10 Class

Economics
Chapter 1
Development (Notes)
Development :-

Development is generally defined as growth. Some of the important goals are –

seeking more income, equal treatment, freedom, security, and respect from others.

Different people and different goals :-

Different people has different notion for development because:-

 It is because the life situations of persons are different.

 People seek things that are most important for them or that which can
fulfill their aspirations or desire.
 What may be development for one may not be for the other. It may even
be destructive for the other.

For example: The developmental goals of a boy from a rich urban family would
be to get admission in a reputed college, whereas the developmental goals of a girl
from a rich urban family would be to get as much freedom as her brother.

Income and Other Goals :-

Income is considered as the most important component of development as it

can be material goods and services.

Earning high income is a goal for development. But it is not the only goal. Apart
from income, people also consider other goals for development like equal treatment,
freedom, security and respect of others. Thus, for development they look at a mix of
goals.

National development :-

National development refers to the ability of a nation to improve the lives of its
citizens. Measures of improvement may be material, such as availability of
healthcare etc.
 How to compare different countries or states :-

To compare two different countries or states, National Income and Per Capital
Income are two important pillars. These are as follows:

1. Comparison through National Income

2. Comparison through Per Capita Income

Comparison Through National Income :-

National Income refers to the income earned by the residents of that particular
country over a period of time.

Countries with higher national income are considered as developed countries for
e.g. USA, Germany and France. However, national income may not be a true
indicator to compare different countries because of population factor.

To overcome this drawback, per capita income is a better indicator to compare

different nations.

Comparison Through Per Capita Income :-

Average or per capita income is obtained by dividing the total income by the
population of the country to compare different countries.

World Bank Publishes World Development Report (WDR) every year to compare
the nations and the basis of per capita income.

World Bank classifies countries on the basis of per capita income:-

 Rich countries except middle East countries are called developed

countries.
 India is in category of low middle income country.

Classifying countries (per capita income criteria of World Bank)

Rich countries:- Countries with per capita income of US$ 49,300 per annum
and above in 2019, are called high income or rich countries
 Low income countries :- Countries with per capita income of US$ 2500 or less
are called low-income countries.

Low middle income countries :- India comes in the category of low middle
income countries because its per capita income in 2019 was just US$ 6700 per
annum.

Income and other criteria :-

The development level should not be judged only on the income level, other
criteria should also be taken into consideration. e.g. Three states, Haryana, Kerala
and Bihar are compared as follows:

Net attendance
Per capita Infant Literacy
ratio (Per 1,000
income for mortality rate Rate %
State persons)
2017-2018 per 1,000 live ( 2017-
Secondary Stage
(Inr) births (2017) 2018 )
2017-2018

Haryana 2,36,147 30 82 61

Kerala 2,04,105 7 94 83

Bihar 40,982 32 62 43

From this table, various aspects of the development can be judged as :-

 Per Capita Income is highest in Haryana and lowest in Bihar which simply
indicates that earning opportunities are quite less in Bihar.
 Infant mortality rate is lowest in Kerala which shows that better medical
facilities are present in Kerala in comparison to other two states.
 Literacy rate is highest in Kerala and lowest in Bihar which shows that
better education opportunities are available in Kerala.
 Net attendance ratio is also highest in Kerala and lowest in Bihar.

Infant Mortality Rate :-

Infant Mortality Rate can be defined as total number of children that die before
the age of one year our of 1000 live children born in that particular year.

Literacy rate :-
 Literacy rate can be defined as proportion of literate population in the age group
of 7 years & above.

Net attendance Ratio :-

Net attendance Ratio can be defined as the total number of children of 6-10
years age group attending school out of total no. of children in the same age group.

Public Facilities :-

Income is a good tool of development but it is not everything. E.g., more

income may not give a pollution free area or protection from total diseases etc. So
public facilities like primary and secondary education, health facilities, cleanliness
and pollution free area also important to sustain life.

Money in your pocket why cannot buy all the goods and services that
you may need to live well ?

Money cannot buy all the goods and services that you may need to live well.

 Money cannot buy us pollution-free environment.

 Money cannot buy us a disease-free life and might not be able to get
protection from infectious disease.
 Beside money, people also like to have equal treatment in the society,
freedom, dignity and honor in their lives, which money cannot buy them.

Public Distribution System :-

Public Distribution System (PDS) is a system in which the poor people are
provided or supplied food grains at lower price compared to market price.

Some areas like Tamil Nadu has well-functioning PDS while some states like
Jharkhand and Bihar don’t have efficient Public Distribution System.

Best method to measure Development ( Human Development Report )

:-

Human Development Index or Human Development Report published by UNDP

(United Nation Development Programme) is one of the best methods to measure the
development of a nation.
 The Human Development report is based on three pillars and these pillars are
as follows :-

 Living Standard (Per Capita Income)

 Health Status (Life Expectancy)
 Educational levels of the people (Literacy rate and Enrolment Ratio)

Human Development Index ( HDI ) :-

Human Development Index is a composite statistic of life expectancy, education

and per capita income indicators, which are used to rank countries in four tires of
human development.

HDI (Human Development Index) Rank of India in the World is 130.

Body Mass Index (BMI) :-

BMI can be calculated by taping the weight of a person (kgs) & height (mtr)
then divide the weight by the square of the height of a person. If the result is less
than 18.5 then person in under nourished & if more than 25, then person is over
weight.

In what respect is the criterion used by the UNDP for measuring

development different from the one used by the World Bank?

UNDP World Bank

UNDP compares the development of the

countries on the basis of literacy rate, gross The World Bank uses per capita
enrolment ratio, health status of their people income base for comparison.
and per capita income as the base.

Under this concept countries

Countries have been ranked as first, second, have been divided into three
third and so on. categories – rich, middle and
poor.

It is also considered as a broader concept of It is considered as a narrow

development. concept of development.
 Sustainable Development :-

Sustainable Development is development that meets the needs of the present

without compromising the ability of future generations to meet their own needs.

Environment Degradation and Sustainable Development :-

Environmental degradation refers to the destruction of natural environment by

human activities to fulfil the greediness of the human.

The mismanagement of natural resources has resulted into the environmental

degradation in the form of air pollution, water pollution, depletion of natural
resources etc.

It has also threatened the dream of the sustainable development because it has
created such type of environment which is harmful for the existence of future
generations.