Building Institutions for Egalitarian Development: The Dravidian Development Model of Tamil Nadu, India

Abstract

The Dravidian model of economic development which was formalised recently has its roots in the thoughts of the founding fathers of the Dravidian movement offers a compelling case for a development strategy powered by populist mobilization around the Dravidian cultural identity. The tenets of the model include equal rights, equal opportunities, social equality, and mobility with a focus on enabling the creation of effective institutions. In contrast to the emphasis on just income growth, and the reduction of poverty mirrored by the Washington consensus approach, as well as others who also focus on reducing income inequality, this model flags caste and gender, which is socially targeted at linking growth with socially inclusive policies. By enabling the vulnerable members of society to provide them equal access to opportunities in the modern economy, Tamil Nadu has established a dynamic growth process. The two budgets of Dr Palanivel Thiagarajan reinforce the salient pillars of the Dravidian model. Dr Palanivel Thiagarajan’s development initiative is a rare occasion where a serving finance minister is addressing increasing debt from borrowings to pay for interest payments, growing revenue, and fiscal deficits without compromising the welfare of the people. Unlike the crisis-prone financial models adopted by countries following the Washington Consensus approach, this approach calls for balancing financial discipline with social justice and cultural identity. Also, the inclusive model’s emphasis on social harmony has attracted increasing focus on health and education through affirmative action policies.