Question

Which of the following statements about the phases of economic development in Kerala are correct?

1. The economic development of Kerala over the last sixty years is classified into three distinct phases.
2. The first phase of Kerala's economic development is identified as the period between 1976 and 1991.
3. The third phase of Kerala's economic development began after 1991.
4. The period from 1956 to 1975 constitutes the initial phase of economic development in Kerala.

• A. ഇവയൊന്നുമല്ല
• B. നാല് മാത്രം
• C. ഒന്നും മൂന്നും നാലും
• D. ഒന്ന് മാത്രം

Answer 1

Answer:

C. ഒന്നും മൂന്നും നാലും

Understanding Kerala's Economic Development Phases

• The economic development of Kerala, often referred to as the "Kerala Model", is distinct due to its focus on high social development indicators despite lower per capita income compared to other Indian states in its initial phases.
• Economists and researchers typically classify Kerala's economic trajectory over the last sixty years into three distinct phases, reflecting shifts in economic drivers and policy approaches.

Phase 1: Initial Development and Social Infrastructure Building (1956-1975)

• This period marks the formation of the state of Kerala in 1956 and its foundational economic strategies.
• Key characteristics include strong government intervention, significant investment in social sectors like education and health, and the implementation of crucial land reforms.
• Land reforms, particularly the Kerala Land Reforms (Amendment) Act of 1969, drastically altered agrarian relations and reduced landlessness, contributing to social equity.
• During this phase, Kerala achieved remarkable progress in human development indicators such as literacy rates, life expectancy, and infant mortality rates, which laid the groundwork for the "Kerala Model".
• However, this phase was also marked by slow industrial growth, high unemployment, and a reliance on the agricultural sector.

Phase 2: The Gulf Boom and Remittance Economy (1976-1990/91)

• This phase is primarily defined by the onset of large-scale migration of Keralites to the Middle East (Gulf countries), often termed the "Gulf Boom".
• A significant inflow of remittances from non-resident Keralites (NRKs) became a major source of income, profoundly influencing the state's economy.
• This led to a surge in consumerism, increased demand for housing, and a boom in the service sector, particularly trade and hotels.
• The economy began shifting from a predominantly agricultural base to a service-oriented economy, although industrial growth remained sluggish.
• While remittances boosted purchasing power, they also led to issues like inflation, rising land prices, and brain drain.

Phase 3: Liberalization, Global Integration, and Service Sector Dominance (Post-1991)

• This phase began with the implementation of economic liberalization policies in India in 1991, which had a profound impact on Kerala's economy.
• Continued and intensified remittances, along with increased private investment, spurred growth in sectors like tourism, information technology (IT), and healthcare services.
• Kerala actively promoted itself as a tourist destination (e.g., "God's Own Country" campaign) and attracted significant investment in the IT sector (e.g., Technopark, Infopark).
• The state also saw a rise in its human capital export in professional fields and health tourism.
• Challenges in this phase include managing the social costs of migration, ensuring sustainable development, addressing the decline in traditional industries, and improving the investment climate.