CHAPTER 1-DEVELOPMENT

Definition Economic development-It represents rise in income over a long

period of time (economic growth) plus reduction in inequalities and
improvement in material welfare through the intervention of government.

Aspects/notions/goals of development
Different persons can have different developmental goals
Each one seeks different things. People seek things that are most important for
them, i.e., that which can fulfill their aspirations or desires. This
includes-regular work (for unemployed), better wages (for labor class), and
decent price for crops (for farmers) or other products that they produce. In
other words, they want more Income.

What may be development for one may not be development for the
other. It may even be destructive for the other.
At times, two persons or groups of persons may seek things which are
conflicting.
At the individual level-A girl expects as much freedom and opportunity as her
brother and that he also shares in the household work. Her brother may not like
this.
At the national level- to get more electricity, industrialists may want more
dams. But this may submerge the land and disrupt the lives of people who are
displaced – such as tribal. They might resent this and may prefer small check
dams or tanks to irrigate their land.

For development, people look at a mix of goals -people have are not
only concerned about better income but also about other important
things in life.

Besides income, people also seek things like equal treatment, freedom,
security, and respect of others. They resent discrimination. For some
these may be more important than more income or more consumption because
material goods are not all that you need to live. Money, or material things
that one can buy with it, is one factor on which our life depends. But the quality
of our life also depends on non-material things.
Example-
1. If one gets a job in a far off place, before accepting it you would try to
consider many factors, apart from income, such as facilities for your family,
working atmosphere, or opportunity to learn.
2. In another case, a job may give you less pay but may offer regular
employment that enhances your
sense of security.
3. Another job, however, may offer high pay but no job security and also leave
no time for family. This will reduce sense of security and freedom.
4. It is true that if women are engaged in paid work, their dignity in the
household and society increases. However, it is also the case that if there is

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respect for women there would be more sharing of housework and a greater
acceptance of women working outside. A safe and secure environment may
allow more women to take up a variety of jobs or run a business.

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. However, for comparison between
countries, total income is not such an useful measure. Since, countries
have different populations, comparing total income will not tell us what
an average person is likely to earn.

DEVELOPMENT
[Comparison of countries]

Criteria on the basis of WORLD BANK REPORT

Per Capita Income/Average income which is the total income of the country
divided by its total population
● Countries with per capita income of US$ 12,056 per annum and
above in 2017, are called rich countries
● those with per capita income of US$ 955 or less are called
low-income countries.
● India comes in the category of low middle-income countries because
its per capita income in 2017 was just US$ 1820 per annum.
● The rich countries, excluding countries of Middle East and certain
other small countries, are generally called developed countries.
Advantage
We use averages because they are useful for comparing differing quantities of
the same category. For example, to compute the per capita income of a country,

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averages have to be used because there are differences in the incomes of
diverse people.
Limitations
i) It hides disparities. While average income is useful for comparison it does not
tell us how this income is distributed among people
ii) It excludes all non-marketed goods and services, even though they may be
important for human happiness and better quality of life.
iii) It covers only the economic aspects ignoring peace, health, environment,
education, longevity, etc.
On the basis of U N D P (Human Development Report)
Human Development Report published by UNDP compares countries based on
a) Educational / literacy levels of the people: Gross Enrolment Ratio for
three levels - primary school, secondary school and higher education
beyond secondary school.
b) health status/longevity of life (Life Expectancy at birth): denotes, as the
name suggests, average expected length of life of a person at the time of
birth.
c) Per capita income: 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.

INCOME AND OTHER CRITERIA WITHIN A COUNTRY

On the basis of per capita income
Per capita income for 2018-19 in 3 states
STATE PCI REASON
HARYANA on an average a Highest- if we take only
person earns in a year. PCI then Punjab is most
developed
KERALA
BIHAR on an average a Lowest-least developed
person earns in a year.

