DEVELOPMENT

Development and Goals of Different Categories of Persons

It means -

 Different persons can have different development goals.

 What may be development for one may not be development for the other. It may even be destructive for the
other.

 Traditional Notion of Development:

(i) With the independence of the third world countries there arose a need for economic development. Till
1960s, the term economic development was generally used as a synonym of economic growth. But now
it is no longer considered identical with economic growth.

(ii) Definitely notion about the meaning of term development is changing but it is also a hard fact that there
is no unanimity among economists with regard to the meaning on definition of economic development.

(iii) However all agree that economic development is more than the economic growth. Hence it is taken to
mean growth plus progressive changes in certain variables of material welfare.

 Changes in the traditional notion of development :

 (i) The increase in income is not sufficient for a nation. Income can be a major base of economic growth of
a nation. But experiences had shown that economic growth could not automatically translated into the
improvement of levels of living of the poor masses. Therefore, economists redefined the concept of
economic development in terms of the reduction of poverty, unemployment and inequality in the context
of a growing economy

(ii) Now-a-days redistribution and growth have become the popular slogan in most of the progressive
nations, including India. The concept of economic growth is related to the increase in output of goods
and services in a economy. This can be expressed in two ways : (i) increase in total output or increase in
gross domestic product (GDP) : and (ii) rise in per capita income or rise in per capita GDP.

(iii) Economic development is a broader concept than economic growth. Development concerns not only
man's material needs but also the improvement of social conditions of life. It is, there fore not only
economic growth but growth plus change in social, culture and institutional pattern. It includes both
growth aspect and distribution aspect. Development must, therefore, be conceived of as a multi-
dimensional concept.

Income is the most important component of development. Besides seeking more income one way or the other,
people also seek things like equal treatment, freedom, education, security, respect of others, job, peace, pollution
free environment etc. All these are important goals. In some cases these may be more important than more
income. Money or material things that one can buy with it, is one factor on which our life depends. But the
quality of our life also depends on non material things.

Features of National Development.

1. Only those programmes and policies are implemented which would benefit a large number of people.

2. It is very important to decide about the conflicts and their solutions.

3. We have to think whether there is a better way of doing things.

4. The government decides what would be fair and just path for all.

  National Income : The total volume of all the goods and services produced within a country plus income
coming from abroad.

 Per capita Income : When the total National Income is divided by the total population, it is called per
capita income.

World Bank has given the following criteria in classifying countries.

  Countries with per capita income of $ 10, 066 per annum and above in 2004 are called rich countries and
those with per capita income of $ 825 or less are called low income countries.

 India comes in the category of low-income countries because its per capita income in 2004 was just $
620 per annum.

 Factors which contribute to the human development :

1. Living a long and a healthy life.

2. To have education, information and knowledge.

3. Enjoying a decent standard of living.

4. Enjoying basic fundamental rights.

5. To have equality and enjoyment of human rights.

 Importance of Human Development :

1. It indicates the level of development of a country.

2. It indicates to a country how far it has travelled and how far it has yet to travel to achieve a high rank.

3. Through it one comes to know the important elements of economic welfare.

Two indicators of Human Development :

1. National Income 2. Per Capita Income

 Human Development : It is the process of enlarging people’s choices as well as raising the level of well
being so that they can lead a purposeful and creative life.

 Difference between Human & Economic Development :

  Components of Human Development :

Human development index studies the following three basic human capabilities.

1. Longevity : It means life expectancy in years of the people of a country. The greater the life
expectancy, the more developed the country is life expectany in India 64 years where as in case of
developed countries like that of Japan it is more than 70 years.

2. Educational attainment : Knowledge is the second criteria of human development. It refers to the
education attained by the people of the country on an average basis. Knowledge is measured by
education attainment i.e. adult literacy and combined enrolment ratio in primary, secondary and
tertiary levels.

3. Real per capita Income : It refers to the average income earned by the people of country. Increase
in real per capita income is considered the true indicator of human development.

 Limitations of per Capita Income :

1. A rise in per capita income is due to rise in prices and not due to increase in physical output. It is not
a reliable index of economic development.

2. National income rises but its distribution makes the rich-richer and poor poorer.

3. It excludes all non marketed goods and services, even though they may be important for human
happiness and better quality of life.

4. Rise in per capita income may be due to use of modern capital intensive technology in production
which may be labour displacing in nature thus adversely affecting the poor masses.

5. If the rate of population growth, is higher than the rate of growth of national income, this will lead to
fall in percapita availability of goods and services and economic welfare.

 Sustainable Development : It is that process of economic development which aims at maintaining the
quality of life of both present and future generation without harming natural resources and environment.

 Features of sustainable Development :

1. Efficient use of natural resources :

It means that natural resources and environment should be used in efficient manner as to achieve long
term net objective like increase in income and employment, abolition of poverty, improvement in
standard of living etc.

2. No reduction is the quality of life of the future :

 Sustainable development aims at making use of natural resources and environment for raising the
existing standard of living in such a way as not to bring down the quality of life of future generation.

3. No increase in pollution :

It decries those activities which in order to maintain existing high standard of living prove detrimental to
natural resources and environment.

4. Does not limit development :

It does not aim at limting economic development. Its objective is that natural resources and environment
be used in such manner as to maintain not only be present but also the future rate of economic
developments.

