ECONOMICS (X)-LESSON-1 DEVELOPMENT (LESSON NOTES)

ECONOMICS (X)-LESSON-1

DEVELOPMENT

(LESSON NOTES)

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v INTERODUCTION-

Ø Development refers to the improvement in the present situation from the earlier situation in different aspects. Meaning of development is different for every person. This lesson focuses on these different aspects of development not only for persons but for the Nations. We also try to understand that how countries or states can be compared by using some different development indicators.

v DIFFERENT PEOPLE, DIFFERENT GOALS

Ø Meaning of development is different for every person. A rich person’s goal is different from poor persons. See these-

CATEGORY	DEVELOPMENT GOAL
Landless rural labourers	Wanted the regular work, Good wages
Prosperous farmers from Punjab	High production, Good price
Farmers who depend only on rain for growing crops	Time to time rain and want own tube well
A rural woman from a land owning family	Good clothes, Good crop production
Urban unemployed youth	Want a Job, Regular work
A boy from a rich urban family	High pocket money, a mobile, bike
A girl from a rich urban family	High pocket money, a mobile, bike, more freedom

v DEVELOPMENT GOAL MAY BE DESTRUCTIVE

Ø Development goal are not different but they also some time destructive. They are conflicting. The development of one person is not the development of other persons for example-

§  A girl expects more freedom and opportunity as her brother but her brother may not like this. 

DEVELOPMENT GOALS MAY BE DESTRUCTIVE

§  Industrialist need more land for industries but the farmers wanted the land to be used for farming.

§  Labour wanted more wages but the factory owners wanted to give them less.

v INCOME AND OTHER GOALS

Ø Though income is the base of all goals but it only can’t decided the development goal. There are many other aspect rather than income which affect the development goal. Like-

Ø Equal treatment, freedom, security, and respect of others, other facility

Ø “Money in your pocket cannot buy all the goods and services that you may need to live well”.

Ø We can purchase books but not Knowledge. We can by medicines but not good health.

v NATIONAL DEVELOPMENT

Ø It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development. So for the National Development we should keep in mind that what is fair and good for large number of people.

v COMPARISION OF DIFFERENT COUNTRIES OR STATES

Ø It is no doubt that meaning of development is different for each country but many international organisation compare among the nation on different aspect of development. They took different criteria of development to compare. Let us see-

v CRITERIA USED BY WORLD BANK

Ø World bank compare the countries’ development on the basis of their average income or Per capital Income (PCI). It publishes the report yearly which is known as World Development report.

Ø PCI is calculated by dividing the total income of country by its population.

Ø PCI =Total income of a country/Total population

Ø On the basis of PCI countries are divided into these three categories as

§  Rich countries- PCI is more than US$ 12612 (2016 )

§  Middle income countries- PCI is in between US$ 12612 to US$ 1035. India PCI is 1530 US$ so included in the low middle income countries.

§  Low income countries-PCI is less than US$ 1035.(2016)

Ø For comparing countries, PCI  is considered to be one of the most important attributes because-

§  This is based on the understanding that more income means more of all things that human beings need. 

§  Whatever people like, and should have, they will be able to get with greater income. So, greater income itself is considered to be one important goal.

§  Countries with higher income are more developed than others with less income. 

Ø DRAWBACK IN PCI CRITERIA-

§  The criterion used by World Bank is based on PCI. It does not tell us about the actual distribution of income among the people.

§  It ignores the other development goals which can’t be neglect as health, education, equality, freedom etc.

v CRITERIA USED BY UNDP (United Nation Development Programme)

Ø UNDP publish its report every year known as Human Developent Report. On the basis of Human development Index (HDI). It used these indicators to calculate HDI as-

§  Per Capital Income of the country calculate din dollar.

§  Education-In this many indicators are included as

·       Literacy rate-The percentage of people who can read write and understand at least one language is known as literacy rate.

·       Gross Enrollment ratio-The number of children who enrolled in the school as a percentage of total no of children in the same age group.

·       Net attendance ratio-The total number of children of age group 14 and 15 years attending school as a percentage of total number of children in the same age group.

§  Health- In this many indicators as

·       Death Rate-The number of people dead on per thousand people.

·       Infant mortality rate-The number of children who died before completing one year on per thousand alive children is known as IMR.

·       Life expectancy ratio -Average expected length of life of a person at the time of birth.

Ø On the basis of above criteria the countries are given the ranking. In this India’s position is 132 in 2016.

v BMI(Body Mass Index)

Ø The index which is used to see that particular person is undernourished or overweight is called as Body mass index.

Ø It is calculated by divided the weight by the square of height in metrers .

Ø BMI=Weight In kg/{(Height in m)²}

Ø If the BMI is more than 25 than overweight and if less than 18.5 than undernourished.

v PUBLIC FACILITIES

Ø According to the income Maharashtra GDP is higher than Kerala but if we see the IMR and other education or health indicators we see that Kerala position is better than other state.

Ø Money in your pocket cannot buy all the goods and services that you may need to live well. So, income by itself is not a completely adequate indicator of material goods and services that citizens are able to use.

Ø For example, normally, your money cannot buy you a 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 diseases, unless the whole of your community takes preventive steps.

Ø Kerala has a low Infant Mortality Rate

§  Because it has adequate provision of basic health and educational facilities.

§  The Public Distribution System (PDS) functions well. Health and nutritional status of people of this state is certainly likely to be better.

v SUSTAINABLE DEVELOPMENT

Ø Sustainable development means development should take place without damaging the environment, and development in the present should not compromise with the needs of the future generations. We should care of non renewable and renewable resources as their quantity is limited.

Ø Groundwater is an example of renewable resources. These resources are replenished by nature as in the case of crops and plants.

Ø However, even these resources may be overused. For example, in the case of groundwater, if we use more than what is being replenished by rain then we would be overusing this resource.

Ø Non-renewable resources are those which will get exhausted after years of use. For example petroleum, coal natural gases.