Question

Since when has the 'gulf boom' been experienced by Kerala?

• A. 1960s
• B. 1970s
• C. 1980s
• D. 1990s

Answer 1

Answer:

B. 1970s

The Gulf Boom in Kerala

• The term 'Gulf Boom' refers to the large-scale migration of Keralites to the Persian Gulf countries (Middle East) and the significant economic and social impact of their remittances on Kerala's economy and society.
• This phenomenon primarily began in the mid-1970s, coinciding with the sharp increase in global oil prices.

• Key Triggers and Facts:

  • The 1973 Oil Crisis (also known as the First Oil Shock) led to a massive increase in oil revenues for the Gulf Cooperation Council (GCC) countries.
  • This surge in wealth spurred rapid infrastructure development, industrialization, and urbanization projects in these oil-rich nations.
  • Consequently, there was an enormous demand for both skilled and unskilled labor, which Gulf countries largely met by recruiting workers from South Asian countries, including India, with Kerala being a primary source.
  • The influx of foreign exchange, primarily through remittances sent by non-resident Keralites (NRKs), became a cornerstone of Kerala's economy. Remittances often surpassed the state's own revenues and even its domestic product in certain periods.

  • Impact on Kerala's Development:

  • The Gulf Boom significantly contributed to the unique 'Kerala Model of Development,' characterized by high social development indicators (literacy, health, life expectancy) despite relatively low industrialization and per capita income from traditional economic activities.
  • The remittances fueled a consumption boom, leading to increased investment in housing, education, healthcare, and consumer goods.
  • It helped reduce unemployment rates in Kerala and improved the living standards of many families, lifting them out of poverty.
  • However, it also brought challenges such as a decline in agricultural labor, increasing land prices, and social issues related to family separation and changing social dynamics.
  • According to the Kerala Migration Surveys (KMS), conducted periodically by the Centre for Development Studies (CDS), Thiruvananthapuram, Kerala has consistently been a leading state in India in terms of international migration and remittance inflows.