhi (1996) maintains that agriculture plays a

substantial role in the economic development and growth in Ind~a.

Agriculture has been found lo have among the strongest linkages and

multiplier effects with employment and incomes. The product

contribution of agriculture still remains of substantial importance

given the high share of food in consumer expenditure. Further,

agriculture contributes substantially to domestic demand and export

earnings of the country, which reflects the importance of agriculture

in India's future economic growth and development.

Majumdar (1970) recognizes the intra- sectoral dualism,

which exists within the agricultural sector and indicates certain

important policy implications for agricultural growth. He divides

Indian agriculture into two broad sub-sectors, the subsistence sub-

sector that produces food grains to meet the family's consumption

expenditure and the commercial sub- sector, which produces non-

food grains or cash crops for sale in the market. The author observes

that in order to attain the objective of maximiaation of overall rate of

agricultural growth, it is desirable to concentrate investment in the

commercial sub-sector. Larger marketable surpluses and higher

accumulation are rendered possible from the commercial rather than

from the subsistence sub- sector. The profits from the commercial

sub- sector wili be ploughed back into the agricultural sector and this

becomes a case of 'growth breed~ng growth'

In an attempt to study development, urbanization and rural -

urban relationship in a plantation dominated economy, Asim

Chaudhuri (1988) examines the possible contributions that the tea

plantation industry might have made to the overall development of

the economy of Jalpaiguri district in North Bengal. The author

asserts that large investments made in plantations have failed to

stimulate agricultural modernization, industrialization and

urbanization in the area. The surplus generated in the plantations

were withdrawn by the foreign owners and used for the benefit of

their mother country. Surplus from the plantations owned by lndians

were used for investment in the metropolitan city of Calcutta. In

short, no benefit filtered down to the hinterlands of the lucrative

plantations.

Ranjit Das Gupta (1992) traces the socio - economic setting

of the growth of plantation enterprise in Jalpaiguri district of Bengal.

The introduction and growth of the tea plantation enterprise in the

district took place with the active assistance of the colonial state.

The author argues that the phenomenal growth of tea plantation

enterprise which took place in the late 19Ih and early 20"' centuries

was essentially in the nature of creation and consolidation of an

enclave economy which failed to generate any broad- based and

dynamic transformation process. Since the plantation system was a

superimposed one, it has very tenuous links with the hinterland and

extremely limited spread effects. A great deal of the income

generated flowed out, and the growth of the industry did not lead to

the setting up of any manufacturing industry. Considering the

features of the growth of the town, it is established that no

urbanization process has taken place in the district due to plantation

develo?ment.

Bhowmik (1980) attempts to give a sociological definition of

the plantation system based on the findings of a field investigation

conducted among the tea plantation workers in Jalpaiguri district of

North Bengal. He considers coercion, low wages and immigrant

labour as the three important component of the plantation system.

These ensured the planters high profits. At the same time they

prevented the growth of a labour market and the workers were

deprived of a market wage.

R a v ~ Kaman (1988) considers cultivation of commercial

crops such as tca and coffee on a plantation basis by the Europeans

as a pronilnent factor, wh~ch integrated the Indian economy Into

world capitalist system. The expansion of area under plantat~ons led

to commercial~/,at~on of land and proletarin~zation of labour.

Ravi Ranian (1997) explores the inimiserisation of labour as

the other side of capital accuniulation and the workers ~ncreasing

resistance to exploitation taking tea plantations ill Southern India

during the period C.1850-1950 as a case in point. According to the

author, the insidious advance of metropolitan capital into the

plantat~ons of southern India has resulted in the peripheralisation of

the region. The chief concern of the capitalist plantation system was

to accentuate the process of proletarianisation and to mobilize the

most vulnerable sections keeping them captive for expanded

reproduction. As planters flourished through various modes of

imperialist exploitation and the plantation surplus was systematically

repatriated, so was the process of immiserisation accentuated.

