Abstract
This paper argues that state intervention and class mobilization in the state of Kerala, India, have produced two forms of social capital. Kerala's high level of social development and successful; redistributive reforms are a direct result of mutually reinforcing interactions between a programmatic labor movement and a democratic state. This synergy between state and labor has also created the institutional forms and political processes required for negotiating the class compromises through which redistribution and growth can be reconciled. These dynamics are explored through a close examination of both the organized factory sector and the unorganized (informal) sector.
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