BHATNAGAR INTERNATIONAL SCHOOL

PASCHIM VIHAR

ECONOMICS
CLASS 10

CHAPTER 1 – DEVELOPMENT
Presentation 2
Topic Outlines

•RE C A P I T U L A T I O N O F P R E VI O U S C L A S S
•H O W T O C O M P A R E D IF F E R EN T
C O U N T RI E S
•W O R L D B A N K M EA S U R ES O F
D E VE L O P M E N T
• I N D I C A T O R S O F U N D P ( H D I)
 How to compare different countries?

For comparing countries their income is considered

to be the most important attribute.

And to compare the income level of the countries the

average income or the per capita income is the most
important indicator of development.

Per capita Income = Total Income

Total Population
 World Bank Criteria of Development

World Bank in their WDR (World Development Report) measures the

level of development of the countries on the basis of their per capita
income as:
Rich Countries or Developed economies
Low Income Countries or Underdeveloped economies
Low Middle Income Countries Or Developing economies

Countries with per capita income of US$ 12736 and above are called as
Rich countries. Eg. Japan, USA, Germany
Countries with Per Capita income as US$ 1045 or less are called Low
income countries. Eg. Afganistan, Bangladesh.
Countries with Per capita income of just US$ 1570 comes under the
category of Low middle income countries Eg.India
Other criteria’s

However, there are certain restrictions to this norm

because income, although an important measure for
calculating growth and development, is not the only
attribute.

 Over the past few decades, health and education

have made an important mark in the development of
a country. So, even if the country has high per capita
income and literacy rate but does not have good
medical facilities, it cannot be considered developed.
 Other Indicators

So as we know the National Development constitutes

both economic development and social development
so we need to understand about the measures of
social development or non – economic development.
UNDP (United Nations Development Programme)
measures and rank countries based on the level of
social and economic development.
HDI (Human Development Index) is a tool used by
Uations Nations or UNDP to measure development.
 Indicators of HDI
The concept of HDI goes beyond income and growth to cover overall
development with the object of improving the conditions of people
from all angles. The organization that measures the HDI is the
United Nations.

Three major indicators of the HDI are as follows

 Health: Without proper health facilities, no matter how much a
country earns, it will not be able to provide basic facilities to its
people.
 Education: Over the past few decades, education has become an
important factor in leading a quality life. So, if the country has high
income but the literacy rate is low, it cannot be considered developed.
Security: More than income, people want to have a secured life. A
country should be able to provides its citizens a sense of security.
 Tools of Indicators of HDI

Literacy Rate: Is defined as the proportion of

literate population in the 7 and above age group.
Infant Mortality rate: Indicates the number of
children that die before the age of 1 year as a
proportion of 1000 live children born in that
particular year.
Net Attendance Ratio: It is the total number of
children of age group 6-10 years attending the school
as a percentage of total number of children in the
same age group.
Comparison between indicators of UNDP and World Bank
Thank you for today

 to be continued...