Chapter - 1 Development
Chapter - 1 Development
Chapter - 1 Development
(Economics)
Chapter 1: Development
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Development
Idea of Development
Development involves many questions for better life and the ways in which one can work to
achieve goals. Different persons can have different goals and what may be development for
one person may not be development, or may even be detrimental, for the other.
Development is defined as the people’s economic growth, along with the growth of their
basic needs like education, health, lifestyle, etc.
The main aim of development is to update as per the demand of time.
For example: to generate electricity, a dam is constructed over a river where nearby mass is
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considered for construction resulting in the development of society and country.
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It causes destruction for farmers and the lives of people living nearby.
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Income and Other Goals
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Generally, people desire to have regular work, better wages and good price for the crops
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they produce. Apart from earning more income, one may expect to have a better quality of
life. The quality of life depends on non-material things such as equal treatment, security,
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respect for others and freedom in society. For example, women may tend to work in a
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variety of jobs or start a business to receive a sense of security and freedom in the
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National Development
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The idea about the national development of a country tends to vary and conflict from
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needs to consider the characteristics of a country. Let us consider income as one of the
important attributes to compare countries. If a country has a higher income level than
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income or the per capita income of a country is measured to compare the developmental
status of different nations.
How to Compare Different Countries or States?
To compare countries, their income is considered to be one of the most important
attributes. Countries with higher income are more developed than others with less income.
As different countries have different populations, comparing total income will not tell us
what an average person earns. So, we compare the average income of countries.
Average income is the total income of the country divided by its total population. It is also
called per capita income.
Average Income = Total Income of Country / Total Population of Country
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capita income was just Rs 28,000. In 2006, the World Development Report to classify
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countries was based on the average income criterion.
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PER CAPITA INCOME OF SELECT STATES
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State Per Capita Income for 2017-18 (in Rs)
Haryana
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Kerala 1,84,000
Bihar 38,631
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If per capita income were to be used as the measure of development, Haryana will be
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considered the most developed and Bihar the least developed state of the three. However,
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According to the Reserve Bank of India, 2011, the per capita income of Delhi has the highest
per capita income and Bihar has the lowest per capita income. While looking at other
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indicators such as the literacy rate and mortality rate, the literacy rate of Kerala was 93.9%,
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• Literacy Rate. It measures the proportion of literate population in the 7 and above age
group.
• 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.
• Body Mass Index. (BMI) one way to find out if adults are undernourished is to calculate
Body Mass Index. Divide the weight of a person (in kg) by the square of the height (in
metres). 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.
Public Facilities
Income is not an adequate indicator of material goods and services which the people are to
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use. In many regions, education, health and sanitary facilities are not adequately available
to educate and prevent from infectious diseases. Kerala has a low infant mortality rate
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because it has adequate public facilities. The nutritious status will be low in states in which
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the public distribution system does not function properly.
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• The level of income is an inadequate measure of the level of development;
therefore, other indicators such as health and education are used to compare a
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country’s development.
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Sustainability of Development
The renewable resources are replenished by nature. Let us consider groundwater. If we use
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groundwater more than what is being replenished by rain, then this resource would be
overused. Non-renewable resources are those which will get exhausted after few years of
use. Environmental degradation is no longer region or nation-specific. Sustainable
development is the development which looks into the requirement of the present and
builds scope for the future generations. There are many works in progress for sustainability
of development.
• Infant Mortality Ratio: Infant Mortality Ratio indicates the number of children who die
before the age of one year, as a proportion of 1000 live children born in that particular
year.
• Literacy Rate: Literacy Rate measures the proportion of literate population in the 7 and
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above age group.
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• Net Attendance Ratio: It is the total number of children of age group 14 and 15 years
who attending school as a percentage of total number of children in the same age
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group.
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Important Questions
Multiple Choice questions-
1. Development of a country can generally be determined by its:
(a) per capita income
(b) average literacy level
(c) health status of its people
(d) none of these
2. Different persons could have different as well as conflicting notions of a
country’s development. A fair and just path for all should be achieved. Interpret
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the concept being discussed here.
