CBSE X E I DEVELOPMENT

Class X

Economics

Unit I – Development

Notes

According to UN Human Development Report 2011: Sustainability and Inequality, India ranks 134 among 187 countries in terms of the Human Development Index (HDI).

(Sri Lanka: 97; China: 101; Maldives: 109; Bhutan: 141; Pakistan: 145; Bangladesh: 146; Nepal: 157; Afghanistan: 172)

Norway, Australia and Netherlands are at the top of the report while Congo, Niger and Burundi are at the bottom.

Development: It is a measure of standard of living. It refers not only to income but also to the fulfillment of other social and psychological needs like freedom, security and equal treatment. To assess the development of a country we have to take into consideration its per capita income, literacy level and status of general health of the population.

Per Capita Income (PCI): It is the income per person per year in a population or the average income of a country. It is obtained by dividing the total national income by the total population of the nation. It is one of the indicators of a country’s standard of living.

Earned Income: Income derived from active participation in an economic activity like a trade or business or service.

Unearned Income: Income derived without active participation in any economic activity, trade, business or service but derived from ownership of property

Examples of unearned income: Rent, interest / dividend on savings / investment

Economic indicators of development: Per Capita Income (PCI), Gross Domestic Product (GDP), Percentage of people employed in the primary sector, Vehicles per 1000 people, Telephones per 1000 people

Social indicators of development: Life Expectancy, Birth Rate, Literacy Rate, Infant Mortality Rate

Infant Mortality Rate (IMR): The number of children that die before the age of one year out of every 1000 children born in that particular year.

Life Expectancy at Birth: Average expected length of life of a person at the time of birth

Literacy Rate: It is a measure of the proportion of literate population in the age group of 7 years and above.

Net Attendance Ratio: The total number of children attending school as a percentage of total number of children in the same age group.

Body Mass Index (BMI): It is a measure of an adult’s nutrition level. It is calculated by dividing a person’s weight in kg by the square of his/her height in meters. If BMI is less than 18.5, it indicates undernourishment. If BMI is more than 25, it indicates overweight.

Public Distribution System (PDS): It is a measure taken by the government to ensure food security. It provides essential commodities to the poor at subsidized prices.

World Development Report: It is brought out by the World Bank. It classifies countries on the basis of per capita income. According to the World Development Report, countries with per capita income of Rs. 453,000 per annum or more are called rich countries and those with per capita income of Rs. 37,000 or less are called low-income countries. India’s per capita income in 2004 was Rs. 28,000 per annum. Considering the case of a few states, the per capita incomes of Punjab, Kerala and Bihar in 2002-03 were Rs. 26000, Rs. 22800 and Rs. 5700 respectively.

Human Development Index (HDI): It ranks countries on the basis of various indicators such as per capita income, life expectancy at birth, literacy rate, gross enrolment ratio at various levels of school etc.

UNDP: United Nations Development Programme. A wing of the United Nations, it advocates change and connects countries to knowledge, experience and resources to help people build a better life.

Human Development Report: It is published by UNDP. According to the Human Development Report 2006, India ranked 126 out of 177 countries. Sri Lanka, Myanmar, Pakistan, Nepal and Bangladesh ranked 93, 130, 134, 138 and 137 respectively.

Punjab versus Kerala: During 2002-03, Punjab’s per capita income was Rs. 28000 while the per capita income of Kerala was Rs. 22800 only. But the infant mortality rate was 49 in Punjab while it was only 11 in Kerala, in 2003. The literacy rate in the two states was 70 and 91 respectively in 2001. The Net Attendance Ratio for Classes I – V was 81 and 91 respectively in 1995-96.

Sustainable development: Using resources in such a manner that preserves the environment and fulfils the needs of the present without compromising on the needs of the future.