10.1.e 1-development

DEVELOPMENTCompiled By :Dr. R. Ezhilraman, PGT (Geo)

Jawahar Navodaya Vidyalaya, Lepakshi, A.P.

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The Term ‘Economics’ is derived from two Greek words :-

(i) Okios: – a household and (ii) Nemein ( nomos)- Management.

Economics means ‘Home Management’. The head of a family faces the problem of managing the unlimited wants of the family members within the limited income of the family. In fact, the same is true for a society also. The society also faces the problem of tackling unlimited wants of the members of the society with the limited resources available in that society. Dr.R.Ezhilraman, PGT Social Science, JNV Lepakshi

Definition of Economics Adam smith was the Father of Economics

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Development: The ideas of development or progress have always been with us. We have aspirations or desires about what we would like to do and how we would like to live.

Dr.R.Ezhilraman, PGT Social Science, JNV Lepakshi

DEVELOPMENT

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A branch of economics that focuses on improving the economies of developing countries.

Development economics considers how to promote economic growth in such countries by improving factors like health, education, working conditions, domestic and international policies and market conditions.

It examines both macro-economic and micro-economic factors relating to the structure of a developing economy and how that economy can create effective domestic and international growth.


ECONOMIC DEVELOPMENT

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Different persons can have different developmental goals.

What may be development for one may not be development for the other.

It may even be destructive for the other. Different people have different developmental

needs. These needs are based on their particular life situations.

This creates a need for a development goal which can encompass different needs of different people in a fair way.


GOALS OF ECONOMIC DEVELOPMENT

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Development Goals of different Categories of Persons


Category of Persons Development Goals /Aspiration

(i) Landless Rural labourer

1. More days of work; 2. Better wages; 3. Economic and social equality; 4. Local school is able to provide education for their children

(ii)..Prosperous Farmer

Assured a high family income through higher support prices for their crops

(iii) Rich person1) Higher family income 2) Better education to their children 3) To settle their children in abroad

(iv) A girl from rich urban family

She get as much freedom as her brother and is able to decide what she wants to do in life

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It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development.

All round development of a nation may cause by setting up of heavy industries, developing education, health and national income Dr.R.Ezhilraman, PGT Social Science, JNV Lepakshi

NATIONAL DEVELOPMENT

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National Income: It refers to the market values of all good and services which produce in financial year within the country

Average income / per capita income (PCI): it is the ratio of total national income of a country with respect to total population

PCI = Total income of the Country Total population of the Country


Method of Measuring National Development

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World bank has used the criterion of per capita income for classifying into high income and low-income countries.

According to the 2012 World Development Report:-

a) US$12616 per annum and above in 2012 are called rich countries.

b) countries with a PCI of US$1035 or less per annum in 2012

c) In the year 2012, India’s PCI was just US$ 1530 per year.


WORLD DEVELOPMENT REPORT

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Human Development Report (HDR) published by United Nations Development Program (UNDP) compares countries based on educational level of the people, their health status and PCI.

The Basic Human development indicators are:I. Per Capita Income: The total income of a country divided by the

population is called the per capita income of that country.II. Gross National Product: The total income generated in the

country is called Gross National Product. III. Gross Domestic Product: The total income generated minus the

income generated by exports is called the Gross Domestic Product. IV. Infant Mortality Rate: The number of children who die before

completing one year out of 1000 births is called the infant mortality rate. The lesser figure is a better indicator of development. This is an important parameter as it shows the quality and extent of availability of healthcare in a country.


INCOME AND OTHER CRITERIA OF HUMAN DEVELOPMENT

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The Basic Human development indicators are: (cont…)

V. Male to Female Sex Ratio: Number of female per thousand male is called sex ratio. A lesser figure shows society’s aversion to a girl child and worse condition of women in society.

VI. Life expectancy: The maximum age up to which an adult lives is called the life expectancy rate. This also shows the overall quality of life in a country.

VII. (vii) Literacy Rate: It measures the proportion of literate population in the 7 and above age group. The percentage of literate people is another important indicator of development. Education is a big level as it opens newer job opportunities for the educated persons.

VIII. (viii) 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.

IX. (ix) Infrastructure: Roads, railways, airports, ports and power generation are the lifelines of a nation’s economy. A better infrastructure ensures a better economic activity leading to overall prosperity.


INCOME AND HUMAN DEVELOPMENT

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Money in your pocket cannot buy all the goods and services that you may need to live well.

Your money cannot buy you a pollution-free environment.

Money may not protect you from infectious diseases, until your community takes preventive steps.

Therefore public facilities like education, sanitation, peaceful-green and clean environment are more necessary.

Even Government opened many schools and provides other facilities, in many areas, children, particularly girls are not able to achieve secondary level schooling, because of less facilities.


PUBLIC FACILITIES

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Combination of Goals Needed for Development

The above mentioned list is not all inclusive but they are more important than other goals which are not mentioned here.

Every goal or parameter of development is interrelated.

Each goal influences the other and creates an opportunity for development in a fair way.

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Lepakshi

Comparison of Different Countries or States

Comparison of countries are particularly based on their income i.e., it is the basic attribute of comparison.

Countries with higher income are more developed than those with less income.

Here more income means more of things available that human need.


