This document discusses the concepts of development and differences between developed and developing countries. It defines development as progress and improvement in economic and social structures. It notes that different people may have different development goals depending on their situations. It provides an example showing how a reduction in apple prices may be considered development for middle class people but not poor people. It also outlines some key differences between developed and developing countries such as levels of industrialization, technology adoption, standards of living, and economic activities. The document then discusses concepts like average income, literacy rates, HDI, and infant mortality as metrics used to measure and compare development across countries.

1. Development
Ch – 1 of Economics

3. Development – means progress,
improvement in economic and social
structure and change in the outlook of
people.

4.  Different people have different development goals
because – as all are fingers is not same just like that
people don’t have same situations so they have different
development goals.
As development means different to every
person similarly, development for one person
may not be development for other.

6.  Example - lets consider a poor person and a
middle class person. Apple for a poor person is a
luxury but apple is affordable by a middle class
person to a limit. If price of apples reduce from
Rs.150 to Rs.90 now the middle class person can
buy apples easily but the poor person cannot buy
it because the food is also like a luxury to them.
So the development for middle class person
(reduction in price of apples) is not a development
for poor person.
 This shows - one thing maybe a development for
a person and may not be development for other.

7. Difference between Developed and Developing
Countries
Developed Countries
 Highly industrialized.
 Adopted modern
technology.
 Standard of living – high.
 Quality of life is
extremely good.
 Population is mostly
involved in Non -
agricultural activities.
 Example : Middle East
countries.
Developing Countries
 Are on the path of
industrialization.
 Adopting modern
technology.
 Standard of living –
comparatively low.
 Quality of life is not that
better.
 Population is mostly
involved in Agricultural
activities.
 Example : India.

9. AVERAGE INCOME OR PER CAPITA
INCOME
The Average income is the total income
divided by the total population.
Average income = total income/total
population
It is also called Per capita Income.
It is used for comparison, but has
disadvantage it hides the disparities.
Means how income is distributed among
the people.
Read: Pg. 9 Average income topic and do

10.  Figures are according to data of 2013
Countries with per capita income 8,23,573 Indian
rupee per annum are rich countries And countries
with per capita income 67,574 indian rupee are
low income countries.
 Literacy Rate – measures the proportion of
literates in age group from 7 – above age group.
 HDI Human Development Index – health and
education of humans is also used to measure
development of that particular country.
 Infant Mortality Rate – number of deaths for
every per new born, it is clear indication of the
health of the women of the country.
 Net Attendance Ratio – it measures the
proportion of the literate population in the seven
and above age group.

11. Figures for
UNITED STATES
Figures for
INDIA
Per Capita
Income
41994 43090
Infant Mortality
Rate
8.9 6.8
Net Attendance
Ratio
99 61
NOTE: This table is not provided in NCERT
book

14. Sustainable Development
 SUSTAINABLE – avoid using up the resources
 As we are developing these days we are utilizing
the resources and compromising the needs of
future generation .
 This issue of sustainable development emerged
from rapid industrialization.
 The growth of countries is in danger if the
limited stock of resources are also exhausted.

15. WORLDDEVELOPMENTREPORT2006
 WORLDBANKUSESTHE CRITERIAOF AVERAGEINCOMEOR PER
CAPITAINCOMETOCLASSIFYTHECOUNTRIES. OTHERCRITERIAIS
LITERACY.
 THOUGHTHEDISADVANTAGESOF AVERAGEINCOMEAREBECOMING
LIMITATIONSFORIT.
 KERALAIS THESTATEWHICHHASLOWCAPITAINCOMEBUT IS ON THE
TOP OF HDRANKING.
 THEEXAMPLEOF KERALASHOWTHATMONEYCANNOTBUY
EVERYTHING. AS MONEYCANNOTBUY YOUA POLLUTIONFREE
ENVIRONMENTUNLESSWE PUT EFFORTSIN IT.
 WITHTHIS EXAMPLEWE CANNOTCOMPAREEVERYTHINGWITH
MONEYOR ON THEBASISOF MONEY.

16. Presentation of chapter development by richa anand