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Development has many aspects. The enable better understanding of the themes
purpose of this chapter is to enable discussed by bringing the learners closer
students to understand this idea. They to their real-life situations.
have to understand that people have
There are certain terms used in this
different perspectives on development and
chapter that would require clarification
there are ways by which we can arrive at
Per Capita Income, Literacy Rate, Infant
common indicators for development. To
Mortality Rate, Attendance Ratio, Life
do this, we have used situations that they
Expectancy, Gross Enrolment Ratio, and
can respond to in an intuitive manner; we
Human Development Index. Though data
have also presented analysis that is more
pertaining to these terms are provided,
complex and macro in nature.
these would need further explanation. You
How can countries or states be may also need to clarify the concept of
compared using some selected purchasing power parity that is used to
development indicators is another calculate per capita income in Table 1.6.
question that students would read about It is necessary to keep in mind that these
in this chapter. Economic development terms are used as an aid to the discussion
can be measured and income is the most and not something to be memorised.
common method for measuring
development. However, the income Sources for Information
method, though useful, has several The data for this chapter is taken from
weaknesses. Hence, we need newer ways reports published by the Government of
of looking at development using indicators India (Economic Survey), United Nations
of quality of life and environmental Development Programme (Human
sustainability. Development Report) and World Bank
It is necessary for you to expect the (World Development Indicators). These
students to respond actively in the reports are being published every year. It
classroom and on a topic such as the may be interesting to look up these reports
above, there would be wide variation in if they are available in your school library.
opinion and possibility of debate. Allow If not, you may log on to the websites of
students to argue their point of view. At these institutions (www.budgetindia.nic.in,
the end of each section there are a few www.undp.org, www.worldbank.org).
questions and activities. These serve two Data is also available from the Reserve
purposes: first, they recap the ideas Banks Handbook of Statistics on Indian
discussed in the section and second, they Economy, available at www.rbi.org).
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CHAPTER I
DEVELOPMENT
The idea of development or progress
has always been with us. We have
aspirations or desires about what we
would like to do and how we would
like to live. Similarly, we have ideas
about what a country should be like.
What are the essential things that we
require? Can life be better for all? How
should people live together? Can there
be more equality? Development
involves thinking about these
questions and about the ways in
which we can work towards achieving
these goals. This is a complex
task and in this chapter we shall
make a beginning at understanding
development. You will learn more
about these issues in greater depth
in higher classes. Also, 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. In the same way, it is only
through a democratic political
process that these hopes and Without me they cannot develop...
possibilities can be achieved in in this system I cannot develop!
real life.
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WHAT DEVELOPMENT PROMISES
DIFFERENT PEOPLE, DIFFERENT GOALS
CAR? THE WAY OUR COUNTRY IS
YOU WANT A CAR
Let us try to imagine what SET UP ALL YOU CAN HOPE FOR IS MAY BE TO
ONE DAY OWN THE RICKSHAW YOU PULL!
development or progress is likely to
mean to different persons listed in
Table 1.1. What are their aspirations?
You will find that some columns are
partially filled. Try to complete the
table. You can also add any other
category of persons.
Having filled Table 1.1, let us now They seek things that are most
examine it. Do all of these persons important for them, i.e., that which
have the same notion of development can fulfil their aspirations or desires.
or progress? Most likely not. Each In fact, at times, two persons or
one of them seeks different things. groups of persons may seek things
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which are conflicting. A girl expects So, two things are quite clear: one,
as much freedom and opportunity as different persons can have
her brother, and that he also shares different developmental goals and
in the household work. Her brother two, what may be development for
may not like this. Similarly, to get one may not be development for
more electricity, industrialists may the other. It may even be
THOSE PEOPLE
want more dams. But this may destructive for the other. DONT WANT TO
submerge the land and disrupt the DEVELOP!
lives of people who are displaced such
as tribals. They might resent this and
may prefer small check dams or tanks
to irrigate their land.
