The document discusses various aspects of development, highlighting that different individuals have diverse goals and understandings of what constitutes development, which can sometimes conflict. It elaborates on national development, its measurement through indicators like national income and Human Development Index (HDI), and the importance of non-material factors in assessing quality of life. Additionally, it addresses sustainable development, emphasizing the need for economic growth to avoid compromising environmental quality for future generations.

1. LEARNING CONCEPTS
 What Development Promises - Different people different goals
 Income and other goals
 National Development
 How to compare different countries or states?
 Income and other criteria
 Public Facilities
 Sustainability of development
DEVELOPMENT

2. What is Development?
• Development is a process that creates growth, progress,
positive change or the addition of physical, economic,
environmental, social and demographic components.
• Development is a comprehensive term which include increase
in real per capita income, improvement in living standard of
people, reduction in poverty,unemployment,illiteracy, crime
rate , environmental pollution, health hazards etc.

3. CHARACTERISTICS OF DEVELOPMENTAL GOALS
(i) Different people have different developmental goals.
(ii) What may be development for one may not be
development for the other. It may be destructive for the
other.
(iii) Income is the most important component of
development, but along with income, people also seek
equal treatment, good health, peace, literacy, etc.
(iv) For development, people look at mixed goals.

4. Different people have different developmental goals
1. More days of work
2. Better wages
3. Social and economic equality
4. Low price food grains
5. Availability of Drinking water
1. Cheap labour
2. Hike in Minimum Support Price for their
crops
3. To settle their children abroad
Landless rural labour
A Rich farmer

5. Different people have different developmental goals
• to get a suitable job where he can expand
his level of skills and talents,
• get a better remuneration and become a
great financial support to his family.
• To get admission in the career-oriented
course
•She gets as much freedom as her brother
•able to decide what she wants to do in life.
•She is able to pursue her studies abroad.
Urban unemployed Youth
A girl from a rich Urban Family

6. What may be development for one may not be development for the
other. It may be destructive for the other.
• It is true that development for one may not be the development for the
other. It may be even destructive for the other. It can be concluded from
the following examples:
• 1.Industrialists for their electricity requirement may want more dams
but that displace many poor people from their surroundings.
• 2. Building of thermal or nuclear power plants. Their development may
give benefit to many people by supplying them the electricity. But the
people whose land was acquired, and the people living in the vicinity of
these power plants, might face certain inconveniences and hazards.

7. Income and other goals
• Money or material factors, is one factor on which our life
depends.
• But the quality 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.
• Freedom, Security, Respect, Quality of life, Health, Education

8. • In some cases, these may be more important than income,
because material goods are not all that you need to live.
• Money or material factors that we can buy with it, is one
factor on which our life depends.
• But the quality 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 , you have to decide
about many factors like working condition, better medical
and educational facilities, job security etc.

9. National Development & its aspects
National development is a comprehensive term which includes
improvement in living standard of the people, increase in per capital
income, providing social amenities like education,medical care, social
services, etc. to the citizens of the country.
(i) Under national development, a country uses its resources in a fair
and just way.
(ii) Under this only those programmes and policies are implemented
which would benefit a large number of people.
(iii) Under national development, countries focus more on social
infrastructure which includes education, health and other social
services.

10. How to compare different countries
 We compare different things they could have similarities and differences. Usually, we
take one or more important characteristics of a person while making comparison with
another person. (e.g use different criteria to choose a sports team, a music team, a
debate team etc.)
 To compare different countries National income ( in terms of US $) is considered to
be one of the most important attributes.
 National income is the sum total of factor income(Rent, wages, interest & profit)
earned by the normal residents of a country during an accounting year.(1st April to
31st March)
 However, National income is not considered as an effective one as countries have
different populations and National income /Total income doesn’t reflect the income
of an average person. For example, a country may have a higher National income but
represents low standard of living due to larger size of population. Therefore, Per
capita Income ( known as Average Income) is taken into consideration.

11. Comparison on the basis of Per Capita Income
• World Bank classifies countries according to the Per Capita Income. Per
capita income is the annual average income of a person. It is the ratio of
National income and total population of a country .
• According to the World Development Report 2012
• Countries with PCI of more than US $12616 per annum and above are
called rich countries (High income Countries)
• Countries with PCI less than US $1035 are called poor countries.(Low
income countries)
• India comes in the category of low middle countries as its per capita
income in 2012 was just US $1053 only.

12. Limitations of Criteria used by the World Bank
Limitations of this criterion are as follows :-
• 1) It doesn't tell us how the income is distributed among
people.
Country I II III IV V PCI
Country X 8500 9500 8800 9000 9200 9000
Country Y 500 500 500 500 43000 9000
•Let us consider two countries , A and B. We have assumed that they have only 5 citizens each. Both
the countries have identical average income . But country A has more equitable distribution People are
neither very rich nor extremely poor.
•While most citizens in country B are poor and one person is extremely rich.
•Hence, while average income is useful for comparison it does not tell us how this income is distributed
among people.

13. • 2) Some may be very rich but the masses maybe poor. That is,
it hides disparities.
• 3) Per capita income cannot be regarded as the sole indicator
of development. Other Areas are also important like literacy
rate, life expectancy , infant mortality rate, BMI Index, Gross
Enrolment Ratio etc.

14. Human development Index(HDI)
The Human Development Index (HDI) is a statistical tool used to measure a
country's overall achievement in its social and economic dimensions. The
social and economic dimensions of a country are based on the health of
people, their level of education attainment and their standard of living. The
Human Development Index prepared by the United Nations Development
Program that ranks countries in order of development.