Ram Mohan (1996) seeks to lay bare the important elements

In the making of development in the peripheral society of

Travancore during the time period 1800-1845. The author describes

the important changes witnessed in the economy of Tiruvitamkur

during the latter part of the 19"' c. as an outcome of the process of

intense conimercialization concomitant to the ~ntegration of the

region into the world market. As plantation products assumed

greater importance in the world market, agriculture began to be

oriented with emphasis on plantations. The plantation sector, the

highly cash rich segment of agriculture was alniost entirely under the

control of metropolitan capital tlll the period of first ~ o r l d war. The

pre-capitalist soc~al character of workforcc helped to maintain low

wage levels in the various realms of production. The large profits

siphoned out by the firms formed a drain on the state's economy.

The study concludes that the hegemony of the metropolitan capital

over trade and production restricted the space for development of

Tiruvitamcore capitalists except as functionaries to the former.

Paul Baak (1992). while analyzing plantations development

in its political context, examines its characteristics and its

implications for the state treasury and for employment within the

state. The author argues that the planters, and their planter

associations together with the British resident and the colonial

government formed a strong political lobby, which was putting

forward its demands to favour plantation development in

Travancore. He asserts that development of plantatio~~s d ~ d nut

improve the situation of the state treasury. The state revenues from

and expenditures for the plantation sector were positively correlated

and outweighed by one another. Further, the plantations provided

employment not to the original inhabitants of Travancore. However,

the pollcy st~niulated the creation of employment in other sectors of

the economy. Employment in the public works department was

created, agricultural undertak~ngs along the roads, wh~cli connected

the plantation districts with the outer world, were started, internal

transport grew, and economic activities in the harbours of

Travancore ~ncreased. The author concludes that when compared to

the advantages to the Madras government by way ol' employment

and to European trade and planting companies, the advantages of the

development ot plantations for Travancore and Travancoreans were

only marg~nal.

Tharian George and Tharakan (1985) trace the development

of tea plantations in Kerala. It was the widespread coffee leaf

disease of 1870s, which led to the abandonment of coffee and

introduction of tea in the state. Majority of the tea plantation

labourers were immigrants and had to work at low wages. The

planters enjoyed full protection from the government. The land

reforms together with the rapid commercialization of agriculture

helped in the extension of area under cash crops in Travancore.

Thomas Shea (1959) explores the reasons for the economic

backwardness in traditional societies, by taking the case study of

Malabar. Immobility of the caste structure, absence of systematic

government, the pattern of land tenures, the traditional occupational

distribution of the elite and the structure of family property laws are

the important barriers to growth identified. These barriers were

mutually reinforcing in their retarding effects and obstructed the

efficient util~ration of agricultural resources in Malabar.

Prakash (1988) while giving an alternative explanation for

the agricultural backwardness of Malabar during the colonial period

emphasizes two factors - the unfavourablc and extractive policies

pursued by the colonial power in the sphrrev of tiyriculture. indu~trv.

infrastructurc, trade and comniercc, and the caste system and the

social practice-; arising out of the system that prevailed in Malabar.

Sreekumar (1993) considers colonialism as the major factor

responsible for the emergence as well as the differential evolution of

urban process in Kerala. The influx of British capital in plantations

and the consequent rise is trading centres led to the emergence of

urban centres in Kerala. The agro-processing industries, which

developed in Kerala, led to the proliferation of small towns based on

commercial agriculture.

Ramachandran (1998) considers the distinction between the

three regions- Travancore, Cochin and Malabar as important in the

history of Kerala's social, economic and political development. In

respect of agrarian relations, education and health, modem

administrative reforms, transport and communications, and In respect

of the con~merc~alisat~on of agr~culture and the growth of trade and

commerce, Travancore and Cochin pushed far ahead of Malabar.

The difference between Malabar and Travancore was between

regions where the janmi system was alniost total and another where a

circumscr~bed janmi system existed w ~ t h a growlng and Illore

dynamic sector that was dominated by new forms of capitallst

landlordism.

Jeemol U n n ~ ( 1 98 I ) , makes an attempt to analyle the reasons

for the shift ~n cropping pattern away fro111 rice and in favour of

coconut. The rationale fbr this shift is fbund in the fact that the

relative profitability of coconut cultivation IS niuch higher than that

of rice cultivation. The reason for the marked difference in

profitability of the two crops is located in the greater labour and

fertilizer costs involved in rice cultivation and the fluctuating paddy

prices. On the other hand, the consistent rise in coconut prices and

smaller quantum of labour and fertilizer use in coconut cultivation

increased the profitability of the latter.