2015-2016
However, it will be wrong to conclude Similarly, for development,
that what cannot be measured is not people look at a mix of goals. It is
important. true that if women are engaged in paid
work, their dignity in the household
Consider another example. If you
and society increases. However, it is
get a job in a far off place, before
also the case that if there is respect
accepting it you would try to consider
for women there would be more
many factors, apart from income,
sharing of housework and a
such as facilities for your family,
greater acceptance of women
working atmosphere, or opportunity
working outside. A safe and secure
to learn. In another case, a job may
environment may allow more women
give you less pay but may offer regular
to take up a variety of jobs or run
employment that enhances your
a business.
sense of security. Another job,
however, may offer high pay but no Hence, the developmental goals
job security and also leave no time for that people have are not only about
your family. This will reduce your better income but also about other
sense of security and freedom. important things in life.
NATIONAL DEVELOPMENT
If, as we have seen above, individuals different persons could have
seek different goals, then their notion different as well as conflicting
of national development is also likely notions of a countrys development.
to be different. Discuss among
However, can all the ideas be
yourselves on what India should do
considered equally important? Or, if
for development.
there are conflicts how does one
Most likely, you would find that decide? What would be a fair and just
different students in the class have given path for all? We also have to think
different answers to the above question. whether there is a better way of doing
In fact, you might yourself think of things. Would the idea benefit a large
many different answers and not be too number of people or only a small
sure of any of these. It is very group? National development means
important to keep in mind that thinking about these questions.
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LETS WORK THESE OUT
Discuss the following situations:
1. Look at the picture on the right. What should
be the developmental goals for such an area?
2. Read this newspaper report and answer the
questions that follow:
0 tonnes
A vessel dumped 50
st es in to
of liq ui d to xic wa
a city and
open-air dumps in
din g se a. This
in the surroun
in a cit y ca lle d
ha pp en ed
Co t, a
as
Ab id ja n in Iv or y
Th e fumes
country in Africa.
ly to xic wa ste
fro m th e hi gh
us ea , sk in ra shes,
caused na er a
. Aft
fainting, diarrhoea etc re
rs on s we
mo nt h se ve n pe an d
in ho sp ita l
dead, twenty at ed
th ou sa nd tre
twenty six
isoning.
for symptoms of po
mpany
A multinational co
m an d
de al in g in pe tro leu loc al
cte d a
metals had contra t to
e Ivo ry Co as
company of th
ste from
dispose the toxic wa
its ship.
ACTIVITY 1
If even the idea of what constitutes
development can be varied and
conflicting, then certainly there can be
differences about ways of developing. If
you know of any such
controversy, try to find out
arguments advanced by different
people. You may do so by talking to
different persons or you may find it from
newspapers and television.
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HOW TO COMPARE DIFFERENT COUNTRIES
OR STATES?
You might ask if development can more developed than others with less
mean different things, how come some income. This is based on the
countries are generally called understanding that more income
developed and others under - means more of all things that human
developed? Before we come to this, beings need. Whatever people like,
let us consider another question. and should have, they will be able to
get with greater income. So, greater
When we compare different things,
income itself is considered to be one
they could have similarities as well as
important goal.
differences. Which aspects do we use
to compare them? Let us look at Now, what is the income of a
students in the class itself. How do country? Intuitively, the income of the
we compare different students? They country is the income of all the
differ in their height, health, talents residents of the country. This gives
and interests. The healthiest student us the total income of the country.
may not be the most studious one.
However, for comparison between
The most intelligent student may not
countries, total income is not such an
be the friendliest one. So, how do we
useful measure. Since, countries have
compare students? The criterion we
different populations, comparing total
may use depends on the purpose of
income will not tell us what an average
comparison. We use different criterion
person is likely to earn. Are people in
to choose a sports team, a debate
one country better off than others in a
team, a music team or a team to
different country? Hence, we compare
organise a picnic. Still, if for some
the average income which is the total
purpose, we have to choose the
income of the country divided by its
criterion for the all-round progress of
total population. The average income
children in the class, how shall we
is also called per capita income.
do it?
