Capter 1 Economics (CBSE)

1. DEVELOPMENT

2. • Development: The idea of development or
progress has always been with us.
• We have aspirations or desires about what we
would like to do and how we would like to
live.

3. • Development for different people :-:
• Category:-
• Landless rural labourers:- More days of work
and better wages.
• Local school is able to provide education for
their children.
• Prosperous farmers:- Assured high family
income through higher support prices for their
crops.

4. • A girl from rich urban family:-
• She wants as much freedom as her brother
and is able to decide what she wants to do in
life.

5. • So, different persons can have different
developmental goals.
• What may be development for one may not
be development for the other.
• It may even be destructive.

6. • A question arises ??? :
• Do all of these persons have the same notion
of development or progress......?
• The answer is obviously NO.
• So we got to know that different peoples can
have different development goals and may be
the development for other can be destructive
for someone else

7. INCOME AND OTHER GOALS
• Besides seeking more income, people also
seek things like equal treatment, freedom,
security, and respect of others.
• They resent discrimination.
• In some cases, these may be more important
than income, because material goods are not
all that you need to live.

8. • Money or material factors we can buy with it,
is one factor on which our life depends.
• But the equality of our life also depends on
non-material things.
• There are many things that are not easily
measured, but they mean a lot to our lives.
• E.g. if you get a job in a far off place.

9. • Similarly, for development, people look at a
mix of goals.
• If women are engaged in paid work, their
dignity in the household and society increases.
• There would be more sharing of housework
and a greater acceptance of women working
outside.
• A safe and secure envt. may allow more
women to take up a variety of jobs or run a
business.

10. HOW TO COMPARE DIFFERENT
COUNTRIES OR STATES?
• The criterion we may use to compare depends
on the purpose of comparison.
• We use different criteria to choose a sports
team, a music team, a debate team or team to
organise a picnic.
• Usually we take one or more important
characteristics of persons and compare them
based on these.

11. • For comparing countries, their income is
considered to be one of the most important
attributes.
• Greater income is considered to be one
important goal.
• Whatever people like and should have, they
will be able to get with greater income.

12. • Comparison of diff. countries or states:-:
• Comparison of countries are particularly
based on their income i.e., it’s the basic
attribute of comparison.
• Countries with higher income are more
developed than those with less income.
• Here more income means more of things
available that human needs.

13. • For comparison between countries, total
income is not such a useful measure.
• Since countries have different populations,
comparing total income will not tell us what
an average person is likely to earn.
• In World Development Report, brought out by
the World Bank, the criterion used is
• Countries with per capita income of Rs.
4,53,000 per annum and above in 2004, are
called rich countries.

14. • Those with per capita income of Rs. 37000 or
less are called low-income countries.
• India comes under low-income countries bcoz
its per capita income in 2004 was just Rs.
28000/annum.
• The rich countries are generally called
developed countries.

15. • How to find the income of a country?:
• Here's the answer, to find the income we take
the average income which is the total income
of the country and its divided by the countries
population.
• The average income is also called as per capita
income . Take a look at the example:-

16. • Example:- Let us take two countries A & B.
suppose population of these countries is 5
persons each.
A: 9500 10500 9800 1000 10200 8200
B: 500 500 500 500 48000 10000
1 2 3 4 5 Average

17. • INCOME AND OTHER CRITERIA:
• To find the developed states, besides income,
other criteria are also kept in mind.
• Let us take the example of three states Punjab,
Kerala and Bihar. Take a look at the table:-
• state per capita income (2002-03)
Punjab Rs. 26000
Kerala Rs. 22800
Bihar Rs. 5700

18. • State IMR Per 1000 (2003)
• Literacy rate % (2001)
• Net attendance ratio, class 1-5 (1995-96)
• Punjab: 49 70 81
• Kerala: 11 91 91
• Bihar: 60 47 41
• After studying the table we can conclude that
Kerala is the developed state among these
Three and Bihar is least developed amongst
them.

19. Public Activities
• Money in your pocket cannot buy all the
goods and services that you may need to live
well.
• e.g. a pollution free environment,
unadulterated medicines, protection from
infectious diseases etc.
• Kerala has low IMR bcoz it has adequate
provision of basic health and educational
facilities.

20. • Similarly in some states, the Public
Distribution System functions well.
• Health and nutritional status of people in such
states is likely to be better.
• One way to find out if adults are
undernourished is to calculate what is called
Body Mass Index.
• Take the weight in kg., then take the height in
meters.
• Divide the weight by the square of the height.

21. • 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.
• This criterion is not applicable for growing
children.

22. Human Development Index
• HDI published by UNDP (Unite Nations
Development Programme)compares countries
based on the educational levels of the people,
their health status and per capita income.
• It would be interesting to look at certain
relevant data regarding India and its
neighbours from Human Development Report
2006.

23. Srilanka 4390 74 91 69 93
India 3139 64 61 60 126
Myanm
ar
1027 61 90 48 130
Pakistan 2225 63 50 35 134
Nepal 1490 62 50 61 138
Banglad
esh
1870 63 41 53 137
Country PCI in USD Life expectancy at
birth
Literacy rate
(15+ yrs)
Gross
Enrolment
Ratio (3
levels)
World HDI
rank

24. • A small country in our neighborhood, Sri
Lanka is much ahead of India in every respect.
• Nepal has half the per capita income of India,
yet it is not far behind India in life expectancy
and literacy levels.

25. Sustainability of Development
• Since the second half of the 20th century, a
number of scientists have been warning that
the present type and levels of development
are not sustainable.
• Renewable resources like groundwater are
replenished by nature.
• However even these resources may be
overused.

26. • Non-renewable resources cannot be
replenished as they have a fixed stock on
earth.
• We do discover new resources, but over time,
even this will get exhausted.