Quick Revision Notes: Economics - Chapter 1

Class 10 Social Science: Development (विकास)

Definition: Development is a comprehensive process that includes an increase in per capita income, improvement in living standards of people, the status of health, education, socio-cultural, and political well-being.
Core Idea: Different people have different developmental goals (अलग-अलग लोगों के विकास के लक्ष्य अलग-अलग होते हैं). What may be development for one may not be development for the other. It may even be destructive for the other.

Regular Work: People want regular work, better wages, and decent price for their crops or other products.
Non-Material Goals: Besides income, people also seek things like equal treatment, freedom, security, and respect from others.
Crucial Insight: Money, or material things that one can buy with it, is not all that one needs to live well. Quality of life depends on non-material things as well.

Meaning: It refers to the ability of a nation to improve the standard of living of its citizens (जैसे- नागरिकों का जीवन स्तर सुधारना, बुनियादी सुविधाएं देना).
Conflicting Goals: Different people in a country can have different and sometimes conflicting notions of a country's development (उदा. बांध बनाने से बिजली मिलती है लेकिन विस्थापित लोगों को नुकसान होता है).

Total Income: Not a very useful measure because countries have different populations. Comparing total income does not tell us what an average person is likely to earn.
Average Income / Per Capita Income (प्रति व्यक्ति आय):
- It is calculated by dividing the total income of the country by its total population.
- Formula: Per Capita Income = Total Income of the Country / Total Population
World Bank Criterion (World Bank Classifications - 2019):
- Rich Countries / Developed Countries: Countries with Per Capita Income of US$ 49,300 per annum and above in 2019 are called high-income countries.
- Low-Income Countries: Countries with Per Capita Income of US$ 2,500 or less per annum.
- India's Category: India comes in the category of low-middle income countries (Per Capita Income was around US$ 6,700 in 2019).

Per capita income is a useful indicator, but it hides disparities. Therefore, other criteria are needed:

Infant Mortality Rate (IMR / शिशु मृत्यु दर): The number of children that die before the age of one year as a proportion of 1000 live children born in that particular year.
Literacy Rate (साक्षरता दर): Measures the proportion of literate population in the 7 and above age group.
Net Attendance Ratio (शुद्ध उपस्थिति अनुपात): The total number of children of age group 14-15 attending school as a percentage of total number of children in the same age group.

Definition: Published by UNDP (United Nations Development Programme), HDI compares countries based on the educational levels of the people, their health status, and per capita income.
Key Indicators of HDI:
1. Life Expectancy at birth (जीवन प्रत्याशा)
2. Per Capita Income (प्रति व्यक्ति आय - in US Dollars)
3. Educational attainment (Gross Enrolment Ratio for three levels + Mean years of schooling)

Money cannot buy all the goods and services that you need to live well.
Examples: Pollution-free environment, protection from infectious diseases, unadulterated medicines.
Why Public Facilities? Collective provision is cheaper and safer (उदा. सामूहिक सुरक्षा, सार्वजनिक परिवहन, स्कूल, अस्पताल).
Kerala vs. Bihar: Kerala has a low Infant Mortality Rate because it has adequate provision of basic health and educational facilities.

Definition: Sustainable Development refers to development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Problem: Rapid economic development often leads to environmental degradation (पर्यावरण का क्षरण).
Examples of resource exhaustion: Groundwater overuse, crude oil reserves depleting worldwide, pollution of rivers and air.
Crucial Rule: "We have not inherited the world from our forefathers — we have borrowed it from our children." (हमें पृथ्वी अपने पूर्वजों से विरासत में नहीं मिली है, बल्कि हमने इसे अपने बच्चों से उधार लिया है।)