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The Labor of Development Karatake Workers and the Transformation of Capitalism in Kerala, India PATRICK HELLER Cc CORNELL UNIVERSITY PRESS ony ©1998 Ca ey rE el uta ee hbk oar et ‘orton fem tt peo i Fo i ale pbs 199 Cra Unie roe Te ping Coral 108 {arf ons Cation abion Dan coral neal dn Palle vis hgh ees nd ide Benvosote Soa hh wosoresece ky Inder sry Wig delay {Cheon Kee “Hor Autonome een". Ks dn Eos con ge mem in Shuperentamcee, aero ee setibebreacodcrceemenataies, ‘To Max and Rosemarie Heller Chapee 1 Paw x Chapter 2 Chapter 3 Chaper 4 Pane 2, Chaps Chapter 6 Chapter 7. Acknowledges Ahbrevitions Introduction: Kerala in Theoretical Perspective Clases and States in the Making of Development AGRICULTURE “Tenants and Laborers in Kerala's Agrarian Transformation ‘The lastutonaliation of Class Conf in Arculure Class Compromite and the Development af Capitalist, Agviulure Inpustay Mobilization and Transformation in dustry Crisis snd Compromise inthe Unorganized Sector Accumulasonst Swati The Decline of Miltaney in the Organized Factory Sector Concusion: The Demcratic Developmental Sate Works Ged Index 2 si ss 87 ns 1s7 160 183 207 aT 9 269 Tables Kerala: Baie Socoeconomi indicators compared Paddy wages and prices in Kerala Area of majo crops in Kerala Production and yield of major crops in Kesla Composiion of workforoin Kerala and India, 1991 Pecentage growth in manufacturing and registered factory sectors, Kerala and India Labor militancy in Kerala Per capita investments on hand in manufacturing stor and total economy 22 m2 130 16s aun 220 23 Acknowledgments A very wise and famous sociologist oe sold me that god scholship vas fist and foremost about hur. He tea went on to say that yon think you have an orginal idea, sonly means you have lousy memory. This book isthe sum total of many ideas that have absorbed, pier, and possibiy mangled, fom many different peopl, some of wher Tr ‘membes, some of whom I don't. My thank, and plage, to alo them owe my greatest intellectual debi to Michael Burawoy, Peter Evans and Michael Watts. The ways in whick their deus have shaped this book wil he obvious to thos familar With their work, As muchas their patience snd seppor cared me through this projec, wae tei cominent ad “edition 1o teaching that sine and again restored my faith in the ac demic enterprise, whch after al, aboot passing on knowledge. owe special thanks to Michael Barawo, who ral move versions of is work than ether he ot Lcae to remember and who set a andar for Working with students chef ca li, ‘Much of the argument I develop inthis book would not have been pos sible without Ron Hersing’s pioneering work andthe countless discansions ve have ad over the years. Not only did he help me finaly understand Polanyi, bat the empiial richness of his own fictdwork in Kerala as a constant inspiration. To Pal Lubec I owe hanks for exposing me to the ‘wonderful wold that can be sociology. Arun Swamy has taught me much ‘f what 1 know about Indian polis. Many people have red and con Imented on parts ofthe manuscript. Pd like to thane Chale Kurzman, Karen Barty, Robert Lieberman, K.P Kannan, Richard Franke, Prana Bardhan, Atal Kol, and Olle Toeagust. Daid Stark, Phil Oldenburg, x Acknotledgmente Gay Seidnn, and Amita Bass read the entire manuscript and provided ftvaluableritgues and suggestions. For thie fendship, adtice, and ‘eas thanks to Sub Sinha, Tony Maes, Subham Chaudhti, Alex Pat, ‘Avid Lukauskss, Mare Garcelon, Jaith Tene, and John Harman. I Sind anyone avho reads ths book, also have Fran Besson, my editor at ‘Cornell University Pres, othank She coninced me, against my perfectly ‘wromgheaded jadgment, to make the tex shorer and sweet Ti Kerala there ate hun whose time and generosity made my re seatch possible IF these any measir of the degree apd extent to which the practce andthe instttions of democracy have eaken roorn Kral it isi the refesingly itl and passionate manner im which Kealites fom twas of fe discus plies, Only once di someone turn down my r= {es for an interview Ministers, plc, farmers, workers, unionists, Shudent and academic al give ley oftheir time- My only pets that inthis world of uneven and unfair development, Western academics my~ ‘elf nhaded, reap largely nested rewards fom thei informants Tek the students a the Cente for Development Stas in Tevan ram who filled me with so many exiting deat (and so much soothing rum). K.. Ram Mohan deserves seca thanks for his tiles efforts 0 ‘lucite in the ways of local pols. K.P. Kannan and TM. Thomas Tac eve fresh of thei tine, their ideas, and dei exteaordinary knowl tdee of Kerala polis and economics. Vata and Chandan Mukherjee fave me a home away fom home, Iam also gratfal oP Sabadevan