Question

Identify the primary socio-economic problems faced by Kerala as a newly formed state.

1. A high incidence of unemployment.
2. Massive proportion of people below the poverty line.
3. A severe shortage of skilled labor in all sectors.

• A. 1, 2
• B. 2, 3
• C. 1 മാത്രം
• D. 2

Answer 1

Answer:

A. 1, 2

Initial Socio-Economic Challenges of Kerala State

• When Kerala was formed on November 1, 1956, by integrating Malayalam-speaking regions, it inherited a predominantly agrarian economy with limited industrial development.

High Incidence of Unemployment

• One of the most pressing issues was a high incidence of unemployment. This was primarily due to a rapidly growing population, coupled with insufficient industrialization and limited job creation in traditional sectors like agriculture and coir.

• The state had a relatively high literacy rate even in its early days, leading to a significant number of educated unemployed youth seeking white-collar jobs, which were scarce.

Massive Proportion of People Below the Poverty Line

• Kerala faced widespread poverty, with a massive proportion of its population living below the poverty line. This was a direct consequence of low per capita income, reliance on a fluctuating agricultural sector (dominated by cash crops like rubber, spices, and cashew), and an underdeveloped industrial base.

• Lack of equitable land distribution (prior to significant land reforms) also contributed to the economic distress of a large segment of the population.

Skilled Labor: Not a Primary Shortage

• Contrary to a severe shortage, Kerala, even in its nascent stage, had a relatively educated populace compared to other Indian states, thanks to historical emphasis on education in erstwhile princely states like Travancore and Cochin.

• The challenge was not a lack of skilled labor, but rather an abundance of educated and often skilled individuals who lacked adequate employment opportunities within the state. This later became a significant push factor for mass emigration, particularly to the Gulf countries, from the 1970s onwards.

• These initial socio-economic hurdles, particularly high unemployment and widespread poverty, significantly influenced the state's developmental trajectory, leading to what is famously known as the 'Kerala Model of Development'.

• The 'Kerala Model' is characterized by high social development indicators (like literacy, life expectancy, and low infant mortality rates) achieved despite relatively low per capita income and slow economic growth in its early decades.