Kannan and Pushpangadan (1988) observes that agricultural

sector in Kerala showed a declining trend in production, acreage and

yield during the period 1962-63 to 1985-86. In the case of food

grains, the decline in the growth of output was mainly due to decline

in the area since the yield has remained more or less constant du r~ng

the period. The study concludes that the high growth rate in the

tertiary sector witnessed during the period was largely unrelated to

the primary and secondary sectors and has been largely based on the

flow of rnconle from outside the economy.

Sivanandan (1985) considers inefficient use of irrigation,

insufficiency of inputs like fertililer arid credit and lack of long-term

rnvestment in improving the productivity of land to he the main

reasons for the loss of dynam~sm in the crop productron sector 01'

Kerala.

Mr~dul Fapen (1999) whrle examining some of the possible

determinants of rural non-agricultural employment in Kerala,

identifies both 'agricultural-rural' and 'urban rural' linkages as

dominant factors in the economic diversification of the rural

economy in Kerala.

Santhakumar and Narayanan (1996) attributes the revival in

agricultural growth witnessed in the mid eighties to the shift in

cropping pattern favouring higher- valued crops. The price factors

and profitabrlity determined by the national and international market,

the changes in land holding pattern and the agro- climatic factors

have been influential in determining the present cropping pattern of

the state.

Sunil Mani (1992) analyses the role, constraints and labour

conditions prevailing in the plantation sector of Kerala. The

importance of plantation crops in Kerala's agricultural economy are

measured in ternis of such indicators as share of plantation crops in

total net cultivated area In the state, contribution of plantation crops

to the state domestic product, contributio~i to foreign exchange

earlungs, contribution to state's tax revenue and employment

potential of plantation crops. The constraints !icing the plantation

sector in Kerala arc analysed in the spheres of respective production

and marketing lionts. The niajor problems identified were the inter-

regronal variation in productivity, rlsc In cost of production,

fluctuations in market prices and fall~ng profitability. The labour

and their living conditions in plantations have also been examined.

Uma Devi (1984) analyses certain historical and quantitative

aspects connected with the special~zation of plantation production

and economic development of the region of Kerala. The first part of

the study is historical in nature and deals only with the Travancore

region of Kerala during the period 1860-1947, while the second part

uses quantitative techniques and looks at the impact of plantations on

Kerala as a whole in the period after 1947. Considering both the

aspects of study, an important finding is that from the point of view

of the society as a whole, the impact of plantations on the economy

has not been very whole some. The empirical results show that the

wage and employment multiplier of the plantation sector is low.

Finally, it was found that the benefits of the fruits of growth through

plantations came to be distributed unequally between the various

castes and religious groups. Increasing social tensions and

disharmony, which followed, stood in the way of econoniic

debelopment of Travancore.

Tharian George with Toms Joseph (1992) while assessing the

llnkage of rubber- based industrial~zation in Kerala. observes that

although there are evidences which suggest that the growth of soc~o-

economlc institutions such as schools. hospitals, banks and roads in

the remote rubber growing areas of the state is closely related to the

fortunes of the planting community, the concentration of natural

rubber processing industry and primary marketing has not resulted in

any substantial forward or backward linkages.

Joseph (1990) considers cash crop sector as the leading

sector in the economy of Kerala. The expansion of the economy

including that of the tertiary sector became conspicuous with the

spurt in the prices of cash crops. Historically, the opening up of

plantations ushered in the era of development in Travancore. Trade,

transport. banking, finance, real estate, education, public service,

housing personal and cultural services are some of the tertiary

activities which are directly dependent on cash crop cultivation. The

dependence of the tertiary sector on cash crops continued even after

state formation. The author concludes that gulf remittances, a major

exogenous determinant of development in recent years, could only

supplement what the cash crop sector has been doing all these years

in sustaining and nurturing the tertiary sector in Kerala.

Tharian George together w~th Haridasan and Sreckumar

(1988) attribute the dynamic growth of rubber plantations in India to

the incentives provided by the government at the levels of

cultivation, production and marketing of rubber. In Kerala, an

iniportant factor, which led to the extension of rubber cultivat~on,

was the implementation of land reforms.

