What does development promise? Different goals
People have different developmental goals. A landless farmer wants more days of work and better wages. A rich farmer wants higher support prices. A girl from a rich family wants the same freedom as her brother. People living near a river may not want a dam that floods their homes, while industry wants the electricity it gives.
So: different people can have different, and even conflicting, goals. What is development for one may be destruction for another.
Income and other goals
Most people want more income. But people also want equal treatment, freedom, security, respect and a safe place to work. These are non-material goals: they cannot be measured easily but matter a lot.
A woman with a paid job gains respect at home and in society. A good job far from home may be less valuable than a slightly lower-paid job near family. So the quality of life depends on more than money.
How to compare countries: national and per capita income
National income is the total income of all residents of a country. It is not fair for comparison, because countries have different populations.
Per capita income (average income) = total income ÷ total population. The World Bank uses it to classify countries. Countries with high per capita income are 'high-income' or rich; those with low per capita income are 'low-income'. India is a lower-middle-income country.
Averages hide inequality
Two countries may have the same average income, but in one all families earn similar amounts while in the other a few are very rich and most are poor. So averages must be used carefully.
Public facilities, health and education
Money cannot buy everything. Clean surroundings, pollution-free air, medicines that are not fake and protection from infectious diseases often need public facilities, provided collectively. The Public Distribution System (PDS), schools and health centres are examples. Kerala, for instance, has low infant mortality because of good health and education facilities.
- Infant Mortality Rate (IMR): number of children who die before age one, per 1000 live births.
- Literacy rate: share of people aged 7 years and above who can read and write.
- Net attendance ratio: share of children of a given age group attending school.
- Life expectancy: average number of years a person is expected to live at birth.
Human Development Index (HDI)
The Human Development Report of the UNDP (United Nations Development Programme) compares countries by the HDI, which combines:
- Health: life expectancy at birth.
- Education: mean years of schooling of adults and expected years of schooling of children.
- Income: per capita income, adjusted to show what money can buy in each country (in US dollars, PPP).
Some neighbouring countries with lower income than India rank higher on HDI because of better health or education. This shows income is not everything.
Sustainability of development
Sustainable development means development that meets present needs without harming future generations. Many scientists warn that present levels of development may not last.
- Groundwater is renewable, as rain recharges it. But in many parts of India it is being over-used, and water levels are falling fast.
- Non-renewable resources like crude oil and coal will be exhausted after years of use. New sources may be found, but the stock is limited.
Environmental damage does not respect borders; it affects everyone. So sustainability is a concern for all countries.
Key formulas and definitions
- Per capita income = National income ÷ Population
- Average = Sum of all values ÷ Number of values
- Infant Mortality Rate = child deaths before age 1 per 1000 live births
- Literacy rate = literate people aged 7+ ÷ people aged 7+ × 100
- HDI = Health (life expectancy) + Education (years of schooling) + Income (per capita, PPP)
- Sustainable development: meet today's needs without harming future generations.
- Renewable resource: refilled by nature (groundwater); non-renewable: will run out (oil, coal).
Worked examples
1. Country A has national income ₹120 crore and 4 crore people. Find per capita income.
Per capita income = national income ÷ population = ₹120 crore ÷ 4 crore people = ₹30 per person.
2. Five families earn ₹10,000, ₹12,000, ₹8,000, ₹10,000 and ₹10,000 a month. Find the average.
Sum = 10,000 + 12,000 + 8,000 + 10,000 + 10,000 = 50,000. Average = 50,000 ÷ 5 = ₹10,000.
3. Country X incomes: 500, 500, 500, 500, 500. Country Y: 200, 300, 300, 200, 1500. Compare averages and say where you would like to live.
X: 2500 ÷ 5 = 500. Y: 2500 ÷ 5 = 500. Same average, but Y is very unequal; most people would choose X.
4. Why is total national income not a good way to compare two countries?
Countries have different populations. The same total shared by more people means less for each person, so we use per capita income.
5. A state has 900 literate people among 1,200 people aged 7 and above. Find its literacy rate.
Literacy rate = 900 ÷ 1,200 × 100 = 75%.
6. In a town, 24 babies died before age one out of 1,600 live births. Find the IMR.
IMR = 24 ÷ 1,600 × 1000 = 15 per 1000 live births.
Common mistakes
- Using total national income to compare countries. Use per capita income, which accounts for population.
- Thinking a high average means everyone is well off. Averages can hide big inequality.
- Believing income alone measures development. Health, education, freedom and safety matter too.
- Thinking groundwater is non-renewable. It is renewable, but it is being used faster than it refills.