● Haryana has the highest per capita income and Bihar is at the bottom.
● This means that, on an average, a person in Punjab earned Rs 1,62,034 in one
year whereas, on an average, a person in Bihar would earn only around Rs
31,454.
● So, if per capita income were to be used as the measure of development,
Haryana will be considered the most developed and Bihar the least developed
state of the three.

On the basis of HDI/ Human Development

Infant mortality rate-

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 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.

HARYANA It a developed state according to PCI but

number of children dying before the age of
one is more – because-

KERALA number of children dying is much less

because-of adequate provision of basic
health and educational facilities
PDS in southern states-assures food security
, health and nutritional status is better
BIHAR Reason-

● Infant Mortality Rate: In Kerala, out of 1000 children born alive 12 died before
completing one year of age but in Haryana the proportion of children dying
within one year of birth is 36, which is two times more than Kerala.
● Kerala has low IMR because it has adequate provision of basic health and
educational facilities.
● In terms of literacy rate also Kerala is ahead of Haryana and Bihar.

Literacy Rate measures the proportion of literate population in the 7 and

above age group.
HARYANA
KERALA Highest-Educational facility.
BIHAR Least-

Net Attendance Ratio is the total number of children of age group 6-10
attending school as a percentage of total number of children in the same age
group

HARYANA
Kerala
Bihar

Kerala, with lower per capita income has a better human development
ranking than Haryana. Hence, per capita income is not a useful criterion
at all and should not be used to compare states. Do you agree? Discuss.

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 ⮚ Kerala, with lower per capita income has a better human development
ranking than Haryana because, human development ranking is
determined using a combination of factors such as health, education, and
income. So, this does not imply that per capita income is not useful.
⮚ Rather, per capita income is one of the development factors and cannot
be neglected.
⮚ The World Bank uses per capita income as the criterion for measuring
development and comparing states.
⮚ But this criterion has certain limitations because of which determination of
Human Development Index (HDI) is done using this criterion along with
some other development factors like health, education etc.

Nutritional level-calculation-

BODY MASS INDEX (BMI)

● A way to find out if adults are undernourished is to calculate Body Mass
Index.
● Divide the weight of a person (in kg) by the square of the height (in
metres).
● If this figure is less than 18.5 then the person would be considered
undernourished. If this BMI is more than 25, then a person is overweight.

PUBLIC FACILITIES
● Facilities provided by the government like schools, hospitals, transport,
electricity etc.
● For many of the important things in life the best way, also the cheapest
way, is to provide goods and services collectively.
● “Money in your pocket cannot buy all the goods and services that
you may need to live well”.
● Income by itself is not a completely adequate indicator of material goods
and services that citizens are able to use.
● For example, normally, your money cannot buy you a pollution-free
environment or ensure that you get unadulterated medicines, unless you
can afford to shift to a community that already has all these things.
● Money may also not be able to protect you from infectious diseases,
unless the whole of your community takes preventive steps.
● 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.

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Human Development Report published by UNDP compares countries based
on the educational levels of the people, their health status and per capita
income.
1. HDI stands for Human Development Index. HDI ranks in above table are
out of 177 countries in all. Measures development on the basis of-life
expectancy ( how long a person lives), Education( status of education of
people- GER, Adult literacy rate),Per capita income( purchasing power)

2. Life expectancy at birth denotes, as the name suggests, average expected

length of life of a person at the time of birth.

3. Gross Enrolment Ratio for three levels means enrolment ratio for primary
school, secondary school and higher education beyond secondary school.

4. Per Capita Income is calculated in dollars for all countries (reason) 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.

Which is the most satisfactory measure of economic development?

Why? (factors of growth, economic welfare that together constitute economic
development)
Classical/ Traditional approach -economic growth- in terms of per capita
income over a long period of time.
Modern approach- Measuring in terms of per capita income, HDI for economic
welfare and improvement in education health sectors.

SUSTAINABILITY OF DEVELOPMENT
Features/Need-
● Level of development to go up further or at least be maintained for future
generations.
● Maintaining quality of life for both present and future generations.
● Judicious use of natural resources.
● Prosperity of present should not be at the cost of future generations,
management of res is important.
● Cost of development, especially cost of environmental loss should be
taken care of. Therefore there is a strong need for protection of
environment.
● Efforts should be made to invent environment and employment friendly
appropriate technology.

