CHAPTER-3
GROWTH & DEVELOPMENT
GROWTH
Growth refers to a positive change in size or
maturation, often over a period of time. Growth
can occur as a stage of maturation or a process
toward fullness or fulfilment.
Growth from the economic perspective means an
increase in the production of economic goods and
services compared over a particular time period,
generally in terms of GDP or GNP.
The most important aspect of growth is its
quantifiability, that is, one can measure it in
absolute terms. There are various aspects of growth Objectives of Development
that occur from large scale to small scale. Few of
objectives of development are:
them are Economic Growth, Social Growth. TheTothreeincrease the availability and
Cultural Growth, Human Growth, National
Growth, etc.
DEVELOPMENT
Development meanS "improvement in the
country's economic and social conditions", More
specifically, it refers to improvements in the way
of managing an area's natural and human resources
in order to create wealth and improve people's
lives. Therefore, development is a multidimensional
process involving changes in social structures,
popular attitudes, and national institutions as well
as the acceleration of economic growth, the
reduction of inequality and the eradication of
poverty.
Three basic core values pave the way as a
practical guideline for understanding
development. These are:
Sustenance: Purpose of development is to
create an environment in which all people can
expand their capabilities and opportunities
which can be enlarged for both present as well
as future generations.
Self-esteem: It has a sense of worth and self
respect, of not being used as a tool by others
for their ownends. Development is legitimized
as a goal because it is important for the
indispensable way of gaining esteem.
Freedom to be Able to Choose from Servitude:
Freedom must be understood from the sense
of emancipation from alienating material
conditions of life and from social servitude to
nature, ignorance, other people, misery,
institutions and dogmatic beliefs.
widen the
distribution of basiclife sustaining goods such as
food, shelter, health and protection.
To raise the levels of living, including in addition
to higher incomes, the provision of more jobs,
better education and greater attention to cultural
and humanistic values, all of which will serve not
only to enhance material well-being but also to
generate greater individual and national self
esteem.
To expand the range of economic and socialchoices
available to individuals and nations by freeing
them from servitude and dependence not only in
relation to other people and nation states but also
to the forces of ignorance and human misery.
Challenges in the Way of Development
Corruption
Over exploitation of natural resources
Dependence on primary products as raw materials
Misuse of foreign assistance
Misguided priorities
Cultural restrains
DRISHTI PUBLICATIONS 21\

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Various Aspects of Development
Social Development
Social development is about putting people at the
centre of development. This means a commitment
that development processes need to benefit people.
The way people interact in groups and society, and
the nornms that facilitate such interaction, shape
development processes. Social development, thus
implies the change in social institutions.
Formal institutional reform - for example, the
provision of legally enshrined rights, better law
enforcement, or more participatory governance
are part of the process by which institutional change
is achieved. The indices of social development focus
on measuring the informal social institutions, how
they conmpare across countries, and how these
change over time. They are:
Civicactivism
Interpersonal safety and trust
Clubs and associations
Gender equality
" Inter-group cohesion
The World Bank supports social development by
listening to the poor people and promoting their
voices in the development process; understanding
and addressing their needs, priorities and
aspirations and building formal and informal
institutions.
Economic Development
Economic development is the process whereby
simple, low-income national economies are
transformed into modern industrial economies.
Economic Development creates the conditions for
economic growth and improved quality of life by
expanding the capacity of individuals, firms, and
communities to maximize the use of their talents and
skills to support innovation, lower transaction costs,
and responsibly produce and trade valuable goods
and services.
Gender and Development
The development of both men and women is
crucial to enhance the standard of human living. The
development should also aim for gender equality
which refers to equal rights, responsibilities and
opportunities that all persons should enjoy, regardless
of whether one is born male or female.
22 DRISHTI PUBLICATIONS
Indian Econom
Human Development
Human development is detined as the process
expansion of human capabilities, a widenine
rights
choices, a fultilment of human
enhancement of treedom and opportunities and
improving their well-being.
According to the United Nations, there are thr
essential choices tor people which are: leadine,
long and healthy lite; acquiring Anowedge: an:
having access to the resources needled tor a deen
standard of living.
The Human Development Index (HDI)
In 1990, two economists - P'rot. Mehbub
Haque of Pakistan and Prot. Amartya Sen o
India introduced the concept ot Human
Development Index (HDI) and since 1993
has been used by the United Nation
Development Programme (UNDI) each vea
to calculate the Human Development Inde,
(HDI) and publish it as a report which is know
as Human Development Report (HDR).
The HDl is the geometric mean of normalizei
indices for each of the three dimensions such
as long and healthy lite, knowledge and
decent standard of living.
