ECONOMICS
Chapter 1: Development
CBSE Class 10 — Important Notes
1. What Development Promises — Different People, Different
Goals
Development means a positive change / improvement in current conditions and circumstances. But different people and
groups can have different, even conflicting, notions of what development means for them.
• Different persons could have different developmental goals — what is development for one may not be
development for another, and may even be destructive for someone else.
• Example: A landless rural labourer may aspire for more days of work and better wages; a farmer using pesticides
may want their children to get a good education and settle in the city.
• People do not want only more income, they also look for equality, freedom, security, and respect from others.
Key idea: Development is not a single, fixed idea — it varies from person to person based on their circumstances,
aspirations, and what they value.
2. National Development
For a nation, several mixed goals can arise, and it is not necessary that all sections of society benefit equally from a
particular path of development. Some may gain more than others; some may even lose out (e.g. displacement due to a dam
or industry).
• Comparing development between regions/countries requires: some average measure that combines
information for the entire population — average income (per capita income) is the most commonly used criterion.
3. Average Income / Per Capita Income
• Average income (per capita income): total income of the country divided by its total population.
• Used by the World Bank in the World Development Reports to classify countries.
• Rich countries = those with per capita income of USD 12,696 per annum or more (2017 data used in NCERT).
• Poor / low-income countries = per capita income of USD 995 or less.
• India falls in the low middle-income category with per capita income of USD 1,820 per annum (2017).
• Limitation: Average income is an average — it does not show income distribution. Two countries/states with the
same average income can have very different levels of inequality.
4. Beyond Income — Other Criteria for Development
Since average income hides disparities, other important criteria are used alongside income to judge development. These
are usually non-monetary indicators.
(a) Comparing states — public facilities example
The NCERT compares Kerala, Maharashtra and Bihar using indicators beyond per capita income:
• Infant Mortality Rate (IMR): number of children who die before age 1 as a proportion (per 1,000) of live births.
• Literacy Rate: proportion of literate population in the 7-and-above age group.
• Net Attendance Ratio: proportion of children of age group 14–15 attending school.
Key takeaway: Kerala has a low per capita income compared to Punjab/Haryana but performs very well on health and
education indicators — showing income alone doesn't capture human development.
(b) Why money / income is not everything
• Money cannot buy all goods and services that people may need to live well — e.g. a pollution-free environment
or crime-free surroundings may not be directly available in the market.
• Non-material things like equal treatment, freedom, security, and dignity matter as much as income.
5. Human Development Report (HDR) & Human Development
Index (HDI)
• Published by: United Nations Development Programme (UNDP) since 1990.
It compares countries based on the educational levels of people, their health status, and per capita income — rather than
per capita income alone.
Indicators used in HDI:
• Life expectancy at birth (health)
• Mean years of schooling and expected years of schooling (education)
• Gross National Income (GNI) per capita, adjusted (standard of living)
Note: On the Human Development Index, India ranks lower than Sri Lanka, China and Sri Lanka has better performance
on infant mortality, life expectancy and literacy despite lower per capita income than some richer nations.
6. Public Facilities
Averages and money income alone cannot indicate what is available to people free of cost. For a comfortable life, people
may need public facilities such as:
• Safe drinking water
• Public health and sanitation facilities
• Access to quality education
• Example: In Kerala, public health and education systems ensured low IMR and high literacy even with modest
per capita income.
• Punjab example: Higher per capita income, but crime rate, alcoholism and depletion of groundwater indicate not
everything is well despite income growth.
7. Sustainability of Development
Development for the present generation should not compromise the ability of future generations to meet their own needs
— this is the idea behind sustainable development.
• Groundwater depletion: In Punjab and other states, over-use of groundwater for irrigation (e.g. water-intensive
crops) is depleting groundwater at alarming rates — this is an unsustainable practice.
• Other examples of unsustainable resource use: over-exploitation of forests, groundwater, crude oil, and natural
resources that took millions of years to form but are consumed within a few decades.
• Global warming / Climate Change: an example of resource use that has crossed the sustainability limit — the
world faces potentially serious economic and social consequences (rising sea levels, changing weather patterns)
that show excessive use of resources can be dangerous.
Key idea: Sustainability means resources must be used carefully and equitably so that development continues for future
generations without ecological damage.
8. Quick Recap Table
Concept Meaning / Measure
Per capita income Average income = total income ÷ total population
IMR No. of infant deaths (before age 1) per 1,000 live births
Concept Meaning / Measure
Literacy Rate % of literate population (age 7+)
Net Attendance Ratio % of children (14–15 yrs) attending school
HDI Combines life expectancy, education, and per capita income (UNDP)
Sustainable Development Development that meets present needs without harming future
generations' ability to meet theirs
9. Important Points to Remember for Exams
• Development has different meanings for different people — no single idea fits all.
• Average / per capita income is the most common criterion but has limitations (hides inequality).
• Kerala vs Punjab/Haryana comparison is a frequently asked example (income vs. social indicators).
• HDI published by UNDP; based on health, education, and income — NOT income alone.
• Public facilities (health, education, sanitation) matter as much as income for quality of life.
• Sustainable development = meeting present needs without compromising future generations.
• Learn definitions: Per capita income, IMR, Literacy Rate, Net Attendance Ratio, HDI, Sustainable Development.