DEVELOPMENT SUMMARY

ECONOMICS (X)

DEVELOPMENT

Chapter 01

Introduction:

All of us have aspirations or desire for Development. But the Perspective of Development varies from person to person, region to region, state to State and Country to Country.

Meaning of Development.

Development applies to all round Development of a country, Such as freedom, Economic equality, Security, Life with Dignity and good Standard of Living. OR Development is the Sum total of Income plus Quality of Life.

Different People and Different Goals

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. For example; Industrialists want more Dams for their Electricity requirements, But Dam Displace Local Community, Submerge forest Land and all Ecological Set up may be Completely Destroyed.

DEVELOPMENT GOALS

Landless Labourer

·         More days of Work

·         Better Wages

·         Economic and Social Equality

·         No Social Discrimination.

·         Would like to become leader of Village.

Prosperous Farmers of Panjab

·         Higher price for Produce.

·         Availability of cheap labour

·         Cheap inputs like Seeds, Fertilizers and Machinery.

·         Able to settle their children Abroad

A Girl from a Rich Urban Family

·         Able to get as much freedom as her brother

·         Able to decide what she wants

·         Able to pursue her studies Abroad.

INCOME AND OTHER GOALS

·         Income is considered the most Important Component of Development at it can buy Meterial goods and services.

·         People prefer to earn more income for fulfilling their daily requirements of life. Companies provide material thing like, money. But people also want non-material thing like, freedom, security, and respect of others.

·         Some companies provide less salary but offer regular employment which enhances sense of securities.

·         In other case, some companies provide high salary but offer no job securities. They reduce sense of securities.

NATIONAL DEVELOPMENT

·         The individuals seek different goals and their motive of national development is also likely to be different.

·         For Example: Farmers want India to develop in Particular way whereas a trader wants another way and a Teacher yet another way.

·         Under National Development priority is given to those goals which benefit a large Number of People.

·         National development refers to ability of a nation to improve standard of living of its citizens.

·         Standards of living of citizens depend upon per capital income, Gross Domestic Product, literacy rate and availability of health etc. These factors also consider as measure of improvement.

HOW TO COMPARE DIFFERENT COUNTRIES OR STATES

On The basis of Development Countries are classified into Three: Developed, Developing and Under Developed.

Comparison through National Income

National Income is the Income of all the residents of the country over a period of Time and is also known as Total Income. Countries with Higher are considered as to be developed. e.g USA,UK Japan.

Whereas Bangladesh, Bhutan, Sri Lanka, India and South Africa etc are developing.

              However this is not a useful as countries have different populations and comparing total income will not state the average amount earned by a Person.

Comparison through Per Capita Income.

Per Capita Income gives a better Comparison. It is calculated by dividing total income of the country (GDP) by its total Population. It is also called average Income.

It has a drawbacks as it hides Disparities. E.g When a small section of people has very high Income, the average Income also gets high and do not give Proper idea about the actual Situation.

WORLD BANK REPORT ON PCI

World Bank Publishes World Development Report (WDR) every year to compare the Nations on the basis of Per Capita Income.

The banks has classified the countries as follows;

1) Countries with PCI of US $ 12,616 or more are termed as Rich Countries.( $ 12,616=Rs 860,000)// $ 1= Rs  68

2) Countries with PCI of US $ 1035 or less are termed as low Income Countries.( $ 1035= Rs 70,000)

 In 2012 India’s PCI was only about US $ 1530( Rs 104,040) Per annum and it was classified as s Low Middle income Country.

INCOME AND OTHER CRITERIA
The development level of nations or regions should be judged on the basis of other attributes beside Income.

To understand this let’s take a comparative analysis of THREE States: MAHARASHTRA, KERALA & BIHAR.

                Comparative Study Data on Maharashtra, Kerala and Bihar      

                                       ( Source  NSSO Data 2013-2014)

STATE	Infant Mortality Rate Per 1000 Live Births	LITERACY RATE 2011	Net Attendance Ratio Age B/W 14-15 Years	PERCAPITA INCOME
MAHARASHTRA	25	82	64	107,670
KERALA	12	94	78	88527
BIHAR	43	62	35	28774

Based on this comparative table various aspects of development can be concluded;

1.      Per capita Income is Highest in Maharashtra and Lowest in Bihar. That Indicates employment status and scope of earning is quite less in Bihar.

2.      IMR is lowest in Kerala and Highest in Bihar. High IMR implies that health care facilities poor in Bihar. Then higher PCI does not guarantee for better health care facilities.

3.      Literacy rate in Highest in Kerala and lowest in Bihar.

4.      Net Attendance Ratio is Highest in Kerala and Lowest in Bihar.

Ø  These aspects indicate that Per Capita Income is not the best criteria to decide Development, but other basic facilities and quality of life also matter much and must be properly counted for Development.

PUBLIC FACILITIES

Average income may not procure you a better life. Money cannot buy all the goods and services needs for your wellbeing. It can’t buy Pollution free environment, Unadulterated Medicines etc

Money may also not be able to protect you from Infectious diseases, unless whole of your community takes preventive steps.

