Class 10 Economics - Chapter 1 Development (Notes)

Introduction to Development

Development involves progress in various aspects of life, including economic, social, and environmental dimensions. It is about achieving goals that improve living standards and quality of life. This chapter explores:

• Different perspectives on what development means to individuals and societies.
• Common indicators to measure development, such as income, health, and education.
• The complexities of comparing development across countries or states.

Different Developmental Goals

Varied Aspirations

People have different developmental goals based on their life situations. Table 1.1 illustrates this with examples:

Key Observations

• Diverse Goals: Different people prioritize different things based on their needs and circumstances.
• Conflicting Goals: One person’s development (e.g., industrialists wanting dams) may harm another (e.g., tribals displaced by dams).
• Non-Material Goals: Beyond income, people value security, respect, freedom, and equal treatment.

Income and Other Goals

While income is a common desire (e.g., better wages, higher crop prices), people also seek non-material goals:

• Equal Treatment: Freedom from discrimination.
• Security: Safe working and living environments.
• Respect: Dignity in society.
• Freedom: Ability to make life choices.

Non-material factors like friendship or a supportive community are vital but hard to measure. For example:

• A job with lower pay but regular employment offers security.
• Respect for women increases their dignity and encourages paid work.

National Development

National development varies based on individual perspectives. Key questions include:

• What should a country prioritize for development?
• How to resolve conflicts between different developmental goals?
• What is a fair path that benefits the majority?

Development must consider both individual aspirations and collective well-being, balancing economic growth with social equity.

Comparing Countries or States

Per Capita Income

The most common measure of development is per capita income (total income of a country divided by its population):

• World Bank Classification (2023):
  • High-income countries: > US$63,400 per annum.
  • Low-income countries: ≤ US$2,400 per annum.
  • India: Low-middle income (US$10,030 per annum).
• Limitations: Averages hide disparities. For example, Table 1.2 shows two countries with identical average incomes but different distributions:

Country A has equitable distribution, while Country B has extreme inequality, making Country A preferable despite equal averages.

Other Indicators

Tables 1.3 and 1.4 compare Haryana, Kerala, and Bihar:

Observation: Kerala outperforms Haryana and Bihar in health and education despite lower per capita income, highlighting the importance of public facilities.

Public Facilities

Income alone cannot ensure access to essential services like healthcare, education, or a clean environment. Collective provision is often more effective:

• Examples: Public schools, community healthcare, pollution control measures.
• Kerala’s Success: Low IMR due to strong health and education systems.
• Tamil Nadu vs. West Bengal: Higher PDS usage in Tamil Nadu (90% vs. 35%) improves nutritional outcomes.

Human Development Report

The UNDP’s Human Development Index (HDI) measures development using:

• Per Capita Income (GNI, PPP).
• Life Expectancy at Birth.
• Mean Years of Schooling.

Key Points:

• Sri Lanka ranks highest among India’s neighbors in HDI.
• Nepal and Bangladesh outperform India in life expectancy despite lower income.
• HDI emphasizes people’s well-being over mere income.

Sustainability of Development

Concept

Sustainable development ensures current progress does not harm future generations. It involves balancing economic growth with environmental protection.

Examples

• Groundwater Overuse: In India, 300 districts report declining water levels. Overuse in Punjab, Western UP, and urban areas threatens future availability.
• Crude Oil Reserves: Global reserves may last 47 years at current extraction rates. India’s reliance on imports poses economic challenges.

Key Issues

• Renewable Resources: Overuse (e.g., groundwater) depletes even replenishable resources.
• Non-Renewable Resources: Crude oil will eventually run out.
• Global Impact: Environmental degradation affects all nations, requiring collective action.

Key Terms

• Per Capita Income: Total income of a country divided by its population.
• Infant Mortality Rate (IMR): Number of children dying before age one per 1000 live births.
• Literacy Rate: Proportion of literate people aged 7 and above.
• Net Attendance Ratio: Percentage of children aged 15-17 attending school.
• Life Expectancy: Average expected lifespan at birth.
• Human Development Index (HDI): Combines income, health, and education indicators.
• Purchasing Power Parity (PPP): Adjusts income to reflect the same purchasing power across countries.

Exercises and Activities

Multiple Choice Questions

• 1. Development of a country is determined by: (iv) All the above (per capita income, literacy, health).
• 2. Neighbouring country with better HDI than India: (ii) Sri Lanka.
• 3. Income of fourth family (average Rs 5000, others Rs 4000, 7000, 3000): (iv) Rs 6000.

Short Answer Questions

• 4. World Bank Criterion: Per capita income. Limitations: Ignores income distribution, health, education, and environmental factors.
• 5. UNDP vs. World Bank: UNDP uses HDI (income, health, education); World Bank focuses only on income.
• 6. Use of Averages: Simplifies comparison (e.g., average marks, income). Limitations: Hides disparities (e.g., Country A vs. B).
• 7. Kerala vs. Haryana: Disagree. Per capita income is useful but incomplete; Kerala’s better HDI shows health and education matter.
• 8. Energy Sources: Current: Coal, oil, renewables. Future: Solar, wind, hydrogen.
• 9. Sustainability Importance: Ensures resources for future generations, prevents environmental degradation.