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(a) Social development
(b) Cultural development
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(c) National development
(d) Economic development sa
3. Countries with higher income are __________ than others with less income.
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(a) Less developed
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(c) 5-9
(d) 14-15
7. For calculating Body Mass Index (BMI), weight of the person is divided by the:
(a) Square of the weight
(b) Square of the height
(c) Square root of the height
(d) Square of the sum of height and weight
8. If BMI is less than 18.5 then the person would be considered: v
(a) over weight
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(b) long height
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(c) under nourished
(d) short height
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9. What proportion of the country is over using their groundwater reserves?
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(a) One-Fourth sa
(b) One-Tenth
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(c) One-Third
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(d) half
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10. Resources which will get exhausted after years of use are:
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11. What will be the top priority in the developmental goal of a landless labourer?
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(b) Countries which are among the highest in the ‘Human Development Index’ are
considered to be the developed countries.
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(c) Only rich countries are considered to be developed because people have money
to buy everything needed for human beings—both material and non-material.
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(d) Iran is a rich country and therefore it is a developed country.
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15. Money cannot buy all the goods and services that we may need to have a good
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life. A list of things required for a good life is given below. Which among the
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Question 6. Which state of India has the lowest infant mortality rate? (2013)
Question 7. What is Human Development Index? (2013)
Question 8. Name the report published by UNDP which compares countries based
on the educational levels of the people, their health status and per capita income.
(2013)
Question 9. What term is used to describe the ‘average number of years a person
is expected to live at birth’? (2013)
Question 10. What is the advantage of per capita income? Mention any one. (2014)
Short Questions-
Question 1. Why do we use averages? Are there any limitations to their use?
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Illustrate with your own examples related to development. (NCERT Question)
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Question 2. What is per capita income? Mention any two limitations of per capita
income as an indicator of development. (2012)
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Question 3. Kerala, with lower per capita income, has a better human development
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ranking than Punjab. Hence, per capita income is not a useful criterion at all and
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should not be used to compare States. Do you agree? Discuss. NCERT Question
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Question 4. On the basis of which three indicators of HDI 2004 Sri Lanka has better
rank than India? (2014)
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Question 6. What are common developmental goals? Give any two suitable
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Question 7. “Money cannot buy all the goods and services that one needs to live
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well” Do you agree with this statement? Justify your answer with any three
suitable arguments. (2015)
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Question 8. Apart from income, which other six things people look for as important
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Question 2. What does HDI stand for? Explain the main criteria of measuring HDI
according to UNDP Report of 1990. (2015)
Question 3. Explain with examples that there are other important development
goals also besides income. (2014)
Question 4. Explain any five fields other than income where development is
needed. (2012)
Question 5. Explain with reasons why state of Punjab with a very high per capita
income has a low literacy rate. (2016, 2017 D)
Assertion Reason Questions:
1. DIRECTION: Mark the option which is most suitable:
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a. If both assertion (A) and reason (R) are true and reason (R) is the correct
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explanation of assertion (A).
b. If both assertion (A) and reason (R) are true, but reason (R) is not the
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correct explanation of assertion (A).
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c. Assertion (A) is true, but reason (R) is false.
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d. Both assertion (A) and reason (R) are false.
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Assertion (A): India has experienced some significant changes in the contribution
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Reason (R): In terms of GDP, the service sector emerged as the largest producing
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a. If both assertion (A) and reason (R) are true and reason (R) is the correct
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b. If both assertion (A) and reason (R) are true, but reason (R) is not the
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rather than goods, the tertiary sector is also called the service sector. The
service sector also includes some essential services that may not directly help in
the production of goods. For example, we require teachers, doctors, and those
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who provide personal services such as washermen, barbers, cobblers, lawyers,
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and people to do administrative and accounting work''
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i. Secondary sector: Workers in a match factory, Tertiary sector: _______.
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a. Beekeeper.
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b. Milk vendor.
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c. Handloom worker.
