ABSTRACT
Kerala is well known for its achievements in the sphere of social development; and these include a rapid and high-level mobilisation and organisation of workers, regardless of location and sectoral occupation. Such a process of social development without a commensurate transformation of the productive forces has, however, presented Kerala with some major dilemmas. In this study the political economy of labour and development is considered, via treatment of the respective roles of labour unions, state and capital in the rural context. Three major dilemmas are examined: (1) technological choice in the face of trade union resistance and rising labour costs; (2) the mismatch between labour supply and labour demand, as a result of the changing job expectations of the younger generation; and (3) the failure of the state to attract new investment in the context of liberalisation of the Indian economy. There is a close relationship between the dynamics of labour relations and the emergence of these dilemmas. The study presents an analysis of how this works out in concrete terms: in relation to rural labour relations in the rice cultivation sector, where these dilemmas have pushed the trade unions, state and farmers to reconsider their earlier strategies.
