Development

CBSE Class 10 Economics — Chapter 1 Notes

1. What Development Promises — Different People,

Different Goals exam me ayega (E.M.A)
• Different people can have different, even conflicting, notions of development — what may
be development for one may not be development for another; it may even be destructive
for another.
• Example: Industrialists may want more dams for hydro-electricity, but this may displace
people, destroy their livelihood, or damage the environment they depend on.
• People have different aspirations regarding what is more important for them and desire
things that are useful for their family as a whole, e.g. girl children may want equal
opportunities and freedom as boys, whereas boys may look for regular income.

Key idea: For development, people look at a mix of goals — not just more income, but
also equality, freedom, security, and respect from others.

2. National Development exam me ayega (E.M.A)

• One country may seek to promote military power, while another may want to increase the
level of literacy and yet another may want more equal treatment for women.
• Different persons could have different, even conflicting, notions of a 'developed' country/
state.

Average Income (Per Capita Income): Total income of the country divided by its total
population; used by the World Bank to classify countries. Countries with per capita income
of US$ 12,696 per annum and above (2017) are called rich/developed, and those with US$
1,045 or less are called low-income countries.

• India comes in the low middle income category, while Sri Lanka is in the middle-
income category (as per World Development Report figures used in NCERT).
• Average income is not a perfect measure — it is an average and conceals disparities/
inequalities between different sections of the population, since it does not indicate how the
income is distributed among the people.

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3. Income and Other Goals exam me ayega (E.M.A)

• Money/income cannot buy all the goods and services people may need to live well — non-
material things such as equal treatment, freedom, security and respect of others also
matter to people, sometimes even more than income.
• People also seek things like equal treatment , freedom , respect , and a clean environment
— comparisons of development must therefore also look beyond money income.

Comparing Two Villages (illustrative example)

Indicator Village 1 Village 2

Average income per Lower Higher, but a few rich landlords have very high individual
person income (skews average up)

Distribution of More Very unequal (few earn a lot; many earn very little)
income equal

Which is more Average income alone is misleading; a fair comparison must look at how
developed? income is distributed, not just its average.

4. Public Facilities exam me ayega (E.M.A)

• Money in your pocket cannot buy all the things that make for a good life — you need clean
environment , safe drinking water , health facilities, education, etc.
• These need to be provided by the government as public facilities — for the whole society,
and not just for one person. Since providing these is costly, no individual can provide all
these on their own.

5. Human Development Index (HDI) exam me ayega (E.M.A)

Human Development Report: Published by the UNDP (United Nations

Development Programme), which compares countries based on the educational levels,
health status, and per capita income of the people; India's rank has generally improved
slowly over the years but remains modest compared to developed nations.

Indicators used to construct HDI:

• Life expectancy at birth — health/longevity of the population.
• Education — measured through literacy rate and gross enrolment ratio.
• Per Capita Income — standard of living, adjusted for purchasing power (PPP).

Kerala has a low per capita income compared to states like Punjab and Haryana, but has a
high literacy rate, low infant mortality rate and high life expectancy — because the state
government has invested heavily in providing public education and health facilities.
Punjab and Haryana have a high per capita income, but a low literacy rate and
comparatively lower life expectancy — showing income is not the only criterion of
development.

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6. Sustainability of Development exam me ayega (E.M.A)

• Development we see today is largely based on the use of natural resources like water,
air, land, forests etc. and these are limited ; if used carelessly, we may run out of them.
• Ground water is being used more rapidly than it can be recharged (e.g. Punjab water
table falling) — future generations may not have enough water if the depletion
continues.
• Global warming due to indiscriminate use of nature is a major crisis threatening the
entire world; deforestation and pollution disturb the balance of nature.

Sustainable Development: Development that meets the needs of the present

generation without compromising the ability of future generations to meet their own
needs — requires resources to be used judiciously, keeping the interests of future
generations in mind.

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 # TOP 7 IMPORTANT QUESTIONS

Q1. "Different persons could have different developmental goals." Explain the
statement with examples.
Ans:
• What may be development for one person can be harmful or undesirable for another - e.g.
building a dam gives electricity to industry but may displace people.
• Landless labourers may want more days of work and better wages, while a rich farmer may
look to mechanise farming and cut costs.
• Girls may want the same opportunities as boys, showing that goals depend on the specific
circumstances a person is in.

Q2. Why is average income considered an important, but not adequate, criterion
of development?
Ans:
• Average or per capita income allows comparison between countries and is used by the
World Bank to classify nations as rich or poor.
• However, it is only an average and hides inequalities - it does not tell us how income is
distributed among the population.
• Two countries/regions with the same average income can have very different levels of
actual well-being if income is unequally distributed.

Q3. Why do we need to look at other indicators besides income while comparing
development of states/countries?
Ans:
• Money income cannot buy all the goods/services needed for a good life - equal treatment,
freedom, security and respect from others matter too.
• Public facilities such as clean environment, education and health cannot be bought
individually - they require collective/government provision.
• Non-income indicators like literacy rate, infant mortality rate and life expectancy give a
fuller picture of human wellbeing.

Q4. What is the Human Development Index? Name the indicators used to
calculate it.
Ans:
• HDI is an index published by the UNDP in its Human Development Report, comparing
countries based on the educational levels, health status and per capita income of their
people.
• Indicators: (i) Life expectancy at birth, (ii) Education level (literacy rate and gross enrolment
ratio), (iii) Per capita income (adjusted for purchasing power).

Q5. Compare the development status of Kerala and Punjab/Haryana with

reference to income and other developmental indicators.
Ans:
• Punjab and Haryana have a much higher per capita income than Kerala.

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• Kerala, despite lower income, has a higher literacy rate, lower infant mortality rate and
higher life expectancy at birth, due to strong public investment in health and education.
• This shows income alone is not sufficient to judge development - social indicators matter
equally.

Q6. Why is it important that development be sustainable? Explain with an

example.
Ans:
• Present-day development depends heavily on natural resources like water, forests, and
fossil fuels, which are limited.
• Example: Ground water in states like Punjab is being extracted faster than it can be
recharged - if this continues, future generations may face a severe water crisis.
• Sustainable development means using resources judiciously today, so future generations
can also meet their own needs.

Q7. Why are public facilities like education and health considered essential for
development, even though they don't add directly to a person's income?
Ans:
• These facilities improve people's capabilities, productivity and quality of life, even though
their benefits are not always reflected immediately in income.
• They benefit society as a whole rather than a single individual - hence they are usually
provided by the government rather than the market.
• Example: Kerala's investment in public health and education has resulted in a high quality
of life despite a modest per capita income.

"Class 10th Phodenge" — Best of luck for Boards!