Class Relations in Kerala

BY P V Rajeev

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P V Rajeev, Sep-2014

Language: English

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In this study we have tried to present a model of Class Struggle in Kerala where three dominating elements of the labor force in Kerala, namely the labor class, the capitalists and the political class jointly exploit the vulnerable section of the labor force, namely the unemployed. Our attempt here has been to depict the pattern of class struggle in Kerala not as it exists during the current period but as it has evolved over a period of time during the last thirty years or so.

It is estimated that there are about 12 lakh Malayalees working in Gulf countries. Further, various estimates indicate that these migrants send annual remittances home of about Rs 6,000 crore. We now consider the impact of Rs 6000 crore of annual inward remittance into an economy which would otherwise be having a State Domestic Product of about Rs 30,000 crore. The net result will be that the gross income of the people of Kerala will increase by Rs 6,000 crore or 20 per cent.

The remittance of Rs 6,000 crore would go to the dependents and families of the Gulf migrants. We can estimate that there are about 60 lakh such dependents at the rate of five dependents per Gulf migrant. These 60 lakh dependents who constitute 20 percent of Kerala’s population earn an aggregate annual income of Rs 6,000 crore from remittances. Further, they may be earning another Rs 5400 crore from domestic sources assuming that their per capita income is Rs 9,000 – same as for the total population of Kerala. Thus the total income of these dependents is Rs 11,400 crore which gives us a per capita income for these dependents of Rs 19,000 crore or more than twice the state average of Rs 9000.

Thus the pattern of income distribution dramatically changed as a result of these remittances. With increased incomes of the population, there is increased demand for consumption goods. Keynesian macro-economics tells us that increased consumption will lead to increased production and investment activity. But it is very much unlikely that production has increased 20 per cent – as much as income – during the span of the gulf boom.

Other Details

Publisher	P V Rajeev
Publishing Date	22-Sep-2014
Language	English
Territorial Rights	Worldwide

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Language	English
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About the Author

P V Rajeev » Click here to see author page

P V Rajeev (born in 1954) is a retired Economic Adviser to the Government of India. He served as economist in Government of India for about 32 years. He has written 16 books and over 100 articles dealing with social, economic, political, educational and international issues.