CBSE Class 10 Economics · Chapter 1

Development

Why a fat paycheque alone never tells you how well a country lives

Summary

The chapter shows that 'development' means different things to different people, because each person has their own goals and aspirations. The same change can be development for one group and a problem for another, so development is never one-dimensional.

It explains that income is important but not enough. People also want equal treatment, freedom, security and respect, so we must look beyond money to things like health and education. To compare countries the World Bank uses average (per capita) income, while the UNDP uses the broader Human Development Index.

Finally it argues that resources must be used sustainably. Groundwater over-use and exhaustible resources like crude oil show that development which ignores the environment and future generations cannot last.

Key points to remember

  • Different people can have different, even conflicting, notions of development.
  • Development has both income and non-material goals: equal treatment, freedom, security, respect.
  • Per capita income (average income) is the World Bank's main criterion to classify countries.
  • Per capita income hides distribution — averages can mask inequality between people.
  • Human Development Index (UNDP) uses per capita income, education and health (life expectancy).
  • Health is measured by indicators like life expectancy and Infant Mortality Rate (IMR); education by literacy rate and attendance.
  • Body Mass Index (BMI) is a simple way to check if an adult is undernourished.
  • Sustainable development uses resources so that the needs of future generations are not harmed.

Important questions (board pattern)

  • 5 marksWhy is per capita income not an adequate measure of development?

    How to answer: It is only an average and hides distribution and inequality; ignores health, education, environment and freedoms — hence HDI is broader.

  • 3 marksWhat are the criteria used by the UNDP to measure development through HDI?

    How to answer: Per capita income, education (years of schooling), and health measured by life expectancy at birth.

  • 3 marksGive two examples to show that development can mean different things to different people.

    How to answer: E.g. a dam helps an industrialist but displaces villagers; more wages suit a labourer while a factory owner wants lower costs.

  • 1 markWhat is sustainable development?

    How to answer: Using resources to meet present needs without harming the ability of future generations to meet theirs.

  • 1 markDefine Infant Mortality Rate.

    How to answer: Number of children who die before the age of one year per 1,000 live births in a given year.

Common exam traps

  • Per capita income is an average — never say it shows how income is actually shared among people.
  • Don't confuse the World Bank criterion (per capita income) with the UNDP's HDI (income + education + health).
  • Literacy rate, IMR and life expectancy measure health/education, not income — keep the indicators in the right box.
  • Development goals are not only material; remember freedom, security, equal treatment and respect.

Frequently asked questions

What is per capita income?
It is the total income of a country divided by its total population, i.e. the average income of a person. The World Bank uses it to classify countries as rich or low-income.
Why do we need the Human Development Index?
Because income alone misses health and education. The HDI combines per capita income, education and life expectancy to give a fuller picture of how well people actually live.
What does Body Mass Index tell us?
BMI is weight (kg) divided by height (in metres) squared. A low BMI signals that an adult may be undernourished, which is a quick check on nutrition and health.
Why is sustainability important for development?
Because resources like groundwater and crude oil are limited. If we exhaust or pollute them now, future generations will not be able to meet their own needs.