The document discusses key concepts related to economics and development, including: 1. It defines economics as the management of limited resources to meet unlimited wants, both at the household and societal level. 2. It outlines different metrics for measuring national development such as per capita income, literacy rates, and life expectancy. 3. It compares development indicators between countries like India, China, Sri Lanka, and others, finding that countries with higher per capita incomes and human development metrics are more developed.

1. DEVELOPMENT
By :Dr. R. Ezhilraman, PGT Geo (C/B) 2016-17
Jawahar Navodaya Vidyalaya, Lepakshi, A.P.

2. Definition of Economics
 The Term ‘Economics’ is derived from two Greek words :-
 (i) Okios: – a household and (ii) Nemein ( nomos)- Management.
 Economics means ‘Home Management’. The head of a
family faces the problem of managing the unlimited
wants of the family members within the limited income
of the family. In fact, the same is true for a society also.
The society also faces the problem of tackling unlimited
wants of the members of the society with the limited
resources available in that society.
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Adam smith was the Father of Economics

3. DEVELOPMENT
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Development: The
ideas of development
or progress have
always been with us.
We have aspirations
or desires about what
we would like to do
and how we would
like to live.

4.  A branch of economics that focuses on improving the
economies of developing countries.
 Development economics considers how to promote
economic growth in such countries by improving factors
like health, education, working conditions, domestic and
international policies and market conditions.
 It examines both macro-economic and micro-economic
factors relating to the structure of a developing
economy and how that economy can create effective
domestic and international growth.
ECONOMIC DEVELOPMENT
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5.  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 for the other.
 Different people have different developmental needs.
These needs are based on their particular life situations.
 This creates a need for a development goal which can
encompass different needs of different people in a fair
way.
GOALS OF ECONOMIC DEVELOPMENT
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6. Development Goals of different
categories of persons
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Category of Persons Development Goals /Aspiration
(i) Landless Rural
labourer
1. More days of work; 2. Better wages;
3. Economic and social equality; 4. Local
school is able to provide education for their
children
(ii)..Prosperous
Farmer
Assured a high family income through
higher support prices for their crops
(iii) Rich person
1) Higher family income 2) Better education
to their children 3) To settle their children in
abroad
(iv) A girl from rich
urban family
She get as much freedom as her brother
and is able to decide what she wants to do
in life

7. It is very important to keep in mind that
different persons could have different
as well as conflicting notions of a
country’s development.
All round development of a nation may
cause by setting up of heavy industries,
developing education, health and
national income
NATIONAL DEVELOPMENT
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8. Method of Measuring National
Development
 National Income: It refers to the market values of all
good and services which produce in financial year
within the country
 Average income / per capita income: it is the ratio of
total national income of a country with respect to
total population
 PCI = Total income
Total population
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9.  World bank has used the criterion of per capita income
for classifying into high income and low-income
countries.
 According to the 2012 World Development Report:-
a) US$12616 per annum and above in 2012 are called rich
countries.
b) countries with a PCI of US$1035 or less per annum in
2012
c) In the year 2012, India’s PCI was just US$ 1530 per year.
WORLD DEVELOPMENT REPORT
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10.  The Basic Human development indicators are: (cont…)
V. Male to Female Sex Ratio: Number of female per thousand male is called sex
ratio. A lesser figure shows society’s aversion to a girl child and worse condition
of women in society.
VI. Life expectancy: The maximum age up to which an adult lives is called the life
expectancy rate. This also shows the overall quality of life in a country.
VII. (vii) Literacy Rate: It measures the proportion of literate population in the 7 and
above age group. The percentage of literate people is another important
indicator of development. Education is a big level as it opens newer job
opportunities for the educated persons.
VIII. (viii) 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.
IX. (ix) Infrastructure: Roads, railways, airports, ports and power generation are the
lifelines of a nation’s economy. A better infrastructure ensures a better
economic activity leading to overall prosperity.
INCOME AND HUMAN DEVELOPMENT
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11.  Human Development Report (HDR) published by United Nations
Development Program (UNDP) compares countries based on
educational level of the people, their health status and PCI.
 The Basic Human development indicators are:
I. Per Capita Income: The total income of a country divided by the population
is called the per capita income of that country.
II. Gross National Product: The total income generated in the country is called
Gross National Product.
III. Gross Domestic Product: The total income generated minus the income
generated by exports is called the Gross Domestic Product.
IV. Infant Mortality Rate: The number of children who die before completing
one year out of 1000 births is called the infant mortality rate. The lesser
figure is a better indicator of development. This is an important parameter
as it shows the quality and extent of availability of healthcare in a country.
INCOME AND OTHER CRITERIA OF
HUMAN DEVELOPMENT
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12.  Money in your pocket cannot buy all the goods and services
that you may need to live well.
 Your money cannot buy you a pollution-free environment.
 Money may not protect you from infectious diseases, until
your community takes preventive steps.
 Therefore public facilities like education, sanitation, peaceful-
green and clean environment are more necessary.
 Even Government opened many schools and provides other
facilities, in many areas, children, particularly girls are not
able to achieve secondary level schooling, because of less
facilities.
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PUBLIC FACILITIES

