economics ch-1 development notes

Ch-1 Development

All round development –people earn higher income  and can satisfy all their needs.

Process where real per capita income increases over a long period of time.

Different people have diff aspects of development as life goal and aspirations are diff.

Hman development means happy life according to cherished wish and fulfill all the materilistic desires.

People want regular work, better wages, descent price for their crop product i.They want more income

People also want equal treatment ,freedom respect of others, tey resent discrimination

National development can measured

a)    Average income b) per capita income

People have diff development goals

For an urban dweller youth aspire for good salaried job, promotion , etc, on the other hand a rural unemployed would want better job opportunities in the village, job security and dignity of labour.

People have conflicting golas –development for one may not be development for other

SardarSarovar dam –people of Gujarat are happy as they will get watrer for irrigation and drinking in the areas which are deficient in water but people of Madhya Praesh are not happy because their villages and large part of land will submerge in water thereby leaving them landless, uprooted from their place of work with insufficient compensation and no source of job at the place of their living.

To compare different countries- Countries with higher income are more developed than with less income. Higher income means of all things that human beings need.

Main principles used by World Bank in classifying different countries

1.    Percapita income as indicator of development . .UNDP considers health, eudcatiopn levels and the per capita income of the citizen of the country.

2.    As per world Bank countries with per capital income 4,53,000 per annum and above in 2004 are called rich countries and those with the per capita income of rs 37,000 or less are called low income countires.

3.    India comes under low income countries because its per capita income in 2004 was just Rs 28,000 per annum.

Limitation of World Bank principles

-       It does not tell us about how this average income is distributed among the people in the individual countries.

-       2 countries with same per capita income may be different .one might have equal distribution while another might have great disparities betn rich and poor

-       Average incomeSum total of goods and services produced within the country within one year plust net income from abroad.is called national income.

-       Ratio of income of the country for a particular year to the population of the country.of that year.

-       Since countries hav diff population comparing total income does not tell us what an average person is going to earn.

-       Hence average income is total income of the country divided by its total population.

-       Per capita income= Total income /Total population of  a country.

-       Per capita income in India has increased form R 255 in 1955 to 16,500 in 2000

-       Limitation of use oif Average-It hides disparities

-       Eg country A most of people have higher income.

-       Infant mortality rate does not indicate how many boys and girl died

Income and other criteria –

Other than income other criteria such IMR, literacy rate and Net Attendance ratio.

IMR –It indicates the  number of children that die before th age of one year as a proportion of 100 live children born in that year.

Literacy rate. It measure the proportion of literate population in the 7 and above age group.

Net attendance ratio-It is total number of children of the age group of 6-10 attending school as percentage of total total number of children in the same age group.

Human development index- uses a combination of development facilities such as health,education, cincome ofr comparison.

World Bank consider only per capita income where as UNDP uses combination of factors  such as health,education and income as indication of development.

HDR compares countries on the basis of educational levels of the people, their health status and per capita income.

Sustainibility of development-It means capacity to use the resources judiciously and maintain the ecological balance.Defrestation, falling levels of ground water , soil erosion , water pollution , burning of fossil fuels , the hole in the ozone layer and erosion , water pollution ,combustion from automobiles causing extrement air pollution expecially in urban areas.

The issues of sustainaibility is important for development because

-Development must be in relation with future.

Its natural resources are not sustained then development will stagnate after a point of time.

In future those resources will not be available for future progress ultimately undo the development of country.

The Earth ahs enough resources to meet the needs of all but not enough to satisfy the greed of even one person.

It means that there are enough resources to meet the needs of all if they are used judiciously and not over exploited by a few and depriving the others who need them. Resources that re replenished by nature are known as renewable resources. For eg. Ground water .Resources that are not replenished that is those which will ge exhausted later some time are kjnown as non-renewable resources for example , crude oil

Features of Sustainable development

-       Scientific and proper use of natural resources

-       Judicious use of resources for better future

-       No increase in pollution or environmental degradation

-       Protection of flora and Fauna

-       Resources like water, wind ,solar energy etc. not put to wrong use

-       There is no harm in using the land for cultivation but should see that its fertility is maintained otherwise sooner or later it will turn into a wasteland.