Question

Which of the following is NOT listed as a fundamental advantage of Kerala's economy?

• A. High quality of the population.
• B. Relatively high poverty levels.
• C. Excellent banking network and high financial literacy.
• D. Higher GSDP and per capita income growth compared to national averages.

Answer 1

Answer:

B. Relatively high poverty levels.

Understanding the Kerala Model of Development

• The Kerala Model of Development refers to the state of Kerala's unique approach to socio-economic development, characterized by high achievements in social indicators despite relatively lower per capita income compared to many developed economies.
• It prioritizes public provisioning of basic services like education and healthcare, leading to significant improvements in the quality of life for its citizens.

Fundamental Advantages of Kerala's Economy

• High Literacy Rates: Kerala boasts the highest literacy rate in India, with near-universal primary education. This includes a remarkably high female literacy rate, which is a significant factor in social development.
• Low Infant Mortality Rate (IMR) and High Life Expectancy: The state has an IMR comparable to many developed nations and a high life expectancy, attributed to its strong public health system and accessible healthcare facilities.
• Strong Public Healthcare System: Kerala has a robust network of public hospitals and health centers, ensuring widespread access to medical care, which contributes to its excellent health outcomes.
• High Human Development Index (HDI): Due to its achievements in health and education, Kerala consistently ranks highest among Indian states in the Human Development Index, a composite statistic of life expectancy, education, and per capita income indicators.
• Focus on Social Justice and Welfare: The state has a strong history of land reforms, public distribution systems, and welfare programs that aim to reduce inequalities and provide a safety net for vulnerable populations.
• Significant Remittances from Abroad: A substantial portion of Kerala's economy is boosted by remittances from Non-Resident Keralites (NRKs), particularly from the Gulf countries, which contributes significantly to household incomes and consumption.
• Developed Service Sector: Tourism, IT, and healthcare services are major contributors to Kerala's economy, leveraging its natural beauty, skilled workforce, and advanced healthcare infrastructure.

Why 'Relatively High Poverty Levels' is NOT an Advantage

• Poverty is a Challenge, Not an Advantage: High poverty levels indicate economic deprivation and lack of access to basic necessities for a significant portion of the population. No economy would list poverty as an advantage; it is always a challenge to be overcome.
• Contradicts Development Goals: The very aim of economic development is to reduce poverty and improve living standards. Therefore, high poverty levels would contradict the fundamental goals of any progressive economy.
• Historical Context: While Kerala has made significant strides in poverty reduction over the years (the percentage of people below the poverty line has drastically decreased), the existence of poverty, even if relatively lower than other Indian states, is a socio-economic issue that the state continuously strives to mitigate, not leverage as an advantage.