The health dimension is dssessed by lite
expectancy at birth, the education dinensionis
measured by mearns of years of schooling for
adults aged 25 vears and nmore, and expected
years of schooling for children of school entering
age. The standard of living dimension is
measured by gross national income per capita
The above mentioned dimensions are measured
by the following indicators:
" Life Expectancy Index (LEI): Calculated
from Life expectancy at birth.
Education Index (EI): Calculated fron
Mean years of schooling and Expecte
years of schooling
Income Index (II): Calculated from GN pe
capita (PPP US$).
Countries fall into four broad humat
development categories based on HDl index:
Very High Human Development,
High Human Development,
Medium Human Development, and
" Low Human
Development.
Growth &Development
drishti
Low HDI Medium HDI High HDI Very High HDI
An index of 0 - 0.549 An index of 0.55 - An index of 0.7 - 0.799
An index of 0.8 and
means low development- 0.699 means medium means high development
for example, index of development - for -forexample, Iran which above means very high
Niger was 0.394 with rank development - for example,
example, India's index had index value of 0.783,
189 (lowest) in the 2020 was 0.645 with 131 rank with rank 70 in the 2020 Norway topped the Human
HDR report. in the 2020 HDR report. HDR report.
development Index with
index value 0.957 in the 2020
HDR report.
The HDI simplifies and captures only part of expectancy, social support, freedom,
what human development entails. It does not
reflect on inequalities, poverty, human security, perceptions of corruption and generosity.
Human Development in India
empowerment, etc.
The 2010 Human As per HDR 2020, India ranked 131h out of the
Development Report came
up for the first time with an Inequality-adjusted
189 countries on the HDI.
According to the report, India's gross national
Human Development Index (IHDI), which
factors in inequalities in the three basic income per capita fell to USD 6,681 in 2019
from USD 6,829 in 2018 on purchasing power
dimensions of human development, which are parity (PPP) basis. Purchasing power parity or
income, life expectancy and education PPP is a measurement of prices in different
Other Key Indices of Human Development: The countries using the prices of specific goods to
Human Development Report publishes 5 indices, compare the absolute purchasing power of the
including the HDI described above. countries' currencies.
Happiness Index as a Measure of Human For the first time, the United Nations
Development Development Programme (UNDP) introduced
" Happiness Index is brought by World a new metric to reflect the impact caused by
Happiness Report. It is a measure of happiness each country's per-capita carbon emissions and
published by the United Nations Sustainable its material footprint, which measures the
Development Solutions Network. amount of fossil fuels, metals and other
In July 2011, the UN General Assembly adopted resources used to make the goods and services
a resolution "Happiness: Towards a Holistic it consumes called the Planetary Pressures
Definition of Development", which ultimately adjusted HDI, or PHDI. India would move up
led to the release of the first World Happiness eight places in the ranking.
Report on April 1, 2012. The World Happiness The life expectancy for Indians at birth was 69.7
Report aims to draw global attention around years in 2019, slightly lower than the South
the need to create a sound policy for what Asian average of 69.9 years.
matters most to people - their well-being. The expected years of schooling in India was
It maps happiness on the parameters of GDP 12.2 years, compared with 11.2 years in
per capita, social support, and healthy life Bangladesh and 8.3 years in Pakistan. Also,
expectancy, freedom to make life choices, according to the report, in ndia, different
generosity and perceptions of corruption. ressponses in parent behaviour as well as some
disinvestment in girls health and education
In 2021 Global Happiness Index (GHI), India
was ranked on the 139th spot, down from 144th have led to higher malnutrition among girls
in the 2020 report. than among boys as a consequence of shocks
likely linked to climate change.
Top ten in order were Finland, Denmark,
Switzerland, lceland, Netherlands, Norway, GROWTH VS. DEVELOPMENT
Sweden, Luxembourg, New Zealand and Austria.
All the top countries tend to have high values The terms Growth and Development are used in
for six of the key variables that have been found every aspect of life. These terms are often used
to support well-being: income, healthy life interchangeably. However, there are several
DAISHTI PuBLICATIONS 23
 drishti Indian Econta
significant differences between these
Following are a few key differences: two words. " Growth can be perceived ando
can be
opmentandmeasurcant
accurately, whereas
" Growth is just 'getting
bigger, whereas
development is 'improvement.
develaverage
necessarily be perceived on
be measured accurately.
Growth is termed as a physical change, whereas canr
Economic Growth can be
development is said to be phvsical as well as
social and psychological change.
increase in a country's GDP.