Comparison of India with Its Neighbours on the Basis of Income and Other Criteria

Country

PCI in US$

Life Expectancy at Birth

Literacy Rate

Gross Enrolment Ratio for all Level

HDI Rank

Norway 38550 80 --- 97 1

China 5530 71 91 73 81Sri Lanka 4390 74 91 69 93

India 3139 64 61 60 126Pakistan 2225 63 50 35 134


Here is some of the Countries’ Per Capita Income

No. Country PCI in US$1 Luxembourg 1,08,8322 Norway 84,4443 Qatar 76,1684 Switzerland 67,2465 United Arab Emirates 59,7176 Denmark 56,1477 Australia 55,5908 Sweden 48,8759 United States 47,28410 Netherlands 47,172


World Bank (2009) International Monetary Fund (2010) No. Country PCI in US$1 Monaco 1,86,1752 Liechtenstein 1,34,3923 Luxembourg 1,05,0444 Bermuda 88,7475 Norway 79,0896 Qatar 69,7547 Switzerland 63,6298 Denmark 55,9929 Ireland 51,04910 United Arab Emirates 50,07011 Netherlands 47,917


How to find the income of a country? Here is the answer, to find the income we take the

average income which is the total income of the country and it is divided by the country’s population. The average income is also called as per capita income.

Example: Let us take two countries A & B. suppose population of these countries is 5 person each

Monthly income of citizens

1 2 3 4 5 Average

Country A

9500 10500 9800 1000 10200 8200

Country B

500 500 500 500 48000 10000

Therefore we can conclude that country B is more developed that country A


How to find the income of a State? To find the developed state except income other criteria's

are also kept in mind. Let us take the example of three states Maharashtra, Kerala and Bihar

After studying the table we can conclude that Kerala is the developed state among these three and Bihar is least developed amongst them.

StateInfant mortality rate Per 1000 (2012)

Literacy rate % (2011)

Net attendance ratio (per 100 persons) secondary stage (age 14 & 15 years) 2009-10

Maharashtra 25 82 64

Kerala 12 94 78Bihar 43 62 35

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The word sustainable means something which is not short lived but can continue in future also.

It is a development strategy that manages all natural resources and human resources as well as financial and physical assets for increasing long term wealth and well being.


Sustainable Development

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Sustained rise in the real PCI and quality of life.

Reduction in pollution. Rational use of natural

resources. To fulfils the

requirements of future generations.


Objective or features of Sustainable Development

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The economy of India is the tenth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP)

On a per-capita-income basis, India ranked 141st by nominal GDP and 130th by GDP (PPP) in 2012, according to the IMF.

India's GDP grew by 9.3% in 2010–11. GDP growth rose marginally to 4.8% during the quarter through

March 2013, from about 4.7% in the previous quarter. GDP growth rose marginally to 4.8% during the quarter through

March 2013, from about 4.7% in the previous quarter. The government has forecast a growth rate of 6.1%-6.7% for the

year 2013–14, whilst the RBI expects the same to be at 5.7% Sectoral Composition of GDP (2012) is: in Agricultural Sector -

17.40%; in Industrial Sector – 24.80%; in Service Sector – 56.90%


India’s Economic Development in the Present Scenario

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India ranks second worldwide in farm output. Agriculture and allied sectors accounted for 17.40% in 2012 GDP. The economic contribution of agriculture to India's GDP is steadily

declining with the country's broad-based economic growth. Still, agriculture plays a significant role in the overall socio-

economic fabric of India. Problems Faced by Agricultural Sectors: Poor Condition of Roads,

which causes untimely transport of goods; It increases the gap between demand and supply; and also it Increases transport cost

Lacks Storage Facility: It Causes spoilage of 30% of farmers produce; and it Forces farmers to sell at lesser prices.

Unorganised Retail: Farmers gets just 10 to 30% of price; While farmers from USA and Europe gets 60 to 81; It is assumed that India's 90% of retail market is unorganized

Poor Irrigation System: It causes crop failures in some parts of country;

Delays in crop; Heavy loss to farmers.


India’s Development/Achievement in Agricultural Sector

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Industry accounts for 28.80% of GDP and employs 22% of the total workforce.

India is 11th in the world in terms of nominal factory output.

Textile industry is the 2nd largest source of employment after agriculture, providing employment to over 20 million people.

Retail Market is the Fastest emerging market. It contributes 14% to 15% in GDP and It’s growth estimated to be $450 billion


India’s Development/Achievement in Industrial Sector

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India is 13th place in services output. The services sector provides employment to

27% Information technology contributing to 25% of

the country's total exports in 2007–08. 7 Indian firms among top 15 IT outsourcing

company. Business process outsourcing (BPO)

Contributes 1% of GDP; Employing 2.1 million people with an Annual revenue of 11 Million $.


India’s Development/Achievement in Service Sector

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Service sector is largest contributor in GDP of India.

IT and BPO are major contributor in service sector.

Agricultural sector is having significant contribution in country's economy, and contribution can be increased by solving problems like condition of roads and proper storage facility.

Industrial sector is contributing less than its capabilities and it can be increased by setting manufacturing industries for sustainable economic development.


Overall India’s Development

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The END


Thanks for WatchingWish you all best for your‘All-Round’ Development

Yours ….Dr. R.Ezhilraman, M.A., M.Phil, Ph.D., B.Ed., BLIS, DPCS,

PGT-Social Science, JNV Lepakshi