The study is concerned with an analysis of ' regional differentiation' in the development and the development strategy followed in Kerala. It aims at identifying the levels of development activity in terms of resource allocation (input indicators) and achievements (output indicators) in different sectors across districts and at juxtaposing resource allocations with achievement levels. It also compares the levels of development at two points of time: 1992-93 and 1985-86. The purpose of the exercise is to make an assessment of the sectoral and overall allocative efficiency and spatial equity.

In the present study, a modest attempt is made to capture the process of development within the structural framework of 'human-centres' development with equity and sustainability (as opposed to the earlier framework of 'growth-centred development') developed by the UNDP since 1990. The Human Development Index (HDI) suggested by the UNDP has undergone several revisions and modifications. For the purpose of the present analysis, we have used the methodology of construction of development indices outlined by Seeta Prabhu. In brief, input indicators and output indicators are worked out separately for each sector by using three different methods. (vis. i. Ranking, ii. Indexing, and iii. Principal Component Analysis) for each district. In each method the procedure followed is to aggregate scores of different variables in order to arrive at a rank of development by sector and district. The districts are then grouped into three categories: (i) developed; (ii) moderately developed; and (iii) less developed, on the basis of rule of thumb. Finally, the composite index of development is obtained by aggregating the scores of the sectoral indices obtained by using each of the methods.

The study is organised under four sections. The first section reviews briefly the development strategy followed in the state as a backdrop. The second section presents the analysis of the inter-district variations in the indicators of development and their changes between 1985-'86 and 1992-'93. This is followed bin section 3, by a discussion of the development strategy in the light of the findings in section 2. The discussion points to new directions for changes in strategies and policies and identifies areas for further research from the viewpoint of spatial equity in development.

The present study has not explored the causes of regional differentials in development and their persistence in Kerala. However, it points to the fact that the problems of development at the micro levels can be solved only through a change in the approach and strategy for development, from centralised to decentralised and from macro to micro. It is obvious that in-depth micro-level studies are needed for the identification of problems of deprived (less-developed) community groups, economic commodity sectors, social spheres, and spatial units to help improving the formulation of development strategies / policies. Regional specifications unfolded by micro-level studies would help make development policies and programmes more realistic. Studies of conflicts and conflict-resolutions at the local level seem to constitute another rewarding research area.

The study highlights the fact that inter-district differentials in development status exist in Kerala and the development strategy followed in the past has not significantly reduced the differentials. A more decentralised and local level strategy seems to be the alternative for achieving the goal of spatial and sectoral equity.

• K. N. Nair is Programme Co-ordinator of KRPLLD and Fellow at Centre for Development Studies.
• A. C. Dhas is Lecturer in Economics, Department of Economics, The American College, Madurai.
• R. Anandaraj is Lecturer in Economics, Department of Economics, The American College, Madurai.
• R. Sanjtih is Ph.D Scholar at Centre for Development Studies, Trivandrum.