Themeasured
most
While growth is related to
method of measuring taccura
development
Human Development Index, which is t
improvement, development is quantitative
related to account the literacy
rates, life taakes in
quantitative as well as qualitative improvement. per capita income. expectancy at
Indices of Human Development
The IHDl combines a country's averagee achievement in health, education
with how those and incom:
achievements are distributed among the country's population
Inequality "discounting" each dimension'saverage value according to its level of inegualit:L
Adjusted HDI Thus, the JHDI is distribution-sensitive average level of
Two countries with different distributions of human development
(IHDI)) achievements can have the same avers
HDI value.
Under perfect equality, the IHDI isequal to the HDI, but falls below the
HDI wh
inequality rises.
The GDI measures gender gaps in human
for disparities between women and men development achievements by accountin
in three basic
Gender
development - health, knowledge and living standards usingdimensions
the
of huma
same componen
indicators as in the HDI.
Development The GDI is the ratio of the HDls
calculated separately for females and males usin:
Index (GDI) the same methodology as in the HDI.
It is a direct measure of gender gap
male HDI. showing the female HDI as a percentage of th
The GDI value of 1 indicates perfect gender
The GIl is an inequality index.
equality.
It measures gender inequalities in three
important aspects of
Reproductive Health: measured by the maternal mortalityhuman developmen:
ratio and adolescen
birth rates;
Gender Empowerment: measured by proportion of parliamentary seats occupied b
Inequality Index females and proportion of Indian
(GII) years and older with at least some Economy adult females and males aged
secondary
Economic Status: expressed as labour marketeducation; and
the labour force participation rate of female and participation and measured
and older. male populations aged 15 year
The higher the GIl value more the disparities
more loss to human development. between females and males and th
The Multidimensional Poverty Index
(MPI),
Report, complements monetary measures ofpublished
poverty
for the first time in the
by considering overlapp:
Multidimensional deprivations suffered byindividuals at the same time.
Poverty Index The index identifies deprivations across the same
shows the number of people who are three dimensions as the HDI a
weighted deprivations with which poormultidimensionally poor and the nunte
households typically contend with.
24 DRISHTI PUBLICATIONS
Growth &Development
drishti
Though people often use the words 'growth' and implies the yearly increase in the country's GDP
development interchangeably, but it is not the or GNP, in percentage terms. It alludes to a
case. As you can see from the discussion above,
growth and development have different meanings
in different contexts. In general, though, it can be
said that whilst growth is about a simple positive
increase in size, development is a more complex
and many stage process.
Economic Growth vs. Economic Development
Economic Growth refers to the rise in the value
of everything produced in the economy. It
Basis for Comparison EconomicGrowth
Meaning It is the positive change in the Economic development involves rise in the level
realoutput of the country in a of production in an economy along with the
particular span of time.
Concept Narrow
|Scope Increase in the indicators like
GDP, per capita income, etc.
Term Short term process
Kind of Changes Quantitative changes
SUSTAINABLE DEVELOPMENT
Sustainable development is a development that
meets the needs of the present without
compromising the ability of future generations to
meet their own needs. It contains within it two key
concepts:
The concept of needs, in particular the essential
needs of the world's poor, towhich overriding
priority should be given; and
The idea of limitations imposed by the state of
technology and social organization on the
environment's ability to meet present and
future needs.
The concept of sustainable development
integrates social, economic, and environmental
policy. It considers both development (a
traditional economic and political goal) and
sustainability (an ecological goal). Several
United Nations texts refer to the"interdependent
and mutually reinforcing pillars" of sustainable
development as economic development, social
development, and environmental protection.
considerable rise in per-capita national product,
over a period.
Economic Growth is often contrasted with
Economic Development, which is defined as the
increase in the economic wealth of acountry or a
particular area, for the welfare of its residents.
Economic growth is an essential but not the only
condition for economic development.
Economic Development
advancement of technology, improvement in
living standards and so on.
Broad
Improvement in life expectancy rate, infant
mortality rate, literacy rate and poverty rates.
Long term process
Quantitative as well as qualitative changes
MILLENNIUM
DEVELOPMENT GOALS (MDGs)
At the Millennium Summit in September 2000, the
largest gathering of world leaders in history
adopted the UN Millennium Declaration,
committing their nations to anew global partnership
to reduce extreme poverty and setting out a series
of time-bound and quantified targets, with a
deadline of 2015, which came to be known as the
Millennium Development Goals.
They are aimed at addressing extreme poverty in
its many dimensions-income poverty, hunger,
disease, lack of adequate shelter, and exclusion
while promoting gender equality, education, and
environnmental sustainability. They are also basic
to human rights.
The Millennium Development Goals (MDGs) have
been the most successful giobal anti-poverty push
in history. They were embraced by all UN Member
States and millions of peoples' lives have improved
due to concerted, targeted efforts by many
countries, groups and individuals.
