Prior to the widespread migration to Gulf countries, what were the primary factors influencing economic activities in Kerala?
- Foreign direct investment and export-oriented industries.
- Public expenditure and investment of the small savings of the people.
- Large-scale agricultural exports and tourism.
Aമൂന്ന് മാത്രം
Bമൂന്ന്
Cരണ്ട് മാത്രം
Dഇവയൊന്നുമല്ല
Answer:
C. രണ്ട് മാത്രം
Read Explanation:
Understanding Kerala's Pre-Gulf Migration Economy
The "Kerala Model" of Development
The Kerala Model of Development, which emphasizes high human development indicators (HDI) like literacy, life expectancy, and low infant mortality rates, primarily emerged before the widespread Gulf migration.
This model was largely driven by significant public expenditure, particularly in social sectors like education, healthcare, and public distribution systems.
Despite having a relatively low per capita income, the state prioritized social sector spending, contributing to its unique development path.
Role of Public Expenditure
Government spending on social infrastructure and welfare programs created employment and improved the quality of life, which in turn supported local economic activities.
Public investment in areas like road infrastructure, electricity, and irrigation, though not always "large-scale," provided essential support for agriculture and small enterprises.
Investment of Small Savings
Kerala has historically had a high propensity for savings among its population, even with lower incomes.
These small savings were mobilized through a robust network of financial institutions, including post offices, cooperative banks (especially the strong cooperative movement in Kerala), and commercial banks.
This mobilized capital was then invested in various sectors, including government securities, public sector undertakings, and small-scale private enterprises, thereby fueling economic activity.
It represented an important source of indigenous capital formation for the state.
Factors Not Primary Before Gulf Migration
Foreign Direct Investment (FDI) and large-scale export-oriented industries were not significant drivers of Kerala's economy prior to the Gulf boom. The industrial base was relatively weak and largely comprised traditional industries (e.g., coir, cashew, handloom) often facing stagnation.
While agriculture was important, it was largely focused on cash crops for domestic markets and some traditional exports (spices, rubber, coconut). Large-scale agricultural exports, as a dominant economic engine, were not the defining feature.
Tourism was nascent and did not constitute a major economic activity or foreign exchange earner until much later, after the Gulf migration began to transform the economy and infrastructure.
Impact of Gulf Migration (Post-Period Context)
Widespread migration to Gulf countries, which gained momentum from the late 1970s and 1980s, transformed Kerala's economy primarily through remittances.
These remittances significantly boosted household incomes, consumer spending, and investment in real estate, but they were not the primary economic drivers before this period of mass migration.
Key Facts for Competitive Exams
The "Kerala Model" is often cited as an example of achieving high social development indicators through public policy and investment, even without rapid industrialization.
Kerala's strong cooperative sector, particularly in banking and marketing, plays a crucial role in mobilizing rural savings and providing credit.
The shift from a primarily agrarian economy to one significantly influenced by remittances (the "Gulf money") marked a distinct phase in Kerala's economic history.