1. Class X Chapter 1 - Development
Economics
Class X
Chapter 1 - Development

2. Concept of Development
What is the real meaning of development?
Why do some develop and other remain poor?
How do we measure development?

3. Concept of Development
Some Definitions
Development is a multi dimensional process involving changes in social structures, popular attitudes, and national institutions, as well as the acceleration of economic growth, the reduction of inequality, and the eradication of poverty.” (Todaro and Smith)
Development is 'to lead long and healthy lives, to be knowledgeable, to have access to the resources needed for a decent standard of living and to be able to participate in the life of the community.’ (United Nation Development Programme)

4. Need and Wants
A need is something you and your family must have in order to live safe, healthy lives. You need clothes, shelter, medicine, and transportation.
A want is something that you or your family spends money on and enjoys, but does not need.

5. Read each scenario and tell whether each purchase is a need or a want!
Your socks are worn out, so you go to the store to buy new ones.
Your basketball ball is worn out so you go to the sporting goods store to buy a new one.
You are sick so your mother goes to the chemist to buy cold medicine.
Your house needs a new roof, so your parents hire a contractor to fix it.
Your father's birthday is coming up. You buy him tickets to an IPL match to give him as a gift.

6. Read each scenario and tell whether each purchase is a need or a want !
You buy paper and markers so you can make your grandmother a special card for her birthday.
You go to the store and buy eggs, butter, milk, and a loaf of bread.
Your mother takes your sister to the eye doctor and buys her a pair of glasses.
Your family has a brand new swimming pool put in the backyard of your house.
Your father stops at the gas station and puts 10 liters of petrol in his car.

7. Development Goals
Development is a process and goals are ever-changing.
Different people have different developmental goals because their aspirations, desires, needs as well as their life situations are different from each other.
It is conflicting in nature! Development for some may be detrimental for others.

8. Why the conflict? The conflict arises out of limited resources.
Presence of opportunity cost. It is the availability of a next best alternative to an action.
The available resource is limited and its use for one purpose creates the situation wherein it can’t be used for any other purpose.
On a particular piece of land we can either build homes, a school, a hospital, a club or a mall. But only one thing.

9. Worksheet
Which of the following is most likely to be a development goal for landless rural labourers?
(a) Highest support prices for their crops
(b) They should be able to settle their children abroad
(c) Raised wages
(d) None of these
What term do we use to describe items that are necessary for our survival?
(a) Scarcity
(b)Shortage
(c)Need
(d)Want

10. A purchase of four new pairs of a highly sought-after shoe could be described as fulfilling a:
(a)Good
(b)Service
(c)Want
(d) Need
Which of these is not an example of conflicting goal?
(a) Industrialist want dams and tribal's do not.
(b) A young girl wants the same freedom as her brother.
(c) A company wants more profit and worker wants higher wages.
(d) Teacher wants students to excel and students want more marks.

11. Case study
An old neighbourhood hood in Delhi has been revamped recently and a posh, state of the art condominium has been built in its place. The condominium have started of the art features, big plush apartments at least having 4 huge bedroom, gym, sauna and swimming pool facilities, play area jogging tracks, party hall and various other services. Each flat has retailed for more than 3 crores and many rich and affluent families have purchased flats there.
The back of neighbouring area of the condo had been a slum cluster. Right opposite to the condo, on the main road, there is a community centre managed by a trust which was used to provide free education, training and health care to the slum dwellers. Now the developers of the condominium want to buy the land on which the community centre is built on and revamp that area into a mall that will support the condominium. The slum dwellers are opposing this sale as the want the trust to keep in running the community centre.

12. Problems
Discuss the conflicting goals of various parties involved in this case.
Builder of the condominium
Residents of the condominium
Slum Dwellers
The trust who owns and run the community centre
What are the societal goals in this case?

13. Individual Goals and their Selection
Income – we want to earn more. Also income should grow more than expenditure
Quality of Life – Clean roads , surrounding and environment.
Health Care – we should have health care to we should have the best health care.
Education – education for all , quality of education and education that leads to employment.
Leisure Time – as income grows , our desire for leisure time and activities also grow.