for Ecng such an enterprising ceearch assistant ad soc a wondedal rend; nny fieldwork could never have been completed without his help. The = ‘arc for this hook mas made pole by two grant from the American Tasca of Indian Sta. Priscila Stephan Belped withthe bibliography, Mararee Phillips provided invakable ibeary assiance, end Elaabeth “Mande pated me many embarrasmens through er digest reading of the fina tex nally, {owe the deepest gratitude wo my wife, Jo Lee, without whom the Lat fiten years would have Been 0 lonely and 0 eros. Pi kk os cm oie Pin orca Ene is istuc me Kawa KLRAA MILA Pac Ts Ub AlModian Tee Union Congres (CPaiated) ‘Alls Keranad Karas Vo baa fra Pare Cente for Deventer Cone of nd Trade Unions (CPN) (ene for Moat lan semoy Comma Fae of nia Commas Party fad, Marit Desay Kasha Suan zona nd Poa Wert Goverameat of ld (Government of Rela Idan Admire Service Idan Nato ede Uns Congres (Congres tied) Indes else Commins eral Acura Workers ct eral See Kanha Thora ion Ker Cong Seca uty etl Keak Sangha eral Land Reforms Amendinene Ac Kerala Sse Says Pasa UeDemecrate Frnt Member Espa Ase rimary Agrltural Ce Soin See Nauta Dharma Parga, ThravhumoorKersaks Thoshial Union Trnancore Labour Assan United Denes From THE LABOR OF DRVRLOPMENT Introduction: Kerala in Theoretical Perspective In the 19605, social historians cemindd us that subordinate class hocrow fom . P. Thompson, were present at thei own making, and that indeed, they helped make the moder world Scholars of reveltions democracy, the welfare tte, and the labor proces have since eraphasied the role tha peasants and workers played in the great tensormative vents ofthe rene century, inlading shaping the srt at ns ‘ations of moderaeapiim: Thoogh this concen with "bringing the ‘masses hack in” has informed much fou thinking about social and eco ‘omic change in advanced capital counties, asa cobret ody of co pis and hypotheses ie asd 3 fr les pronounced impact the study ofthe developing world In both its academic and policy incarnations the developmen erature has tended to se peasants and workers as ether vitims or bene but rarely as active agents of economic and poltial transformation In exploring the determinants of economic devclpiment, scolar have fo ‘use eicher oa the market and tx cal arin the Bourges, or onthe developmeneal seat and its technorati ites lathe tteratre om political Arvelopment,inlading mich ofthe rsent work on detaocatiation, che ‘wansidon to more open and plural systems ofrepesenttion has ete been fanctionally id wo the ascendaace of market economies of arb to the stratepc ations of political elites, nll of these senaron,pensants ‘Wil (1909) ily (1978), and more my Baroy 1985) sad Rashes Sen, ‘tpt 1990 me erm as ames ‘Seng or i wr mete 2 The Labor of Development and workers age ese to passive objects of ores beyond ther contol and implicit, eee understanding Tn part the scholarly neha of tes lasses reflects he fact that in most developing countries olial parcpaion has been carefully conlled. “The exclanon or co option of workers and peasants as been so perv sive among late developing countries that thas ben elevated to the ts ‘ofa theoretically informed neces: sasfhing “populist” demands isn compautle with economic rowehy and politcal modernization requites ‘he taming of soil mobilization, The former proposition flows from con. ‘ventional economic wisdom (both Maris and acclssical that asses 2 verosum ade beeen growth and socal consumpion helt, ‘most famously associated with Samuel Huntingtons clas work (1968), isreflected in the curren concern with problems of governance instiation bldg, and pola leadership. A functionalist that ascii a forms these views, in which developments understood at he unfolding of instuional peopetes associated with modem markets oe modern demo trate states. These views ether entirely dicount the effects of social com fct and mobilization (economic theory or priadge them as inherent dkestaizing (polical modernization. Tm examining the case of the state of Kerala in southwestern Ind po pose totum ches assumptions on their bead. maintain that development in Kerala has ben driven nor by market forces ot by an emerging boa ‘szose, but bythe mobilization of subordinate classes, This proces his been uneven, at times contradictory, and always contested, bat his nonetheless resiked in the consolidation ofan instrtonaly robust and polly able form of soil democratic capitalism, Three phases cane ieatifed inthe developmental raectory ofthis ensely populated state of thiy-one milion inhabits. Ia the frst phase, mobilization of poor tenants and andes laborers produced a ‘Setarian ransom and pusipitated the demise of the landlord dominated Social order Period electoral victories by pro-labor