Chapter 1 Ecomomics Development Notes

 Chapter 1       Development Important Notes

Development involves desires or aspirations about what would we like to do or how we would like to live. Development involves freedom, participation involvement, economic equality, security, life with dignity etc. Different persons can have different  development goals which may not be  similar or even may be conflicting to each other. Similarly for country's development, different persons could have different as well as conflicting notions. Earning high income is a goal for development. But it is not the only goal. Apart from income, people also consider other goals for development like equal treatment, freedom, security and respect of others. Thus, for development they look at a mix of goals. Simple method for comparing development of different nations is total income or National Income, but it does not provide the equal idea about the development of a country varies. So, we use average income or per capita income. Average or per capita income is obtained by dividing the total income by the population of the country. World Bank uses this method for comparing countries and classifies them into developed and developing countries. Developed countries have higher incomes while developing countries have lower incomes. Average income, hides the other aspects of the development such as equality, literacy, Infant Mortality, healthcare, etc. Human development index is considered as the best criteria to compare the level of development in different countries. Human Development Index compares countries based on three criteria, viz, per capita income, life expectancy, literacy rate and enrolment ratio. Overuse and Excessive exploitation of natural resources for development has created the degradation of environment and forced us to think about sustainable development. This means careful use of resources so that they are saved for the future while fulfilling the needs of present needs.

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