Class 10 Economics: Developmen

Cheatsheet Content

### Introduction to Development - **What is Development?** - Development signifies progress towards a better quality of life for individuals and society. It's a complex concept that extends beyond mere economic growth. - It typically involves: - **Economic Growth:** Increase in a country's production of goods and services. - **Improved Living Standards:** Access to better housing, food, and amenities. - **Social Well-being:** Better health, education, and social justice. - **Environmental Sustainability:** Protecting natural resources for future generations. - **Varying Development Goals:** - Development goals are often diverse, and sometimes conflicting, for different people. What constitutes development for one person or group might not be for another, and could even be detrimental. - *Example 1:* A landless rural laborer might desire more days of work and better wages, local schooling for children, and no social discrimination. - *Example 2:* A prosperous farmer might wish for higher support prices for crops, cheaper labor, and assured irrigation. - *Example 3:* Industrialists might want more dams for electricity, but this could displace tribal communities who depend on the land and forests. - *Key takeaway:* Two things are clear: 1. Different persons can have different development goals. 2. What may be development for one may not be development for the other. It may even be destructive for the other. - **National Development:** - Refers to the ability of a country to improve the overall well-being and quality of life of its citizens. - It involves thinking about fair and just ways to achieve development for all, considering the diverse goals and priorities within a nation. - Requires careful planning and policies that balance economic growth with social equity and environmental protection. ### How to Compare Countries? - **Income as the Primary Criterion:** - For comparing countries, total income is often used. Countries with higher total income are generally considered more developed. - However, total income doesn't tell us how much an average person is likely to earn. A country with a large population might have a high total income but a low income per person. - **Per Capita Income (PCI):** To address this, the average income, or Per Capita Income, is used. It is calculated by dividing the total income of the country by its total population. - $$PCI = \frac{\text{Total Income of Country}}{\text{Total Population}}$$ - **World Bank Classification:** The World Bank uses PCI for classifying countries: - **High-income (Rich) Countries:** Countries with PCI of US\$ 12,056 per annum and above in 2017 are called rich countries. - **Low-income Countries:** Countries with PCI of US\$ 955 per annum or less are called low-income countries. - India falls in the category of low middle-income countries because its PCI in 2017 was US\$ 1820 per annum. - **Limitations of Per Capita Income:** - **Hides Disparities:** PCI is an average and does not show the distribution of income. A country might have a high PCI, but if wealth is concentrated in a few hands, many people could still be poor. - *Example:* In Country A, 90% of people earn $500, and 10% earn $9500. Average is $1400. In Country B, everyone earns $1400. Both have same PCI, but Country B is more equitable. - **Non-Material Goods and Services:** Money cannot buy everything needed to live well. PCI doesn't account for: - **Freedom and Security:** A sense of safety and liberty is crucial for a good life. - **Respect and Equal Treatment:** Social equality and dignity. - **Pollution-free Environment:** Clean air and water, which are often collective goods. - **Protection from Diseases:** Access to public health infrastructure. - **Other Quality of Life Indicators:** PCI alone doesn't reflect critical aspects like health, education, or social services. ### Other Development Indicators - Since income alone is not a sufficient indicator of development, we look at other criteria that reflect the quality of life. - **Comparison of States (India Example):** | State | Infant Mortality Rate (per 1000 live births) | Literacy Rate (2011) | Net Attendance Ratio (per 100 persons) Secondary Stage (14-15 years) 2017-18 | Per Capita Income (2018-19) in ₹ | |------------|----------------------------------------------|----------------------|----------------------------------------------------------------------|----------------------------------| | Haryana | 30 | 82% | 61 | 2,36,147 | | Kerala | 10 | 94% | 83 | 2,05,000 | | Bihar | 32 | 62% | 43 | 40,982 | - **Infant Mortality Rate (IMR):** Indicates the number of children who die before completing one year of age, per 1000 live births. A lower IMR signifies better healthcare facilities and maternal care. - *Observation:* Kerala has a significantly lower IMR than Haryana, despite Haryana having a higher Per Capita Income. This points to better health facilities and public distribution systems in Kerala. - **Literacy Rate:** Measures the proportion of the population aged 7 years and above who can read and write with understanding. A higher literacy rate indicates better educational infrastructure and access. - *Observation:* Kerala has the highest literacy rate, reflecting its strong focus on education. - **Net Attendance Ratio:** The total number of children of age group 14-15 years attending school as a percentage of the total number of children in the same age group. It shows the extent of schooling. - *Observation:* Kerala again leads in Net Attendance Ratio, suggesting more children are completing secondary education. - **Human Development Index (HDI):** - Developed by the United Nations Development Programme (UNDP), HDI is a composite index used to rank countries based on their level of human development. - It provides a more holistic and comprehensive view of development than just income. - **Components of HDI:** 1. **Health:** Measured by **Life Expectancy at Birth** (average expected length of life of a person at the time of birth). 