IC 10 Economics Chapter 1 Development

INTRODUCTION:-
1.The idea of development or progress —> has always been with us.🤯
2. We have aspirations or desires —> about what we would like to do
—> and how we would like to live.🤔
3. In this chapter,—> understanding development.
4. The way we live today —is—> influenced by the past.
5. We can’t desire for change without being aware of this.
6. In the same way, it is only through a democratic political process that these hopes and possibilities can be
achieved in real life.

DEVELOPMENT:-
 It pertains to the growth of an individual, a society, a nation or the entire world.
 Development involves thinking about the betterment of life and working towards progress.

WHAT DEVELOPMENT PROMISES – DIFFERENT PEOPLE, DIFFERENT GOALS:-

 People seek things —>that are most important for them (— which can fulfil their aspirations or desires.
 In fact, at times, —two persons👥 or groups 👨‍👩‍👧‍👦of persons may seek things which are conflicting. → For
example, a girl 🙇🏻‍♀—️ > gets as much freedom as her brother + able to decide what she wants to do in life. She is
able to pursue her studies abroad + he🤦🏻‍♂a️ lso shares in the household work but her brother🙅🏻‍♂️may not like
this.
e.g.2 = Industrialists may require dams for the generation of electricity for propelling their industries. The
same dams may be resented by those who are displaced from their homes.
 So two things are quite clear:
a) Different persons can have different developmental goals.
b) What may be developed for one may not be developed for the other. It may even be destructive for the
other.
 Different people have different notions of development because life situations of persons are different and
therefore their aspirations and desires and goals.
 Different people have different development goals. The development goals are varying from people to people.
 Development promises a real growth by enhancing total income and standard of living of a person.

2 aspects of development

Different persons can have different What may be development for one may not be development
developmental goals. for the other. It may even be destructive for others.

INCOME AND OTHER GOALS:-

 What people desire are—>✍🏻 regular work, 💰better wages and 💵decent price for their crops or other products
that they produce. In other words, they want more income💰💰.
 People also seek —> non-material things — like— equal treatment, freedom, security, end of discrimination,
decent standard of living, Pollution free environment, less corruption, gender equality, job security facilities for
family, healthy & secure environment, and respect for others.
 In some cases, these may be more important than more income or more consumption because material goods
are not all that you need to live.
 Money -is-> one of the factors on which our life depends.
 There are many things that —>are not easily measured —>but they mean a lot to our lives i.e. non-material
things. These are often ignored.
e.g.— *Role of your friends in your life.
*Which will you prefer ———i) job may give you less pay but may offer regular employment that
enhances your sense of security. ii) Another job, however, may offer high pay but no job security and also
leave no time for your family. This will reduce your sense of security and freedom.
 However, it would be wrong to conclude that what cannot be measured is not important.
 Similarly, for development people look —> at a mix of goals.
 This is because the developmental goals that people have are —> not only about better income —> but also
about other important things in life.

NATIONAL DEVELOPMENT:-
 National development —refers—> to ability of a nation to improve standard of living of its citizens.
 It refers—> to the progress of the nation as a whole. The policy decisions that benefit a large section of a
country’s population lead to national development.
 Standards of living of citizens —> depend upon per capital income, Gross Domestic Product, literacy rate and
availability of health etc. These factors also consider as measure of improvement.

HOW TO COMPARE DIFFERENT COUNTRIES OR STATES?

 Usually, we take one or more important characteristics of persons and compare them based on these
characteristics.
 For comparing countries, their income is considered to be one of the most important attributes.
 Countries with higher income are more developed than others with less income.
 The income of the country is the income of all the residents of the country. This gives us the total income of the
country.
 For comparison between countries, total income is not such useful measure because each country has different
population rate.
 Hence, we compare the average income which is the country divided by its total population. The average income
is also called per capita income.
 In World Development Report brought out by the World Bank, this criterion is used in classifying countries.
 As of 1 July 2018,
 Countries with GNI per capita of $ 12055 or more in 2017 are considered high income economies are
called rich or developed countries;
 upper middle-income economies are those between $3,896 and $12,055;
 lower middle-income economies are those with a GNI per capita between $996 and $3,895;
 And those with GNI per capita income $996 or less are called low-income countries.
 India comes in the category of upper middle-income countries because its GNI per capita income in 2017 was $
6950.
 2013 data
 Countries with per capita income of USD 12736 per annum and above in 2013, are called rich countries
 those with per capita income of USD 1570 or less are called low-income countries.
 India comes in the category of low middle-income countries because its per capita income in 2013 was
just US$1570 per income.