parties and stained lowerclass mablzaton led to significant redsbuiverforns and the rapid expansion of the wellve sate, Thee developments underscored, and indeed wer faltated by, the consolidation of ich aie of demo ‘ratciastitutions Ina second phe labor miltancy and continous chal- lenges to ovate property eggered a ess of capa aceamltion, and specially 2 cis inthe Iaborsqucering logic of penpial captalis. This ess wok itll onthe economs bat ene many Latin Ames cases, i id not rest in the decomposition of the popular sectors. For reasons that are explored in detail inthis book, orginized clas eerests tnd stong stat intone combined to prodace a hid phase marked by Introduction 3 ‘he istiuionalizaion of ass confit and the effective, if weve, forging ‘of class compromises across agrarian and industrial sector. Though in ‘conventional economic terms Kerala remains an “underdeveloped” econ ‘ny, the labor movement and the state have taken sigfcae seeps 0 eo mote capital growth while maintaining hatdwon distributive ad svi oie highligh the signfcance of Kerala through two comparative fame: works that explore two diferent sets of arguments, Fist, the degie to ‘which both rural and urban wage-eaning clases in Kerala have been po- lucally and economically incorporate is systematically contrasted to the Aisorganized and largely excluded condition of lower clases inthe est of Tada. Such divergent outcomes within the same natant and is de- smocraicinsttucons, and within the same national economy and ite largely nderdeeloped capital stoctres, point tothe sighicane of loa histories of sttesoceey engagements. Kerala's deporte from the ‘atonal pattern has resulted from specific paterns of las formation and ‘he tnstcatona kage that emerged fom repeated ys flan contestation and state intervention, The second framework, stuating Keala inthe comparative politcal economy teratre, allows fr Broader claims above the relationship be ‘ween subordinate as police and developmental outcomes. In contast to predicions tha high levels of social mobilization in developing cous tries nesewanilyoverond fedging, democratic insurons case-based ‘obilization in Kerala hat actually intttionalized democracy ad made iework beter Similars «redisbutiveesjectory of development, rather than inkibeng capitalne developmen, has io fact crested ban of the so- ‘Gal and inetiutional prerequisites (for example, human capital, Grice ‘ations, robust bureaucracies) for sustainable economie growth Simply Stated, capitalam and democracy in Kerala have not only coved But Pospred from the political and economic inclusion of pessans and ‘workers. The ease of Kerala sugges tat lower-class mobikzation can in t,he the engine of democratic development “The clite-dominated or atboctarin plisal systems of the possolo ial worl have provided few formal avenues for the articulation of de tnands from below. But recent evens have brovght the question of suboe- Ainae-lass politics to center stage. Nelberal proclamations of the "end ‘of history" nocwithstandng, dfbule wansivons i eastern Europe, Rus ‘Sa, and South Africa and increasing socal unrest in East Asia only con- firm what scholars of Latia Ameca have long known: the relationship be ‘reeen capitalism and democracy is an uneasy one, and making the "double tanstion” poses unig problems 4 The Labor of Development ‘The afi of capitalism and democracy has never bee sien Ie has coaly been forged, and very uneveny at that The challenge to Earope he- toreen the fen world ware was to recone te ise of mass pli with the comolidation of frecmarkee economies, The cost offi was fa ‘am [olany 1944 Liebher 1991). Mick ofthe developing word today faces a similar lemma of reconcing the demands for socal etizenship wth the imperative of stimulating growth in a privatepropery econ ‘my—summed wp by 2 woman from s South African squater sctlement ‘vio wrote to a local acwspaper in 1990: "Mandela has been eleased, ‘ow where my house?” [ced in Marray 1994, “There have, of cours, been cals for manazing these demas fom hove: The "Washingion consenous” has explily advocated insulting Economic decision making fom politcal pressures In this technocraie ‘inion offecionlee reform, democracy i aceptble nly “within eax ton! (Centeno 199). As forthe Salinas presidency in Mesico, Centeno ‘observes "the legitimacy of popular paciption was accepted only a6 Tong a8 i would suppor the correct policies” (199464). This model has come unde increasing critic no only on normative grounds, but als because theres mounting evidence that neoliberal policies donot promote conomic growth and that insulated and nator policy regines ae lest ‘han effin Przewoes 1995; Stark and Beusat 1998) Because there are ‘no quick fixes and no Bueprns, and