ECONOMICS — CHAPTER 1

DEVELOPMENT
Class X · CBSE · Complete Exam Notes

1. WHAT IS DEVELOPMENT?

The process of improving the quality of life, income, and opportunities

Development
for ALL people — not just increasing national income.

◆ Different People — Different Goals

People have different development goals depending on their situation in life. What is development for
one person may not be development for another.

Person / Group What they want (Development Goal)

Landless rural labourer More days of work, better wages, no exploitation
Prosperous farmer Higher crop prices, cheap labour, irrigation facilities
Urban unemployed youth Good job with fair salary, respect, equality
Adivasi / Forest dweller Access to forests, own land rights, no displacement
Girl from rich family Freedom, good education, equal rights
Girl from poor family Good husband, less household work, equal treatment

★ KEY POINT: Development goals are CONFLICTING — the landless labourer wants
higher wages but the prosperous farmer wants cheap labour. So development cannot
satisfy everyone equally.

2. INCOME AND OTHER GOALS

◆ Why Income Alone Is Not Enough?

People seek more than just income. Other important goals include:
• Equal treatment and respect in society
• Freedom — to speak, move, make choices
• Security — safety from crime, natural disasters, job loss
• Good health and long life
• Education and knowledge
 • A clean and pollution-free environment

★ EXAM TIP: 'Development' means both material things (money, goods) AND non-
material things (freedom, security, respect). This is a very common exam question.

3. NATIONAL DEVELOPMENT — HOW TO COMPARE

COUNTRIES?

◆ Per Capita Income (Average Income)

Total income of a country divided by total population. Also called
Per Capita Income
Average Income. Used to compare development levels of countries.

Formula:

Per Capita Income = Total National Income ÷ Total Population

◆ World Bank Classification (Based on Per Capita Income — 2022)

Category Per Capita Income (per year) Examples
Rich / High Income Countries More than US$ 12,056 USA, Germany, Japan
Middle Income Countries US$ 1,036 to US$ 12,055 Brazil, China, India
(earlier)
Poor / Low Income Countries Less than US$ 1,035 Some African countries

◆ Limitations of Per Capita Income

✔ Why Per Capita Income Is NOT Enough to Measure Development
▸ It does not show distribution of income — a country can have high average income but
most people may be poor
▸ It hides inequality — a few rich people can pull up the average
▸ It ignores non-income factors like health, education, environment
▸ Example: If 5 people earn ₹0, ₹0, ₹0, ₹0 and ₹500, average = ₹100 — but 4 people earn
nothing!

4. HUMAN DEVELOPMENT INDEX (HDI)

 A composite index developed by UNDP (United Nations Development
HDI Programme) to measure development using three dimensions: Health,
Education, and Standard of Living.

🏥 HEALTH 📚 EDUCATION 💰 INCOME

Measured by Life Expectancy Measured by Mean Years of Measured by Gross National

at Birth Schooling + Expected Years of Income (GNI) per capita
Schooling

◆ India's HDI Ranking

• India's HDI rank — 132 out of 191 countries (HDR 2021-22)
• India falls in the Medium Human Development category
• Countries like Sri Lanka, Bangladesh, Nepal rank differently, showing HDI ≠ Per Capita Income
always

5. PUBLIC FACILITIES & SUSTAINABILITY

◆ Role of Public Facilities

Even if income is high, development requires public facilities:
• Hospitals and healthcare
• Schools and colleges
• Clean drinking water
• Electricity and roads
• Safe working conditions

★ EXAM POINT: Kerala has lower per capita income than Punjab but has BETTER
health and education indicators. This shows money alone doesn't create
development.

◆ Kerala vs Punjab vs Bihar — Comparison

Indicator Kerala Punjab Bihar
Literacy Rate ~94% ~77% ~63%
Infant Mortality Rate (per 1000) ~7 ~24 ~48
Life Expectancy (approx.) 74 years 70 years 68 years
Net Attendance Ratio (Class 1- High Moderate Lower
5)
◆ Sustainability of Development
Development that meets the needs of the present without
Sustainable
compromising the ability of future generations to meet their own
Development
needs. (Coined by Brundtland Commission, 1987)

✔ Why is Sustainability Important?