15. • A long and healthy life, as measured by life expectancy at birth.
• Knowledge, as measured by the adult literacy rate (with two-thirds weight) and the
combined primary, secondary, and tertiary gross enrolment ratio (with one-third
weight).
• A decent standard of living, as measured by the log of gross domestic product
(GDP) per capita at purchasing power parity (PPP) in USD.
• The Human Development Index examines three important criteria of
economic development (life expectancy, education and income levels)
and uses this to create an overall score between 0 and 1.
• 1 indicates a high level of economic development,
• 0 a very low level.

16. Formula to Calculate HDI
Suppose the Actual Life Expectancy is
estimated as 65.4 years.

19. Human Development Report-2019
• On December 8, 2019 the United Nations
Development Programme(UNDP) released
its report titled “Human Development
Report 2019– Beyond income, beyond
averages, beyond today: Inequalities in
human development in the 21st
century”.
The report was based on the human
development of a changing world. As per
the report India ranked 129th out of 189
countries in the list which is up by 1 rank
of 130 from 2017. The list was topped
by Norway.

20. • Report on India:
i.27.1 crore people in India were lifted out of poverty from 2005-06 to 2015-16.
The improvement was due to reduction in poverty along with improvement in
life expectancy, education and access to healthcare.
According to HDI (Human Development Index), no other region experienced
such rapid development progress. However, Despite India’s significant progress,
it accounts for 28% of the total 1.3 billion multidimensional poor.
ii. Index Score: India scored 0.647 in 2018, as against 0.643 in 2017. The score is
calculated in the range of 0 to 1.
India’s HDI value increased by 50% (from 0.431 to 0.647), in 2018 as against
1990, which placed it above the average for countries in the medium human
development group (0.634) and above the average for other South Asian
countries (0.642).

21. • iii. Life expectancy: In India, between 1990 and 2018, life expectancy at birth
increased by 11.6 years, mean years of schooling increased by 3.5 years and
expected years of schooling increased by 4.7 years. Per capita incomes rose by over
250%.
• iv.Rank improvement factor: Some of the factors that lead to India’s improvement
in the rankings were due to govt. initiatives like Pradhan Mantri Jan Dhan Yojana
(financial inclusion scheme), Ayushman Bharat ( universal health care scheme) etc.
• v.Inequality & gender bias: UNDP, however, warned of inequalities that persist in
India. The report found that despite progress, inequalities persist in the country
affecting women and girls. Indians showed biases in gender social norms, indicating
a backlash to women’s empowerment.
• India is only marginally better than the South Asian average on the gender
development index (0.829 versus 0.828). It ranked low at 122 out of 162 countries
on the 2018 gender inequality index.

22. Public Facilities

23. • Public facilities are services provided by the government to its citizens. Some of the important public
facilities include infrastructure, sanitation, public transport, health care, water, churches, hospitals,
and police stations etc.
• An essential role is played by Public services and facilities in providing support services to
sustainable, healthy, viable and cohesive communities. So that they can overcome social barriers and
can achieve something. Those facilities which are not possible for any individual to access at
economic cost are mainly termed as facilities provided by the states. Hence, the Govt. provides such
facilities to the public to ensure the quality of life. There are many public facilities provided by the
Govt. to the people to ensure universal access to such facilities. The Govt. provides such facilities
with a reasonable price or free of cost to the masses. One important feature of a public facility is that
once it is provided with its benefit can be shared by many people.
• For example, if a school is built in a locality, many children are benefitted from it . Similarly, if a
Hospital is built in a village then many people are benefitted from it.

24. Types of Public Facilities
• Educational Facilities: Free primary education to all, Providing Books, Uniforms at
free of cost. Mid Day Meal Scheme etc.
• Basic Health Facilities: Provision of free treatment in Govt. Hospitals, Free
medicines , Vaccine programmes etc.
• Public Distribution System: Provision of basic food items like rice, wheat, pulses etc
at subsidized rate through Rational shops to BPL card holders.
• Banking facilities: To keep our money safe and to get loan for different purposes
(Home loan, Study loan, Car loan, personal loan etc)
• Roads, National Highways , Railway lines are constructed by the Govt. to travel long
distances conveniently.

25. Sustainable Development
Sustainable development can be defined as an approach to the economic
development of a country without compromising the quality of the environment for
future generations.
In the name of economic development, the price of environmental damage is paid
in the form of land degradation, soil erosion, air & water pollution, deforestation, etc.
This damage may surpass the advantages of having more quality output of goods and
service.
Sustainable Development Goals are:
(i) To promote the kind of development that minimizes environmental problems.
(ii)To meet the needs of the existing generation without compromising the quality of the
environment for future generations

26. Features of Sustainable Development
Sustainable development can be achieved if we follow the following
points,
(i) Restricting human being/ Control the growth of population
(ii) Technological development should be input effective and not input
utilizing
(iii) The rate of consumption should not surpass the rate of salvation
(iv) For renewable resources, the rate of consumption should not surpass
the rate of production of renewable substitutes.
(v) All types of pollution should be minimized
(vi) Sensible use of Natural Resources

27. Example of Sustainable Development
• Wind Energy
• Solar Energy
• Crop Rotation
• Sustainable Construction
• Efficient Water Fixtures
• Green Space
• Sustainable Forestry

28. PREPARED BY
DR. MANOTOSH KUMAR PATI.PGT-ECONOMICS
JNV, BAGUDI, BALASORE, ODISHA