14. Work and Leisure
Growing numbers of people in urban cities are meeting their basic needs and enjoying more discretionary income. Spending on leisure and entertainment is a mark of success. Rising affluence and value shifts have changed what society and people consider to be work. Psychology, psychiatry, and other forms of therapy and counseling became occupations just in the last century. Before that, therapeutic needs were met informally and nonprofessionally by the family. Today’s societies, can afford to train professionals to meet these needs. Legislation and rising incomes in have reduced the average workweek. As a result, leisure time has increased more than 50% and discretionary income has doubled. These statistics have translated into hundreds of billions of dollars for leisure and entertainment industries. The rise of www has also bought new career choices and in some cases the distinction between work and leisure is blurring.

15. Work and Leisure Problems-
Discuss the reasons behind growing number of leisure hours.
Each participant to list their work and leisure activities and then to quantify. Then, ask create a pie chart and discuss the time distribution and reasons behind it.
Opportunity cost is what you miss out on by choosing another alternative. Discuss the concept.

16. National Development Concept
National development can be the expansion and growth of people in an area or government.
It can mean development of infrastructures such as roads, hospitals or airports also it's peoples, such as educational and health, even sports.
There are two prominent trends in India:
Impressive economic growth and wealth creation;
Stagnation in key social indicators, particularly among disadvantaged populations (i.e. geographically, by caste, gender). 

17. Income and its Average
Income of a person- money we earn by undertaking any economic activity is our income.
Income of a country-what all the citizens of a country earns, collectively is the income of a country.
Average Income- the total income of a country divided by its population. Also called per capita income
NATION
PER-CAPITA
RICH
Rs.453,000
POOR
Rs.37000
INDIA
Rs.28000
SOURCE-NCERT

18. Per Capita Income
Preferred for comparison due to difference in population levels.
Comparison of per capita income does not take into account the changes in price levels – inflation.
International comparisons can be distorted by differences in the costs of living between countries.
It does not reflect income distribution. If the distribution of income within a country is skewed, a small wealthy class can increase per capita income far above that of the majority of the population.
Economic activity that does not result in income, such as services provided within the family, or for barter, is usually not counted. The importance of these services varies widely among different economies.

19. Comparison over states
SOURCE-NCERT
STATES
PER CPITA INCOME ( )
PUNJAB
26000
BIHAR
5700
KERELA
22800
The above table shows the per capita income of three states .
Show income distribution can vary geographically within a same nation.
Can this measure development?

20. Other basis of Comparisons
BMI- Body Mass Index - defined as the individual's body mass divided by the square of their height - with the value universally being given in units of kg/m2.
Literacy Rate – measures proportion of people in the age group of seven and above who can read , write and do basic calculations.
Infant Mortality Rate – indicates number of children that die before the age of one year in proportion to 1000 surviving children born in the same year.
Life Expectancy – measures till what age a person is expected to live.
Net attendance Ratio- measures the number of children in age group of 6-10 years, that are attending school in proportion to total number of children in the same age group.
Gross Enrollment Ratio – is the enrollment ratio for all three levels i.e. primary school, secondary school and higher education.

21. Comparative Data for States
INFANT MORTALITY RATE (2003)
LITERACY RATE (2001)
NET ATTENDENCE RATION CLASS I-V ( )
PUNJAB 49 70 81
KERALA 11 91
BIHAR 60 47 41

22. Public Facilities
Public Facilities are the facilities provided by the government to its citizens that are universally available regardless of the income.
Some facilities are essential for other basic services to be used like electricity.
Facilities satisfy specific individual or community needs - including safety and security, communication, recreation, sport, education, health.
They improve the standard of living of the people they are provided to- better the quality of facilities, better the standard of living!
Kerala provides better health and educational facilities and a well run ‘public distribution system’ which gives it a higher grade in overall development.