▸ Natural resources like oil, coal, forests are finite (limited) — once used up, gone forever
▸ Overuse of resources today leaves less for future generations
▸ Environmental damage (pollution, global warming) threatens long-term development
▸ Example: Groundwater overuse today means water scarcity in the future
▸ Economic development must go hand in hand with environmental protection

6. KEY INDICATORS AT A GLANCE

Indicator What It Measures Better Value =

Per Capita Income Average income per person Higher is better
Life Expectancy at Birth Average years a person is expected to Higher is better
live
Infant Mortality Rate (IMR) Deaths per 1000 live births before age Lower is better
1
Literacy Rate % of people aged 7+ who can read Higher is better
and write
Net Attendance Ratio % of children in school in relevant age Higher is better
group
Body Mass Index (BMI) Nutritional health of adults Healthy range is better

7. IMPORTANT TERMS & DEFINITIONS

National Income Total value of goods and services produced in a country in a year.

Gross Domestic Market value of all final goods and services produced within the
Product (GDP) borders of a country in a year.

Life Expectancy The average number of years a person is expected to live from birth.

Infant Mortality Number of children dying before the age of 1 per 1000 live births.
 Rate

Percentage of literate people in the total adult population (age 7 and

Literacy Rate
above).

United Nations Development Programme — publishes the Human

UNDP
Development Report and HDI every year.

Developed Countries with high per capita income, high HDI, advanced technology
Countries and industrialization.

Developing Countries with low to middle income, still progressing in health,

Countries education and infrastructure.

8. MOST IMPORTANT EXAM QUESTIONS

◆ 1 Mark / Very Short Answer

Question Answer
What is development? Process of improving quality of life, income
and opportunities for all people.
What is per capita income? Total national income divided by total
population.
Which organisation publishes HDI? UNDP (United Nations Development
Programme)
What are the three dimensions of HDI? Health, Education, and Standard of Living
(Income)
Define sustainable development. Development that meets present needs
without compromising future generations'
ability to meet theirs.
Which indicator measures child health? Infant Mortality Rate (IMR)
What does IMR stand for? Infant Mortality Rate — deaths under age 1
per 1000 live births
What is life expectancy? Average number of years a person is
expected to live from birth.
Who coined the term Sustainable Brundtland Commission (1987)
Development?
Name one non-income indicator of Life expectancy / Literacy Rate / IMR
development.
◆ 3–5 Mark Short/Long Answer Questions
✔ Q: Why is per capita income not a complete measure of development? Give any
three reasons.
▸ 1. It doesn't show how income is distributed among people
▸ 2. It hides inequality — a few rich people pull up the average
▸ 3. It ignores non-income factors like health, education, freedom, security
▸ 4. Example: Two countries with same per capita income can have very different quality of
life

✔ Q: What is HDI? What are its three components?

▸ HDI = Human Development Index, published by UNDP
▸ Component 1 — Health: Measured by Life Expectancy at Birth
▸ Component 2 — Education: Measured by Mean Years of Schooling + Expected Years of
Schooling
▸ Component 3 — Standard of Living: Measured by GNI per capita
▸ HDI gives a more complete picture of development than income alone

✔ Q: Development goals differ from person to person. Explain with examples.

▸ Different people have different needs and situations, so development means different
things
▸ Example 1: A landless labourer wants more work and better wages
▸ Example 2: A prosperous farmer wants higher crop prices and cheap labour
▸ Example 3: An urban youth wants a good job with respect and security
▸ Example 4: A girl may want freedom, safety and equal treatment
▸ These goals can sometimes CONFLICT — e.g., labourer wants high wages, farmer wants
low wages

✔ Q: What is sustainable development? Why is it important?

▸ Sustainable development = development without damaging resources for future
generations
▸ Resources like coal, oil, forests are limited (non-renewable)
▸ Overuse of resources creates environmental problems — pollution, global warming, water
crisis
▸ We must use resources carefully so future generations can also live well
▸ Example: Overuse of groundwater today → water scarcity in future
✔ Q: Compare Kerala and Punjab in terms of development indicators.
▸ Punjab has HIGHER per capita income than Kerala
▸ But Kerala has BETTER health indicators (lower IMR, higher life expectancy)
▸ Kerala has HIGHER literacy rate than Punjab
▸ This shows: income alone does not determine development
▸ Investment in education and healthcare is crucial for human development

9. QUICK REVISION — MIND MAP SUMMARY

DEVELOPMENT HDI (UNDP)

• Different goals for different people • Health → Life Expectancy
• Income + Non-income factors • Education → Schooling Years
• Goals can be conflicting • Income → GNI per Capita

PER CAPITA INCOME SUSTAINABLE DEV.

• National Income ÷ Population • Brundtland Commission 1987
• World Bank uses it to classify • Present + Future needs both
• Limitation: Hides inequality • Protect environment & resources

CBSE Class X | Economics Chapter 1: Development | Exam Notes

Covers all concepts, definitions, comparisons, and important exam questions