Question

Which of the following statements accurately describe the economic condition of Kerala during the second phase of development (1976-1991)?

1. Kerala's economy was highly developed with low poverty rates.
2. The state experienced high incidence of poverty and unemployment.
3. Growth rates in all sectors were higher than the national average during the 1970s and 80s.
4. The economy remained very backward during this period.

• A. രണ്ടും മൂന്നും
• B. രണ്ടും നാലും
• C. രണ്ട് മാത്രം
• D. ഒന്നും രണ്ടും

Answer 1

Answer:

B. രണ്ടും നാലും

Understanding Kerala's Economic Condition (1976-1991)

• The period between 1976 and 1991 is often considered the second phase of development in Kerala, characterized by the maturing of the Kerala Model of Development.
• Despite impressive achievements in social indicators like literacy, health, and low infant mortality, this phase was marked by significant economic backwardness and stagnation.
• Kerala experienced a 'low growth trap' during this period, with its economic growth rate generally lagging behind the national average.
• One of the most pressing issues was the high incidence of unemployment, especially among the educated population, which was a paradox given the state's high literacy rates.
• Poverty, although mitigated by remittances from Gulf migrants to some extent, remained a significant concern, with a substantial portion of the population still living below the poverty line.
• The state's economy during this phase was predominantly agrarian, with very limited industrialization, contributing to the overall economic backwardness.
• Growth rates in productive sectors like agriculture and industry were notably low, often below the national average, reflecting a lack of diversification and investment.
• The remittances from migrant workers in the Gulf countries, which began to flow significantly during this period, played a crucial role in improving household incomes and reducing poverty for many, but they did not fundamentally alter the state's low productive economic base during this specific timeframe.
• This period highlights the unique paradox of the Kerala Model: high human development alongside persistent economic underdevelopment, a key characteristic for competitive exams.