Notes Class 10 Economics Chapter 1 Development

Notes For All Chapters Economics Class 10 CBSE

1. Understanding Development

• Development means progress or improvement in the living standard of people and the nation.
• People always think about:
  • How life can be better,
  • What they want to achieve,
  • How society should be,
  • Whether equality and justice exist.
• Development is not just about money but also about social, political, and environmental well-being.
• It is a complex process involving economic growth, social justice, equality, and sustainability.

2. Different People, Different Goals

• People have different developmental goals depending on their needs, desires, and situations.
• Example:
  • Landless labourer: More days of work, better wages, quality education, and no discrimination.
  • Prosperous farmer: Higher income, higher crop prices, and better opportunities for children.
  • Urban unemployed youth: Employment opportunities.
  • Rich urban girl: Equal freedom as her brother, chance to study abroad.
• Key point:
  • What may be development for one person may not be development for another.
  • Sometimes, one’s development goal can conflict with another’s.
    • Example: Industrialists want big dams for electricity, but tribals lose land due to submergence.

3. Income and Other Goals

• Income is an important goal, but not the only one.
• People also want:
  • Equal treatment,
  • Freedom,
  • Security,
  • Respect,
  • Dignity.
• Non-material things (respect, security, freedom, healthy environment) are equally important.
• Example:
  • A job with less income but job security may be preferred over high-paying but insecure work.
  • Women’s dignity increases with work participation, but respect and equality at home are equally important.

4. National Development

• Like individuals, different people may have different notions of what national development should mean.
• Conflicts may arise:
  • Example: Government builds a dam → good for industries but bad for displaced villagers.
• Fair and just development must benefit the majority of people and balance interests.

5. Comparing Different Countries or States

• Comparison requires indicators.
• Commonly used: Average Income / Per Capita Income.
  • Formula:
  • 
• World Bank Classification (2019):
  • Rich/High-Income: Per capita income ≥ US $49,300 per annum.
  • Low-Income: Per capita income ≤ US $2,500 per annum.
  • India: US $6,700 → Low Middle-Income Country.
• Limitations:
  • Average income does not show income distribution.
  • Example: Country A (equal distribution) vs. Country B (one very rich, rest poor) → both same average but very different situations.

6. Income and Other Criteria

• Development cannot be measured only by income.
• Example: Haryana vs Kerala vs Bihar (2018–19 data):
  • Haryana: Highest income (₹2,36,147).
  • Kerala: Lower income but better health and education (low Infant Mortality Rate, high literacy, high attendance ratio).
  • Bihar: Lowest income, poor in health and education indicators.
• Conclusion:
  • Public facilities like schools, hospitals, sanitation, and clean environment are essential.
  • Income alone cannot ensure well-being.

7. Public Facilities

• Many important things cannot be bought individually (clean air, safe water, public health).
• Example:
  • Infant Mortality Rate in Kerala is lower because of good healthcare.
  • Collective provision (like schools, healthcare, PDS ration shops) is cheaper and better than private provision.

8. Human Development Report (HDR)

• Published by UNDP (United Nations Development Programme).
• Uses Human Development Index (HDI).

Indicators in HDI:

1. Income (GNI per capita, PPP $)
2. Health (Life expectancy at birth)
3. Education (Mean years of schooling)

Example (Table 1.6 – India & Neighbours, 2019):

• Sri Lanka: GNI $12,707, Life expectancy 77, HDI Rank 73
• India: GNI $6,681, Life expectancy 69.7, HDI Rank 130
• Nepal & Bangladesh: Lower income than India, but higher life expectancy.

9. Sustainability of Development

• Present development must not harm future generations.
• Sustainable development = Using resources wisely.

Examples:

1. Groundwater in India

• Overuse is common (Punjab, Western UP).
• In 25 years, 60% of India may face groundwater crisis.
• Overuse = Unsustainable.

2. Crude Oil Reserves (Table 1.7)

• World reserves: 1,697 billion barrels (last ~50 years).
• USA reserves: last only ~10 years.
• Oil is non-renewable, import dependence creates problems.