CH 1
DEVELOPMENT
MS. POOJA AGGARWAL ECONOMICS
DEVELOPMENT
Each and everyone thinks about their personal development or
progress.
•Different people have different development
goals.
People may have conflicting development goals
•A dam is development for a farmer because he gets water for
irrigation.
•It is destructive for a tribal man because his living place will
be submerged in water.
People May have different and conflicting notion about a
country’s development.
Cottage and village Large scale industries
industries must develop should develop
Money or Income is one of the main development goals of
most of the people because money can get a person material
things needed to live well
Apart from money people may have other development
goals such as equal treatment, freedom, good health,
security, and respect of others. These non material things
are also important to lead a good life.
For development people look for a mix
of goals
Money Equal Treatment Good Health
Security
Respect
Comparison of the Economic Development of
different Countries
The World Bank (IBRD) uses per capita income as the
criterion for classifying the countries.
Per capita Income is the average income of a person
Per capita Income =
The countries with less than $ 955 as per capita
income are called low income countries.
Examples: Bangladesh. Ethiopia , Somalia
•The countries with more than $ 12,056 as per capita
income are called developed or rich countries (High
Income Countries).
USA, Great Britain, France, Japan
•The countries in which per capita income is more than $ 955 and
less than $ 12,056 are called medium developed countries.
•Examples: Srilanka, Brazil, India
•India comes in the category of low middle income countries because
its per capita income in 2017
• was just $ 1820 per annum.
Limitation in using Per capita Income as a
criterion of development
•Per capita Income is average income. If there is unequal
distribution of income in the economy, even a high per capita
income may not lead to development.
•Income alone is not sufficient for people’s welfare. They need
safety and security, good health, education, equal treatment,
respect etc. So, there may not be development even in countries
where income is high.
Comparison between Haryana, Kerala and Bihar
STATE PER CAPITA INCOME INFANT MORTALITY LITERACY RATE NET ATTENDANCE
RATE RATIO
HARYANA 1,80,174 30 82 61
KERALA 1,63,475 10 94 83
BIHAR 34,409 35 62 43
•If we consider only per capita income, we will conclude that
Haryana is the most developed among the three state.
•However, if we consider the other criteria like life expectancy,
literacy rate and net attendance ratio also, we will conclude
that Kerala is the most developed among the three states.
HUMAN DEVELOPMENT INDEX
UNDP introduced the concept of Human
Development Index (HDI) to rank the countries
on the basis of development in its Human
Development Report
•Human Development Index (HDI) is the cumulative
measurement of longevity, knowledge
• and decent standard of living.
•Longevity: - It is measured in terms of life expectancy at
birth.
•Knowledge: - Knowledge is measured in terms of literacy
rate and net attendance ratio at three levels of schools.
• Decent standard of living: - It is measured in terms of per
capita income.
Comparison between Development of
India and Srilanka
•Srilanka is ahead of India in Human Development. HDI rank of
Srilanka is 76. India’s HDI rank is 130.
•Per capita income of Srilanka is higher than that of India
•Life expectancy at birth is 75.5 years in Srilanka. It is only 68.8 in
India.
•Educational achievement of Srilanka is also better that that of India.
SUSTAINABLE DEVELOPMENT
Economic development which does not damage environment
and at the same time take care of the needs of the future
generations is called sustainable development.
•Over exploitations of resources may harm the future
generations. Many of the resource will get exhausted.
• Environmental degradation is a threat to the survival of
human on the Earth’s surface.
PUBLIC FACILITIES
Public facilities refer to those facilities which cannot be purchased at
individual level. They are provided by the Government.
These facilities are necessary to improve the standard of living of the people.
(i) We need a pollution free environment to lead a comfortable and healthy
life.
(ii) We need to get protection from infectious diseases.
(iii) Good infrastructural facilities are needed for industrial and agricultural
development.
(iv) Law and order has to be maintained to provide safety and security to the
people.
(v) Safe drinking water and sanitation facilities are also needed.
Attributes for comparing notions of development
between different countries.
(i) National income: - National income is the sum of values of all the
final goods and services produced in a country in a year along with the
income from abroad.
(ii) Per-capita income:- It is the average income of a person. It is
calculated by dividing national income with population.
(iii) Life expectancy:- It is the average life span of an individual.
