NCERT Explained: Class X Economics, Chapter 1 - Development: Navigating the Path to Progress

Introduction to the Topic

In our daily lives, we often use the word 'development' or 'progress.' We talk about a country being 'developed' or 'developing.' But what does this actually mean? Is it just about having more money? Does a high-rise building signify development, or is it the quality of life of the person living in the hut next to it? In Class X Economics, Chapter 1, titled Development, we move beyond the simple definitions of wealth and explore the complex, multi-dimensional nature of progress.

Development is a process that creates growth, progress, positive change, or the addition of physical, economic, environmental, social, and demographic components. This chapter is fundamental because it teaches students that 'development' is a subjective term—what is development for one person might actually be destructive for another. Understanding this balance is the key to becoming a responsible citizen in a globalized world.

Key Concepts Explained

1. What Development Promises - Different People, Different Goals

The first thing to understand is that the idea of development varies from person to person. People seek things that are most important to them—that which can fulfill their aspirations or desires. For instance, a landless rural laborer might define development as more days of work and better wages, whereas a prosperous farmer from Punjab might want a high family income through higher support prices for their crops and hardworking laborers.

Sometimes, these goals can be conflicting. For example, to get more electricity, industrialists may want more dams. But dams lead to the submergence of land and disrupt the lives of people who are displaced, such as tribals. They might prefer small check dams or tanks to irrigate their land. Therefore, two things are clear: different persons can have different developmental goals, and what may be development for one may not be development for the other. It may even be destructive for the other.

2. Income and Other Goals

While people want more income, it is not the only thing they desire. If you look at people's aspirations, you will find that they also seek things like equal treatment, freedom, security, and respect of others. They resent discrimination. All these are important goals. In fact, in some cases, these may be more important than more income or more consumption because material goods are not all that you need to live.

Money, or material things that one can buy with it, is one factor on which our life depends. But the quality of our life also depends on non-material things. For instance, if you get a job in a far-off place, before accepting it, you would try to consider many factors, apart from income such as facilities for your family, working atmosphere, or opportunity to learn. A job may give you less pay but may offer regular employment that enhances your sense of security. Another job, however, may offer high pay but no job security and also leave no time for your family. This will reduce your sense of security and freedom.

3. National Development

Just as individuals have different goals, their notions of national development are also likely to be different. If you ask students in your class what India should do for development, you will get many different answers. For some, it might mean more schools; for others, it might mean better roads or cheaper healthcare.

When we compare different countries or states, we usually use their income as the most important attribute. Countries with higher income are considered more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need.

4. How to Compare Different Countries or States?

To compare countries, we cannot simply use 'total income' because countries have different populations. Comparing total income will not tell us what an average person is likely to earn. Hence, we use Average Income, which is the total income of the country divided by its total population. It is also called Per Capita Income.

In the World Development Reports brought out by the World Bank, this criterion is used in classifying countries. Countries with per capita income of US$ 49,300 per annum and above in 2019 are called high-income or developed countries. Those with per capita income of US$ 2,500 or less are called low-income countries. India comes in the category of low-middle-income countries because its per capita income in 2019 was just US$ 6,700 per annum.

5. Income and Other Criteria

When we look at individual aspirations, we found that people do not only think of better income but also have goals such as security, respect, and equality. Similarly, when we compare states within India, income isn't the only metric. For example, if we look at Per Capita Income, Haryana is ahead of Kerala. However, if we look at other vital statistics like Infant Mortality Rate (IMR), Literacy Rate, and Net Attendance Ratio, Kerala performs much better than Haryana.

This shows that while money in your pocket cannot buy all the goods and services that you may need to live well. Income by itself is not a completely adequate indicator of material goods and services that citizens are able to use. For example, normally, your money cannot buy you a pollution-free environment or ensure that you get unadulterated medicines, unless you can afford to shift to a community that already has all these things.

6. Public Facilities

Public facilities are those provided by the government to the public. The reason these facilities are important is that for many things, the best way and the cheapest way to provide these goods and services is to provide them collectively. For example, is it cheaper to have collective security for the whole locality or for each house to have its own security guard? Kerala has a low Infant Mortality Rate because it has adequate provision of basic health and educational facilities. Similarly, in some states, the Public Distribution System (PDS) functions well. If a PDS shop, i.e., a ration shop, does not function properly in such a place, the people there are able to get the problem rectified. Health and nutritional status of people of such states is certainly likely to be better.

7. Human Development Report

Once it is realized that even though the level of income is important, it is an inadequate measure of the level of development, we begin to think of other criteria. There could be a long list of such criteria but then it would not be so useful. What we need is a small number of the most important things. Health and education indicators, such as the ones we used in comparison of Kerala and Haryana, are among them.

Over the past decade or so, Health and Education indicators have come to be widely used along with income as a measure of development. For instance, the Human Development Report published by UNDP (United Nations Development Programme) compares countries based on the educational levels of the people, their health status, and per capita income. It is interesting to note that a small country in our neighborhood, Sri Lanka, is much ahead of India in every respect and a big country like ours has such a low rank in the world.

8. Sustainability of Development

Suppose for the present that a particular country is quite developed. We would certainly like this level of development to go up further or at least be maintained for future generations. This is obviously desirable. However, since the second half of the twentieth century, a number of scientists have been warning that the present type, and levels, of development are not sustainable.

Sustainable Development means development that meets the needs of the present without compromising the ability of future generations to meet their own needs. A classic example is groundwater. Groundwater is an example of renewable resources. These resources are replenished by nature as in the case of crops and plants. However, even these resources may be overused. If we use more than what is being replenished by rain, then we would be overusing this resource. Non-renewable resources are those which will get exhausted after years of use. We have a fixed stock on earth which cannot be replenished. Consequences of environmental degradation do not respect national or state boundaries; this issue is no longer region or nation-specific. Our future is linked together.

Summary & Key Takeaways

• Development is multi-dimensional: It includes income, health, education, security, and freedom.
• Per Capita Income: Used by the World Bank to compare countries, calculated as Total Income / Total Population.
• HDI (Human Development Index): A more comprehensive measure used by the UNDP, combining income, life expectancy, and education.
• Public Facilities: Essential services like PDS, health, and education that are provided by the government to improve the quality of life.
• Sustainable Development: Development must be environmentally friendly and resource-efficient so that future generations can also thrive.
• Conflict of Goals: What is development for a rich industrialist (like a dam) might be a disaster for a tribal community (loss of home).