CHAPTER 1 DEVELOPMENT
Development not only means having maximum Per Capita income but also means
improving the quality and standard of living.
The goals and desires of different people are different. Hence, their ways of defining
development will also be different. We too have our own desire for what we like to do and
how we want to live.
Though developmental goals seem to be common for all countries like Increasing GDP, Human
Resource Development, more job opportunities, Industrialization and many more. Development
refers to growth of a country along with qualitative progress of a country.
Economic Growth refers to increase only in per capita income of the country. It refers to
progress of the country only in quantitative terms.
Economic development refers to increase in per capita income of the country along with
the eradication of poverty, inequality and unemployment. It refers to progress of the
country both quantitatively as well as qualitatively.
WHAT DEVELOPMENT PROMISES: DIFFERENT PEOPLE, DIFFERENT GOALS
The concept of development may be different for different people. They may have
developmental goals according to their life situations (the very next thing missing in their
life).
A goal may be development for one person and the same goal can be destruction for the
other one. For example: Construction of dam will be development for industrialists and
farmers mainly but destructive for those who have to displace from that place.
INCOME AND OTHER GOALS
There are many other goals of a person other than earning more money. People also seek
things like self-respect, freedom, equal treatment, love, friendship etc. as they help in
improving quality of life of a person.
These ‘other goals’ are equally important as earning more income and in some cases
these goals may be more important than goal of earning more money.
Material goods/ Non- Material goods
Material goods refer to those goods and services that can be purchased.
On the other hand, Non- Material goods refers to those good which cannot be purchased
with money. For example: Security, self-respect etc.
For development, people look at mix of goals i.e. a perfect blend of Income and non-
income goals.
NATIONAL DEVELOPMENT
It is just about thinking of the ability of a country to improve the welfare of the society.
As different people have different developmental goals and look for fulfilling these
desires. What should a country do to bring welfare for all? National development talks
about this only.
For example: Good education, Safe drinking water, Achieving common developmental
goals.
HOW TO COMPARE DIFFERENT COUNTRIES OR STATES?
Income is the most important and appropriate attribute to compare different countries or
states. The income earned by all the residents of a country is called total income of a
country. But comparing countries using measure of total income or its National Income
would not give us the true picture of the economy. Since, countries have different
populations. So, total income would vary according to different countries different
proportion. Thus, for comparing countries, the concept of Average Income/ PCI is
used. What an individual is earning in a country reflects the development status of that
country.
Per Capita Income. / Average Income gives us the income earned by an individual
which is irrespective of the varying populations of the countries.
Definition says-
National Income- It refers to sum total of all final goods & services produced in a country
during a period of one year.
Per Capita Income- It refers to the average income earned by a single person of the
country. It is total income of the country divided by its total population.
PUBLIC FACILITIES
While talking of development of country, not only concept of per capita income is important
but also Public facilities do matter. They play an important role in bringing desired
development in a country. All goods & services cannot be purchased. These facilities are
those which cannot be consumed individually. For example- Health and educational services,
sanitation, drinking water facilities, infrastructure, pollution free environment etc.
Public Facilities are the facilities provided by Government of our country for the
betterment of the society and development of a country.
HUMAN DEVELOPMENT REPORT
Human Development Report is an annual report published by United Nations Development
Programme. It includes comparative study of different countries based on their Income,
health and educational levels. The report has broader coverage compared to World
Developmental Report (published by World Bank) as it put stress on Human Development
along with economic development. It assigns HDI rank to countries.
Human Development Index- The concept of Human Development Index was developed by
UNDP since 1990. It indicates the ranks assigned to the country in relation to the other countries
globally based on its human development
A country scores a higher HDI when the lifespan is higher, the education level is higher, and the
gross national income GNI (PPP) per capita is higher. It was developed by Pakistani economist
Mahbub ul Haq and Indian economist Amartya Sen. It includes three components-
Education (Literacy Rate, Gross Enrollment Ratio, Net Attendance Ratio)
Health (Infant Mortality Rate, Death Rate, Life Expectancy)
Per Capita Income (Explain)
Body Mass Index- It is the measure used by adults to identify the nutrition level in a
body. It is calculated using the formula-
B.M.I = Weight (in kg) / Square of Height (in m)
Its extreme limits are- Min 18.5 and Max 25
Sustainable Development- It is that process of development which fulfills the needs of
present generation without compromising the needs of future generation. The issue of
developing sustainably is becoming very important these days. The reason being,
resources are scarce and must be used judiciously to continue development at a same
pace.