Based on an empirical investigation among rubber planters,

Koselind George (1996) attempts to analyse the consumption, saving

and investment pattern in the rubber plantation sector of Kerala

economy. The analysis showed that rubber plantation sector is

providing considerable surplus to those who are engaged in the

sector and they were able to set apart a portion of their income as

savings. The mode of disposition of savings showed that 75 % of

the savings was disposed in physical assets and the rest in financial

assets.

Mridul Eapen (1994) considers the pattern of agricultural

development with 11s preponderance of commercial crops to be a

major determinant of rural diversification in Kerala. The growth of

commercial crops resulted in relatively high levels of rural non-

agricultural employnient like agro- processing, trade and commerce.

transport and other services. The study asserts that it was a process

of commercialization, which explained a relatively high level of

rural non- agricultural employment rather than rapid industrialization

or urbanlzatio~i.

Mridul Eapeli (2001) establishes the fact that any

development strategy has to acknowledge the dominant influence of

the agricultural rural sector in large a,~rariari economies and should

not regard ~ndustrlal~lation as an exogenous proccss. There IS necd

lo view the agricultural sector as a generator of' product~ve

employnient opportur~ities by offering a vast potcntial markct for

industrial goods, both consumer and producer goods.

An attempt was made by Thomas lssac and Tharakan (1986)

to enquire into the historical roots of industrial backwardness in

Kerala. The study emphasizes the role played by the Travancorean

government in initiating a process of rapid industrial development

during the pre- independence period.

Tharakan (1984) argues that the explanation for the wide

spread literacy and education in Travancore is to be found in the

favourable social and economic forces operating in that society.

Commercialisation of the economy changes in the social structure

and the peculiar settlement pattern were identified as the explanatory

factors for the educational development of the region.

Panikar and Soman (1984) Identifies the link between

agricultural and health status. The rate and pattern of agricultural

development affects health status directly by its impact on food

supplres and nutrition levels and ~nd~rectly through the income and

employment effects. The progressive policies followed by the

pr~ncely states in the fields of land relations, education, and public

d~scr~bution of food grams contributed directly or indirectly to the

Improvcnlent in the health statua.

While tracing health transit~on 111 Kerala. Kabir and Krishnan

(1992) integrates health with developnlcnt The absencc of social

intermediation and the slow progress of education in Malabar

basically resulted in slow and gradual improvements in health. On

the other hand, the presence of social intermediation promoted by

education led to the success of health programmes in Travancore.

Consequently, the pace of the health transition was quite different in

Travancore and Malabar.

Ibrahim (1976) examines the factors, which accounted for the

differences in the transport facilities as between the three erstwhile

regions of Malabar, Cochin and Travancore. Population growth,

urbanization, agricultural development, industrial development and

growth in the volume of trade are considered as the explanatory

variables for the differential performance in transport development

in the three regions.

Oommen (1976) traces the evolution and expansion of

commercial banking in the Travancore- Cochin region prior to the

period of planning and offers some explanatory hypothesis about the

nature and pattern of thls growth. The genesls of modem banklng In

the late 19"' and early 20"' century 1s associated with the expansion

of export trade in pepper and other plantat~on products.

Jayprakash Kaghaviah (19x6) made an attempt to assess the

spread effects of the industrial activities of the Basel Mission in

Malahar. The economlc impact of the mission industries was in the

areas of transfer oftechnology, creation of a skilled labour force and

diversification of thc economy. The social impact Has in the area of

effecting social mobility and obliterating caste consciousness. But

the impact was very limited in Malabar. The industrial activity of

the Base1 niission did not lead to subsequent waves of industrial

activity in the region.

Peasant Migration from Travancore to Malabar

An attempt was made to analyze the economic causes of

migration of farmers from Travancore to Malabar, by Tharakan

(1976). The depression in the prices of farm produce in the context

of growing commercialization of the agrarian economy and rapidly

increasing population and pressure of land are considered to be the

main economic cause of migration of small farmers from Travancore

to Malabar. In the case of big farmers who had already opened up

plantations in Travancore there seems to have been the pull of the

availability in comparatively plenty of cultivable land in Malabar.

This provided inherent prospects for the investment of profits made

in plantations In Travancore and for expansio~l of holdings.

