NCERT Class 10 Economics Chapter 1: Development Complete Notes Part 2

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Development

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Comparing States and Nations

  • Income – High vs. low

  • For comparison: Average Income or Per Capita Income =

  • World Development Report, 2006: Countries with PCI of Rs 4,53,000 per annum and above in 2004, are called rich countries.

  • Per capita income of Rs. 37,000 or less are called low-income countries

  • India - Low-income countries because its per capita income in 2004 was just Rs. 28,000 per annum.

  • Rich countries - excluding countries of Middle East and certain other small countries are developed countries.

When we talk on comparison of between the nations and states, for comparison it’s important to know we always compare the average, do not compare their totals because when we are comparing the total income that total income would vary based on the number of people living in that country so rather than comparing the total income what we need to compare is the average income. When we talk about average income or per capita income it is the total income divided by the total number of the residents or total population.

Now as per the World Bank, world development report 2006 the per capita income if more than 4,53,000 per annum and above in 2004 is considered as rich country. If the income level is less than 37,000 we call it as poor income countries. So India fall into the category of the low income countries or poor income countries because in 2004 the per capita income for India was nearly 28,000 per annum. Now again if we talk about rich countries we exclude the Middle East and certain small countries that are developed countries because we are excluding the countries of Middle East in this because there are kind of rich countries but we won’t consider them as kind of developed nations.

Besides Income

  • Infant Mortality Rate (IMR) - number of children that die before the age of one year as a proportion of 1000 live children born in that particular year.

  • Literacy Rate - proportion of literate population in the 7 and above.

  • Net Attendance Ratio - total number of children in age group 6-10 attending school as a percent of total number of children in the same age group

  • Public Facilities – Its not about money in your pockets! Pollution free environment, unadulterated medicines

  • Proper functioning of Public Distribution System (PDS)

  • Undernourishment – by BMI (Body Mass Index) = Weight/Height

  • Example – PCI of Punjab > Kerala but Punjab has higher IMR than Kerala

Besides income what are other parameters that are important. Let’s move back to India and let’s take an example of Kerala and Punjab. Punjab has a much higher per capita income as compared to Kerala. However if we talk in terms of development we would say Kerala is much ahead of Punjab, why so because when we are talking about development per se, we are not just nearly including the national per capita income as we did in the case of growth. If we talk about growth we can say Punjab has a higher growth as compared to Kerala but, if we talk in terms of development we are including other parameters like Infant mortality rate, Literacy rate and net attendance ratio. Again public facilities is an important parameters because it’s not just the money in your pockets but it’s how the community is being developed. There is a kind of pollution free environment, more of citizen sanitation facilities that are available. All these public facilities if they are better off that means the overall development of the region is much better.

Human Development Index – by UNDP

  • By Pakistani economist Mahbub ul Haq with Amartya Sen

  • Composite statistic of

    • Life expectancy

    • Education

    • Per capita income

  • 2010 - Inequality-adjusted Human Development Index (IHDI)

    • Long and healthy life: Life expectancy at birth

    • Education index: Mean years of schooling & Expected years of schooling

    • A decent standard of living: GNI per capita (PPP US$)

  • Geometric mean of Life Expectancy, Education and Income Index

Now the human development index has been given by UNDP. It was initially recommended by Pakistani economist Mahbub ul Haq in collaboration with Amartya Se. It focus on three basic parameters that is life expectancy, education and Per capita income. In 2010, Inequality adjusted HDI was given which was known as IHDI. Again focused on three standards the first is the decent standard of living that is the gross national income, per capita or purchasing power parity in terms ou US Dollars and education index that talks about the mean years of schooling and the expected years of schooling so that is the education index and finally for a long and healthy life the, life expectancy at birth is again important parameter.

Sustainability of Development

  • We have not inherited the world from our forefathers — we have borrowed it from our children

  • Groundwater – renewable resource – replenished by nature

  • Non-renewable – fixed stock – cannot be replenished

We will talk about the sustainability of development when it comes to sustainability of development we say we have not inherited the world from our forefathers rather we have borrowed it for our children and that we need to preserve or conserve the resources so that those can be used for the future generation to come and that is all. That is what we talk about we discuss the concept of sustainable development or Sustainability of Development.

Now for example, groundwater is a one of our renewable resources and this can be replenished by nature however there are certain resources which are available and fixed stock which are non-renewable in nature, and this cannot be replenished. So once depleted they are gone, for example oil, petroleum etc. so we need to use them generously or intelligently for those resources which are non-renewable since the stock is fixed or limited.