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Economics Class 10 Chapter 1

The World Bank classifies countries based on per capita income, categorizing them as rich or low-income, with limitations in this approach as it does not account for income distribution or disparities. In contrast, the UNDP uses the Human Development Index (HDI), which includes health and education metrics alongside income, providing a more comprehensive view of development. The document also discusses the importance of sustainability in development, the need for responsible resource use, and examples of environmental degradation.

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17 views4 pages

Economics Class 10 Chapter 1

The World Bank classifies countries based on per capita income, categorizing them as rich or low-income, with limitations in this approach as it does not account for income distribution or disparities. In contrast, the UNDP uses the Human Development Index (HDI), which includes health and education metrics alongside income, providing a more comprehensive view of development. The document also discusses the importance of sustainability in development, the need for responsible resource use, and examples of environmental degradation.

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chinmoyeema
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Q4.

What is the main criterion used by the World Bank in classifying


different countries ?

 In the World Development Report, 2006, the World Bank has used
the criterion of average income or per capita income in classifying
different countries.
 The average income or the per capita income is the total income
of the country divided by its population.

(2) According to the WDR 2006, countries are classified as


mentioned below :

 Rich countries : Countries with per capital income of? 4,53,000


per annum and above in 2004 are called rich countries
 Low-income countries : Countries with per capital income of?
37,000 or less are called low-income countries.
 India comes in the category of low-income countries because its
per capital income in 2004 was just ? 28,000 per annum.
 Rich countries, excluding countries of Middle East and certain
other small countries are generally called developed countries.

(3) Limitations of the criterion are as mentioned below :

1. It does not tell us how this income is distributed among people. A


country may have more equitable distribution. People may be
neither very rich nor extremely poor.
2. In another country with same average income, one person may be
extremely rich while others may be very poor. So, the method of
average income does not give correct picture of a country.
3. This system hides disparities among people.

Q5. In what respects is the criterion used by the UNDP for


measuring development different from the one used by the World
Bank?

1. The criterion used by World Bank: The average income, i.e. per
capita income is the main criterion used by the World Bank in
classifying different countries.
According to the World Development Report 2006, published
by the World Bank, countries with per capita income of $10066
per annum and above in 2004 are called rich or developed
countries. On the other hand, countries with per capita income
of $825 or less are called low-income countries.
2. The UNDP compares countries based on HDI e., on the
educational levels of the people, their health status and per
capital income or average income.
3. Human Development Index used by UNDP is better because it is a
wider indicator in which besides per capital income, health and
education are also included.

Q6. Why do we use averages? Are there any limitations to their use?
Illustrate with your own examples related to the development.

(1) We use averages for comparison between two countries, two persons or
any two or more things.
(2) There are the following limitations to the use of averages :

 Averages do not tell us about similarities or differences between


two countries or persons or things.
 By averages only one aspect income, size etc. in case of country,
marks or participation in sports activities etc. in case of student,
can be compared. All aspects or achievements are not compared.
 As only one aspect is compared, it does not give true picture of
different countries, persons or things. For example, students differ
in height, health, talents and interests. The healthiest student
may not be the most intelligent or topper in studies. Similar is the
case in respect of countries or states. A country may be ahead
than the other country in one field but may lag behind in the other
field. So averages do not give the correct picture.

Q7. Kerala, with lower per capita income, has a better human
development ranking than Punjab. Hence, per capita income is not a
useful criterion at all and should not be used to compare states. Do
you agree? Discuss.

It is correct to say that per capita income is not a useful criterion at


all and should not be used to compare states due to reasons as
mentioned below :

 Money cannot buy all the goods and services that you need to live
well. Income by itself is not a completely adequate indicator of
material goods and services that citizens are able to use.
 There cannot be a pollution-free environment in a colony of rich
people unless the whole community takes preventive steps.
 Sometimes, it is better to have collective services like security for
the whole locality than to have individual security for one’s own
house. Again a school may be opened for the children of the
whole community than for one or two children of a rich person.
 Kerala has a better human development ranking than Punjab.
 In Kerala, Infant Mortality Rate is 11 in comparison to 49 in
Punjab, where the per capita income is much more than Kerala. It
is ? 26000 whereas in Kerala it is ? 22800. It is because Kerala has
adequate basic health and educational facilities.
 Similarly in some states, the Public Distribution System (PDS)
functions well and people get ration regularly whereas in some
states ration shops do not function properly. At such places,
people face a shortage of grains that affect their health. Thus it is
clear that the states should not be compared on the basis of per
capita income – alone.

Q8. Find out the present sources of energy that are used by the
people in India. What could be the other possibilities fifty years
from now?
The present sources of energy that are used by the people of India are
electricity, coal, crude oil, cowdung and solar energy. Other possibilities fifty
years from now, could include ethanol, bio-diesel, nuclear energy and better
utilization of wind energy, especially with the imminent danger of oil
resources running out.

Q9. Why is the issue of sustainability is important for development?

Sustainable development means that development should meet the needs of


the present without compromising the ability of future generations to meet
their needs. However, since the second half of the twentieth century, a
number of scientists have been warning that the present type and levels of
development are not sustainable. The issue of sustainable development has
emerged from rapid industrialization of the world in the past century. It is felt
that economic growth and industrialization have led to the reckless
exploitation of natural resources. On the other hand, the stock of natural
resources are limited. So, the growth of all countries in the future is likely to
be endangered if the limited resources are completely exhausted.

Under these circumstances, the issue of sustainability has become important


for development. A number of resources are being overused. For example,
groundwater is under serious threat of overuse in many parts of the country
i.e., Punjab, Haryana and western U.P. The water level has declined over 4
meters. As a result of it if we go on overusing there will be a water crisis in
future. Similarly, if non-renewable resources are used recklessly these will
also be exhausted.
Q10. “The Earth has enough resources to meet the need of all but
not enough to satisfy the greed of even one person.” How is this
statement relevant to the discussion of development? Discuss.
This statement is relevant to the discussion of development since both
resources and development go hand in hand. As the statement claims, our
earth has enough resources – renewable and non-renewable to satisfy
everyone’s need if we use them in an economic manner. For the
sustainability of development, the consumption and maintenance of
resources is also crucial. We have to use the resources keeping our
environment protected and clear so that there is a balance between the
development and use of our resources. As otherwise after a certain point of
time in future the development will be stagnated.

Q11. List a few examples of environmental degradation that you


may have observed around you.
Some of the examples of environmental degradation in the area are
as follows :

1. Air pollution has increased due to the emission of smoke from


factories and vehicles.
2. There is an increase in water pollution due to shops and small
factories in residential areas.
3. There is noise pollution due to the use of loudspeakers at night
and blowing of horns unnecessarily on the roads by different
vehicles.
4. People throw garbage wherever they want. Perhaps there is no
provision for dustbins in the streets or roadsides.
5. Sometimes people urinate in the open on the roadside due to a
lack of public conveniences.

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