Chapter 1 Development
Chapter 1 Development
Studies
(Economics)
Chapter 1: Development
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Development
Idea of Development
Development involves many questions for better life and the ways in which one can work to
achieve goals. Different persons can have different goals and what may be development for
one person may not be development, or may even be detrimental, for the other.
Development is defined as the people’s economic growth, along with the growth of their
basic needs like education, health, lifestyle, etc.
The main aim of development is to update as per the demand of time.
For example: to generate electricity, a dam is constructed over a river where nearby mass is
considered for construction resulting in the development of society and country.
It causes destruction for farmers and the lives of people living nearby.
Income and Other Goals
Generally, people desire to have regular work, better wages and good price for the crops they
produce. Apart from earning more income, one may expect to have a better quality of life.
The quality of life depends on non-material things such as equal treatment, security, respect
for others and freedom in society. For example, women may tend to work in a variety of jobs
or start a business to receive a sense of security and freedom in the household and in society.
National Development
The idea about the national development of a country tends to vary and conflict from person
to person. To determine whether the country is developed or underdeveloped, one needs to
consider the characteristics of a country. Let us consider income as one of the important
attributes to compare countries. If a country has a higher income level than other countries,
then it is said to be a well-developed country. Therefore, the average income or the per capita
income of a country is measured to compare the developmental status of different nations.
How to Compare Different Countries or States?
To compare countries, their income is considered to be one of the most important attributes.
Countries with higher income are more developed than others with less income. As different
countries have different populations, comparing total income will not tell us what an average
person earns. So, we compare the average income of countries.
Average income is the total income of the country divided by its total population. It is also
called per capita income.
Average Income = Total Income of Country / Total Population of Country
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Countries with per capita income of US$ 49,300 per annum and above in 2019, are called high
income or rich countries and those with per capita income of US$ 2500 or less are called low-
income countries.
Per Capita Income
The per capita income is the total income of the country divided by its total population.
Countries with a per capita income of Rs 4,53,000 per annum and above are called rich
countries, and countries with a per capita income of Rs 37,000 per annum or less are called
low-income countries. In 2004, India was considered a low-income country because its per
capita income was just Rs 28,000. In 2006, the World Development Report to classify
countries was based on the average income criterion.
PER CAPITA INCOME OF SELECT STATES
State Per Capita Income for 2017-18 (in Rs)
Haryana 2,03,340
Kerala 1,84,000
Bihar 38,631
If per capita income were to be used as the measure of development, Haryana will be
considered the most developed and Bihar the least developed state of the three. However, this
is not true, if we look at the other criteria.
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Net Attendance Ratio. It is the total number of children of age group 6-10 attending school
as a percentage of total number of children in the same age group.
Body Mass Index. (BMI) one way to find out if adults are undernourished is to calculate
Body Mass Index. Divide the weight of a person (in kg) by the square of the height (in
metres). If this figure is less than 18.5 then the person would be considered undernourished.
If this BMI is more than 25, then a person is overweight.
Public Facilities
Income is not an adequate indicator of material goods and services which the people are to
use. In many regions, education, health and sanitary facilities are not adequately available to
educate and prevent from infectious diseases. Kerala has a low infant mortality rate because it
has adequate public facilities. The nutritious status will be low in states in which the public
distribution system does not function properly.
The level of income is an inadequate measure of the level of development; therefore,
other indicators such as health and education are used to compare a country’s
development.
Human Development Report published by UNDP compares countries based on the
educational level, health status and per capita income.
Sustainability of Development
The renewable resources are replenished by nature. Let us consider groundwater. If we use
groundwater more than what is being replenished by rain, then this resource would be
overused. Non-renewable resources are those which will get exhausted after few years of use.
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Important Questions
Multiple Choice questions-
1. Development of a country can generally be determined by its:
(a) per capita income
(b) average literacy level
(c) health status of its people
(d) none of these
2. Different persons could have different as well as conflicting notions of a country’s
development. A fair and just path for all should be achieved. Interpret the concept
being discussed here.
