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Jess 201
Jess 201
Jess 201
Development has many aspects. The discussed by bringing the learners closer
purpose of this chapter is to enable to their real-life situations.
students to understand this idea. They There are certain terms used in this
have to understand that people have chapter that would require clarification —
different perspectives on development and Per Capita Income, Literacy Rate, Infant
there are ways by which we can arrive at Mortality Rate, Attendance Ratio, Life
common indicators for development. To Expectancy, Gross Enrolment Ratio, and
do this, we have used situations that they Human Development Index. Though data
can respond to in an intuitive manner; we pertaining to these terms are provided,
have also presented analysis that is more these would need further explanation. You
complex and macro in nature. may also need to clarify the concept of
How can countries or states be Purchasing Power Parity that is used to
compared using some selected calculate per capita income in Table 1.6.
development indicators is another It is necessary to keep in mind that these
question that students would read about terms are used as an aid to the discussion
in this chapter. Economic development and not something to be memorised.
can be measured and income is the most Sources for Information
common method for measuring
The data for this chapter is taken from
development. However, the income
reports published by the Government of
method, though useful, has several
India (Economic Survey, Report of the
weaknesses. Hence, we need newer ways
National Family Health Survey and
of looking at development using indicators
Handbook of Statistics on the Indian
of quality of life and environmental
Economy), United Nations Development
sustainability.
Programme (Human Development Report)
It is necessary for you to expect the and World Bank (World Development
students to respond actively in the Indicators). Many of these reports are being
classroom and on a topic such as the published every year. It may be interesting
above, there would be wide variation in to look up these reports if they are available
opinion and possibility of debate. Allow in your school library. If not, you may log
students to argue their point of view. At on to the websites of these institutions
the end of each section there are a few (www.budgetindia.nic.in, www.undp.org,
questions and activities. These serve two www.worldbank.org). Data is also available
purposes: first, they recap the ideas from the Reserve Bank’s Handbook of
discussed in the section and second, they Statistics on Indian Economy (available at
enable better understanding of the themes www.rbi.org).
2021-22
CHAPTER I
DEVELOPMENT
The idea of development or progress
has always been with us. We have
aspirations or desires about what we
would like to do and how we would
like to live. Similarly, we have ideas
about what a country should be like.
What are the essential things that we
require? Can life be better for all? How
should people live together? Can there
be more equality? Development
involves thinking about these
questions and about the ways in
which we can work towards achieving
these goals. This is a complex
task and in this chapter we shall
make a beginning at understanding
development. You will learn more
about these issues in greater depth
in higher classes. Also, you will find
answers to many of these questions
not just in economics but also in your
course in history and political science.
This is because the way we live today
is influenced by the past. We can’t
desire for change without being aware
of this. In the same way, it is only
through a democratic political
process that these hopes and “Without me they cannot develop...
possibilities can be achieved in in this system I cannot develop!”
real life.
DEVELOPMENT 3
2021-22
WHAT DEVELOPMENT PROMISES —
DIFFERENT PEOPLE, DIFFERENT GOALS
YOU WANT A CAR
CAR? THE WAY OUR COUNTRY IS
Let us try to imagine what SET UP ALL YOU CAN HOPE FOR IS MAY BE TO
ONE DAY OWN THE RICKSHAW YOU PULL!
development or progress is likely to
mean to different persons listed in
Table 1.1. What are their aspirations?
You will find that some columns are
partially filled. Try to complete the
table. You can also add any other
category of persons.
Having filled Table 1.1, let us now They seek things that are most
examine it. Do all of these persons important for them, i.e., that which
have the same notion of development can fulfil their aspirations or desires.
or progress? Most likely not. Each In fact, at times, two persons or
one of them seeks different things. groups of persons may seek things
4 U NDERST ANDING E CONOMIC D EVEL
NDERSTANDING OPMENT
EVELOPMENT
2021-22
which are conflicting. A girl expects So, two things are quite clear: one,
as much freedom and opportunity as different persons can have
her brother, and that he also shares different developmental goals and
in the household work. Her brother two, what may be development for
may not like this. Similarly, to get one may not be development for
more electricity, industrialists may the other. It may even be
THOSE PEOPLE
want more dams. But this may destructive for the other. DON’T WANT TO
submerge the land and disrupt the DEVELOP!
lives of people who are displaced – such
as tribals. They might resent this and
may prefer small check dams or tanks
to irrigate their land.