In World Development Reports,
Usually we take one or more
brought out by the World Bank, this
important characteristics of
criterion is used in classifying
persons and compare them based
countries. Countries with per capita
on these characteristics. O f
income of US$ 12616 per annum and
course, there can be differences about
above in 2012, are called rich countries
what are important characteristics
and those with per capita income of
that should form the basis of
US$ 1035 or less are called low-income
comparison: friendliness and spirit of
countries. India comes in the category
cooperation, creativity or marks
of low middle income countries
secured?
because its per capita income in 2012
This is true of development too. was just US$ 1530 per annum. The
For comparing countries, their rich countries, excluding countries of
income is considered to be one of Middle East and certain other small
the most important attributes. countries, are generally called
Countries with higher income are developed countries.
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Average Income
While averages are useful for comparison, they also hide disparities.
For example, let us consider two countries, A and assured of being its fifth citizen
B. For the sake of simplicity, we have assumed but if it is a lottery that decides
that they have only five citizens each. Based on our citizenship number then
data given in Table 1.2, calculate the perhaps most of us will prefer to
average income for both the countries. live in country A. Even though
both the countries have identical
TABLE 1.2 COMPARISON OF TWO average income, country A is
COUNTRIES preferred because it has more
Monthly incomes of citizens in 2012 equitable distribution. In this
Country (in Rupees) country people are neither very
I II III IV V Average
rich nor extremely poor. On the
other hand most citizens in
Country A 9500 10500 9800 10000 10200 country B are poor and one
Country B 500 500 500 500 48000 person is extremely rich. Hence,
while average income is useful
Will you be equally happy to live in both these for comparison it does not tell us
countries? Are both equally developed? Perhaps how this income is distributed
some of us may like to live in country B if we are among people.
COUNTRY WITH NO RICH AND NO POOR COUNTRY WITH RICH AND POOR
WE
MADE THE
CHAIRS
AND WE
USE
THEM.
WE
LETS WORK THESE OUT MADE THE
CHAIRS
1. Give three examples where an average is used for comparing situations. AND HE
TOOK
2. Why do you think average income is an important criterion for development? Explain. THEM.
3. Besides size of per capita income, what other property of income is important in
comparing two or more societies?
4. 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? Illustrate your answer with an example.
5. From the text, find out the per capita income level of low-income countries as per
World Development Reports.
6. Write a paragraph on your notion of what should India do, or achieve, to become a
developed country.
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INCOME AND OTHER CRITERIA
When we looked at individual
aspirations and goals, we
found that people not only
TABLE 1.3 PER CAPITA INCOME
think of better income but OF SELECT STATES
also have goals such as State Per Capita Income
security, respect for others, for 201213 (in Rs)
equal treatment, freedom, etc. Maharashtra 1,07,670
in mind. Similarly, when we Kerala 88,527
think of a nation or a region, Bihar 28,774
we may, besides average
income, think of other equally
important attributes. Source : Economic Survey 201314
What could these attributes be? Bihar is at the bottom. This means
Let us examine this through an that, on an average, a person in
example. Table 1.3 gives the per capita Maharashtra earned Rs 1,07,670 in
income of Maharashtra, Kerala and one year whereas, on an average, a
Bihar. Actually, these figures are of person in Bihar would earn only
Per Capita Net State Domestic Product around Rs 28,774. So, if per capita
income were to be used as the
at Current Prices for 201213. Let us
measure of development, Maharashtra
ignore what this complicated term will be considered the most developed
exactly means. Roughly we can take and Bihar the least developed state of
it to be per capita income of the state. the three. Now, let us look at certain
We find that of the three, Maharashtra other data pertaining to these states
has the highest per capita income and given in Table 1.4.
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What does this table show? The The problem does not end with
first column of the table shows that in Infant Mortality Rate. The last column
Kerala, out of 1000 children born, 12 of table 1.4 shows around two-thirds
died before completing one year of age of children aged 14-15 in Bihar are
but in Maharashtra the proportion of not attending school beyond Class 8.
children dying within one year of birth This means that if you went to school
is 25, which is more than double. On in Bihar more than two-thirds of your
the other hand, the per capita income class would be missing. Those who
of Maharashtra is more than that of could have been in school are not
Kerala as shown in Table 1.3. Just there! If this had happened to you,
think of how dear you are to your you would not be able to read what
you are reading now.
parents, think of how every one is so
happy when a child it born. Now, try
to think of parents whose children die
before they even celebrate their first
birthday. How painful it must be to
these parents? Next, note the year to
which this data pertains. It is 2012.