(a) Social development
(b) Cultural development
(c) National development
(d) Economic development
3. Countries with higher income are __________ than others with less income.
(a) Less developed
(b) More developed
(c) Less stronger
(d) More organized
4. Total income of the country divided by its
total population is known as:
(a) Capital Income
(b) National Income
(c) Per capita income
(d) GDP
5. Proportion of literate population in the 7 and above age group is called as:
(a) Knowledge rate
(b) Literacy rate
(c) Attendance rate
(d) Excellence Rate
6. Which age group of children is included for calculating Net Attendance Ratio?
(a) 6-10
(b) 7-11
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(c) 5-9
(d) 14-15
7. For calculating Body Mass Index (BMI), weight of the person is divided by the:
(a) Square of the weight
(b) Square of the height
(c) Square root of the height
(d) Square of the sum of height and weight
8. If BMI is less than 18.5 then the person would be considered: v
(a) over weight
(b) long height
(c) under nourished
(d) short height
9. What proportion of the country is over using their groundwater reserves?
(a) One-Fourth
(b) One-Tenth
(c) One-Third
(d) half
10. Resources which will get exhausted after years of use are:
(a) Renewable resources
(b) Non-durable resources
(c) Non-renewable resources
(d) Competing resources
11. What will be the top priority in the developmental goal of a landless labourer?
(a) Expansion of rural banking
(b) More days of work and better wages
(c) Metal roads for transportation
(d) Establishment of a high school
12. What will be the aspiration of an educated urban unemployed youth?
(a) An educated urban unemployed youth will aspire for better opportunities in
agriculture.
(b) Support from government at every step in life for his upward movement.
(c) An urban educated unemployed will aspire for good job opportunities where his
education can be made use of.
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Question 6. Which state of India has the lowest infant mortality rate? (2013)
Question 7. What is Human Development Index? (2013)
Question 8. Name the report published by UNDP which compares countries based
on the educational levels of the people, their health status and per capita income.
(2013)
Question 9. What term is used to describe the ‘average number of years a person is
expected to live at birth’? (2013)
Question 10. What is the advantage of per capita income? Mention any one. (2014)
Short Questions-
Question 1. Why do we use averages? Are there any limitations to their use?
Illustrate with your own examples related to development. (NCERT Question)
Question 2. What is per capita income? Mention any two limitations of per capita
income as an indicator of development. (2012)
Question 3. Kerala, with lower per capita income, has a better human development
ranking than Punjab. Hence, per capita income is not a useful criterion at all and
should not be used to compare States. Do you agree? Discuss. NCERT Question
Question 4. On the basis of which three indicators of HDI 2004 Sri Lanka has better
rank than India? (2014)
Question 5. ‘Conflicting goals can also be developmental goals’. Elaborate with
examples. (2014)
Question 6. What are common developmental goals? Give any two suitable
examples of common developmental goals. (2015)
Question 7. “Money cannot buy all the goods and services that one needs to live
well” Do you agree with this statement? Justify your answer with any three suitable
arguments. (2015)
Question 8. Apart from income, which other six things people look for as important
aspects of our lives? (2014, 2012)
Question 9. One what basis the rich and low income countries have been categorized
in the world? What are the limitations of this approach? According to the World
Development Report, 2006, India comes in which category? Give reason for the same.
(2015, 2014)
Question 10. Why do people look at a mix of goals for development? Explain.
Long Questions-
Question 1. Why do different persons have different notions of development? Which
of the following explanations is more important and why?
(a) Because people are different.
(b) Because life situations of persons are different.
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Question 2. What does HDI stand for? Explain the main criteria of measuring HDI
according to UNDP Report of 1990. (2015)
Question 3. Explain with examples that there are other important development goals
also besides income. (2014)
Question 4. Explain any five fields other than income where development is needed.