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d. Tailor.
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activities?
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you get is called BMI. Then, look at the BMI-for-Age tables given on pages 90–
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91. A student’s BMI could be within the normal range or less than that
(underweight) or more (obesity). For example, if a girl student is 14 years and 8-
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month-old and the BMI is 15.2, then she is undernourished. Similarly, if the BMI
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of a boy aged 15 years and 6 months is 28, then he is overweight. Discuss the
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life situation, food and exercise habits of students, in general, without body
shaming anyone.
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i. What is BMI?
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a. Height/ Weight2
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b. Weight/ height2
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c. Weight/ height
d. Weight2/ heigh
iii. Rahul is 5 ft 6 inches tall, and he weighs 82 kilos. Calculate his BMI.
a. 23.5
b. 29.2
c. 27.6
d. 21.3
iv. According to Rahul’s BMI, he is _______.
a. Overweight.
b. Underweight.
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c. Normal.
d. Obese.
MCQ Answers-
1. Answer: a
2. Answer: c
3. Answer: b
4. Answer: c
5. Answer: b
6. Answer: d
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7. Answer: b
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8. Answer: c
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9. Answer: c
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10.Answer: c
11.Answer: b
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12.Answer: c
13.Answer: c
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14.Answer: b
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15.Answer: d
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1. Answer: National income is defined as the total value of all final goods and
services produced with a country plus net income from transactions like (export
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2. Answer: GDP or Gross Domestic Product is the total value of all final goods and
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(dispersion) of income between the rich and the poor.
Two countries may have the same average income but in one country almost every
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family may enjoy more or less the same kind of income, whereas in the other,
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some may be very rich and others very poor. The disparity between rich and poor
is an important feature that the average measure (per capita income) does not
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consider.
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Example: In terms of development, we can take the example of India, where the
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metro towns are full of high-rise buildings and shopping malls while some villages
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have not yet been provided with a basic necessity like electricity.
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Answer 2: The total income of a country divided by its total population gives the
Per Capita Income.
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Money cannot buy all the goods and services that are needed to live well. So
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services that citizens are able to use. For example, money can not buy a pollution-
free environment or ensure that one gets unadulterated medicines, unless one can
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Answer 3: Per capita income is not a useful criterion at all to measure the human
development ranking of a state. High per capita income is not the only attribute to
a good quality life. Money cannot buy all the essential things required for a good
life. Pollution-free atmosphere to ensure good health, protection from infectious
diseases, lowering of mortality rate, promotion of literacy, etc. are essential for a
good standard of living. In order to achieve these, joint efforts have to be made by
all members of a community, be it rich or poor.
Kerala ranks higher compared to Punjab even with a lower per capita income
because—
1. mortality rate is lower
2. literacy rate is higher and
3. total number of children attending school (Classes I-V) is higher.
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Answer 4: Three indicators of HDI 2004 in which Sri Lanka has better rank than
India:
1. Per capita income—The per capita income of Sri Lanka in US dollars was
4,390 US dollars while that of India was 3,139 US dollars.
2. Life expectancy at birth—The life expectancy at birth for Sri Lanka was 74,
higher than that of India at 64.
3. Gross enrolment ratio for three levels—Sri Lanka had Gross Enrolment ratio
of 69 while that of India was 60.
Answer 5: All persons do not have the same notion of development or progress.
Each one of them seeks different things. The seek things that are most important
for them, i.e., that which can fulfil their aspirations or desires. In fact at times two
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persons or groups of persons may seek things which are conflicting.
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A girl expects as much freedom and opportunity as her brother and that he also
shares in the household work. Her brother may not like this.
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To get more electricity, industrialists may want more dams. But this may submerge
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the land and disrupt the lives of people who are displaced, such as tribals. They
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might resent this and may prefer small check dams or tanks to irrigate their land.
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Answer 6: There are certain goals which are the same or common for all. These are
common developmental goals. The developmental goals that people have are not
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only about better income but also about other important things in life. More
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income or more material goods do not always give us a good quality life.