INCOME AND OTHER CRITERIA:-

 For achieving development goal of people, people not only want better income, they also want non-material
thing like, equality, freedom, security, respect of others, etc.
 For development of a nation average income or per capital income is needed.
 Let us compare the per capita income of Maharashtra, Kerala, and Bihar.
State Per Capita Income for 2012-13
Maharashtra 1,07,670
Kerala 88,527
Bihar 28,774
As per table, Maharashtra had the top position with ₹ 1,07,670 per capital income. Whereas, Bihar was in
bottom position with ₹ 28,774 per capital income.
It means a person in Maharashtra earned Rs 1,07,670 in one year. Whereas, a person in Bihar earned only ₹
28,774 in one year.
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. But it is wrong to conclude this because other factors are also there in which
Kerala is better.

 Development of a nation is also depended upon other factors like literacy rate, IMR.
 State Infant Mortality Rate per Literacy Rate % 2011 Net Attendance Ratio(per
1000 live birth 2012 100 persons) secondary
stage (age 14 &15 yrs)
2009-10
Maharashtra 25 82% 64
Kerala 12 94% 78
Bihar 43 62% 35
In this table, the first columns shows that in Kerala, out of 1000 children born, 12 died before completing one
year of age but in Maharashtra 25 died and in Bihar 43 died.
In literacy rate Kerala had the highest percentage and Bihar had lowest.
The last columns shows that in Kerala, 78 children out of 100 aged 14-15 are not attending school beyond Class
which is greater than Maharashtra and Bihar.
 So we may conclude that Kerala is more developed than remaining two.

ATTRIBUTES OF NATIONAL DEVELOPMENT:-

National Income—
 It is the sum total of the incomes of all the residents of the country.
 It is the money value of final goods and services produced by a country during an accounting year.
Per Capita Income—
 It is the average income earned by each person of the country in a year.
 It establishes a relationship between the income and population of a country.
 Countries with higher PCI are considered developed as it determines the amount of money at the disposal of
each person of the country.
 World bank uses PCI for classifying countries as developed and developing in its World Development Report.
 However, PCI hides the inequalities in income in the society.
 It does not tell us how this income is distributed. Per Capita Income might not be the income of every individual
in the state.
Infant Mortality Rate—
 Infant Mortality Ratio indicates the number of children who die before the age of one year, as a proportion of
1000 live birth in that particular year.
 It indicates the development of health facilities in a country.
Literacy Rate—
 It is the number of people above 7 years of age who are able to read and write with understanding.
 Literacy Rate measures the proportion of literate population in the 7 and above age group.
 More is the literacy rate, more developed a country will be.
Net Attendance Ratio—
 It is the total number of children of age group 14 and 15 years who attending school as a percentage of total
number of children in the same age group.
Body Mass Index—
 BMI is a way to find out if adults are undernourished.
 It is the ratio of the height and weight of a person.
 It is a major indicator of the health of a person.
 If the BMI is less than 18.5 then the person is undernourished and if it is more than 25, then person is considered
overweight.
 BMI = Weight (in kg) / Square of the Height (in m).
 Divide the weight of a person (in kg) by the square of the height (in metres).

HUMAN DEVELOPMENT REPORT :-

 Published annually by the UNDP(United Nations Development Program) since 1990.
 With the help of this report we can compare countries on the basis of education levels, health status and per
capita income in order to gauge their development.
 It indicates the level of development of a country.
HUMAN DEVELOPMENT:-
 Development of an individual in such a way that he can able to earn and fulfil his materialistic desire.
Human development Index:-
 Human Development Index (HDI) is a measure to evaluate the level of development of a country.
 Human Development Index is a composite index published by the UNDP through its annual human development
report published every year.
 HDI is the average of education level index, health status index and Per Capita Income index. According to the
UNDP Report of 1990, four main aspects of measuring Human Development Index are: Per Capita Income, Life
Expectancy at birth, Literacy Rate and Gross Enrolment Ratio of the country.
 World countries are ranked accordingly in to Very High Developed countries, High Developed countries, Medium
Developed countries and Low Developed countries.
 It indicates the level of development of a country.
 The report provides information about educational level, health status per capita income on the basis of which
countries compared.

