AllBoardSolutionFREE

Chapter 1: Development

Economics · CBSE Class 10 · Understanding Economic Development

Development — Detailed Notes

1. What Development Promises — Different People, Different Goals

The idea of development (or progress) means thinking about what we want to become, how we want to live, and how we can work towards those goals. Two key truths run through the whole chapter:

• Different persons can have different developmental goals. A landless labourer wants more days of work and better wages; a prosperous Punjab farmer wants higher support prices and cheap labour; an urban unemployed youth wants a job; a girl from a land-owning family wants the same freedom as her brother.
• What is development for one may not be development for another — it may even be destructive for the other. Example: industrialists may want more dams for electricity, but the same dam submerges land and displaces tribals, who may instead prefer small check dams. So goals can be not only different but conflicting.

2. Income and Other Goals

Looking across people, one common desire is more income — through regular work, better wages and decent prices. But besides income, people also seek non-material goals: equal treatment, freedom, security, respect of others, and a pollution-free environment. These are often not easily measured, yet they matter deeply.

Example: before accepting a far-off job you weigh not just pay but family facilities, working atmosphere, job security and time for family. A high-pay job with no security and no family time may actually reduce your sense of wellbeing. If women get paid work their dignity rises; if there is respect for women, housework is shared more. So people look at a mix of goals — material and non-material.

3. National Development

Since individuals seek different goals, their idea of national development also differs and can conflict. The key questions are: Can all ideas be treated as equally important? If there is a conflict, how do we decide a fair and just path for all? Would an idea benefit a large number of people or only a small group? National development means thinking about these questions.

4. How to Compare Different Countries or States?

For comparing countries, income is considered the most important attribute, because more income is assumed to buy more of the things people need. But total income is not useful for comparison because countries have different populations. So we use average income = total income ÷ total population, also called per capita income.

World Bank classification (World Development Reports, 2024 data):

• High-income / rich countries: per capita income of US$ 66,500 per annum and above (2024).
• Low-income countries: about US$ 2,300 or less.
• India: per capita income about US$ 11,000 (2024) → a low-middle-income country.
Rich countries (excluding Middle East and certain small countries) are generally called developed countries.

5. Average Income Hides Disparities

Averages are useful but they hide inequalities. Compare two countries with identical average income but different distribution — Country A, where everyone earns roughly the same, versus Country B, where most are poor and one person is extremely rich. Both have the same average, yet most people would prefer Country A because its income is more equitably distributed. So per capita income tells us the size of income but not how it is distributed.

6. Income and Other Criteria — Public Facilities

Money in your pocket cannot buy everything you need to live well — a pollution-free environment, unadulterated medicines, or protection from infectious diseases. Many important things are provided best, and cheapest, collectively (e.g. a school, public security, a Public Distribution System). This is why we need indicators beyond income. Compare three states:

StatePer Capita Income 2023-24 (₹)Infant Mortality Rate (2020)Literacy RateNet Attendance Ratio (15-17 yrs)
Haryana3,25,7592882%73
Kerala2,81,001694%94
Bihar60,3372762%69

Key insight: Haryana has a higher per capita income than Kerala, yet Kerala has a far lower Infant Mortality Rate and higher literacy and attendance. The reason — Kerala has adequate public provision of health and education (and a well-functioning PDS). So income by itself is an inadequate measure of development.

7. Key Terms (do not just memorise — understand)

• Infant Mortality Rate (IMR): number of children who die before age one per 1,000 live births in a year.
• Literacy Rate: proportion of the literate population in the 7-and-above age group.
• Net Attendance Ratio: number of children aged 15-17 attending school, as a % of all children in that age group.
• Life Expectancy at birth: average expected length of life of a person at birth.
• Per Capita Income: total income of a country ÷ its total population.
• Purchasing Power Parity (PPP): adjusts income so that one dollar buys the same amount of goods and services in every country, allowing fair comparison.

8. Human Development — HDI (UNDP Human Development Report)

Once we accept that income alone is inadequate, we add a small number of the most important indicators: health and education. The UNDP's Human Development Index (HDI) ranks countries using three things — per capita income (GNI in PPP $), life expectancy at birth, and mean years of schooling. By "pre-fixing Human to Development", it stresses that what matters is the people — their health and wellbeing.

From HDR 2025 (data for 2023): India's HDI rank was 130 out of 193 countries, with GNI per capita about $9,047 and life expectancy about 72 years. Strikingly, small neighbour Sri Lanka ranks much higher (89), and even Nepal and Bangladesh — with lower per capita income than India — do better in life expectancy. This shows income is not the whole story.

9. Sustainability of Development

We want today's development to continue for future generations. Since the mid-20th century scientists have warned that present levels of development are not sustainable. Resources are of two kinds:

• Renewable resources (groundwater, crops, plants) — replenished by nature, but can still be over-used. India's groundwater is under serious threat: about 300 districts reported a water-level fall of over 4 metres in 20 years, and nearly one-third of the country is over-using its groundwater.
• Non-renewable resources (crude oil, coal) — a fixed stock that gets exhausted. World crude-oil reserves were estimated to last only about 50 years at the 2017 rate of use; India must import oil, so rising prices become a burden for everyone.

Environmental degradation does not respect national or state boundaries — our future is linked together. Hence sustainability is central to any discussion of development. "We have not inherited the world from our forefathers — we have borrowed it from our children."

10. One-line Recap

Development is about diverse, sometimes conflicting goals; income matters but is not enough; we must also look at equitable distribution, health, education (HDI) and the sustainability of the resources our development depends on.

📲 Join our WhatsApp Channel

Get free daily notes, new chapter solutions, model question papers & exam updates — straight on your phone.

Follow on WhatsApp →