(2012)
Question 5. Explain with reasons why state of Punjab with a very high per capita
income has a low literacy rate. (2016, 2017 D)
Assertion Reason Questions:
1. DIRECTION: Mark the option which is most suitable:
a. If both assertion (A) and reason (R) are true and reason (R) is the correct
explanation of assertion (A).
b. If both assertion (A) and reason (R) are true, but reason (R) is not the
correct explanation of assertion (A).
c. Assertion (A) is true, but reason (R) is false.
d. Both assertion (A) and reason (R) are false.
Assertion (A): India has experienced some significant changes in the contribution
to GDP by the primary sector.
Reason (R): In terms of GDP, the service sector emerged as the largest producing
sector in India replacing the primary sector.
2. DIRECTION: Mark the option which is most suitable:
a. If both assertion (A) and reason (R) are true and reason (R) is the correct
explanation of assertion (A).
b. If both assertion (A) and reason (R) are true, but reason (R) is not the
correct explanation of assertion (A).
c. Assertion (A) is true, but reason (R) is false.
d. Both assertion (A) and reason (R) are false.
Assertion (A): Different persons have different notions of development.
Reason (R): Each person seeks similar things. All persons seek things that are least
important for them.
Case Study Questions:
1. Read the extract given below and answer the questions that follow:
''Here are many activities that are undertaken by directly using natural resources.
Since most of the natural products we get are from agriculture, dairy, fishing,
forestry, this sector is also called agriculture and related sectors. The secondary
sector covers activities in which natural products are changed into other forms
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b. IT specialists-Quaternary sector.
c. Potter-Primary Sector.
d. Money Lender-Tertiary sector.
2. Read the extract given below and answer the questions that follow:
One way to find out if we are properly nourished is to calculate what nutrition
scientists call it BMI. This is easy to calculate. Let each student in the class find
out his or her weight and height. Take the weight of each student in kilograms
(kg). Then, take the height by drawing up a scale on the wall and measuring
accurately with the head straight. Convert the height recorded in centimetres into
meters. Divide the weight in kg by the square of the height. The number you get
is called BMI. Then, look at the BMI-for-Age tables given on pages 90–91. A
student’s BMI could be within the normal range or less than that (underweight) or
more (obesity). For example, if a girl student is 14 years and 8-month-old and the
BMI is 15.2, then she is undernourished. Similarly, if the BMI of a boy aged 15
years and 6 months is 28, then he is overweight. Discuss the life situation, food
and exercise habits of students, in general, without body shaming anyone.
i. What is BMI?
a. Body mass information.
b. Body mean information.
c. Body mean index.
d. Body mass index.
ii. Identify the correct formula to calculate the BMI.
a. Height/ Weight2
b. Weight/ height2
c. Weight/ height
d. Weight2/ heigh
iii. Rahul is 5 ft 6 inches tall, and he weighs 82 kilos. Calculate his BMI.
a. 23.5
b. 29.2
c. 27.6
d. 21.3
iv. According to Rahul’s BMI, he is _______.
a. Overweight.
b. Underweight.
c. Normal.
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d. Obese.
MCQ Answers-
1. Answer: a
2. Answer: c
3. Answer: b
4. Answer: c
5. Answer: b
6. Answer: d
7. Answer: b
8. Answer: c
9. Answer: c
10. Answer: c
11. Answer: b
12. Answer: c
13. Answer: c
14. Answer: b
15. Answer: d
Very Short Answers-
1. Answer: National income is defined as the total value of all final goods and
services produced with a country plus net income from transactions like (export
and import) with other countries.
2. Answer: GDP or Gross Domestic Product is the total value of all final goods and
services produced during a particular year in a country.
3. Answer: The World Bank uses average income or per capita income as a criterion
for classifying different countries.
4. Answer: The total income of countries is not used to make comparisons between
them, because the population of different countries is different and does not give
a clear picture if comparisons are made on this basis.
5. Answer: The age group of 7 years and above.
6. Answer: Kerala
7. Answer: Human Development Index is a composite index of achievements of a
nation in terms of three important variables, namely—longevity, knowledge and
standard of living, that determine the quality of life.
8. Answer: Human Development Report
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1. Per capita income—The per capita income of Sri Lanka in US dollars was
4,390 US dollars while that of India was 3,139 US dollars.