2021-22
However, it will be wrong to conclude Similarly, for development,
that what cannot be measured is not people look at a mix of goals. It is
important. true that if women are engaged in paid
work, their dignity in the household
Consider another example. If you
and society increases. However, it is
get a job in a far off place, before
also the case that if there is respect
accepting it you would try to consider
for women there would be more
many factors, apart from income,
sharing of housework and a
such as facilities for your family,
greater acceptance of women
working atmosphere, or opportunity
working outside. A safe and secure
to learn. In another case, a job may
environment may allow more women
give you less pay but may offer regular
to take up a variety of jobs or run
employment that enhances your
a business.
sense of security. Another job,
however, may offer high pay but no Hence, the developmental goals
job security and also leave no time for that people have are not only about
your family. This will reduce your better income but also about other
sense of security and freedom. important things in life.
NATIONAL DEVELOPMENT
If, as we have seen above, individuals different persons could have
seek different goals, then their notion different as well as conflicting
of national development is also likely notions of a country’s development.
to be different. Discuss among
However, can all the ideas be
yourselves on what India should do
considered equally important? Or, if
for development.
there are conflicts how does one
Most likely, you would find that decide? What would be a fair and just
different students in the class have given path for all? We also have to think
different answers to the above question. whether there is a better way of doing
In fact, you might yourself think of things. Would the idea benefit a large
many different answers and not be too number of people or only a small
sure of any of these. It is very group? National development means
important to keep in mind that thinking about these questions.
2021-22
LET’S WORK THESE OUT
Discuss the following situations:
1. Look at the picture on the right. What should
be the developmental goals for such an area?
2. Read this newspaper report and answer the
questions that follow:
0 tonnes
A vessel dumped 50
st es in to
of liq ui d to xic wa
in a cit y and
open-air dumps This
un din g se a.
in the surro lle d
y ca
ha pp en ed in a cit t, a
Co as
Ab id ja n in Iv or y me s
a. Th e fu
country in Afric ste
gh ly to xic wa
fro m th e hi
in rashes,
caused nausea, sk
etc . After a
fainting, diarrhoea
pe rs on s we re
mo nt h se ve n
ty in ho sp ita l and
dead, twen
treated
twenty six thousand g.
iso nin
for symptoms of po
mpany
A multinational co
m an d
de al in g in pe tro leu loc al
cte d a
metals had contra t to
e Ivo ry Co as
company of th fro m
e tox ic wa ste
dispose th
its ship.
ACTIVITY 1
If even the idea of what constitutes
development can be varied and
conflicting, then certainly there can be
differences about ways of developing. If
you know of any such
controversy, try to find out
arguments advanced by different
people. You may do so by talking to
different persons or you may find it from
newspapers and television.
DEVELOPMENT 7
2021-22
HOW TO COMPARE DIFFERENT COUNTRIES
OR STATES?
You might ask if development can more developed than others with less
mean different things, how come some income. This is based on the
countries are generally called understanding that more income
developed and others under - means more of all things that human
developed? Before we come to this, beings need. Whatever people like,
let us consider another question. and should have, they will be able to
get with greater income. So, greater
When we compare different things,
income itself is considered to be one
they could have similarities as well as
important goal.
differences. Which aspects do we use
to compare them? Let us look at Now, what is the income of a
students in the class itself. How do country? Intuitively, the income of the
we compare different students? They country is the income of all the
differ in their height, health, talents residents of the country. This gives
and interests. The healthiest student us the total income of the country.
may not be the most studious one. However, for comparison between
The most intelligent student may not countries, total income is not such an
be the friendliest one. So, how do we useful measure. Since, countries have
compare students? The criterion we different populations, comparing total
may use depends on the purpose of income will not tell us what an average
comparison. We use different criterion person is likely to earn. Are people in
to choose a sports team, a debate one country better off than others in a
team, a music team or a team to different country? Hence, we compare
organise a picnic. Still, if for some the average income which is the total
purpose, we have to choose the income of the country divided by its
criterion for the all-round progress of total population. The average income
children in the class, how shall we is also called per capita income.
