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ACHIEVE A
TUTORIAL
“Maximizing Potential with assured results through individual attention”

CLASS: Xth Economics

Chapter : 3 Money and credit

Economics

Class: X

Chapter: 1 Development

Development is a process of regular and positive change in each and every sector of the country. It is
also the process of improving the quality of human life.

Most common indicator of development:

GDP, Per capita income, Birth rates and Death rates, HDI, Infant Mortality Rate, Literacy Rate, Life
Expectancy

What development promises- Different Peoples, Different goals

Different people can have different developmental goals and aspirations-

• People have different developmental needs.

• These needs are based on their particular life situation.

• For example, for a person in a remote village, access to pucca road, or opening of a dispensary or
a primary school can be developmental goal. On the other hand, for a person living in a metro city
construction of a faster transport means, or construction of elevated road may be the developmental
goals.

• Thus, the developmental goals depend upon present social and economic status.

Different people can have conflicting developmental goal-

• What may be development for one may not be development for other person.

• It may even be destructive for others.

• Two persons or group of persons may seek things which are conflicting.

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• For example, a girl aspects as much freedom and opportunity as her brother and that he also
shares in the household work. Her brother may not like this.

• Similarly, 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 tribals.

Development goals of different categories of persons:

Category of Person Developmental Goals/Aspirations

• Landless rural labourers

• Prosperous farmers from Punjab

• Farmer who depend only on rain for growing crops (do it yourself)

• A rural woman from a land owing family

• Urban unemployed youth

• A boy from a rich urban family

• A girl from a rich urban family

• An Adivasi from Narmada valley

Income and other goals:

Income goals-

• What people desire are regular work, better wages, and decent price for their crops and other
products that they produce.

• There is no denying the fact that the ultimate goal of our life is earning more.

• Money helps us to buy basic items.

Other goals-

• The developmental goals that people have are not only about better income but also other
important things in life.

• Like freedom, equal treatment, security, respect from others etc.

• These things can’t easily be measured but they mean a lot to our life.

• Sometimes these goals are more important than income.

National Development:

• Development of a nation as a whole.

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• Different persons could have different as well as conflicting notions about country’s
development.

• National development means finding a fair and just path for all.

• To find a better way of doing things, which would benefit all.

How to compare different countries or state?

• For comparing countries, their income is considered to be one of the important attributes.

• Countries with higher income are more developed than other with less income.

• As different countries have different population, comparing total income will not tell us what an
average person earns.

• So, we compare the average income of countries.

Average Income(Per Capita Income) is the total income of the country divided by its total population.
The average income is also called per capita income.

Average income= Total income of country/Total population of country

In World Development Reports, brought out by the World Bank, Per Capita Income is used in classifying
countries.

• Countries with per capita income of US$ 12,616 per annum and above in 2012 are called rich
countries.

• Countries with per capita income of US$ 1035 or less are called low – income countries.

Income and other Criteria:

• While talking about a country, or a region we cannot consider just one factor, i.e., income to
conclude whether it is developed or not.

• There are other criteria too, such as literacy rate, infant mortality rate, net attendance ratio etc.

• Over the past decade or so, health and education indicators have come to be widely used along
with income as a measure of development.

• For instance, Human Development Report published by UNDP(United Nations Development

Programme) compares countries based on the educational level of the people, their health status and
per capita income.

Per Capita Income of Selected State:

STATE PER CAPITA INCOME(2012-13)

Maharashtra ₹1,07,670

Kerala ₹88,527

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Bihar ₹28,774

Some other Comparative data on Maharashtra, Kerala and Bihar:

State Infant Mortality Rate(2012) Literacy Rate%(2011) Net Attendance Ratio

Maharashtra 25 82 64

Kerala 12 94 78

Bihar 43 62 35

Let us compare the per capita income of Maharashtra, Kerala and Bihar. Maharashtra has the highest
per capita income and Bihar is at the bottom. So, if per capita income were to be used as the measure of
development, Maharashtra will be considered the most developed state of the three.

Explanation of Important terms:

Infant Mortality Rate(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. It indicates the development of health
facilities in a country.

Literacy Rate is the number of people in the 7 and above age group who are able to read and write with
understanding. Higher the literacy rate, more developed a state will be.

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.

HDI stands for Human Development Index. It is a composite index prepared by United National
Development Programme(UNDP) through its annual Human Development Report published every year.
Major parameters such as longevity of life, levels of literacy and per capita income are used to measure
the development of countries. World countries are ranked accordingly in to Very High Developed
Countries, High Developed Countries, Medium Developed Countries and Low Developed Countries.

Body Mass Index(BMI). One 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 meters). If this feagure is less than
18.5 then the person would be considered undernourished. If this BMI is more than 25, then a person is
overweight.

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

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.

Public Facilities:

• Facilities which are provided by the government considered as Public Facilities like schools,
hospitals, community halls, transport, water supply, electricity etc.

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• As we know that Punjab has more income than the average person in Kerala, but Kerala has low
Infant Mortality Rate because it has adequate provision of basic health and educational facilities.

• We need public facility because we are not able to buy all the goods and services that we may
need to live well. We cannot buy a pollution free environment with the help of money.

Sustainability of Development:

• It means development without hampering the environment. It talks about using the available
resources carefully while making sure that we leave enough for the future generation as well.

• Non-renewable resources are those which will get exhausted after years of use. We have a fix
stock on earth which cannot be replenished.

• A number of scientists have been warning that the present type and levels of development are
not sustainable. Some of the examples are-

A) Overuse of ground water

B) Exhaustion of natural resources

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