Understanding Development Indicators

• The chapter aims to help students grasp the multifaceted concept of development. People hold varying perspectives on development, but indicators can help establish common ground. The chapter uses relatable situations alongside complex analyses.

Development Indicators

• Selected development indicators enable the comparison of countries or states.
• Economic development is measurable, with income acting as the most common measure.
• The income method is useful but has weaknesses, necessitating ways to assess development.
• Quality of life and environmental sustainability are examples of additional indicators.

Key Terms

• Terms requiring clarification include Per Capita Income, Literacy Rate, Infant Mortality Rate, Attendance Ratio, and Life Expectancy.
• Gross Enrolment Ratio, Human Development Index, and Purchasing Power Parity also need definition.
• These terms aid discussion and are not meant for memorization without understanding.

Data Sources

• The chapter uses data from reports by the Indian government, such as the Economic Survey.
• Reports from the National Family Health Survey and the Handbook of Statistics on the Indian Economy are also used.
• Data is also sourced from the United Nations Development Programme's Human Development Report and the World Bank's World Development Indicators. These reports are updated annually.

Development and Progress

• The concept of development or progress has been a constant consideration.
• Aspirations exist for how people want to live and what a country should be.
• Essential requirements and the possibility of a better life for all are also part of this consideration.
• Development involves addressing how people coexist and whether there can be more equality. The process entails thinking and acting to achieve set goals.

Varying Developmental Goals

• Different people can have their own developmental goals
• What constitutes development for one, may not for another, even destructive

Income and Needs

• Regular work, better wages, and decent prices for products are things people desire
• Equal treatment, freedom, security, and respect are important goals for humans
• These goals are sometimes prioritized over income/consumption
• Quality of Life depends on non-material things that are often ignored like friendships

National Development

• Different people have different ideas on what the goals of national development should be
• Different ideas could conflict
• National development is about finding the fairest path for the largest number of people

Comparing Countries

• Countries are compared considering their income
• Higher income = more developed
• The income of a country is the income of its residents (total income)
• Average income (per capita income) is used when comparing countries, calculated by dividing total income by total population

World Bank

• The World Bank uses income to classify countries
• High income = $63,400 per annum (2023)
• Low income = $2400 or less per annum (2023)
• India = Low-Middle income ($10,030 per annum in 2023)

Average Income

• Averages can be helpful for comparison, but can also mask disparities
• Equitable distribution of income is preferred over large income disparity

Haryana, Kerala, and Bihar

• Haryana has the highest per capita income, with Bihar at the bottom. Haryana will be considered the most developed based on this data
• On average, Haryana earns Rs 2,64,729 in one year while Bihar is Rs 47,500
• Kerala has a low infant mortality rate because they have provision of basic health and educational facilities

Public Facilities

• Money can't buy all goods and services needed to live a good life
• Pollution free environment and unadulterated medicine cannot be bought with money
• Best/cheapest way to provide goods/services is providing them collectively
• Should have collective security for the whole locality

Illiteracy

• High levels of illiteracy are seen in many states
• Free and compulsory education for children expected to be achieved by 1960 in the constitution

Human Development Report

• Even though income is important, it is inadequate to measure development
• Health and education indicators are also important
• The UNDP compares countries based on education, health, and per capita income

India

• Sri Lanka is ahead of India in HDI
• Nepal and Bangladesh have lower per capita income than India, but have better life expectancies

Development

• Suggestions have been made to calculate HDI with new components in the Human Development Report
• Citizens, their health, and their well being are the most important part of development

Sustainability

• Development should be maintained for future generations
• Scientist have been warning that present development is unsustainable

Groundwater

• Groundwater is overused in many parts of the country
• Water levels have declined over the past 20 years
• 1/3 of country is overusing their groundwater reserves

Crude Oil

• Crude oil reserves may only last 50 years more
• Raises fundamental new issues about the nature and process of development
• India depends on importing oil from abroad
• If oil prices increase, this becomes a burden for everyone
• Consequences of environmental degradation do not respect national or state boundaries
• Questioning development is important
• Debate on development continues