2. **Education:** Measured by: - **Mean Years of Schooling:** Average number of years of education received by people aged 25 and older. - **Expected Years of Schooling:** Number of years of schooling a child of school-entering age can expect to receive. 3. **Standard of Living:** Measured by **Per Capita Income** (Gross National Income per capita in PPP $). - **India's Position (2020-21):** India's HDI rank was 132 out of 191 countries. While its GNI per capita has increased, improvements in health and education indicators are also crucial for moving up the ranks. ### Public Facilities - **Why are Public Facilities Important?** - Money in your pocket cannot buy all the goods and services you may need to live well. - Many essential services are best provided collectively by the government or community, rather than individuals purchasing them. - *Examples:* - **Pollution-free environment:** You cannot buy a pollution-free environment with money. It requires collective action and government regulation. - **Unadulterated medicines:** Ensuring the quality of medicines requires robust public health systems and regulations. - **Protection from infectious diseases:** Preventing the spread of diseases like COVID-19 requires collective efforts in vaccination, sanitation, and public health campaigns. - **Examples of Public Facilities:** - **Public Distribution System (PDS):** Provides food security by distributing essential food grains at subsidized prices. - **Public Schools:** Offer education to all sections of society, ensuring literacy and skill development. - **Government Hospitals and Healthcare Centers:** Provide affordable medical care, vaccinations, and health awareness programs. - **Law and Order:** Ensures safety and security for all citizens. - **Sanitation Facilities:** Public toilets, waste management systems to maintain hygiene and prevent diseases. - **Roads and Public Transport:** Essential infrastructure for connectivity and economic activity. - **The Role of Government:** - Governments play a crucial role in providing and maintaining public facilities. - They collect taxes from people and use these funds to provide amenities that benefit everyone. - Effective governance and public spending can significantly improve the quality of life and human development indicators. - **Kerala's Example Revisited:** - Kerala has a relatively low Per Capita Income compared to some other states like Haryana, but it boasts a much better Human Development Index. - This is largely due to its significant investments in public facilities, especially in health and education. - The state has a strong public healthcare system, high literacy rates, and good public education infrastructure, ensuring that basic necessities are accessible to a wider population. ### Sustainability of Development - **What is Sustainable Development?** - Sustainable development is defined as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." (Brundtland Commission Report, 1987). - It implies that we must use our resources wisely, ensuring that they are available for future generations. - It's a critical concept because development in the past has often come at the cost of environmental degradation and resource depletion. - **Challenges to Sustainability:** - **Overuse and Depletion of Natural Resources:** - **Groundwater Depletion:** In many parts of the world, including India, groundwater is being overused for agriculture, industry, and domestic consumption. If extraction exceeds replenishment, water tables fall, leading to scarcity. - **Exhaustion of Natural Resources:** Many resources are non-renewable, meaning they will run out after a period of use. - *Example:* Crude oil reserves are finite. If current consumption patterns continue, they will be exhausted in a few decades. - Other examples include coal, iron ore, and other minerals. - **Environmental Degradation:** - **Pollution:** Air, water, and soil pollution from industrial activities, vehicles, and waste disposal. - **Deforestation:** Cutting down forests for agriculture, urbanization, and timber, leading to loss of biodiversity, soil erosion, and climate change. - **Climate Change:** Caused by the emission of greenhouse gases, leading to rising global temperatures, extreme weather events, and sea-level rise. - **Consequences of Non-Sustainable Development:** - Economic growth achieved by exploiting natural resources ultimately leads to long-term problems. - Future generations will face resource scarcity, environmental disasters, and a lower quality of life. - It raises questions of **intergenerational equity** – fairness in the distribution of resources between present and future generations. - **Steps Towards Sustainable Development:** - **Renewable Energy Sources:** Shifting from fossil fuels to solar, wind, hydro, and geothermal energy. - **Resource Conservation:** Reducing consumption, reusing materials, and recycling waste. - **Afforestation:** Planting more trees to combat deforestation and absorb carbon dioxide. - **Pollution Control:** Implementing stricter regulations and adopting cleaner technologies. - **Public Awareness and Education:** Educating people about the importance of environmental protection and sustainable practices. - **International Cooperation:** Global efforts to address issues like climate change and biodiversity loss. - **Sustainable Development Goals (SDGs):** - In 2015, the United Nations adopted 17 Sustainable Development Goals (SDGs) as a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030. - These goals cover a wide range of interconnected global challenges, including: - No Poverty, Zero Hunger, Good Health and Well-being, Quality Education, Gender Equality, Clean Water and Sanitation, Affordable and Clean Energy, Decent Work and Economic Growth, Industry, Innovation, and Infrastructure, Reduced Inequalities, Sustainable Cities and Communities, Responsible Consumption and Production, Climate Action, Life Below Water, Life On Land, Peace, Justice, and Strong Institutions, Partnerships for the Goals. - The SDGs serve as a blueprint for countries to integrate sustainability into their national development strategies.