do it? In World Development Reports,
Usually we take one or more brought out by the World Bank, this
important characteristics of criterion is used in classifying
persons and compare them based countries. Countries with per capita
on these characteristics. Of income of US$ 49,300 per annum and
course, there can be differences about above in 2019, are called high income
what are important characteristics or rich countries and those with per
that should form the basis of capita income of US$ 2500 or less are
comparison: friendliness and spirit of called low-income countries. India
cooperation, creativity or marks comes in the category of low middle
secured? income countries because its per
capita income in 2019 was just
This is true of development too. US$ 6700 per annum. The rich
For comparing countries, their countries, excluding countries of
income is considered to be one of Middle East and certain other small
the most important attributes. countries, are generally called
Countries with higher income are developed countries.
2021-22
Average Income
While ‘averages’ are useful for comparison, they also hide disparities
For example, let us consider two countries, A and assured of being its fifth citizen
B. For the sake of simplicity, we have assumed but if it is a lottery that decides
that they have only five citizens each. Based on our citizenship number then
data given in Table 1.2, calculate the average perhaps most of us will prefer to
income for both the countries. live in country A. Even though
both the countries have identical
TABLE 1.2 COMPARISON OF TWO average income, country A is
COUNTRIES preferred because it has more
Monthly incomes of citizens equitable distribution. In this
Country (in Rupees) country people are neither very
I II III IV V Average rich nor extremely poor. On the
other hand most citizens in
Country A 9500 10500 9800 10000 10200 country B are poor and one
Country B 500 500 500 500 48000 person is extremely rich. Hence,
while average income is useful for
Will you be equally happy to live in both these comparison it does not tell us how
countries? Are both equally developed? Perhaps this income is distributed among
some of us may like to live in country B if we are people.
COUNTRY WITH NO RICH AND NO POOR COUNTRY WITH RICH AND POOR
WE
MADE THE
CHAIRS
AND WE
USE
THEM.
WE
LET’S WORK THESE OUT MADE THE
CHAIRS
1. Give three examples where an average is used for comparing situations. AND HE
TOOK
2. Why do you think average income is an important criterion for development? Explain. THEM.
3. Besides size of per capita income, what other property of income is important in
comparing two or more societies?
4. Suppose records show that the average income in a country has been increasing
over a period of time. From this, can we conclude that all sections of the economy
have become better? Illustrate your answer with an example.
5. From the text, find out the per capita income level of about 10-15 low-income
countries as per World Development Reports.
6. Write a paragraph on your notion of what should India do, or achieve, to become a
developed country.
DEVELOPMENT 9
2021-22
INCOME AND OTHER CRITERIA
When we looked at individual
aspirations and goals, we
found that people not only
TABLE 1.3 PER CAPITA INCOME
think of better income but OF SELECT STATES
also have goals such as State Per Capita Income
security, respect for others, for 2017-18 (in Rs)
equal treatment, freedom, etc. Haryana 2,03,340
in mind. Similarly, when we Kerala 1,84,000
think of a nation or a region, Bihar 38,631
we may, besides average
income, think of other equally
Source : Economic Survey 2019–20, A29.
important attributes.
What could these attributes be? income and Bihar is at the bottom.
Let us examine this through an This means that, on an average,
example. Table 1.3 gives the per capita a person in Haryana earned
income of Haryana, Kerala and Bihar. Rs 1,80,174 in one year whereas, on
Actually, these figures are of Per an average, a person in Bihar earned
Capita Net State Domestic Product at only around Rs 34,409. So, if per
capita income were to be used as the
Current Prices for 2017–18. Let us
measure of development, Haryana will
ignore what this complicated term be considered the most developed
exactly means. Roughly, we can take and Bihar the least developed state of
it to be the per capita income of the the three. Now, let us look at certain
state. We find that of the three, other data pertaining to these states
Haryana has the highest per capita given in Table 1.4.