because vasious tade-ofs have at ferent drbutons of social costs, we mst come to tema withthe spe proposition hat developmeat is and should be contested. If chet sone [ess of relevance hereto be deswn from Europe history, thi the terms under which subordinate caer are incorporated have x profound pact on the prospects for consolidated democracy and sistaitable ‘growth (Luchbert 1991; Preworsk 1995), There ae good reasons why fhe question ofthe “entry ofthe mases” ito polis fas long peenec pied scholars of advanced capitalist sates. I now tine to extend that preoccupation wo the developing world and 9 understanding the che Tenge of the double eransion "The recent wave of democratization in the developing world has shed new light on thi problem, Theorie af democratic transitions, once Pr manly concerned with the dynamics of eltepacted transisons, have fumed thee atendion 1 the problems of subordinatelas incorporation (Preeworski 1995; O'Donnel 1993), Because most new democracies are compu rd eee a. nae =o ‘ Introduction — 5 poody instiuionlized and dominated by entrenched politcal oli {scchics,frsgmentation and exclusion of lower clasts remains the ule {Weyland 1996; O'Dosnll 1993). There are, however important excep” toa, in which democratic openings have been acompanied by organized ‘demands for the extension of soci czenship. In such east a Spain {(Maravall 1993), pos-Pinochet Chile (Roberts 1997), and Cacchoslorae ‘i [Stark and Burst 1998), the tami wo the market hs been nego sted throgh concenatons with popular cases Economic eanformna fom in South Alcs i alto deary destined to be shaped by lowerslst demands In cach ofthese cases the es of labor akan organized ator ws the esl of rapid industiaizaton, managed fram above through various forms of bureaucratic athortarianiom and predicted on the pail ex tlusion of labor Subordnateclass interests were politically suppressed ven as they were being formed. Democratization fas changed the equ ton, but dhe dilemmas ofthe double transition have only just beg ‘manifest dherslves, Tn India, the sequence i reversed, On the one hand, modern industry and the industrial proletariat present ony smal par ofthe equation, ‘The “agasian queson” stl loms lage. Capitalism remains in is fo imative stages, and the material base of comprise has hoe and wll re rain forthe foreseeable future very narrow. On the other hand, because emocracy i India predates capitalist ranformion, ths formally em powered economic groups unskilled workers, peasants, and landless I horerdhat have more offen han not been the vite of capitalise devel- ‘opment But the asinomis of eidzenship and property have Yet to be Stay posed. In a society where caste and ethnicity continue t0 serve 3+ the primary aves of plea! mobilization, demand-group poles have predominated over redrbatve class poles (Rdoiph and Ralph 1987). Popalism and patronage have never dteateaed the interests of propertied groups. Within India thece ae, however, important exceptions, fof which Kerala the most notable. Democratic opportunities have Been Seized, and subordinate classes have had a devisve coe in shaping the terms of capitals transformation, Democracy and captalism have co ‘eoated each oer dicey. Ths Kerala epresens an extend cae study of the double tansion, oth within Inia and iteration the case of Kerala i indeed ‘sual. But the unum often sheds more ght on dyaamic proces than the usual nis bilan study of Lesotho, James Ferguson pots oa that its status asa magnet of development ad and a a labor reserve fr South [lsc certainly makes t pease. But by the same token, he remarks that “the exaggeration it produces, if properly interpreted, may be seen not 6 The Labor of Development simply as a distortion of he ypica” case, bata clarification, just asthe ‘Mion by a computer of ‘extreme’ coors toa remote seaming image oes not distort but ‘enhances the photograph by improving the visibility ofthe phenomena we ae interested in” (199425758). Development lays contested, but not slays transparently so. In Weapon of the ‘Wea, James Scot shows that dhe “arma” quiescence ofthe salen in public pois often masks rich epertoe of ideologies and practices of resistance ro the dominant order Siulary, engson anges that by om Seructing “poor Basotho™ as "subsistnce peasant” in “ned” of develop ment, oficial development discourse not only abstracted Lesotho from its polical economy of dependency on South Africa, but also rendeced gees those who ia de day-tordy tras are infact “doing devel- ‘opmen” In Kerala, democratic institutions Segueated by te Indi ms tionaline movement tether with lal pattems of conic and mobili tion, have conspired to bring the mater nto the open—before the

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