Development- I

Economics: 2023-2024
 Topics Covered

1 What is development ?

2 Income and other goals

3 National Development

How can we compare development amongst

4
different countries?
Bangalore in 1900
Bengaluru in 2023
Bombay in 1900
Bombay in 1900
Mumbai in 2023
DEVELOPMENT
 Let’s understand

ARYAN RAMAPPA THRUPTHI

 What is Development?

GROWTH
ACHIEVEMENT
PROGRESS
IMPROVEMENT
EVOLUTION
 Topics Covered

1 What is development ?

2 Income and other goals

3 National Development

How can we compare development amongst

4
different countries?
 Perspectives of Development

Different individuals 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.
Development may be a mix of material and non-material goals.
Development goals include both economic development and
better quality of life.
 Topics Covered

1 What is development ?

2 Income and other goals

3 National Development

How can we compare development amongst

4
different countries?
 Let’s understand

ARYAN RAMAPPA THRUPTHI

 National Development
If the idea of development differs from person to person,
what should be the idea of development for a nation?
National Development

More income for everyone

Equality for all
Cleanliness
Technologically advanced
Healthy environment
Better education
Healthcare facilities
 Topics Covered

1 What is development ?

2 Income and other goals

3 National Development

How can we compare development amongst

4
different countries?
 Let’s take an example!

COUNTRY A COUNTRY B
 National Income
Countries are compared by comparing their National Income.

What
National income is the
total income of all the
residents of the country.

Why
More income means
more of all things that
human beings need.
 Drawback of Comparison on National Income
It is not a useful measure as different countries have different populations and
comparing total income will not state the average amount earned by a person.
The wellness of people also depends on the population of the country.
 So, what is the alternative to national income?

A country with higher average income is well off than the other.

The average income is also called per capita income.

 Per Capita Income

Per Capita Income: The total income of the country divided by its
total population.
Per Capita Income
 Drawback of Using Average Income
While average income is useful for comparison, it does not tell us
how this income is distributed among people.
It hides disparities!
 Per Capita Income

The World bank publishes the World Development Report (WDR)

every year.

Based on this report:

• Countries with PCI of US $49,300 per annum- HIGH

INCOME COUNTRIES or RICH COUNTRIES- Developed
Countries
• Countries with PCI of US $2500 or less are LOW
INCOME COUNTRIES
We’ve got you
covered!
Like! Share! Subscribe!
 Development- II
Economics: 2023-2024
 Summary

• Different people can have different

goals.
• At times, the idea of development
Perspectives of may be conflicting between two
development individuals or groups. It may even
be destructive for
the other.
• Development includes both
material and non-material goals.
 National Income
Countries are compared by comparing their National Income.

What
National income is the
total income of all the
residents of the country.

Why
More income means
more of all things that
human beings need.
If the national income of the United States of America is highest in the
world, it means it is the most developed country in the world.

A True

B False
If the national income of the United States of America is highest in the
world, it means it is the most developed country in the world.

A True

B False

Income is just one of the many aspects of development!

 Per Capita Income

Per Capita Income: The total income of the country divided by its
total population.
If the average income in a country has been increasing over a period of
time, can we conclude that all sections of the economy have become
better?

A Yes

B No
If the average income in a country has been increasing over a period of
time, can we conclude that all sections of the economy have become
better?

A Yes

B No
Other Attributes of Development

Per capita income (in Rupees)

 Other Attributes of Development

Out of three, Haryana has highest per

capita income
Therefore, it should be most developed.
Bihar has lowest per capita income
Therefore, it should be least developed.

But, per capita income is not a great

indicator of development as it does not Per capita income (in Rupees)
say anything about distribution of income
or quality of life.
 Important Terminologies

Infant Mortality Rate (IMR):

It indicates the number of children
that die before the age of one year as
a proportion of 1000 live children born
in that particular year.

IMR indicates the overall health

scenario of the country.