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 ● Fast growing population should be effectively checked in developing
countries.
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. Groundwater overuse is particularly found in
the agriculturally prosperous regions of Punjab and Western U.P., hard
rock plateau areas of central and south India, some coastal areas
Recent evidence suggests that the groundwater is under serious threat
of overuse in many parts of the country Nearly one-third of the country is
overusing their groundwater reserves. In another 25 years, 60 per cent of
the country would be doing the same if the present way of using this
resource continues. 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. We have a fixed stock on earth which cannot be replenished.
We do discover new resources that we did not know of earlier. New sources in
this way add to the stock. However, over time, even this will get exhausted.

Countries like India depend on importing oil from abroad because they
do not have enough stocks of their own. If prices of oil increase this
becomes a burden for everyone. There are countries like USA which have
low reserves and hence want to secure oil through military or economic power.

Why is the issue of sustainability Important?

a) The issue of sustainability is important for development because development
must be in tandem with the future.
b) If natural resources are not sustained, then development will stagnate after a
point of time.
c) Exploiting resources unethically will ultimately undo the development that a
country may have achieved.
d) This is because in the future, those resources will not be available for further
progress.

Example: 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. We have a fixed stock on earth which cannot be replenished. We
do discover new resources that we did not know of earlier. New sources in this
way add to the stock. However, over time, even this will get exhausted.
“The Earth has enough resources to meet the needs of all but not enough to
satisfy the greed of even one person”. How is this statement relevant to the
discussion of development? Discuss.

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a) This statement is relevant to the discussion of development since both
resources and development go hand in hand.
b) For the sustainability of development, the maintenance of resources is
also crucial.
c) As the statement claims, the Earth has enough resources- renewable and
non-renewable to satisfy everyone’s needs; however, these need to be
used with a view to keeping the environment protected and clean so that
a balance of production and use is maintained, and shortages are
avoided.

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 TRY TO ANSWER
DEVELOPMENT

Q1. Why do different people have different notions in life? Give 2 pts.
Different people have different notions as they seek ________________.
Which are ______________________ to them. That which can fulfill their
aspirations or desires. Such as
1. An unemployed youth in urban areas looks for ______________.
2.A casual labourer in a city seeks _____________better wages to fulfill his
_____________.
3. A farmer in Punjab wants a _____________________.
In other words, they want more Income.

Q2.Do the following 2 statements mean the same? Justify your answer.
People have different developmental goals.(30 words)
People have conflicting developmental goals.(30 words)
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_____________________________________________

Q3.Define the following terms-.(30 words each)

1. Total income
_______________________________________________________________
_______________________________________________________.
2. Per capita income-
_______________________________________________________________
_______________________________________________________________
_________________________________________________________
3.Economic development-
_______________________________________________________________
_______________________________________________________________
_________________________________________________________

4. HDI-
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_____________________________________________________.

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5.IMR___________________________________________________________
___________________________________________________________

(4)Why do we use averages? / Why do you think average income is

important criterion for development? (30 words)

It helps __________________________________ of different regions within

the country or different nations of the world.

5.Are there any limitations to their use? Explain with example(30

words)

Monthly income of 5 people in country A – 9500, 10,500, 9800, 10,000,

10,200.
Monthly income of 5 people in country B-
This means-
Both the countries have_____________________,
Country A is preferred because it has more___________________. In this
country people are neither very rich nor extremely poor.
On the other hand most citizens in country B are poor and one person is
extremely rich._________________________
Hence, while average income is useful for comparison it does not tell us how
this income is distributed among people.