GLOSSARY
1. Developed Economies : These are those economies which are characterised by high level of percapita income
and high standard of living.
2. Developing Economies : Those economies which are passing through the stages of growth and development. In
such economies significance of agriculture tends to decline whereas the industrial sector grows sharply. e.g.
India, Indonesia.
3. Economy : It is a sum total of all the economics activities like production, consumption, distribution exchange
etc.
4. National Income : It is the total value of all the goods and services produced within a country plus net income
from abroad during a year.
5. Production : When an activity results in a valuable and useful things it is called production.
6. Percapita Income : It is the average income of the people of country in a definite period.
7. Under-Developed Economies : These are the economies which are characterised by low level of per capita
income and miserable standard of living. Such economies are not able to exploit their natural resources. e.g.
Nepal, Burma etc.
8. Infant Mortality Rate or IMR : Indicates the number of children that die before the age of one year as a
proportion of 1000 live children born in that particular year.
9. Literacy Rate : Measures the proportion of literate population in the 7 and above age group.
10. 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.

EXERCISE
Q.4 Why do you think the average income is an
important criterion for development ?
Q.1 What is development ? Q.5 What is Infant Mortality Rate ?
Q.2 What is national income ? Q.6 What is literacy rate ?
Q.3 What is per capita income ? Q.7 Why Kerala has a low Infant Mortality Rate ?
Q.8 What is sustainable development ? Q.2 What is the main criterion used by the world
Bank in classifying different countries ? What
Q.9 Mention any two important aspects of our
are the limitations of this criterion ?
lives other than income.
Q.3 Is it correct to say that environmental
Q.10 What is Human Development ?
degradation is not just a national use ?
Q.11 Mention two features of development. Illustrate with examples.
Q.12 Why is the issue of sustainability important Q.4 Explain the features of the sustainable
for development ? development ?
Q.13 State the criteria used to compare the Q.5 Explain the component of Human
different countries by the Human Development.
Development Report published by the United
Q.6 ‘What may be development for one may not
National Development Programme (UNDP)
be development for the other’. Explain by
Q.14 Mention two developmental goals of landless giving examples.
rural labourers.
Q.7 What is national development ? What are the
Q.15 Why has Kerala a higher Human aspects covered under the national
Development Index than Punjab in spite of development ?
low per capita income ?
Q.8 What contributes to the human development ?
Q.9 ‘Money cannot buy all the goods and services
that one needs to live well.’ Explain.
Q.1 Distinguish between Human development and
Q.10 Distinguish between developed and
economic development.
underdeveloped countries.
Q.2 Explain two main reasons for the need of
environment friendly growth and two
suggestion to achieve them. Q.1 Besides income people want for development -
Q.3 Describe briefly four steps taken by the (A) Freedom (B) Security
Indian government for raising the status of (C) Equal Treatment (D) All the above
women at par with that of men.
Q.2 According to the World Development Report
Q.4 “Different persons can have different 2004, low income countries are those which
development goals”. Explain. have percapita income of -
Q.5 What is the importance of Human (A) $ 900 or less (B) $ 1000 or less
development index ? (C) $ 825 or less (D) $ 500 or less
Q.6 ‘Human development is the essence of social Q.3 Percapita income -
development’. Explain.
(A) (B)
Q.7 What are the limitations of the per capita
income criteria of development ?
Q.8 While average income is useful for
comparison but it may hide disparities.
Discuss. (C) (D) None of these
Q.9 What is Net Attendance ratio ?

Q.4 Percapita income of Srilanka in U.S. $ is -

(A) 4300 (B) 4390
Q.1 Explain the main achievements of the (C) 4100 (D) 4150
government of India in the improvement of
health status of the people after 1947. Q.5 Infant mortality rate per 1000 in Punjab -
(A) 40 (B) 42 (C) 49 (D) 57
Q.6 Countries with per capita income of ............. per (A) Five (B) Six
annum and above are called rich countries - (C) Seven (D) Eight
(A) 10,066 (B) 9000 Q.16 Net Attendance Ratio is the total number of
(C) 8000 (D) 9500 children of age group ..... attending school as
Q.7 HDI rank in the world of Nepal is - a percentage of total number of children in
(A) 93 (B) 63 (C) 36 (D) 138 the same age group.
(A) 5-10 (B) 6-12
Q.8 Life expectancy age in India is - (C) 6-10 (D) 7-10
(A) 50 (B) 55 (C) 60 (D) 64
Q.17 ‘Kerala has low infant mortality rate’. Which
Q.9 Life expectancy age in Japan is - of the following is appropriate reason for the
(A) 61 (B) 63 (C) 65 (D) 70 same ?
Q.10 HDI rank of India in the world is - (A) It has adequate provision of basic health
(A) 93 (B) 126 (C) 138 (D) 137 and educational facilities.
Q.11 Which of the following is the most important (B) It has highest per capita income.
component comparing different countries ? (C) It has natural resources.
(A) Population (D) The government of Kerala is very
(B) Income efficient
(C) Per capita income Q.18 Which of the following organisations has
(D) Resources prepared Human Development Report ?
Q.12 The World Bank has classified the countries (A) World Bank (B) IMF
into ......... categories. (C) UNO (D) UNDP
(A) One (B) Two Q.19 Which of the following is not a component of
(C) Three (D) Four HDI ?
Q.13 What is IMR ? (A) Per Capita Income
(A) Infant Mortality Rate (B) Life Expectancy
(B) Infant Morality Rate (C) Literacy Rate
(C) Infant Migration Rate (D) Poverty Rate
(D) Infant Multiplier Rate Q.20 .........is a new area of knowledge in which
scientists, economists, philosophers, and
Q.14 What does Infant Mortality Rate indicate ?
other social scientists are working together.
(A) Literate population in the 7 and above
(A) Sustainability of development
age.
(B) Continuity of development
(B) The number of children that die before
the age of one year as a proportion of (C) Science and Technology
1000 live children. (D) Environment
(C) The total number of children attending
the school
(D) The number of children born in a year
Q.15 Literacy rate measures the proportion of
literate population in the ....... and above age
group.

ANSWERS