So we are not talking of old times; it is
more than 65 years after independence
when our metro towns are full of high
rise buildings and shopping malls! Most babies do not get basic health care
PUBLIC FACILITIES
How is it that the average person in Actually for many of the important
Maharashtra has more income than things in life the best way, also the
the average person in Kerala but lags cheapest way, is to provide these goods
behind in these crucial areas? The and services collectively. Just think
reason is money in your pocket will it be cheaper to have collective
cannot buy all the goods and security for the whole locality or for
services that you may need to live each house to have its own security
well. So, income by itself is not a man? What if no one, other than you,
completely adequate indicator of in your village or locality is interested
material goods and services that in studying? Would you be able to
citizens are able to use. For example, study? Not unless your parents could
normally, your money cannot buy afford to send you to some private
you a pollution-free environment or school elsewhere. So you are actually
ensure that you get unadulterated able to study because many other
medicines, unless you can afford to children also want to study and
shift to a community that already has because many people believe that the
all these things. Money may also not government should open schools and
be able to protect you from infectious provide other facilities so that all
diseases, unless the whole of your children have a chance to study. Even
community takes preventive steps. now, in many areas, children,
particularly girls, are not able to
achieve secondary level schooling
because government/society has not
provided adequate facilities.
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Kerala has a low Infant Mortality Public Distribution System (PDS)
Rate because it has adequate provision functions well. Health and nutritional
of basic health and educational status of people of such states is
facilities. Similarly, in some states, the certainly likely to be better.
ACTIVITY 2
Study Table 1.5 carefully and fill in the blanks in the following paragraphs. For this,
you may need to make calculations based on the table.
(a) The literacy rate for all age groups, including young and old, is _____ for rural
males and _____ for rural females. However, it is not just that these many
adults could not attend school but that there are _____ who are currently not in
school.
(b) It is clear from the table that _____ % of rural girls and _____% of rural boys are
not attending school. Therefore, illiteracy among children in the age group 10-
14 is as high as _____% for rural females and _____% for rural males.
(c) This high level of illiteracy among __________ age group, even after more than
60 years of our independence, is most disturbing. In many other states also
we are nowhere near realisation of the constitutional goal of free and compulsory
education for all children up to the age of 14, which was expected to be achieved
by 1960.
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ACTIVITY 3 HUMAN DEVELOPMENT
One way to find out if adults are undernourished is to REPOR
REPORTT
calculate what nutrition scientists call Body Mass Once it is realised that even though
Index (BMI). This is easy to calculate. Take the weight the level of income is important, yet
of the person in kg. Then take the height in metres.
it is an inadequate measure of the
Divide the weight by the square of the height. If this
figure is less than 18.5 then the person would be
level of development, we begin to
considered undernourished. However, if this BMI is think of other criterion. There could
more than 25, then a person is overweight. Do be a long list of such criterion but
remember that this criterion is not applicable to growing then it would not be so useful. What
children. we need is a small number of the
Let each student in a
most important things. Health and
class find out the weight education indicators, such as the
and height of three adult ones we used in comparison of
persons of different Kerala and Maharashtra, are among
economic backgrounds them. Over the past decade or so,
such as construction health and education indicators
workers, domestic have come to be widely used along
servants, office workers, with income as a measure of
business-persons etc. development. For instance, Human
Collect the data from Development Report published by
all the students and
UNDP compares countries based on
make a combined table.
Calculate their BMI. Do
the educational levels of the people,
you find any relationship their health status and per capita
between economic income. It would be interesting to look
background of person and at certain relevant data regarding
her/his nutritional status? India and its neighbours from Human
Development Report 2014.