2021-22
What does this table show? The The problem does not end with
first column of the table shows that in Infant Mortality Rate. The last column
Kerala, out of 1000 children born, 10 of table 1.4 shows that about half of
died before completing one year of age the children aged 14-15 in Bihar are
but in Haryana the proportion of not attending school beyond Class 8.
children dying within one year of birth This means that if you went to school
was 30, which is two times more than in Bihar nearly half of your elementary
that of Kerala. On the other hand, the class friends would be missing. Those
per capita income of Haryana is more who could have been in school are not
than that of Kerala as shown in Table there! If this had happened to you, you
1.3. Just think of how dear you are to would not be able to read what you
are reading now.
your parents, think of how every one
is so happy when a child is born. Now,
try to think of parents whose children
die before they even celebrate their first
birthday. How painful it must be to
these parents? Next, note the year to
which this data pertains. It is 2017-18.
So we are not talking of old times; it is
70 years after independence when our
metro cities are full of high rise
buildings and shopping malls! Most babies do not get basic healthcare
PUBLIC FACILITIES
How is it that the average person in Actually for many of the important
Haryana has more income than the things in life the best way, also the
average person in Kerala but lags cheapest way, is to provide these goods
behind in these crucial areas? The and services collectively. Just think –
reason is — money in your pocket will it be cheaper to have collective
cannot buy all the goods and security for the whole locality or for
services that you may need to live each house to have its own security
well. So, income by itself is not a staff? What if no one, other than you,
completely adequate indicator of in your village or locality is interested
material goods and services that in studying? Would you be able to
citizens are able to use. For example, study? Not unless your parents could
normally, your money cannot buy afford to send you to some private
you a pollution-free environment or school elsewhere. So you are actually
ensure that you get unadulterated able to study because many other
medicines, unless you can afford to children also want to study and
shift to a community that already has because many people believe that the
all these things. Money may also not government should open schools and
be able to protect you from infectious provide other facilities so that all
diseases, unless the whole of your children have a chance to study. Even
community takes preventive steps. now, in many areas, children,
particularly girls, are not able to go to
high school because the government/
society has not provided adequate
facilities.
DEVELOPMENT 11
2021-22
Kerala has a low Infant Mortality Public Distribution System (PDS)
Rate because it has adequate provision functions well. Health and nutritional
of basic health and educational status of people of such states is
facilities. Similarly, in some states, the certainly likely to be better.
ACTIVITY 2
Study Table 1.5 carefully and fill in the blanks in the following paragraphs. For this,
you may need to make calculations based on the table.
(a) The literacy rate for all age groups, including young and old, is _____ for rural
males and _____ for rural females. However, it is not just that these many
adults could not attend school but that there are _____ who are currently not in
school.
(b) It is clear from the table that _____ % of rural girls and _____% of rural boys are
not attending school. Therefore, illiteracy among children in the age group 10-
14 is as high as _____% for rural females and _____% for rural males.
(c) This high level of illiteracy among __________ age group, even after more than
70 years of our independence, is most disturbing. In many other states also we
are nowhere near realisation of the constitutional goal of free and compulsory
education for all children up to the age of 14, which was expected to be achieved
by 1960.
2021-22
ACTIVITY 3 HUMAN DEVELOPMENT
One way to find out if we are properly nourished is to REPOR
REPORTT
calculate what nutrition scientists call Body Mass Index Once it is realised that even though
(BMI). This is easy to calculate. Let each student in
the class find out his or her weight and height. Take the the level of income is important, yet it
weight of each student in kilograms (kg). Then, take is an inadequate measure of the level
the height by drawing up a scale on the wall and of development, we begin to think of
measuring accurately with the head straight. Convert other criterion. There could be a long
the height recorded in centimeters into meters. Divide list of such criterion but then it would
the weight in kg by the square of the height. The number not be so useful. What we need is a
you get is called BMI. Then, look at the BMI-for-Age
small number of the most important
tables given on pages
90–91. A student’s BMI things. Health and education
could be within the normal indicators, such as the ones we used
range or less than that in comparison of Kerala and Haryana,
(underweight) or more are among them. Over the past decade
(obesity). For example, if or so, health and education indicators
a girl student is 14 years
have come to be widely used along
and 8 month old and the
BMI is 15.2, then she is with income as a measure of
undernourished. Similarly, development. For instance, Human
if the BMI of a boy aged Development Report published by
15 years and 6 months is UNDP compares countries based on
28, then he is overweight. the educational levels of the people,
Discuss the life situation, their health status and per capita
food and exercise habits
income. It would be interesting to look
of students, in general,
without body shaming at certain relevant data regarding
anyone. India and its neighbours from Human
Development Report 2020.
