ECO,LN-1, DEVELOPMENT

1. Explain three attributes for comparing notions of development between different

countries.
Ans. i. Economic development: - Economic development is defined as the continuous and sustained
improvement in the general well-being of the people.
ii. National income: - National income is the sum of values of all the final goods and services
produced in a country in a year along with the income from abroad.
iii. Per-capita income:- It is the average income of a person. It is calculated by dividing national
income with population.
iv. Life expectancy:- It is the average lifespan of an individual.
v. Infant mortality rate: - It refers to the number of child deaths before attaining the age of one of
every thousand live births.
vi. Literacy rate :- It measures the proportion of literate population in the 7 and above age group.
vii. Net attendance ratio :- It is the total number of children of age group 6-10 attending school as
percentage of total number of children in the same age group

2. What is the main criterion used by the World Bank in classifying different countries? What
are the limitations of this criterion?
Ans. The World Bank uses per capita income as the criterion for classifying the countries. The
countries with more than $12616 per capita income are called developed or rich countries. The
countries with less than $ 1035 as per capita income are called less developed or poor countries. The
countries where per capita income is more than $ 1035 and less than $12606 are called medium
developed countries.

3. Why do you think average income is an important criterion for development? Explain.
Ans. Income or money is highly important for comfortable living. Money can get us food, shelter,
clothing and other material goods. However, total income cannot be used to compare countries
because different countries have different populations. So, average income or per capita income is
considered as an important indicator of development.

4. What is the Human Development Index? (HDI) What are its main components?
Ans. Human Development Index is the cumulative measurement of longevity, knowledge and a
decent standard of living.
1. Longevity: - It is measured in terms of life expectancy at birth.
2. Knowledge: - Knowledge is measured in terms of literacy rate and net attendance ratio at three
levels of schools.
3. Decent standard of living: - It is measured in terms of per capita income.

5. What is sustainable economic development? Why is it very important?

OR
Why is the issue of sustainability important for development?

And.The economic development which does not damage the environment and at the same time take
care of the needs of the future generations is called sustainable development.
i. Overexploitation of resources may harm the future generations. Many of the
resources will get exhausted.
ii. Environmental degradation is a threat to the survival of human on the Earth’s
Surface.
6. In what respects is the criterion used by UNDP for measuring development different from
the one used by the World Bank?
Ans.The World Bank uses per capita income as the criterion for measuring development. The UNDP
uses Human Development Index (HDI) as the criterion for measuring development. HDI is the
cumulative measurement of longevity,
Knowledge and decent standard of living. Income alone doesn’t provide a comfortable living to the
people. Health and education are also important. So, the UNDP criterion is more accurate.

7. Why do we use averages? Are there any limitations to their use? Illustrate with your own
examples.
Ans.Aggregates such as total income, total number of literates, total health facilities and total energy
consumption cannot be used to compare the economic development of different countries because
different countries have different populations. Aggregates will not tell us the actual living condition of
an average person. So, averages are used to measure development.
Yes, there are limitations to the use of averages. Averages do not tell us how income and other
facilities are distributed among people.
For example, country A is a capitalist country with high per capita income, high per capita energy
consumption etc….. But as economic inequality exists, only few people live comfortably. Country B is
a socialist country with low per capita income and low per capita energy consumption. But as income
and other facilities are equally divided, all the people lead a comfortable living.

8. Give some examples where factors other than income are important aspects of our life.
i. A rich man without good health cannot lead a happy life.
ii. Without security and peace, good living is not possible.
iii. Friendship gives happiness to a person. It cannot be bought by using money.
iv. An illiterate cannot enjoy his rights and freedoms even if he is rich.

9. Find out present sources of energy used by people in India. What could be possibilities fifty
years from now?
Ans. Coal, mineral oil and natural gas are the main sources of energy used by the Indian people
today. The non- renewable resources will get exhausted within a period of fifty years. We will face an
acute energy crisis. Indians will have to develop renewable sources of energy, such as solar energy,
wind energy, bio gas, etc to overcome the energy crisis

10. “The earth has enough resources to meet the needs of all, but not enough to satisfy the
greed of even one person”. How is this statement relevant to the discussion of development?
Ans. Nature has provided enough resources needed for the entire mankind. If man lives in
accordance with natural laws, all the organisms including man can survive and grow on the earth’s
surface. So, we say that nature has enough resources to meet the needs of all. Profit seeking men
have been over exploiting and degrading natural resources.
Their activities have polluted the environment and destroyed a major part of flora and fauna. If this is
allowed to continue the earth will become a barren planet with no life on it. So, we say that the earth
does not have resources to satisfy man’s greed.