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here are other aspects such as equal treatment, freedom, security, opportunity to
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learn, good working conditions, pollution-free atmosphere, job security and good
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social life which are very important for a good quality life. Money or material
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things that one can buy with it, is one factor on which our life depends. But quality
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of our life also depends on non-material things, for example, the role of our friends
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Answer 7: Yes, I agree with the statement because money income and material
goods alone are not an adequate indicator of a good quality of life. Money cannot
buy all the goods and services one needs to live well.
• Money cannot buy a pollution free and dean environment with fresh air.
• It cannot protect us from infectious diseases and guarantee good health for
us.
• Money cannot assure that medicines available in the market are not
adulterated.
To live well one needs non-material factors such as equal treatment,
freedom, security, equal opportunity to learn, a pollution free environment,
good and safe working conditions etc.
Answer 8: High per capita income is not the only attribute to a good quality life.
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Money cannot buy all the essential things required for a good life. Pollution-free
atmosphere to ensure good health, protection from infectious diseases, lowering
of mortality rate, promotion of literacy, job security, good working conditions, etc.
are essential for a good standard of living.
Answer 9: The World Bank uses average income or per capita income as a criterion
for classifying different countries. Countries with per capita income of ?4,53,000
per annum and above (in the year 2004) are called rich countries and those with
per capita income of ?37,000 or less are called low income countries (India comes
under low income countries; the per capita income in India is ?28,000 per annum).
Those falling in between ₹37,000 – ₹4,53,000 are placed in the middle category.
Limitations of this criterion.
1. While averages are useful for comparison, they also hide disparities. Two
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countries may have identical average income, but one country may have
equitable distribution where people are neither very rich nor very poor,
while in the other country most citizens are very poor and very few are
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extremely rich,
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2. Better income cannot ensure a good quality life. Criterion set by the World
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Bank has ignored certain attributes of a good life which do not depend on
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income or cannot be . bought with money.
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development—
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1. People also seek things like equal treatment, freedom, security and respect.
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components have been added to Human Development Report.
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4. Pre-fixing Human to Development, it has made it clear that what is
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important in development is what is happening to citizens of a country, i.e.,
the health and well being of the people is most important.
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Answer 3: More income or more material goods do not always give us a good
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quality life. There are other aspects such as equal treatment, freedom, security,
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opportunity to learn, good working conditions, pollution-free atmosphere, job
security and good social life which are very important for a good quality life.
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Money or material things that one can buy with it, is one factor on which our life
depends. But quality of our life also depends on non-material things, for example,
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the role of our friends in our life which cannot be measured but mean a lot to us.
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Another example, if we get a job in a far off place, before accepting it we would try
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consider many factors apart from income such as facilities for our family, working
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mix of goals. It is true that if women are engaged in paid work, their dignity
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increases. However, it is also the case that if there is respect for women there
would be more sharing of house work and greater acceptance of women.
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The developmental goals that people have are not only about better income but
also about other important things in life.
Answer 4: Fields other than income where development is needed:
1. Education. The government must provide adequate education facilities in all
rural and urban areas. The government must necessarily focus on education
for girls so that all girls are able to acquire atleast secondary level schooling.
Running proper schools and providing quality education, particularly
elementary education, is the duty of the Government.
2. Health. Basic health care facilities are a must for all. Establishment of
government hospitals, clinics and dispensaries, especially in rural areas, to
provide subsidized and unadulterated medicines to the poorer sections of
society.
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This can be seen in the case of Punjab which has a very high per capita income but
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a low literacy rate. Having money in one’s pocket cannot buy all the goods and
services that we need to live well. Money cannot ensure education and literacy.
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Another reason for low literacy rate in Punjab could be the lack of free and
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compulsory educational facilities. The government needs to open more schools
and provide other facilities so that all children have a chance to study.
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Pollution-free atmosphere to ensure good health, protection from infectious
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diseases, lowering of mortality rate, promotion of literacy, etc. are essential for a
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good standard of living. In order to achieve these, joint efforts have to be made by
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