DAISHTI PUBLICATIONS 25
 Indian Econom,
drishti there, hundreds of millions of people remain in
Achievements of MDGs extreme poverty. Within countries, poverty i;
The main goal was tohalve thenumber of people greatest in rural areas, though urban povertyi
also extensive, growing, and underreported b,
Iiving on less than $1.25 a day - was achieved
traditional indicators.
before the 2015 deadline despite the absence of any Focus on Output rather than Outcome: Some
legally binding enforcement mechanism.
MDGs measure outputs or inputs rather than
The number of people in extreme poverty declined
by an estimated 130 million. Between 1990 and 2002 outcomes or impacts of development. MDG2, for
example, measures onlythe intake of education,
averageoverall incomes increased by approximately regardless of its quality or relevance for economic,
21%.Child mortality rates fell from 103 deaths per
1,000 live births a year to 88. Life expectancy rose social and political life.
from 63 years to nearly 65 years. Neglect of Distributive Issues: For instance, whe
An additional 8% of the developing world's people a particular country lowers its cchild mortality rate,
received access to water and an additional 15% then MDG4 does not capture whether this is d
health of the
acquired access to improved sanitation services.
to improvements in the
Criticisms of MDGs disadvantaged or others that are better off in ter.
of child survival.
Top-down and Straitjacket Approach: They are
charged with neglecting issues in developed
India and MDGs
cOuntries, not considering the real needs in recipient India could achieve much progress on some
countries, particularly those of marginalised
populations. One of the causes of this is, its targets like poverty reduction, household with water
utilisation of adonor-driven design. It failed to access, gender parity,and universal primary education
tackle the root causes of poverty and and under five mortality rates. But there are targets
underdevelopment. related to maternal mortality rate, the share of women
No goals or commitments for developed in non-agricultural employment, birth attended by
countries and no compulsion for members to skilled personnel and sanitation, which could not be
follow the MDGs. achieved by India within the given time frame.
No indication of what happens if the goals are
unmet at the end of the target period. SUSTAINABLE
Incomplete Agenda: The MDGs have also been DEVELOPMENT GOALS (SDGs)
criticised for the dimensions they have omitted.
The Sustainable Development Goals (SDGs) are
The goals do not place enough emphasis on
sustainable development, and leave out crucial officially nown as Transforming our World: the
issues such as 'peace, security and disarmament' 2030 Agenda for Sustainable Development.
as well as 'human rights, democracy and good There are 17 goals and 169 targets to be achieved
governance'. by 2030. The UN General Assembly (UNGA
Financial Issues: Financial Support Targets and adopted these goals in 2015. The SDGs are:
indicators for Overseas Development Assistance Goal 1: End poverty in all its forms everywhere
(ODA)were not backed up by any quantitative or Goal 2: End hunger, achieve food security and
time-bound targets. Levels of international aid improved nutrition, and promote sustainable
have beern minimal and have not been able to play agriculture.
any significant role in fostering achievement of Goal 3: Ensure healthy lives and promote wel
MDGs and targets. being for all at all ages.
Non-uniform Achievement of Targets: There are Goal 4: Ensure inclusive and equitable qualit
huge disparities across and withincountries. Sub education and promote lifelong learmirt;
Saharan Africa is the epicentre of the crisis and a opportunities for all.
widespread shortfall for most of the MDGs. Asia Goal 5: Achieve gender equality and empo
is the region with the fastest progress, but even all women and girls.

26 DRISHTI PUBLICATIONS
 Growth &
How Goal13: " "
recognises; measure The
Millennium
The SDGs sustainable Goal
development.
sustainableOceans, Goalchange
production inclusive,
Goal12:
patterns.Ensure countries.innovation.
foster
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sustainable
employment Goal7:
sustainable,
Goalmanagement GoalDevelopment
common
environment Our
The and;societies; SDGs coherence,sustainable and Goal justice
capacity desertification,
for Goal sustainably
and degradation Goal
interconnectedness a are 17:Strengthen sustainable 14: 11: 10: 9: 6:
importance
dependence revitalize inclusive 16:Promote
for 15: and Build 8:
Development much willBetter building, seas urgent
Take Reduce and Promote Ensure Ensure
frameworks be data all Conserve safe, Make economic
relevant development: institutions and and Protect,
use its sustainable a and of
broader manage and impacts. resilient cities resilient and
than
monitoring development, the and consumption
sustainableand inequality decent modern access water
availability
of on the trade, build peaceful halt of
sustained,
growth,
for
greater a for
MDGs?
global marine and halt restore action and
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Goals set means biodiversity terrestrial infrastructure, toand
action. all policy at
effective, and sustainably
and industrialization work
our of and finance, all forests,
andcombat human within energysanitation
(MDGs). countries of provide tosustainable ful affordable, and
and
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 drishti
Means of Implementation of SDGs
The notion of mens of imylementation describes
the interdependent mix of inancial resources,
tehnology development and transfer, capacity
building, inclusive and equitable globalization and
trade, regional integration, as well as the creation
of a national enabling environment required to
implement the new sustainable development
agenda, particularly indeveloping countries.
