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Also, analysts say, decades of militant trade unionism led by the Communists has led to a poor work ethic and an "estrangement" from private investments - a condition similar to India's other Communist-run state, West Bengal.Nobel laureate economist Amartya Sen says Kerala has to "learn from the world".Society has lost its capacity to set collective goals. "The old change agents like the Christian church and their missionary organisations, social reform movements in various caste groups, trade unions and political parties are acting merely as pressure groups either to defend the status quo or to extract the maximum possible share of a cake that is not increasing in size." Clearly, Kerala needs a new contract between the state and its people to move ahead and build upon its enviable gains.
Many of its social indicators are on par with the developed world and it has the highest human development index in India.Its famed model of development, which is still touted as the most inclusive one, appears to have hit the buffers."The Kerala model is grinding to a halt because the social and political groups having fulfilled their original agenda now have no new agendas.And thanks to pioneering land reforms initiated by a Communist government in the late 1950s, the levels of rural poverty here are the lowest in India.Decent state-funded health care and education even made it the best welfare state in India.
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Economists say it is ironic that a region which benefited early from informal international trade - with the Dutch and the English - and its proximity to West Asia has failed to reap the benefits of economic liberalisation at home.