Chapter 1: Development

What is development? generally refers to the sustained, concerted actions

of policy makers and communities that promote the standard of living
and economic health of a specific area.

It deals with Progress.
But people have different perspectives on this and there are ways by
which we could come to common measurements for development.

How ??

This Concept has been always with us and this is manifested in the form of
ideas, aspirations, etc.

Similarly we have ideas of what a country should be ,and certain questions
arise

1. What are the essential things required?
2. Can Life be better for all?
3. How should communities live together.
4. Can there be more equality?

Development involves thinking about these questions and about the ways in
which we can work towards achieving these goals.

You will find answers to many of these questions not just in economics but
also in your course in history and political science. This is because the way
we live today is influenced by the past. We cant desire for change without
being aware of this.


Developmental Goals.
Different people have different goals etc.









The 2 important points from this is that
1. Developmental Goals are different for all.. and whatever is most important is what people
seek for
2. Developmental Goals will differ from individual to individual..One mans food is another
mans poison
Why different categories of persons do not have same notion of development?


Category of people Development of Goals /Aspirations
Landless rural labourers More work ,money etc
Farmers of Punjab (rich) Higher income from the produce
Subsistence farmers
students
parents
Working woman
Unemployed youth


Income and other Goals


What people desire is that most people want more Income.


Income is the sum of all the wages, salaries, profits, interests

payments, rents and other forms of earnings received... in a

given period of time.. In other words it is the consumption

and savings opportunity gained by an entity within a specified

timeframe, which is generally expressed in monetary terms.
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Besides income what are the other goals people seek????


These may even be more important than money or material things
and it also affects the quality of life like for instance friendship,
freedom etc. This may not be easily measured but cannot be ignored
and are as important .


Thus for development a Mix of Goals is what people look for which
includes not only a better income but other non-tangible factors.




Exercise

1. Why do different persons have different notions of development? Which of the following
explanations is more important and why?
(a) Because people are different.
(b) Because life situations of persons are different.

2. Do the following two statements mean the same? Justify your answer.
(a) People have different developmental goals.
(b) People have conflicting developmental goals.

3. Give some examples where factors other than income are important aspects of our lives.

4. Explain some of the important ideas of the above section in your own words.
National Development

What is National Development??? What can India do for development?

National development refers to the progress and ability of a country or countries to improve the social welfare of
the people, for example, by providing social amenities like good education, infrastructure, medical care and social
services.

It is very important to keep in mind that different persons could have different as well as conflicting notions of a
countrys development.

A vessel dumped 500 tonnes of liquid toxic wastes into open-air dumps in a city and in the surrounding sea. This
happened in a city called Abidjan in Ivory Coast, a country in Africa. The fumes from the highly toxic waste caused
nausea, skin rashes, fainting, diarrhoea etc. After a month seven persons were dead, twenty in hospital and
twenty six thousand treated for symptoms of poisoning. A multinational company dealing in petroleum and metals
had contracted a local company of the Ivory Coast to dispose the toxic waste from its ship.

(i) Who are the people who benefited and who did not?
(ii) What should be the developmental goal for this country?
Characteristics of National Development


For countries, their NATIONAL INCOME is considered to be one of the most important attributes of National
Development.
Countries with higher income are more developed than others with less income. This is based on the
understanding that more income means more of all things that human beings need. So, greater income itself is
considered to be one important goal.

National Income is the sum total of all the incomes of the residents of the country.

Per Capita Income is the average income earned by each person in a country per year or it is the total
income divided by its total population. This criteria was used by World Bank in the World Development Report
2012, to classify countries.
Countries with per capita income of US$ 12276 per annum and above in 2010, are called rich countries
and those with per capita income of US$ 1005 or less are called low-income countries. India comes in the
category of low middle income countries because its per capita income in 2010 was just US$ 1340.4 per
annum. The rich countries, excluding countries of Middle East and certain other small countries, are generally
called developed countries.