2. Life expectancy at birth—The life expectancy at birth for Sri Lanka was 74,
higher than that of India at 64.
3. Gross enrolment ratio for three levels—Sri Lanka had Gross Enrolment ratio
of 69 while that of India was 60.
Answer 5: All persons do not have the same notion of development or progress.
Each one of them seeks different things. The seek things that are most important for
them, i.e., that which can fulfil their aspirations or desires. In fact at times two
persons or groups of persons may seek things which are conflicting.
A girl expects as much freedom and opportunity as her brother and that he also
shares in the household work. Her brother may not like this.
To get more electricity, industrialists may want more dams. But this may submerge
the land and disrupt the lives of people who are displaced, such as tribals. They
might resent this and may prefer small check dams or tanks to irrigate their land.
Answer 6: There are certain goals which are the same or common for all. These are
common developmental goals. The developmental goals that people have are not
only about better income but also about other important things in life. More income
or more material goods do not always give us a good quality life.
here are other aspects such as equal treatment, freedom, security, opportunity to
learn, good working conditions, pollution-free atmosphere, job security and good
social life which are very important for a good quality life. Money or material things
that one can buy with it, is one factor on which our life depends. But quality of our
life also depends on non-material things, for example, the role of our friends in our
life which cannot be measured but mean a lot to us.
Answer 7: Yes, I agree with the statement because money income and material
goods alone are not an adequate indicator of a good quality of life. Money cannot
buy all the goods and services one needs to live well.
Money cannot buy a pollution free and dean environment with fresh air.
It cannot protect us from infectious diseases and guarantee good health for us.
Money cannot assure that medicines available in the market are not
adulterated.
To live well one needs non-material factors such as equal treatment, freedom,
security, equal opportunity to learn, a pollution free environment, good and
safe working conditions etc.
Answer 8: High per capita income is not the only attribute to a good quality life.
Money cannot buy all the essential things required for a good life. Pollution-free
atmosphere to ensure good health, protection from infectious diseases, lowering of
mortality rate, promotion of literacy, job security, good working conditions, etc. are
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some it may appear that industrial advancement is more necessary for national
development.
Answer 2: HDI Stand for Human Development Index.
Main criteria of measuring HDI:
1. HDI published by UNDP compares countries based on the educational levels
of the people, their health status and per capita income.
2. HDI determines the rank of a country by its overall achievement in three areas,
i.e., life expectancy, educational level and per capita income.
3. Many improvements have been suggested in calculating HDI and many new
components have been added to Human Development Report.
4. Pre-fixing Human to Development, it has made it clear that what is important
in development is what is happening to citizens of a country, i.e., the health
and well being of the people is most important.
Answer 3: More income or more material goods do not always give us a good
quality life. There are other aspects such as equal treatment, freedom, security,
opportunity to learn, good working conditions, pollution-free atmosphere, job
security and good social life which are very important for a good quality life.
Money or material things that one can buy with it, is one factor on which our life
depends. But quality of our life also depends on non-material things, for example,
the role of our friends in our life which cannot be measured but mean a lot to us.
Another example, if we get a job in a far off place, before accepting it we would try
consider many factors apart from income such as facilities for our family, working
atmosphere, or opportunity to learn. Similarly, for development, people look at a mix
of goals. It is true that if women are engaged in paid work, their dignity increases.
However, it is also the case that if there is respect for women there would be more
sharing of house work and greater acceptance of women.
The developmental goals that people have are not only about better income but also
about other important things in life.
Answer 4: Fields other than income where development is needed:
1. Education. The government must provide adequate education facilities in all
rural and urban areas. The government must necessarily focus on education
for girls so that all girls are able to acquire atleast secondary level schooling.
Running proper schools and providing quality education, particularly
elementary education, is the duty of the Government.
2. Health. Basic health care facilities are a must for all. Establishment of
government hospitals, clinics and dispensaries, especially in rural areas, to
provide subsidized and unadulterated medicines to the poorer sections of
society.
3. Nutrition. An effective Public Distribution System—proper functioning of
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