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Economics Chapter 1- Development
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- 2. • Development: Theidea 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.
- 3. • Development fordifferent people :-: • Category:- • Landless rural labourers:- More days of work and better wages. • Local school is able to provide education for their children. • Prosperous farmers:- Assured high family income through higher support prices for their crops.
- 4. • A girlfrom rich urban family:- • She wants as much freedom as her brother and is able to decide what she wants to do in life.
- 5. • So, differentpersons can have different developmental goals. • What may be development for one may not be development for the other. • It may even be destructive.
- 6. • A questionarises ??? : • Do all of these persons have the same notion of development or progress......? • The answer is obviously NO. • So we got to know that different peoples can have different development goals and may be the development for other can be destructive for someone else
- 7. INCOME AND OTHERGOALS • Besides seeking more income, people also seek things like equal treatment, freedom, security, and respect of others. • They resent discrimination. • In some cases, these may be more important than income, because material goods are not all that you need to live.
- 8. • Money ormaterial factors we can buy with it, is one factor on which our life depends. • But the equality of our life also depends on non-material things. • There are many things that are not easily measured, but they mean a lot to our lives. • E.g. if you get a job in a far off place.
- 9. • Similarly, fordevelopment, people look at a mix of goals. • If women are engaged in paid work, their dignity in the household and society increases. • There would be more sharing of housework and a greater acceptance of women working outside. • A safe and secure envt. may allow more women to take up a variety of jobs or run a business.
- 10. HOW TO COMPAREDIFFERENT COUNTRIES OR STATES? • The criterion we may use to compare depends on the purpose of comparison. • We use different criteria to choose a sports team, a music team, a debate team or team to organise a picnic. • Usually we take one or more important characteristics of persons and compare them based on these.
- 11. • For comparingcountries, their income is considered to be one of the most important attributes. • Greater income is considered to be one important goal. • Whatever people like and should have, they will be able to get with greater income.
- 12. • Comparison ofdiff. countries or states:-: • Comparison of countries are particularly based on their income i.e., it’s the basic attribute of comparison. • Countries with higher income are more developed than those with less income. • Here more income means more of things available that human needs.
- 13. • For comparisonbetween countries, total income is not such a useful measure. • Since countries have different populations, comparing total income will not tell us what an average person is likely to earn. • In World Development Report, brought out by the World Bank, the criterion used is • Countries with per capita income of Rs. 4,53,000 per annum and above in 2004, are called rich countries.
- 14. • Those withper capita income of Rs. 37000 or less are called low-income countries. • India comes under low-income countries bcoz its per capita income in 2004 was just Rs. 28000/annum. • The rich countries are generally called developed countries.
- 15. • How tofind the income of a country?: • Here's the answer, to find the income we take the average income which is the total income of the country and its divided by the countries population. • The average income is also called as per capita income . Take a look at the example:-
- 16. • Example:- Letus take two countries A & B. suppose population of these countries is 5 persons each. A: 9500 10500 9800 1000 10200 8200 B: 500 500 500 500 48000 10000 1 2 3 4 5 Average
- 17. • INCOME ANDOTHER CRITERIA: • To find the developed states, besides income, other criteria are also kept in mind. • Let us take the example of three states Punjab, Kerala and Bihar. Take a look at the table:- • state per capita income (2002-03) Punjab Rs. 26000 Kerala Rs. 22800 Bihar Rs. 5700
- 18. • State IMRPer 1000 (2003) • Literacy rate % (2001) • Net attendance ratio, class 1-5 (1995-96) • Punjab: 49 70 81 • Kerala: 11 91 91 • Bihar: 60 47 41 • After studying the table we can conclude that Kerala is the developed state among these Three and Bihar is least developed amongst them.
- 19. Public Activities • Moneyin your pocket cannot buy all the goods and services that you may need to live well. • e.g. a pollution free environment, unadulterated medicines, protection from infectious diseases etc. • Kerala has low IMR bcoz it has adequate provision of basic health and educational facilities.
- 20. • Similarly insome states, the Public Distribution System functions well. • Health and nutritional status of people in such states is likely to be better. • One way to find out if adults are undernourished is to calculate what is called Body Mass Index. • Take the weight in kg., then take the height in meters. • Divide the weight by the square of the height.
- 21. • If thisfigure is less than 18.5, then the person would be considered undernourished. • If this BMI is more than 25, then a person is overweight. • This criterion is not applicable for growing children.
- 22. Human Development Index •HDI published by UNDP (Unite Nations Development Programme)compares countries based on the educational levels of the people, their health status and per capita income. • It would be interesting to look at certain relevant data regarding India and its neighbours from Human Development Report 2006.
- 23. Srilanka 4390 7491 69 93 India 3139 64 61 60 126 Myanm ar 1027 61 90 48 130 Pakistan 2225 63 50 35 134 Nepal 1490 62 50 61 138 Banglad esh 1870 63 41 53 137 Country PCI in USD Life expectancy at birth Literacy rate (15+ yrs) Gross Enrolment Ratio (3 levels) World HDI rank
- 24. • A smallcountry in our neighborhood, Sri Lanka is much ahead of India in every respect. • Nepal has half the per capita income of India, yet it is not far behind India in life expectancy and literacy levels.
- 25. Sustainability of Development •Since the second half of the 20th century, a number of scientists have been warning that the present type and levels of development are not sustainable. • Renewable resources like groundwater are replenished by nature. • However even these resources may be overused.
- 26. • Non-renewable resourcescannot be replenished as they have a fixed stock on earth. • We do discover new resources, but over time, even this will get exhausted.