Question

How does Kerala's performance in human development compare to its performance in employment and income, relative to other Indian states?

• A. Kerala excels in both human development and employment/income.
• B. Kerala's performance is impressive in employment and income but not in human development.
• C. Kerala has achieved better human development but its employment and income performance is not impressive.
• D. Kerala lags behind other states in both human development and employment/income.

Answer 1

Answer:

C. Kerala has achieved better human development but its employment and income performance is not impressive.

Understanding Kerala's Development Paradox

• Kerala consistently ranks highest among Indian states in Human Development Index (HDI), showcasing its remarkable achievements in social indicators.
• This high human development is a result of significant and sustained public investment in social sectors, particularly education and healthcare, since the mid-20th century.
• Key indicators demonstrating Kerala's human development prowess include the highest literacy rate (over 90%), the lowest infant mortality rate (IMR), and the highest life expectancy in India.
• This unique development path is often referred to as the 'Kerala Model', which prioritizes social welfare, equity, and a strong public distribution system over rapid industrialization.

The Challenge of Employment and Income

• Despite its impressive human development achievements, Kerala faces challenges in its economic performance, particularly regarding employment generation and income growth.
• The state's economic structure has not seen the rapid industrialization witnessed in some other states, leading to a comparatively slower growth in manufacturing and formal sector jobs.

• Dependence on Remittances

  • A significant portion of Kerala's economy is sustained by remittances from its large diaspora, especially from the Gulf countries.
  • While these remittances boost consumption, reduce poverty, and contribute substantially to the State Gross Domestic Product (GSDP), they also mask the underlying issues of insufficient domestic job creation and can lead to a 'Dutch Disease' effect.

• Aspirations vs. Opportunities

  • High levels of education in Kerala often lead to aspirations for white-collar or service-sector jobs, creating a mismatch with available local employment opportunities, especially in manual or industrial sectors.
  • This often results in a situation where manual labor jobs are filled by migrant workers from other Indian states.

• Brain Drain and Skilled Migration

  • The emphasis on quality education has historically led to a significant 'brain drain,' where educated and skilled individuals migrate out of the state or country in search of better employment prospects and higher wages.
  • While this brings in remittances, it also means a loss of valuable human capital for local economic development.

• Investment Climate

  • Factors such as high land prices, labor costs, and a perception of a challenging industrial relations environment have historically deterred large-scale private investment and industrial expansion in the state.

Competitive Exam Facts

• Kerala was the first state in India to achieve 100% primary education.
• The state consistently ranks at the top in various social development indicators released by NITI Aayog and other national agencies.
• The concept of the 'Kerala Model' is a significant topic in development economics studies, highlighting a welfare-oriented approach.
• Kerala has the highest sex ratio (number of females per 1000 males) in India, indicating a more balanced demographic structure.