Tharakan (1984) observes that while population prcssurc 011

land In Travancore was evidently a cause of migrat~on of farmers to

Malabar that alone could not have triggered the mlgratlon at the time

~t took place and in the way it deieloped. The nialn attraction for the

mlgrants wah the easy availabihty of cult~vable land In Malabar due

to the absence of adequate dynamism in the agrarian system of that

reglon.

Joseph (1988) identifies the factors, which prompted the

peasants of Travancore to migrate to Malabar and examines the

impact of the migration phenomenon on the development of the state

economy. To analyze the overall progress of migrant centres, a

sample survey has been conducted, which revealed that all the

sample villages have made remarkable progress since the inflow of

migrants. The study concludes that migration from Travancore to

Malabar contributed significantly to the overall economic and

cultural development of Malabar.

John Joseph (1991) analyses the socio- economic impact of

the migration of peasants from Travancore to Malabar. The author

considers development of commercial agriculture as an iniportant

factor, which facilitated the peasant migrat~on. On the basis of the

study of the socio- economic development of a migration settlement

region in Malabar, the author establ~shes that peasant migration has

contributed to the economic development of Malabar as a wholc.

Lakshmanan (1991)- analyses the economic impact of

peasant migration to Malabar on the basis of a case study. One of

the direct effects of migration was an increase in population. The

increase in demand for cash crops led to the extension of capitallst

form of agriculture. The growth of cash crop cultivation and growth

of income created the process of urbanization in thc region. The

subsistence economy of Wayanad was gradually transferred to a

market economy.

Joseph (2001) attributes the extension of cultivation, which

took place in Kerala from the fifties to the seventies to the migration

from Travancore to Malabar. The peasant migration can be

considered as a major determinant in the process of development of

the state economy. The expansion of tertiary sector which Kerala

has been displaying since independence, has to be construed as a

reflection of the nexus between cash crops and the sub sectors of the

tertiary sector comprising trade, transport and banking.

Regional Inequalities in Development

It is generally maintained that inter- regional imbalances are

inherent in the process of growth. The regional dualism existing at

different levels of development have long been recognized by

economists. On the basis of a cross section- time series analys~s

Williamson (1965) has established that there is a systematic relation

between national development levels and regional inequality. K~sing

reg~onal Income dispar~tics and increasing regional dualism is typical

of early dcvelopment stages, while regional convergence is typical of

the more mature stages of nationbl growth and development.

Another important finding of the study is that the poor countr~es are

character~~ed by large and growing regional disparit~es and the rich

countries are generally characterized by small and d~nii~iishing gaps.

According to Hemalatha Rao (1984), historical factors are

largely responsible for the existing regional dispar~ties in under

developed countries. Regional disparities, once established, get

accentuated and lead to unequal growth. The unequal rates of

growth will tend to perpetuate themselves due to the economies of

concentration. The developed regions by releasing centrifugal or

centripetal forces may induce dynamism or drain the growth

potenlial of the surrounding areas.

Ajit Kumar Singh (1999), while analyzing inter state

disparities in per capita SDP in India traces the roots of present

regional disparities to the enclave type of development of the

manufacturing and service activities that took place during the

colonial rule. The study found infrastructural development to

exercise a very strong influence on the level of economic

development of regions.

Narendra Shukla and Sandeep Dhagat (1999), attempts to

analyst the trends in inter- state d~sparit~es, construct composite

indices of econonlic development and identify the backward, highly

backward. developed and h~ghly developed states with respect to

agricultural, infrastri~ctural anci overall development The study

reveals the existence of inter-region21 differences in level of

infrastructural hcilities In India.

Nair (1982), analyses in detail the nianller of change in inter-

state d~sparities in the levels of living in lndia between the fifties and

the eighties. The analysls has succeeded in giving a detailed picture

of the manner in which the different states have changed over time.

Kanagadurai and Jagadish Chandra (1994), makes use of

canonical correlation analys~s to find out the relations between

development parameters and infrastructural variables in Rajasthan.

The study concludes that regional development can be represented

by means of two distinct sets of variables as regional development

parameters and infrastructural facilities.

