Chapter 1 Development
Chapter 1 Development
(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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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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• Literacy Rate. It measures the proportion of literate population in the 7 and above age
group.
• 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
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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. Environmental degradation is no longer region or nation-specific. Sustainable
development is the development which looks into the requirement of the present and
builds scope for the future generations. There are many works in progress for sustainability
of development.
• Infant Mortality Ratio: Infant Mortality Ratio indicates the number of children who die
before the age of one year, as a proportion of 1000 live children born in that particular
year.
• Literacy Rate: Literacy Rate measures the proportion of literate population in the 7 and
above age group.
• Net Attendance Ratio: It is the total number of children of age group 14 and 15 years
who attending school as a percentage of total number of children in the same age
group.
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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
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c. Normal.
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.
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Answer 4: Three indicators of HDI 2004 in which Sri Lanka has better rank than
India:
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.
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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 essential for a good standard of living.
Answer 9: The World Bank uses average income or per capita income as a criterion
for classifying different countries. Countries with per capita income of ?4,53,000
per annum and above (in the year 2004) are called rich countries and those with
per capita income of ?37,000 or less are called low income countries (India comes
under low income countries; the per capita income in India is ?28,000 per annum).
Those falling in between ₹37,000 – ₹4,53,000 are placed in the middle category.
Limitations of this criterion.
1. While averages are useful for comparison, they also hide disparities. Two
countries may have identical average income, but one country may have
equitable distribution where people are neither very rich nor very poor,
while in the other country most citizens are very poor and very few are
extremely rich,
2. Better income cannot ensure a good quality life. Criterion set by the World
Bank has ignored certain attributes of a good life which do not depend on
income or cannot be . bought with money.
Example, freedom, equal treatment, equal opportunities, free atmosphere,
provision of unadulterated medicines, etc.
Answer 10: Though income is one of the most important components of
development, but there are other important goals which people look at for
development—
1. People also seek things like equal treatment, freedom, security and respect.
2. Women need a safe and secure environment to take up a variety of jobs or
to run businesses as entrepreneurs.
3. People seek a pollution free environment.
4. Students seek better education and equal opportunities to learn.
Long Answers-
Answer 1: The correct explanation is ‘Because life situations of persons are
different.’
Developmental goals are different for different categories of people because of
their different aspirations. Aspirations are based on their needs. At times people
may have conflicting developmental goals also. What may be development for one
may not be development for another. It may even be destructive for the other.
Example, Industrialists may want construction of more dams for more electricity,
but this may lead to displacement of tribals who live in those areas and thereby
disrupt their lives.
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