SNBP INTERNATIONAL SCHOOL, RAHATANI 2021-22

SUBJECT : SOCIAL STUDIES CLASS : 10

TOPIC/LESSON NO. : ECONOMICS-DEVELOPMENT NOTES

Development means
 It is a process to achieve our desired goals, along with increase in per capita income there
should be increase in economic welfare of the people.
 For example – income, health, education, etc.

Development can be viewed in two aspects those are

 Development of an Individual
 Development of Nation

Characteristics of development:

1. Different persons can have different developmental goals

2. Developmental goals are conflicting - What may be development for one may not be

development for the other. It may even be destructive for the other.

3. People look at mixed developmental goals

4. Different persons could have different as well as conflicting notions of a country’s development

INCOME AND OTHER GOALS

Besides seeking more income, achieving materialistic goals, people also look for other non-materialistic

goals, such as equal treatment, freedom, security, and respect of others.

Similarly, for development, people look at a mix of goals.

The developmental goals that people have are not only about better income but also about other

important things in life.

 SNBP INTERNATIONAL SCHOOL, RAHATANI 2021-22

SUBJECT : SOCIAL STUDIES CLASS : 10

TOPIC/LESSON NO. : ECONOMICS-DEVELOPMENT NOTES

NATIONAL DEVELOPMENT

It is very important to keep in mind that different persons could have different as well as conflicting

notions of a country’s development.

HOW TO COMPARE DIFFERENT COUNTRIES OR STATES?

 For comparing countries, their income is considered to be one of the most important
attributes.
 Countries with higher income are more developed than others with less income.
 This is based on the understanding that more income means more of all things that human
beings need.
 Whatever people like, and should have, they will be able to get with greater income. So,
greater income itself is considered to be one important goal.

The income of the country is the income of all the residents of the country.

PER CAPITA INCOME

 Per capita income or average income measures the average income earned per person in a

given area (city, region, country, etc.) in a specified year.
 It is calculated by dividing the area’s total income by its total population.

In World Development Reports, brought out by the World Bank, this criterion is used in classifying

countries.
 SNBP INTERNATIONAL SCHOOL, RAHATANI 2021-22

SUBJECT : SOCIAL STUDIES CLASS : 10

TOPIC/LESSON NO. : ECONOMICS-DEVELOPMENT NOTES

 Countries with per capita income of US$ 12736 per annum and above in 2013, are called rich
countries and those with per capita income of US$ 1045 or less are called low-income
countries.
 India comes in the category of low middle income countries because its per capita income in
2013 was just US$ 1570 per annum.
 The rich countries, excluding countries of Middle East and certain other small countries, are
generally called developed countries.

Why Per Capita is an important criterion for development?

• Growth of the country depends on national income and how many sharing it
• It tells us on an average what is the earning of the person
• It also gives us a rough idea about the standard of living – higher average income means country
is developed and vice versa
• Helps in classification of the countries on the basis of economic development using this as
criterion

Limitations of Per Capita Income as indicators of development.

• Tells us only about the distribution of income nationally but not about the actual earning of the
person or how many sharing it
• Neglects inequality and is affected by the size of population
• It only talks about the economic aspect and ignores social aspect
• Does not measure the quality of life and other expectations such as life expectancy, infant
mortality rate, gender equality, pollution free environment, etc. required for a developed nation
 SNBP INTERNATIONAL SCHOOL, RAHATANI 2021-22

SUBJECT : SOCIAL STUDIES CLASS : 10

TOPIC/LESSON NO. : ECONOMICS-DEVELOPMENT NOTES

INCOME AND OTHER CRITERIA

The other important criteria to measure the development of any reason are:-

Infant Mortality Rate (or IMR) indicates the number of children that die before the age of one year as a

proportion of 1000 live children born in that particular year.

Literacy Rate measures the proportion of literate population in the 7 and above age group.

Net Attendance Ratio is the total number of children of age group 14 and 15 years attending school as a

percentage of total number of children in the same age group.

PUBLIC Facilities:

• Pollution free environment

• Adequate provision of health facilities

• Good educational facilities

• Unadulterated medicine, eatables, etc.

• Good infrastructure – roads

• Safe drinking water

 SNBP INTERNATIONAL SCHOOL, RAHATANI 2021-22

SUBJECT : SOCIAL STUDIES CLASS : 10

TOPIC/LESSON NO. : ECONOMICS-DEVELOPMENT NOTES

• Provision of public distribution system - (ration shops through which govt. supplies essentials at

low rate to the poor people) PDS

• Good law and order situation

Kerala with lower per capita income than Haryana but a better human development ranking.

 Kerala has a low Infant Mortality Rate because it has adequate provision of basic health and
educational facilities.
 Similarly, in some states, the Public Distribution System (PDS) functions well. Health and
nutritional status of people of such states is certainly likely to be better.

1. HDI stands for Human Development Index. HDI ranks in above table are out of 188 countries in all.

2. Life Expectancy at birth denotes, as the name suggests, average expected length of life of a person at

the time of birth.

3. Per Capita Income is calculated in dollars for all countries so that it can be compared. It is also done in

a way so that every dollar would buy the same amount of goods and services in any country.

Compare India and Sri Lanka on the basis of three HDI indicators for 2017 and justify which is more
developed?
 SNBP INTERNATIONAL SCHOOL, RAHATANI 2021-22

SUBJECT : SOCIAL STUDIES CLASS : 10

TOPIC/LESSON NO. : ECONOMICS-DEVELOPMENT NOTES

HDI stands for the Human Development Index. It represents the development of the human population
of a country or a state.

India and Sri Lanka are neighbouring countries. But -

1. The per capita income of Sri Lanka is higher than India.

2. The expected life of a person at birth, which is called life expectancy at birth is higher in Sri Lanka than
India.

3. The literacy ratio, that is enrolment ratio in all levels of schools in Sri Lanka is comparatively better
than India.

Hence, Sri Lanka is better than India in terms of HDI.

Indicators used by Human Development Report

• Health –

i. Life expectancy

ii. Infant mortality rate

• Education: -

i. Gross enrollment ratio

ii. Net attendance ratio

iii. Literacy rate

 SNBP INTERNATIONAL SCHOOL, RAHATANI 2021-22

SUBJECT : SOCIAL STUDIES CLASS : 10

TOPIC/LESSON NO. : ECONOMICS-DEVELOPMENT NOTES

• Standard of Living - Per capita income

The present type, and levels, of development are not sustainable.

 Groundwater is an example of renewable resources. These resources are replenished by

nature as in the case of crops and plants.
 However, even these resources may be overused. For example, in the case of groundwater,
if we use more than what is being replenished by rain then we would be overusing this
resource.
 Non-renewable resources are those which will get exhausted after years of use.

Consequences of environmental degradation do not respect national or state boundaries, so we

should use resources judiciously.