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Economics Ch-1 Development Notes
Economics Ch-1 Development Notes
SESSION-2021-2022
SOCIAL SCIENCE: ECONOMICS
CHAPTER 1: DEVELOPMENT
Q1.What is development?
Ans. Development is the process in which something grows, becomes more mature and advance.
1. Different people can have different development goals. E.g. A rich person’s development goal will be
totally different than the goals of a poor person.
2. Development for one may not be development for other. It may even be destructive for others. E.g. A girl
expects as much freedom and opportunities as her brother and that he also shares the household
chores. Her brother may not like this. Or the development goal of an industrialist may interfere with
the development goal of an Adivasi if the former tries to displace the latter while setting up his/her
business.
3. Development is a mix of goals. E.g. Development is mix of income, better standard of living, less
discrimination in the society etc.
Q5.What is considered to be one of the most important attribute for comparing countries?
Ans. Average income or per capita income is one of the most important attribute for comparing countries.
Q6.What is the main criterion used by the World Bank in classifying different countries? What are
the limitations of this criterion, if any?
Ans. The World Bank considers only the per capita income as the indicator of development. It has classified
countries into three major categories based on Per capita income of the countries:
a) Countries with per capita income of US$ 12,056 per annum and above in 2017, are called rich
countries
b) Countries with per capita income between US$ 12,055 per annum and US$ 956 per annum are the
low middle income countries.
c) And those with per capita income of US$ 955 per annum or less are called low-income countries.
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Note:
• India comes in the category of low middle income countries because its per capita income in
2017 was US$ 1820 per annum.
• The rich countries, excluding countries of Middle East and certain other small countries, are
generally called developed countries.
Q7.Why are the Middle East countries not considered developed as per the World Bank criteria?
Ans. The countries of the Middle East are not called developed in spite of high per capita income because of
they have become rich only with the resources available as they have high per capita income due to the oil
production.
1. They are the countries that have developed They are the countries that are on the path of
themselves and have higher income with development.
high standards of living.
2. Life expectancy is high due to good health Life expectancy is low due to less availability of health
and education facilities. facilities.
3. Literacy rates are higher due to better Literacy rates are low due to less educational facilities.
education facilities.
Decrease in production because of old or obsolete
4. Increase in production because of
technological facilities.
technological facilities.
Q9. “Money cannot buy all the goods and services that a person may need to live well”. Explain the
statement with suitable examples.
Ans.
(1) Income by itself is not an adequate indicator of material goods and services that citizens are able to
use.
(2) Money cannot buy a pollution free environment or cannot ensure unadulterated medicines.
(3) It can also be not able to protect the society from infectious diseases.
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Example: Average person in Haryana has more income than average person in Kerala but lags behind in
other crucial areas like health and education.
Q11. Which Indian neighbor has a better HDI rank than India?
Ans. As per the Human Development Report (HDR), 2018, Srilanka (76) has a better rank than India (130).
Q12. Distinguish between Human Development Report and World Development Report.
Ans.
S.NO. HUMAN DEVELOPMENT REPORT WORLD DEVELOPMENT REPORT
1. It is a yearly report published by UNDP It is published yearly by the World Bank.
(United Nations Development
Program).
3. Its parameters are education, health and It includes National income and Per capita
standard of Living etc. Income.
Q13. What does sustainable development mean? What is the need for sustainable development?
Ans.
Sustainable development is development that meets the needs of the present without compromising the
ability of future generations to meet their own needs.