The implementation of the post-2015 development
agenda will require States and other relevant actors,
acting individully and collectively, to adopt policies
and mobilize resources to advance equitable, human
rights-based, sustainable development.
Sustainable Development Budgets:
Governments will have to formulate
Sustainable Development Budgets in order to
implemernt Sustainable Development Goals.
Civil society, the private sector, the media and
other relevant stakeholders should play a
significant role in the delivery and the
monitoring of the global partnership.
Access to Information: The development of
policies that will promote open access to
scientific data, especially legal issues that
hinder access to scientific data are needed,
along with the need for research funded by
governments to be made accessible to the public.
Technology Transfer: Foreign direct
investment contributes towards financing
sustained economic growth over the long term.
It is especially important for its potential to
transfer knowledge and technology. Trade is
an additional important means of diffusing
new technologies and know how. Further,
policy makers need to find the right balance
between intellectual property rights and
technology transfer toensure both accessibility
and reward (for creativity and innovation)
which remains a fundamental challenge in
building an inclusive and sustainable
development path.
India and Sustainable
Development Goals (SDGs)
India has played an important role in shaping the
Sustainable Development Goals (SDGs). This has
28 DRISHTI PUBLICATIONS
Indian Economy
meant lhat the country's national
deveopmen
goals are mirroredn the SDG%. Indiaaiis one of
forty countries that have volunteered totake the
in the Voluntary National Reviews (VNRS) at th
High-Level Political Forum (HLPE) 2017. Ind..
appreciates the focus on "Eradicating poverty and
promoting prosperity in achanging world'.
While targeting economicgrowth, infrastructure
development and industrialisation, the country's
war against poverty has become fundamentally
focussed on social inclusion and empowerment of
the poor. Even as it combats poverty, India remains
committed to protecting the environment.
Reinforcing Indias commitment to the national
development agenda and SDGs, the country's
Parliament has organized several forums to
develop policy and action perspectives on
elimination of poverty,promoting gender equality
and addressing climate change.
The NITI Aayog, with the Prime Minister as its
chairperson, is to provide the overall coordination
and leadership. The institution has carried out a
detailed mapping of the 17 Goals and 169 targets
to Nodal Central Ministries,Centrally Sponsored
Schemes and major government initiatives. Most
sub-national governments have carried out a
similar mapping of the SDGs and targets to the
departments and programmes in their
respective states.
The Ministry of Statistics & Programme
Implementation has developed a list of draft
national indicators in light of the global SDG
indicators. Several of the Government programmes
would directly contribute to the advancement of
the SDG agenda. A noteworthy example is the
Pradhan Mantri Jan Dhan Yojana (PMJDY) which
is the world's largest financial inclusion programme.
While the Central government has sponsored
schemes to provide employment, connect villages
to cities through roads, build houses for the poor
and offer education in the states, various sut
groups of Chief Ministers have come forward to
give valuable advice to the Central government ont
such important matters as digital payments, Sku
development and the Swachh Bharat Abhivan
Growth &Development
drishti
(Clean India Campaign). As a part of its oversight
responsibility, NITI Aayog has led the process of
Voluntary National Reviews (VNR) preparation.
This VNR focuses on the progress made towards
achieving Goals 1, 2, 3, 5, 9, 14 and 17. These Goals
have been agreed upon in the HLPF as focus areas.
The nature of SDGs, however, is such that the
advancement of one global goal may lead to
progress in other goals as well.
Also, the NITIAayog has presented India's second
Voluntary National Review (VNR), titled 'Decade
of Action: Taking SDGs from Global to Local' at
the United Nations High-level Political Forum
(HLPF) on Sustainable Development, 2020.

PREVIOUS YEARS' MAIN QUESTION

1. Explain intergenerational and intragenerational issues of equity from the perspective of inclusive
and sustainable growth. (150 words) growth
2. "Access to affordable, reliable, sustainable and modern (2020)
energy isthe sine qua non to achieve
Sustainable
Development Goals (SDGs)." Comment on the progress made in India in this regard.(150 words)
(2018)