DEVELOPMENT 13
2021-22
Isn’t it surprising that a small many new components have been
country in our neighbourhood, Sri added to the Human Development
Lanka, is much ahead of India in every Report but, by pre-fixing Human to
respect and a big country like ours has Development, it has made it very clear
such a low rank in the world? Table that what is important in development
is what is happening to citizens of a
1.6 also shows that though Nepal and
country. It is people, their health, their
Bangladesh have low per capita well being, that is most important.
income than that of India, yet they are
better than India in life expectancy. Do you think there are certain
other aspects that should be
Many improvements have been considered in measuring human
suggested in calculating HDI and development?
SUSTAINABILITY OF DEVELOPMENT
Suppose for the present that a
particular country is quite developed. “We have not inherited
We would certainly like this level of the world from our
development to go up further or at forefathers — we have
least be maintained for future borrowed it from our
generations. This is obviously children.”
desirable. 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.
ND WHY
LET’S UNDERSTA
IS IS SO TH RO UGH THE
TH
PLE:
FOLLOWING EXAM
2021-22
Groundwater is an example of Non-renewable resources are those
renewable resources. These resources which will get exhausted after a few
are replenished by nature as in the years of use. We have a fixed stock on
case of crops and plants. However, earth which cannot be replenished. We
even these resources may be do discover new resources that we did
overused. For example, in the case of not know of earlier. New sources in
groundwater, if we use more than this way add to the stock. However,
what is being replenished by rain then over time, even this will get exhausted.
we would be overusing this resource.
UDE OIL THAT WE
FOR EXAMPLE, CR
E EARTH IS A NON-
EXTRACT FROM TH
URCE. HOWEVER WE
RENEWABLE RESO DID
CE OF OIL THAT WE
MAY FIND A SOUR ION S
RLIER. EXPLORAT
NOT KNOW OF EA E TIM E.
RTAKEN ALL TH
ARE BEING UNDE
Example 2: Exhaustion of
Natural Resources
Look at the following data for crude oil.
DEVELOPMENT 15
2021-22
Consequences of environmental social scientists are working
degradation do not respect national together.
or state boundaries; this issue is In general, the question of
no longer region or nation specific. development or progress is perennial.
Our future is linked together. At all times as a member of society
Sustainability of development is and as individuals we need to ask
comparatively a new area of where we want to go, what we wish to
knowledge in which scientists, become and what our goals are. So
economists, philosophers and other the debate on development continues.
EXERCISES
1. Development of a country can generally be determined by
(i) its per capita income
(ii) its average literacy level
(iii) health status of its people
(iv) all the above
2. Which of the following neighbouring countries has better performance in terms of
human development than India?
(i) Bangladesh
(ii) Sri Lanka
(iii) Nepal
(iv) Pakistan
3. Assume there are four families in a country. The average per capita income of
these families is Rs 5000. If the income of three families is Rs 4000, Rs 7000
and Rs 3000 respectively, what is the income of the fourth family?
(i) Rs 7500
(ii) Rs 3000
(iii) Rs 2000
(iv) Rs 6000
4. What is the main criterion used by the World Bank in classifying different
countries? What are the limitations of this criterion, if any?
5. In what respects is the criterion used by the UNDP for measuring development
different from the one used by the World Bank?
6. Why do we use averages? Are there any limitations to their use? Illustrate with
your own examples related to development.
7. 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.
8. 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?
9. Why is the issue of sustainability important for development?
2021-22
10. “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
disscusion of development? Discuss.
11. List a few examples of environmental degradation that you may have observed
around you.
12. For each of the items given in Table 1.6, find out which country is at the top and
which is at the bottom.
13. 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.
(i) Compare the nutritional level of people in Kerala and Madhya Pradesh.
(ii) 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.
DEVELOPMENT 17
2021-22