1.

What is the main criterion used by the World Bank in classifying different
countries? What are the limitations of this criterion, if any?

Solution : Per Capita Income is the main criterion used by the World Bank in classifying
different countries. The limitation of this criterion are :

• Per capita income is useful for comparison but it doesn’t show the distribution of
income.

• It also ignores other factors such as infant mortality rate, literacy level, healthcare, etc.

• Per capita income does not give the true picture as there is a huge population which
does not earn at all like children and the senior citizens but they are also included while
calculating per capita income.

2. In what respects is the criterion used by the UNDP for measuring development
different from the one used by the World Bank?

Solution : World bank only uses per capita income for measuring development while
UNDP uses many other factors like infant mortality, healthcare facility education level
which help in improving the quality of life and helps in making the citizens more
productive..

On the other hand, the World Bank uses per capita income as the only criterion for
measuring development and classifying the countries as rich and poor. Per capita
income is useful for comparison, it does not tell us how income is distributed.

3. Why do we use averages? Are there any limitations to their use? Illustrate with
your own examples related to development.

Solution : We use averages because they are useful for comparing differing quantities
of the same category.
For example, to compute the per capita income of a country, averages have to be used
because there are differences in the incomes of diverse people.

However, there are limitations to the use of averages. This does not show
the distribution of thing between people.

For an example, suppose in a country, the annual income of a rickshaw puller is Rs

One can clearly consider this as a rich country thereby ignoring the income disparity
between two individuals. Averages are useful for comparison, they also hide disparities.
4. 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.

Solution : No, I do not agree with the statement that per capita income is not a useful
criterion at all.

Kerala, with lower per capita income has a better human development ranking than
Haryana because, human development ranking is determined using a combination of
factors such as health, education, and income. So, this does not imply that per capita
income is not useful.

5. 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?

Solution : The present sources of energy that are used by the people of India are
electricity, coal, crude oil, cow dung and solar energy. At present, consumption of
energy in India is too high in comparison to its production and reserves. India’s known
reserves of oil are expected to last about 30-40 years only.

So, therefore, other possibilities fifty years from now could include ethanol, bio-diesel,
nuclear energy and better utilisation of wind energy, solar energy, geothermal energy,
hydrogen energy, tidal energy, wave energy, hydroelectric energy and biomass energy
especially with the imminent danger of oil resources running out.

6. Why is the issue of sustainability important for development?

Solution : Sustainable development means that the development at present should not
hamper the needs of the future generation of society and it should take place without
damaging the environment.

The issue of sustainability is the most important for development because development
must be in tandem with the future. If natural resources are not sustained then
development will stagnate after attaining a certain point of time.

Exploiting resources unethically will ultimately undo the development that a country may
have achieved. Hence in the future those resources will not be available for further
progress.

7. “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 discussion of development?
Discuss.

Solution : The Earth has enough resources to meet the needs of all but not enough to
satisfy the greed of even one person”. This statement is relevant to the discussion of
 development as both resources and development go hand in hand. For the
sustainability of development, the maintenance of resources is very crucial.

Needs can be fulfilled whereas greed can never be satisfied because greed increases
with every want to be fulfilled. As the statement claims, the Earth has enough
resources- renewable as well as non-renewable to satisfy everyone’s needs; however,
these need to be used with a view to keep the environment protected so that a balance
of production and use is maintained and shortages are avoided.

8. What is the meaning of development? Explain the two aspects of development?

Development refers to progress or improvement in lifestyle. Important aspects of

• Different persons can have different developmental goals.

9. ‘What may be development for one may not be development for the other.’ Explain by
giving examples.
1. Industrialists may want more dams to get more electricity. But this may submerge the land and
disrupt the lives of people who are displaced – such as tribals.
2. A farmers wants to sell foodgrains at a higher price but a low earning perosn wants to purchase it
at low prices.
3. More wages means development for a worker, but it affect negatively a businessman.