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Isnt it surprising that a small added to the Human Development
country in our neighbourhood, Sri Report but, by pre-fixing Human to
Lanka, is much ahead of India in every Development, it has made it very clear
respect and a big country like ours has that what is important in
such a low rank in the world? Table development is what is happening to
1.6 also shows that though Nepal has citizens of a country. It is people, their
less than half the per capita income of health, their well being, that is most
India, yet it is not far behind India in important.
life expectancy and literacy levels.
Do you think there are certain
Many improvements have been other aspects that should be
suggested in calculating HDI and considered in measuring human
many new components have been development?
SUSTAINABILITY OF DEVELOPMENT
Suppose for the present that a
particular country is quite developed. We have not inherited
We would certainly like this level of the world from our
development to go up further or at forefathers we have
least be maintained for future borrowed it from our
generations. This is obviously children.
desirable. 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.
ND WHY
LETS UNDERSTA
IS SO TH RO UG H THE
THIS
G EX AM PLE:
FOLLOWIN
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Groundwater is an example of Non-renewable resources are those
renewable resources. These resources which will get exhausted after years
are replenished by nature as in the of use. We have a fixed stock on earth
case of crops and plants. However, which cannot be replenished. We do
even these resources may be discover new resources that we did
overused. For example, in the case of not know of earlier. New sources in
groundwater, if we use more than this way add to the stock. However,
what is being replenished by rain then over time, even this will get exhausted.
we would be overusing this resource.
UDE OIL THAT WE
FOR EXAMPLE, CR
E EARTH IS A NON-
EXTRACT FROM TH
URCE. HOWEVER WE
RENEWABLE RESO DID
CE OF OIL THAT WE
MAY FIND A SOUR ION S
RLIER. EXPLORAT
NOT KNOW OF EA TIM E.
RTAKEN ALL THE
ARE BEING UNDE
Example 2: Exhaustion of
Natural Resources
Look at the following data for crude oil.
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Consequences of environmental social scientists are working
degradation do not respect national together.
or state boundaries; this issue is In general, the question of
no longer region or nation specific. development or progress is perennial.
Our future is linked together. At all times as a member of society
Sustainability of development is and as individuals we need to ask
comparatively a new area of where we want to go, what we wish to
knowledge in which scientists, become and what our goals are. So
economists, philosophers and other the debate on development continues.
EXERCISES
1. Development of a country can generally be determined by
(i) its per capita income
(ii) its average literacy level
(iii) health status of its people
(iv) all the above
2. Which of the following neighbouring countries has better performance in terms of
human development than India?
(i) Bangladesh
(ii) Sri Lanka
(iii) Nepal
(iv) Pakistan
3. Assume there are four families in a country. The average per capita income of
these families is Rs 5000. If the income of three families is Rs 4000, Rs 7000
and Rs 3000 respectively, what is the income of the fourth family?
(i) Rs 7500
(ii) Rs 3000
(iii) Rs 2000
(iv) Rs 6000
4. What is the main criterion used by the World Bank in classifying different
countries? What are the limitations of this criterion, if any?
5. In what respects is the criterion used by the UNDP for measuring development
different from the one used by the World Bank?
6. Why do we use averages? Are there any limitations to their use? Illustrate with
your own examples related to development.
7. Kerala, with lower per capita income has a better human development ranking
than Maharashtra. Hence, per capita income is not a useful criterion at all and
should not be used to compare states. Do you agree? Discuss.
8. Find out the present sources of energy that are used by the people in India. What
could be the other possibilities fifty years from now?
9. Why is the issue of sustainability important for development?
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10. The Earth has enough resources to meet the needs of all but not enough to
satisfy the greed of even one person. How is this statement relevant to the
disscusion of development? Discuss.
11. List a few examples of environmental degradation that you may have observed
around you.
12. For each of the items given in Table 1.6, find out which country is at the top and
which is at the bottom.
13. The following table shows the proportion of undernourished adults in India. It is
based on a survey of various states for the year 2001. Look at the table and
answer the following questions.
(i) Compare the nutritional level of people in Kerala and Madhya Pradesh.
(ii) Can you guess why around 40 per cent of people in the country are
undernourished even though it is argued that there is enough food in the
country? Describe in your own words.
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