11. Why are public facilities necessary for the development of a country?
OR
What are the major advantages of Public Facilities?
Ans.Public facilities refer to those facilities which cannot be purchased at individual level.They are
provided by the Government. These facilities are necessary to improve the standard of living of the
people.
(i) We need a pollution free environment to lead a comfortable and healthy life.
(ii) We need to get protection from infectious diseases.
(iii) Good infrastructural facilities are needed for industrial and agricultural development.
(iv) Law and order has to be maintained to provide safety and security to the people.
(v) Safe drinking water and sanitation facilities are also needed.

12. Explain the term GDP? Why are only final goods and services counted in GDP?
Ans. GDP (Gross Domestic Product) is the sum of values of all final goods and services produced in
a country in a year. The values of final goods and services alone are counted in GDP to avoid double
counting. Intermediary goods’ values are included in the final goods’ value. So, if we add intermediary
goods’ values, it will become double counting, for example, the value of tyre is included in the value of
car. So, we need to count only the value of the car.

13.What is development? What are the two aspects of development?

OR
What are the main characteristics of development?
Ans. Economic Development is defined as the continuous and sustained improvement in the general
welfare of the people.
(i) Different people can have different development goals.
(ii) What may be development for one may not be development for the other. It may even be
destructive for others.
(iv) Along with money, people also need many other things such as peace, security, equal treatment,
friendship, respect from others etc. So, people have a mix of development goals.

14. Why are countries of the Middle East not called developed in spite of high per capita
Income?
Ans. Countries of the Middle East are rich. They are not considered developed because:
(i) Educationally they are backward. There are several uneducated people there.
(ii) Socially they are backward. Women are discriminated against.
(iii) Religious freedom is not guaranteed. Non Muslims are not allowed to practice their religion.
(iv) Scientific and technological development has not taken place.
(v) Industrial development has not taken place.

15.Agriculture has been the backbone of the Indian economy. The declining trend of
Agriculture in GDP is a matter of serious concern. Explain.
Ans.India is an agricultural country. Major part of the Indian population depends on agriculture for
their livelihood. Most of the Indian industries are agro based industries.
Agriculture is the largest contributor to our export earnings. It is the largest provider of employment
opportunities. Now, the share of agriculture to GDP is declining. It is a matter of concern because it
will affect the living conditions of the majority of Indians.

16. Suggest two measures to ensure Sustainable Development.

(i) Environmental pollution should be reduced. The use of plastic should be reduced.
(ii) Resources should be used in a planned way. Wastage should be avoided.
(iii)Non Conventional sources of energy should be developed.

17. “Development for one may be the destruction for the other”. Do you agree with
the statement? Justify your answer.
OR
Conflicting goals can also be developmental goals‟. Explain the statement with
examples.
Ans.(i) What is good for one person may not be good for another. It may even be harmful
to him.
(ii) Narmada valley Project is beneficial for farmers because they will get water for irrigation. It is
harmful for Adivasis because their villages will go under water.
(iii) Higher wages are good for agricultural workers. It is harmful for the land owners.
(iv) Reduction in working hours is good for industrial workers. It is harmful for the factory owner
because it affects his profit.

18. “For development, people look at a mix of goals‟. Support the statement with three
suitable examples.
(i) For development people look for a mix of goals. Income or money is one of the main goals of
almost everyone. Along with money people need many non material things also.
(ii) People look for a clean pollution free environment .
(iii) They want good health to lead a happy life.
(iv) We need respect and recognition in society.
(v) Love, care and affection are also needed for good living.
(vi) Peaceful environment is needed. People do not like to live in troubled areas.

19. Differentiate between Human Development Report and World Development Report.
Ans. (i) Human Development Report was published by the UNDP. The World Development Report
was published by the World Bank.
(ii) Human Development Report uses the Human Development Index to rank countries.
The World Development Report uses Per capita Income to compare counties.
(iii) Human Development Report ranks countries. The World Development Report classifies countries
into three groups – High Income, Low Income and Medium Income countries.