23. Is India a Developed Nation

24. Human Development Report
Published by UNDP, is a statistical tool for measuring development.
UNDP stands for ‘United Nation Development Programme’.
It publishes HDI which stands for ‘ Human Development Index”.
It compares countries on the basis of their per capita income, health status and educational levels.
It ranks 177 countries on the basis of its citizens standard of living and well being.
This index was created by Amartya Sen in collaboration with Mahbub ul Haq, a noted Pakistani economist in 1990.

25. Human Development Index
COUNTRY
Per capita
($)
Life Expectancy at birth
Literacy Rate
Gross Enrollment Ratio
HDI Rank
USA
35,750 77
100 92 8
SRILANKA
4390 74 91 69 93
INDIA
3139 64 61 60
126
MAYANMAR
1027 90 48
130
PAKISTAN
2225 63 50 35
134
NEPAL
1490 62
138
BANGLADESH
1870 41 53
137

26. Sustainable Development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts:
The concept of needs, in particular the essential needs
The idea of limitations imposed by the state of technology and social organisation on the environment's ability to meet present and future needs.“
Occurs when Human impacts can be repaired by the Earth's natural and biological process. Human activities maintains-
Natural habitats, abundance and diversity of flora and fauna.
Extraction and use of natural resources within natural replacement rates.
Natural cycles or process.

27. Groundwater and Sustainable Development
India is the largest groundwater user in the world.
Groundwater has played a significant role in the maintenance of India’s economy, environment, and standard of living.
Groundwater depletion has become an increasingly important policy concern
The factors driving this expansion include poor public irrigation and drinking water delivery, new pump technologies, the flexibility and timeliness of groundwater supply, and government electricity subsidies
Depletion is concentrated in many of the most populated and economically productive areas.

28. Energy we Use
Renewable energy is the energy which is generated from natural sources
i.e. sun, wind, rain.
They are available in plenty and by far most the cleanest sources of energy available on this planet.
Non-Renewable energy is the energy which is taken from the sources that are
Available on the Earth in limited quantity
Cannot be regenerated within a short span of time.
They are not environmental friendly and can have serious affect on our health.
It exist in the form of fossil fuels, natural gas, oil and coal.

29. Renewable Sources of Energy Non Renewable Sources of Energy
Available in abundant quantity and free to use.
Available in limited quantity and natural regeneration very slow.
Low carbon emissions and are considered environment friendly.
Release toxic gases when used; environmental unfriendly- major cause for global warming.
Not easy to use- initial set up cost are very high.
Cheap and easy to use.
Its time to create ways to harness these sources.
These sources are going to expire soon.

30. Fill ups -
Coal, natural gas and oil are all _________________ (renewable / non-renewable) energy resources. They release____________ (energy / electricity) when they are burned.
b) Wind and solar energy are _______________ (renewable /non- renewable) because they _______ (can / cannot) be replaced.
c) Coal, natural gas and oil are called ________________ (nuclear fuels / fossil fuels).
d) Two more examples of renewable energies are _________________ and _________________.

31. Environmental degradation
 Is the deterioration of the environment through depletion of resources such as air, water and soil , the destruction of ecosystems and the extinction of wildlife.
Defined as any change or disturbance to the environment perceived to be deleterious or undesirable.
Includes air pollution, water pollution, garbage, natural resource depletion, falling ground water tables, loss of biodiversity and degradation of forest and agricultural land.

32. Crude oil and issues around it
Region
Reserves (billion tones)
Number of years the
reserves will last
Middle East 89 93
USA 4 10
World
137 43
Source NCERT
Oil provides 40% of traded energy, 90% of transport fuel, and is critical for agriculture and generation of electrical power. 
Failure to recognise the consequences of depletion leads to international tensions with countries vying with each other for access to the remaining oil supply, half of which lies in just five Middle East countries.
Due to high demand, erratic supply and difficult exploration methods are causing oil prices to soar globally.
India being a oil importer has to risk of its economy always being exposed to global see saw trends.