Class 10 Economics - Chapter 1:
Development (Detailed Notes)
1. Introduction to Development
Development refers to improvement in living standards and quality of life.
It includes better income, health, education, freedom, security, equal opportunities,
and a clean environment.
Development is multidimensional – economic, social, cultural, political.
Different individuals have different notions of development based on their needs and
life situations.
2. Different People, Different Goals
People have varied developmental goals. Example:
- Landless rural labourer: more employment, better wages, social security, education
for children.
- Prosperous farmer: high family income, good prices for crops, political power.
- Rich urban businessman: high profits, low taxes, business-friendly policies.
- Girl from conservative village: education, freedom, respect.
Sometimes, development for one may be harmful to another. Example: dam
construction – benefits urban and industrial users but displaces tribal communities.
3. Income and Other Goals
People not only seek more income but also non-material goals.
Non-material goals include:
- Respect and dignity
- Job security
- Equal treatment
- Safe and pollution-free environment
Example: A job offering higher salary without job security may not be preferable to a
lower-paid secure job.
4. National Development
National development refers to improvement in a country's standard of living and
quality of life.
It involves economic growth, industrial development, education, health facilities,
clean environment, and social justice.
Different people have different perspectives about national development.
It must be inclusive and sustainable, benefiting all regions and sections.
5. How to Compare Different Countries or States
One common method is comparing Per Capita Income (PCI).
Per Capita Income = Total National Income ÷ Total Population
World Bank Classifications (2020-21):
- High-income countries: PCI > $12,695
- Middle-income: $1,046 < PCI < $12,695
- Low-income: PCI < $1,046
Limitations of PCI:
- Does not show income inequality
- Ignores health, education, gender equity, environmental sustainability
- Average income may mask poverty and unemployment
6. Other Criteria for Development
To assess development fully, other indicators are also important:
- Health: life expectancy, infant mortality rate, nutrition, medical access
- Education: literacy rate, enrollment ratio, mean years of schooling
- Public Facilities: transport, water, sanitation, electricity, housing
Income alone cannot measure true development.
7. Human Development Index (HDI)
Developed by UNDP to compare countries’ development levels.
HDI includes three dimensions:
- Health: Life Expectancy at Birth
- Education: Mean Years of Schooling + Expected Years of Schooling
- Standard of Living: GNI per capita (PPP $)
Countries ranked as: Very High, High, Medium, Low HDI
India’s HDI rank (2023): 132 out of 191 countries
8. Sustainability of Development
Sustainable development means development that meets current needs without
compromising future generations.
Overuse of resources like groundwater, forests, fossil fuels can lead to crises.
Example: Punjab & Haryana – excessive groundwater use has depleted water tables.
Sustainable development promotes use of renewable resources, conservation, and
eco-friendly technologies.
9. Case Study: Groundwater in India
Over 60% of irrigation in India depends on groundwater.
Excessive usage in agriculture (Punjab, Haryana) is lowering water tables.
Problems: declining crop productivity, rising costs, water scarcity.
Solutions: rainwater harvesting, watershed management, sustainable irrigation
practices.
10. Key Terms
Development: holistic growth in economic, social, cultural aspects.
Per Capita Income: average income of a person in a country.
Sustainable Development: environment-friendly development for future needs.
HDI: index measuring health, education, income.
Infant Mortality Rate: number of children who die before age 1 per 1000 live births.
Life Expectancy: average life span at birth.
Public Facilities: services provided by government to enhance well-being.
Important Questions
1. What is development? How does it vary from person to person?
2. Why is income not a sufficient indicator of development?
3. What are non-material goals? Give examples.
4. Define HDI and list its components.
5. What is sustainable development? Why is it important?
6. Compare development of two states using income and other indicators.
7. How does groundwater overuse affect development in India?
