Class Notes
Social Science
(ECONOMICS )
DEVELOPMENT
•Holistic Definition of Development
Development is not just about wealth; it is a balanced and inclusive process
that improves the overall quality of life.
● Core Purpose: To improve life and society through economic growth,
social equality, and human dignity.
● Key Questions: Real development asks whether a process ensures
equality, fairness, and the fulfillment of basic needs.
● Nature of the Process: It is complex and deeply influenced by a
country's economics, history, and politics.
● Inclusive Growth: Development must be democratic; current systems
often show inequality where those who contribute do not always
benefit.
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• Different People, Different Goals
Development does not mean the same thing to everyone because people’s
dreams and needs vary based on their situation.
● Prioritization: Individuals seek what is most important to them or
what they lack most.
○ Example: An unemployed youth seeks a job, while a farmer
seeks better crop prices.
● Social Barriers: A person's aspirations are often restricted by their
social status, income, gender, and environment.
•Conflicting Goals: When Interests Clash
What may be development for one person can be destructive for another.
Example 1: Gender Dynamics
● Aspiration: A girl may desire the same freedom and opportunities as
her brother and expect him to share in household work.
● Conflict: The brother may resist this change, showing that interests
within a single household can clash.
Example 2: Industrial Growth vs. Displacement
● Industrialist View: They may want more dams to generate electricity
for industrial growth.
● Tribal View: Dams can submerge land, destroy forests, and displace
tribal communities, ruining their livelihoods.
● Protest Insight: Public protests, such as those against the Sardar
Sarovar Dam, highlight the conflict between economic growth and
human rights.
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•Income and Other Goals
While money is a factor in our lives, the quality of life depends significantly
on non-material things.
● Essential Non-Material Goals:
○ Freedom and Equality: People seek equal treatment regardless
of caste, religion, or gender.
○ Security and Respect: Feeling safe and being respected by
others are often as important as earning a high income.
○ Relationships: Things like friendship and love cannot be
measured in money but are vital to well-being.
● The "Mix of Goals": Development is a combination of many factors.
● A rich person without freedom or respect may still have a low quality
of life.
Note : Many important things in life—like happiness, trust, and mental
peace—cannot be measured with numbers, yet they remain the ultimate
goals of development.
• Comparing Countries and States: The Income Criterion
While development can mean different things to different people,
comparing entities requires standardized attributes.
● Total Income: The sum of all residents' income in a country. However,
this is not useful for comparison because it does not account for
varying population sizes.
● Average Income (Per Capita Income): Calculated by dividing the total
income of the country by its total population.
● World Bank Classification (2024):
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○ High Income/Rich: Per capita income of US$ 66,500 per annum
and above.
○ Low Income: Per capita income of US$ 2,300 or less.
○ India's Status: Classified as a low middle income country with a
per capita income of about US$ 11,000 per annum in 2024.
Note: While averages are useful for comparison, they hide disparities. A
country can have a high average income but extreme wealth inequality
where most citizens are [Link], it does not tells about how income is
distributed among the population of a country.
. Beyond Income: Social and Health Indicators
Income is an inadequate measure because it cannot buy everything needed
for a good life, such as a pollution-free environment or protection from
infectious diseases.
Comparative Data of Indian States (2023-24)
Comparing Haryana, Kerala, and Bihar reveals that high income does not
always guarantee better social outcomes.
State Per Capita Infant Mortality Literacy Rate (%)
Income (Rs) Rate (2020)
Haryana 3,25,759 28 82
Kerala 2,81,001 6 94
Bihar 60,337 27 62
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● Infant Mortality Rate (IMR): The number of children dying before age
one per 1,000 live births. Kerala’s low IMR is attributed to adequate
basic health and educational facilities.
● Literacy Rate: The proportion of the literate population in the
7-and-above age group.
● Net Attendance Ratio: The percentage of children in a specific age
group (e.g., 15-17 years) attending school.
• Human Development Index (HDI)
The United Nations Development Programme (UNDP) uses a broader set
of criteria in its Human Development Report.
● Components of HDI: Educational levels, health status (Life
Expectancy), and per capita income.
● Life Expectancy at Birth: The average expected length of life at the
time of birth.
● Observations: Small neighbors like Sri Lanka often outperform India
in HDI rankings despite India’s size. Even countries with lower per
capita income, like Nepal and Bangladesh, have better life expectancy
than India.
•Public Facilities and Nutrition
Development is often dependent on collective provision rather than
individual wealth.
● Public Facilities: Schools and hospitals are more affordable and
effective when provided by the government for the community.
● Public Distribution System (PDS): States with a well-functioning PDS
(like Tamil Nadu) generally have better health and nutritional status
for their citizens.
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● Body Mass Index (BMI): A tool to determine if an individual is
properly nourished, calculated by dividing weight (kg) by the square
of height (m).
• Sustainability of Development
Modern development must be sustainable to ensure that the needs of the
present are met without compromising the ability of future generations to
meet theirs.
Resource Management
● Renewable Resources: Replenished by nature (e.g., groundwater), but
can still be overused if extraction exceeds replenishment.
○ Example: 1/3 of India is currently overusing groundwater
reserves.
● Non-Renewable Resources: Resources that get exhausted after years
of use (e.g., crude oil) and cannot be replenished.
○ Current Outlook: Global crude oil reserves are estimated to last
only about 50 more years at present extraction rates.
Key Takeaway: Environmental degradation does not respect national
boundaries; the future of all nations is linked together. Sustainability
requires a shift from greed-based consumption to need-based resource
management.
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