Question

The "Kerala Model" of development is often criticized for its initial focus on social welfare over economic growth. What economic phenomenon in the 1970s and 80s compensated for this?

• A. Increased agricultural subsidies leading to higher farm incomes
• B. Mass migration to the Gulf countries and subsequent remittances
• C. A significant boom in the IT sector creating widespread employment
• D. Government investment in large-scale infrastructure projects driving industrialization

Answer 1

Answer:

B. Mass migration to the Gulf countries and subsequent remittances

• While Kerala's economy was initially stagnant, the large-scale migration to the Middle East, a result of its high literacy and an educated workforce, brought in a massive influx of remittances.

• This created a "money order economy" that boosted consumption and investment.