Lower the IMR, higher the development

of a region
 Important Terminologies

Literacy Rate:
It measures the proportion of literate
population in the 7-and-above age group.

Net Attendance Ratio:

It is the total number of children of a
certain age group (14-15) attending
school as a percentage of total number
of children in the same age group.
 Amongst the 3 States..

IMR per 1,000 live births

Rupees in Lakhs
Infant Mortality Rate Per Capita Income

Haryana has highest per capita income but its Infant

Mortality rate is also high.
 Amongst the 3 States..

Net Attendance Ratio in %

As compared to Kerala, Haryana’s Net

Attendance Ratio is also low.
 Amongst the 3 States..

IMR per 1,000 live births

Rupees in Lakhs
Infant Mortality Rate Per Capita Income

Bihar is not only low on per capita income, but also

has a high IMR and a low Net Attendance Ratio.
 Amongst the 3 States..

As compared to Bihar is not only low on per

Haryana has highest per
Kerala, Haryana’s Net capita income, but also has a
capita income but its Infant
Attendance Ratio high IMR and a low Net
Mortality rate is also high.
is also low. Attendance Ratio.
IMR per 1,000 live births

IMR per 1,000 live births

Rupees in Lakhs

Rupees in Lakhs
Infant Mortality Rate Per Capita Income Net Attendance Ratio in % Infant Mortality Rate Per Capita Income
What makes a region more developed than the other?
Community Participation
Efficient Public Facilities

KERALA
 Body Mass Index

Body Mass Index (BMI) is a person’s weight in

kilograms (or pounds) divided by the square of
height in meters (or feet).
So, how to measure development?

Human Development Index

 Human Development Index (HDI)
HDI is the average achievement in key dimensions of human development.

Life expectancy Education Per capita income

at birth

To measure a long To measure capabilities To measure standard

and healthy life of people of living
 Human Development Index (HDI)

Life Expectancy at birth Education measured by

denotes average Average years of Per Capita Income is
expected length of life schooling of adults + calculated in dollars for
of a person at the time Expected years of all countries so that
of birth. schooling for children it can be compared.
entering school
Human Development Report Published by UNDP
Countries are ranked as per their HDI value.
HDI ranks are out of 189 countries in all.
HDI helps to understand the areas of improvement for a country.
UN
DP
Human Development Report (HDR)
Countries Rank
Norway 01
Switzerland 02
U.S.A 17
Japan 19
Sri Lanka 72
China 85
Bhutan 129
Namibia 130
India 131
Bangladesh 133
Human Development Report, 2020
 Can development be sustained forever?
Development consumes resources of the nation.
Overconsumption will exhaust the availability of natural resources for the
future generations.
 Sustainable Development

Sustainable development
is development that meets the
needs of the present without
compromising the ability of
future generations to meet their
own needs.
 Mind Map

Perspectives of Indicators of Measuring

development economic development
development

• Different people can

have different goals. Indicators of
development:
• At times, the idea of
development may be • National income Human Development
conflicting between • Per-capita income Index (HDI) based on:
two individuals or • Per capita income
• Health and education
groups. It may even status • Life expectancy
be destructive for at birth
the other. • Infant mortality rate
• Literacy rate
• Average years
• Development includes of schooling
both material and • Net attendance ratio
non-material goals. • Public facilities
Infant Mortality Rate (IMR) indicates the number of babies _______________.

A less than a year old who die for every 100 live births in a year

B less than 5 years old who die for every 100 live births in a year

C less than 5 years old who die for every 1000 live births a year

D less than a year old who die for every 1000 live births in a year
Infant Mortality Rate (IMR) indicates the number of babies _______________.

A less than a year old who die for every 100 live births in a year

B less than 5 years old who die for every 100 live births in a year

C less than 5 years old who die for every 1000 live births in a year

D less than a year old who die for every 1000 live births in a year
We’ve got you
covered!
Like! Share! Subscribe!