Gulati (1977), utilizes the technique of multiple factor

analysis in the study on inter-district disparities in India. In another

study, Gulati (1996) constructs indices of different crucial aspects of

development for 354 districts of India, based on I4 developmental

indicators using factor analysis. Decentralisation of the development

planning from the centre and state to district, block and village levels

was emphasized as an effective way of achieving reduction in

regional inequalities and alleviation of poverty.

Ghanashyama Mahanty (IL)99), uses the method of Princ~pal

Component Analyses for e ~ a l u a t ~ n g inter- district d ispar~t~cs in

levels of development In Andhra I'radesh. For a suitable

characterization of developnient dynamics across d~fferent districts

the sanie analysis is carried out at three points of time.

A number of studies on Kerala have given ~ndications of

acute regional disparities ex~sting in the state prior to the fbrmation

of Kerala state. The Kerala state as constituted in 1956 is an

amalgam of the three provinces prevailing during the British regime-

Travancore, Cochin and Malabar. Aniong these three regions

Travancore- Cochin states were relatively well developed while

Malabar lagged behind.

Harindranathan, (1993) examines the reasons for the relative

backwardness of Malabar. The composite index of development

constructed for the two points of time 1956 and 1991 showed that

the regional disparity in levels of development between Malabar and

Travancore-Cochin remained unchanged during the post 1956

period. The author identifies governmental policies to have been

largely responsible for the perpetuation of regional inequalities.

Kerala's regional development even after state formation

does not present a uniform picture. In what follows, a review of the

studies relating to regional inequalities in Kerala is given in order to

examine the manner in which inter-district disparities have chanced

in the state over the years. Radhakrishnan (1979). exanilnes the

extent to which ccononlic activities are distributed equally aniong

regions. Co- efficient of variation is used as the measure of the

extent of spread of the development over space. By taking thc

rckenue dlstr~ct as base and colisider~ng 26 indicators of

development. the author concludes that regional disparities in

economlc development of Kerala have tended to decline during the

period 1960-61 to 1970-7 1 .

Nair (1981) has made an attempt to study the nature and

extent of regional disparities in Kerala and how these disparities

have changed overtime. Rank correlation co- efficient, co- efficient

of variation and district relatives were used to examine the

disparities. The study indicates a considerable increase in regional

dispari!ies in per capita income in Kerala for the post 1970 period.

Patrica Louis (1987) observes that the lower level of the

household savings, both rural and urban is in the districts of the

Malabar region than in the districts of Travancore-Cochin region.

Thomas George (1988) examines the problem of regional

disparities in Kerala's economic development by using twenty-five

indicators of development for the period 1975 to 1985. The study

finds that Thiruvananthapuram, Kollam, Kozhikode, Kannur.

Ernakulam and Thrissur are the districts, which show signs of better

prospects in development. These reglons have historical reasons for

attaining higher levels of growth and development. Co-effic~ent of

Regional Imbalance. Composite Index 01' growth, Quotient of

Income Disparity, and C'ornpos~te Index of 1)evelopment arc the

measures used for the analys~s of imbalances w~thin the state.

Nair et al (1998), examlnes the development status of each

district in major sectors by using the methods of ranking, indexing

and principal component analysis. The study concludes that there is

disparity in the levels of development of the districts and the

erstwhile Malabar region continues to be relat~vely less developed.

All the developed districts are located in the erstwhile Travancore-

Cochin area. The study highlights the fact that i111r1- d ~ a t s ~ c ~

differentials in development status exist in Kerala and that the

development strategy followed in the past has not significantly

reduced the differentials.

It can be perceived from the preceding review that growth of

plantations was one of the major explanatory factors in creating

intra- regional inequalities in development in Kerala, before state

formation. Plantation agriculture provided the sustenance for the

soclo- economic development of the Travancore region. Plantations

acted both as a push and a pull factor in the migration of peasants

from Travancore to Malabar, which took place in the state during the

time period 1920 to 1970. Ever since mid 1970s. a significant shift

in the cropping pattern favour~ng lion-food crops especially

plantation crops is visible all throughout the state. Kubbcr is now

engrossing a major part of the arable land in most o f the districts.

which is the premier plantation crop in the state. Apart liom the

high private comnicrc~al profitability of the crop, rubber oll'ers a vast

potential fbr non- agricultural development in the regions of

location. Therefore, there is the need to assess the inter-relationship

between plantation sector development and regional development in

Kerala.

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