13. Combination of Goals Needed for
Development
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 The above mentioned list is not all inclusive but
they are more important than other goals which
are not mentioned here.
 Every goal or parameter of development is
interrelated.
 Each goal influences the other and creates an
opportunity for development in a fair way.

14. Comparison of Different Countries or
States
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 Comparison of countries are particularly based
on their income i.e., it is 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 need.

15. Comparison of India with Its Neighbours
on the Basis of Income and Other Criteria
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Country PCI in US$
Life Expectancy
at Birth
Literacy
Rate
Gross Enrolment
Ratio for all Level
HDI Rank
Norway 38550 80 --- 97 1
China 5530 71 91 73 81
Sri
Lanka
4390 74 91 69 93
India 3139 64 61 60 126
Pakistan 2225 63 50 35 134

16. Here is some of the Countries’
Per Capita Income
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No. Country PCI in US$
1 Luxembourg 1,08,832
2 Norway 84,444
3 Qatar 76,168
4 Switzerland 67,246
5 United Arab Emirates 59,717
6 Denmark 56,147
7 Australia 55,590
8 Sweden 48,875
9 United States 47,284
10 Netherlands 47,172

17. World Bank (2009)
International Monetary Fund (2010)
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No. Country PCI in US$
1 Monaco 1,86,175
2 Liechtenstein 1,34,392
3 Luxembourg 1,05,044
4 Bermuda 88,747
5 Norway 79,089
6 Qatar 69,754
7 Switzerland 63,629
8 Denmark 55,992
9 Ireland 51,049
10 United Arab Emirates 50,070
11 Netherlands 47,917

18. How to find the income of a country?
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 Here is the answer, to find the income we take the average
income which is the total income of the country and it is divided
by the country’s population. The average income is also called
as per capita income.
 Example: Let us take two countries A & B. suppose population
of these countries is 5 person each
Monthly
income of
citizens
1 2 3 4 5 Average
Country A 9500 10500 9800 1000 10200 8200
Country B 500 500 500 500 48000 10000
Therefore we can conclude that country B is more developed that country A

19. How to find the income of a State?
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 To find the developed state except income other criteria's are
also kept in mind. Let us take the example of three states
Maharashtra, Kerala and Bihar
After studying the table we can conclude that Kerala is the developed
state among these three and Bihar is least developed amongst them.
State
Infant mortality
rate Per 1000
(2012)
Literacy rate %
(2011)
Net attendance ratio (per
100 persons) secondary
stage (age 14 & 15 years)
2009-10
Maharashtra 25 82 64
Kerala 12 94 78
Bihar 43 62 35

20.  Meaning: The word sustainable means something which
is not short lived but can continue in future also.
 According to Robert Repetto, “sustainable
development is a development strategy that manages
all natural resources and human resources as well as
financial and physical assets for increasing long term
wealth and well being .”
Sustainable Development
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21.  Sustained rise in the real
PCI and quality of life.
 Reduction in pollution.
 Rational use of natural
resources.
 To fulfils the requirements
of future generations.
Objective or features of Sustainable
Development
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22. The END
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Thanks for Watching
Wish you all best for your
‘All-Round’ Development
Yours ….
Dr. R.Ezhilraman, M.A., M.Phil, Ph.D., B.Ed., BLIS, DPCS,
PGT-Social Science, JNV Lepakshi