Public Facilities:-
 Facilities which are provided by the government considered as public facility like schools, hospitals, community
halls, transport, electricity etc.
 Money in your pocket cannot buy all the goods and services that you may need to live well.
 Income by itself is not a completely adequate indicator of material goods and services that citizens are able to
use.
 Normally, your money cannot buy the pollution-free environment or ensure that you get unadulterated
medicines unless you can afford to shift to a community that already has all these things.
 Money may also not be able to protect you from infectious disease unless the whole of your community takes
preventive steps.
 So we need public facility because we are not able to purchase all things by money. We cannot able to buy a
pollution free environment with the help of money.
 As we know that Maharashtra has more income than the average person in Kerala but Kerala has a low infant
Mortality Rate because of better public system like, Public Distribution System which provide Health and
nutritional status to the state.

Sustainability of Development:-
 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.
 Consequences of environmental degradation do not respect national or state boundaries; this issue is no longer
region or nation-specific.
 Sustainability of developments comparatively a new area of knowledge in which scientists, economists,
philosophers and other social scientists are working together.
☝🏻read only👀

 Sustainability of development means carrying out development works without causing damage to the
environment and also without making a compromise on the ability of future generation to use the resources
which are being used by the present generation.
 SD refers to a concept of maintaining the present development in such a way that it becomes available to the
future generations. Whatever development is taking place currently must be sustainable enough that it can be
used by the generations to come.
 Sustainable development is essential because:-
 The rapid economic growth and industrialisation have led to reckless exploitation of natural resources.
 There is fear of complete exhaustion of these natural resources.
 In the process of economic growth, the damage is being caused to environment and ecology which
ultimately will hurt human beings.
 It is desirable because everyone would certainly like the present level of development to go further or at
least be maintained for the future generations.
 Over-utilisation of non-renewable resources has posed a serious threat of their extinction, which means
the future generations will not be able to reap their benefits.
 Economic development is a continuous process. Resources are to be used in such a way that they are not
exploited. At the same time development should not harm the environment.
 To make development sustainable, environmental issues have to be merged in development. The technologies
used have to be made eco-friendly.
 Sustainable development is a matter of discussion among different countries of the world. Global warming, acid
rain, etc. are not to be controlled by one nation. It is a global matter of thinking and finding solutions.
 It is helpful to fulfils the needs of the human being without harming the ability of the future generation.
 For sustainable development, we have to use non-renewable resources like carbon based originally designed
fuel for the quantity how much we needed.
 Some renewable resources like groundwater will take long time for replenished. So, we should use that resource
in finite quantity.

BrainBooster Points:—
 If the average income of a country has increased over a period of time —means—> an increase in income is
more than the increase in population.

 Common goals: There are some needs which are common to all like income, freedom, equality, security,
respect, friendship, etc.
 Different goals: Development or progress does not mean the same thing for every individual. Each individual
has his own idea of development. For example, development for a farmer may be better irrigation facilities; for
unemployed youth, it may mean better employment opportunities, etc.
 Conflicting goals: What may be developed for some, may become destructive for some others. For example,
industrialists may want dams for electricity but such dams would displace the natives of the region.

 Development that leads to environmental degradation can be a curse for the entire planet and not just the
polluting country but effecting the whole world. For e.g. Excessive emissions from automobiles can lead to global
warming.

 “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 discussion of development?
This statement is given by Mahatma Gandhi:-
I. It means that the earth has abundant resources to satisfy everyone’s needs but in our greed and hurry
to develop, we have been recklessly exploiting these resources.
II. In the name of development, we have indulged in activities such as deforestation, unsustainable fuel
wood and fodder extraction, shifting cultivation, encroachment into forest lands, indiscriminate use of
agro -chemicals, extraction of groundwater in excess of recharge capacity, overgrazing, use of plastics,
etc.
III. The exploitation of natural resources not only harms the environment but may cripple the future
generations of the development process itself.
IV. If fossil fuels are exhausted, the development of all countries would be at risk.
V. Thus, there is a need for conservation and judicious use of resources for development.