In India still Many areas Childrens particularly girls are not able to get Secondary Education.

Kerala is different State it has a low IMR and High Literacy rate because of better health care and educational Facilities.

Public facilities also used to measure Development. Primary, Secondary schools, healthcare, facility, cleanliness, are also important for Living.

PUBLIC DISTRIBUTION SYSTEM

Some states like Tamil Nadu has a well-functioning Public Distribution System (PDS) for supply of food grains to poor people in rural areas, whereas Jharkhand does not have such an efficient system. In Tamil Nadu, 75% of the People Living in a rural Areas Use a Ration Shop, whereas in Jharkhand only 8% of rural people are able to do so.

BODY MASS INDEX

Nutrition is another important aspect of Development. Internationally a standard known as Body Mass Index (BMI) is used to Determine whether an adult person is Undernourished or Not. If we divide the weight of the person by the Square of her/his height, we get a ratio which is called BMI.

BMI=Weight in Kg/ (Height in Metres)².

If the BMI is below 18.5, the person is undernourished and if it is over 25, the person is overweight. This standard is not applicable for growing Children.

E.g.

Person A Weight- 68 Kg /Height 1.65(165Cm)

68÷(1.65)²     68÷(1.65×1.65)    = 24.98     ( Person A is Healthy)

Peson B     Weight 50 Kg    Height 1.73 (173 cm)

50÷(1.73)²       50÷(1.73× 1.73)   = 2.99/50       =16.73  ( Person B is Undernourished)  

HUMAN DEVELOPMENT REPORT

(BEST METHOD TO MEASURE DEVELOPMENT)

Human development Report Published by UNDP United Nations Development Programme) is one of the best method to measure Development.

The report Compare Countries Based on Three Criteria;

v  Living Standard( PCI)

v  Health Status( Life Expectancy)

v  Educational Status.( Literacy rate and Enrolment Ratio.)

v   

CONCEPT HDI DEVELOPED BY TWO ECONOMISTS - AMARTYSEN (Indian) and  MAHABUB UL HAQ (Pakistan)

India Occupies 135^th Rank in HDR 2014 in Comparison to 126^th Rank in 2004 Report.

Among South Asian Countries Sri Lanka is ahead of India in Ranking.

(DRAW TABLE/ TABLE TITLE DATA OF INDIA AND NEIGHBOURS PAGE NO 13)

COUNTRIES IN HDI RANKING (2017)

1 Norway 2 Australia 3 Switzerland 4 Germany   5 Singapore   6 Denmark 7 Netherlands

8 Ireland   9 Iceland 10 Canada 11 USA   13 New Zealand 16 Britain 20 France,130 INDIA.

Human Development Index Considers Public Health ,Education, Poverty Level, Inequality and Environment aspects to measure Human Development.

SUSTAINABILITY OF DEVELOPMENT

§   Economic Development in the Developed Countries and Developing Countries has been attained at the cost of Natural Resources and Environment.

§  Example: Excessive Mining of Iron, Gold, Silver or Coal and Extraction of Crude Oil Lead to Depletion of the Stock of these Resources. Smoke and other Poisonous gases being released from factories lead to Environmental Pollution.

§  Problems of Water and air Pollution are affecting the lives of people and will affect lives of Future Generations Also.

§  Our Mismanagement of natural resources will result into Environmental Degradation that is not confines to national or state boundary.

§  Now the focus on Sustainable Development Which permit as to use resources carefully.

§  Sustainable Development is a new term that is associated with the balanced use of Natural resources by using resources at Minimum level, so that future generation also can use it.

§  Some examples that shows Environmental Degradation are as follows:

§  Case 01 –Ground Water in India- Depleting ground water resources in Panjab,West UP.About 300 Districts have reported a Water level Decline of over 4 Metres during the last 20 Years.

§  1/3 of People Using Over use of ground water Resources.

§  Within 25 Years 60% of the Country would be doing the same.

§  Over use of Water in Panjab and western UP also create Problems.

§  Case 02- Natural Resource- According to World Energy review,2014, the total reserve of the Crude Oil stock in The world is going to last just for 53 years.

§  Countries like India Depend on Importing Oil from Abroad because they do not have enough stock of their own.

§  If its price Increase it become burden of everyone. All Country Require Oil For overall Development.   

FEW CONCEPTS TO REMEMBER

Per Capita Income: The total income of a country divided by the population is called the per capita income of that country.

Gross National Product: The total income generated in the country is called Gross National Product.

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. As per 2011 census, the child mortality rate in India is 30.15.

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. As per 2011 census, the sex ratio in India is 940 per thousand male.

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. As per 2011 census, the life expectancy in India for males is 67 years and for females it is 72 years.

Net Attendance Ratio: Total Number of children of age group 14 and 15 years attending school as a percentage of total number of children’s in the same age Group.

Literacy Rate: Literacy rate measures the Proportion of Literate Population in the Age of 7 and above age group.as per 2011 Census India’s Literacy rate is 74.04% .Male Literacy is 82.14%, Female Literacy 65.46%.