Suppose records show that the average income in a country has been increasing over a period of time. From this, can we
conclude that all sections of the economy have become better?

Some features of Per Capita Income

1. It creates a relationship between income and population
2. World Bank uses PCI for classifying countries as developed or underdeveloped
3. It hides the inequalities of income
4. PCI of Punjab is the highest and that of Bihar is the lowest

The other attributes of Development are :
Infant Mortality Rate : is the death of a child less than one year of age as a proportion of 1000 live births in a year.


IMR indicates the development of health facilities in a country.
In India Kerala has the lowest while Bihar has the highest.


Literacy : measures the proportion of literate population in the 7 and above age group who can read and
write with understanding. The more literate a country is the more developed it will be. India has a rate of
64% of which Kerala has the highest rate and Bihar the lowest.


Net Attendance Ratio : is the total number of children of age group 6-10 attending school as a
percentage of total number of children in the same age group.


Body Mass Index : is the ratio of the height and weight of a person. It indicates the health of a person.
Less than 18.5 indicates under nourishment and more than 25 indicates obesity.
It is calculated as weight in kgs divided by the square height in metres. This is not applicable to growing
children. The BMI shows the economic background and his/her nutritional status.



Human Development Report : published annually by the United Nations Development Programme
since 1990. The 2013 Human Development Report identifies more than 40 developing countries that
have done better than expected in human development in recent decades, with their progress
accelerating markedly over the past 10 years.
This compares countries on the basis of education levels, health status and PCI to gauge their
development.
Development is based on 4 indices
Human Development Index India ranks 126 out of 177 countries
Gender- Related Development Index-
Gender Empowerment Measure - measure the extent of gender inequality across the globe's
countries
Human Poverty Index

Of all these HDI is the most important. It uses 3 indicators to rank the countries
Life expectancy at birth
Literacy rate of population above 15 years of age
PCI


SUSTAINABILITY OF DEVELOPMENT :

It refers to a desirable future state for human societies in which living conditions and resource-use meet
human needs without undermining the sustainability of natural systems and the environment, so that future
generations may also have their needs met.
However, since the second half of the twentieth century, a number
of scientists have been warning that the present type, and levels, of development are not sustainable.





Short answer questions

1. What is the most common method of measuring the economic
development of a country?
a) Equal treatment c) Security
b) Freedom d) Income
2. Which area of the world has the largest crude oil reserves?
a) U.S.A c) the Middle East
b) Russia d) China
3. What are the criteria used by the UNDP for measuring
development?
a) Per Capita Income c) Education
b) Health d) All the above
4. What was Indias Per Capita Income in 2004 as per world
development report 2006?


5. What was IMR of Punjab in 2003?
6. Which of the following cannot be bought with money
a) A Chair c) Food
b) Pollution free environment d) Clothing
7. For how long would the crude oil reserves of the world last?
8. Which of the following neighboring countries has better performance in terms of
human development than India?
a) Bangladesh c) Sri Lanka
b) Nepal d) Pakistan
9. Average income is also called __________________.
10. Literacy rate measures the proportion of literate
population in which age group?
11. Why do different people have different notions of
development?
12. Why do we use averages? What are the limitations
to their use?
13. What is National Income?
14. What is Per Capita Income?
15. What is sustainable development? Give its
importance.
Long answer questions
16. Define IMR, literacy rate, net attendance ratio, life expectancy at birth and gross enrolment
ratio.
17. List some common goals that are desired generally by all types of people.
18. Name and explain the two main basis that are used to compare development levels of
different places.
19. Explain the classification of counties as per World Development Report 2006.
20. Explain Human Development Index.
21. Compare UNDPs and World Banks criterion for measuring development.
22. What are the limitations of using per capita income as a development indicator.
23. Kerala has lower per capital income than Punjab but a better human development ranking.
Explain.
24. Explain which all public facilities are important for human development .
25. Write a short note on problem of ground water in India.
26. What is development?