6. (a)What is the main criterion used by world bank in classifying

different countries? What are the limitations of this criterion, if any?
(30 words)
The main criterion used by world bank in classifying different countries is
___________ income.
Limitations are-
1. It does not tell us how the income is _____________.
2. Does not use other factors such as literacy rate,
_______________________________

7. The following table shows the proportion of adults (aged 15-49

years) whose BMI is below normal (BMI <18.5 kg/m2) in India. It is
based on a survey of various states for the year 2015-16. Look at the
table and answer the following questions.

Compare the nutritional level of people in Kerala and Madhya Pradesh.

The nutritional level of people in Kerala is higher than the nutritional level of
people in Madhya Pradesh.

Can you guess why around one-fifth of people in the country are
undernourished even though it is argued that there is enough food in
the country? Describe in your own words.One-fifth of the population in the

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country are undernourished even though it is argued that there is enough food
in the country because of the following reasons:

1. The disparity in the distribution of food grains by Public Distribution

System (PDS).
2. Nutritious food cannot be afforded by the poor population in the country.
3. Educational backwardness of people results in unemployment because of
which people cannot afford the basic necessity of food.
4. There is no proper distribution of ration at the fixed price stores.

8. Mention some public facilities required for development. (30 words)

Main public facilities required for development-provided by the
government.
● Pollution free environment,
● good infrastructure such as transport, __________________
● Provision for clean drinking water,
● sanitation facilities,
● Provision of PDS to achieve _______________in poor states.

9.Kerala, with lower per capita income has a better human

development ranking than Haryana. Hence, per capita income is not a
useful criterion at all and should not be used to compare states. Do you
agree? Discuss. (30-50 words)
PCI in Kerala is________________ as compared to ___________________ in
Haryana. Haryana is developed only in terms of ________________.But Kerala
has a higher literacy ratio due to____________. , less infant mortality rate,
higher life expectancy rate because of __________________
Therefore to know the development of a place per capita income is not the only
criteria for measurement but also one has to take in account
__________________________________________________.

10. In what respects is the criterion used by the UNDP for measuring
development different from the one used by the World Bank? (30
words)
Human Development Report published by UNDP compares countries based on
the _______________of the people, their health status
and____________________. While the World Bank uses only the
_________________.

11. List a few examples of environmental degradation that you may

have observed around you.

1. Pollution caused by vehicles and the excess use of fuels in vehicles.

2. Industrial waste collected in residential areas and discarded into water
bodies
3. Deforestation
4. Mining
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 5. Soil Erosion

The increased pollution in the environment has resulted in global warming and
depletion of glaciers and the atmospheric conditions.

Q12Why is the issue of sustainability Important?

a) The issue of sustainability is important for development because development
must be __________________.
b) If natural resources are not sustained, then development will ______________-
c) Exploiting resources unethically will ultimately undo the development that a
country may have achieved.
d) This is because in the future,
____________________________________________

Example: 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. We have a fixed stock on earth which cannot be replenished. We
do discover new resources that we did not know of earlier. New sources in this
way add to the stock. However, over time, even this will get exhausted.

Q13 “The Earth has enough resources to meet the needs of all but not
enough to satisfy the greed of even one person”. How is this statement
relevant to the discussion of development? Discuss.

a) This statement is relevant to the discussion of development since both

resources and development go hand in hand.
b) For the sustainability of development, ________________________

c) As the statement claims, the Earth has enough resources- renewable and
non-renewable to satisfy everyone’s needs; however, these need to be
used with a view to keeping the environment protected and clean so that
___________________________________________________.

14. Why is per capita income of different countries calculated in dollars

and not in their own currencies by the World Bank? (30 words)

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Q15.For each of the items given in Table 1.6, find out which country is
at the top and which is at the bottom.
As per table 1.6, Sri Lanka tops in all the four categories. It has the highest
Gross National Income, Life expectancy at birth, mean years of schooling of
people aged 25 and above and HDI rank in the world. Nepal has the lowest
Gross National Income among the given countries. Pakistan has the least Life
Expectancy at birth and ranks the lowest HDI rank in the world among the
given countries. Mean years of schooling of people aged 25 and above is the
lowest for Myanmar and Nepal.

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