Development Chapter 1 PDF

NOTES FOR NOTES FORTHE TEACHER TEACHERS CHAPTER I : DEVELOPMENT Development has many aspects. The discussed by bringing the learners closer purpose of this chapter is to enable to their real-life situa...

NOTES FOR NOTES FORTHE TEACHER TEACHERS CHAPTER I : DEVELOPMENT Development has many aspects. The discussed by bringing the learners closer purpose of this chapter is to enable to their real-life situations. students to understand this idea. They There are certain terms used in this have to understand that people have chapter that would require clarification — different perspectives on development and Per Capita Income, Literacy Rate, Infant there are ways by which we can arrive at Mortality Rate, Attendance Ratio, Life common indicators for development. To Expectancy, Gross Enrolment Ratio, and do this, we have used situations that they Human Development Index. Though data can respond to in an intuitive manner; we pertaining to these terms are provided, have also presented analysis that is more these would need further explanation. You complex and macro in nature. may also need to clarify the concept of How can countries or states be Purchasing Power Parity that is used to compared using some selected calculate per capita income in Table 1.6. development indicators is another It is necessary to keep in mind that these question that students would read about terms are used as an aid to the discussion in this chapter. Economic development and not something to be memorised. can be measured and income is the most Sources for Information common method for measuring The data for this chapter is taken from development. However, the income reports published by the Government of method, though useful, has several India (Economic Survey, Report of the weaknesses. Hence, we need newer ways National Family Health Survey and of looking at development using indicators Handbook of Statistics on the Indian of quality of life and environmental Economy), United Nations Development sustainability. Programme (Human Development Report) It is necessary for you to expect the and World Bank (World Development students to respond actively in the Indicators). Many of these reports are being classroom and on a topic such as the published every year. It may be interesting above, there would be wide variation in to look up these reports if they are available opinion and possibility of debate. Allow in your school library. If not, you may log students to argue their point of view. At on to the websites of these institutions the end of each section there are a few (www.budgetindia.nic.in, www.undp.org, questions and activities. These serve two www.worldbank.org). Data is also available purposes: first, they recap the ideas from the Reserve Bank’s Handbook of discussed in the section and second, they Statistics on Indian Economy (available at enable better understanding of the themes www.rbi.org). 2 U NDERST ANDING E CONOMIC D EVEL NDERSTANDING OPMENT EVELOPMENT  CHAPTER I DEVELOPMENT The idea of development or progress has always been with us. We have aspirations or desires about what we would like to do and how we would like to live. Similarly, we have ideas about what a country should be like. What are the essential things that we require? Can life be better for all? How should people live together? Can there be more equality? Development involves thinking about these questions and about the ways in which we can work towards achieving these goals. This is a complex task and in this chapter we shall make a beginning at understanding development. You will learn more about these issues in greater depth in higher classes. Also, you will find answers to many of these questions not just in economics but also in your course in history and political science. This is because the way we live today is influenced by the past. We can’t desire for change without being aware of this. In the same way, it is only through a democratic political process that these hopes and “Without me they cannot develop... possibilities can be achieved in in this system I cannot develop!” real life. DEVELOPMENT 3  WHAT DEVELOPMENT PROMISES — DIFFERENT PEOPLE, DIFFERENT GOALS YOU WANT A CAR CAR? THE WAY OUR COUNTRY IS Let us try to imagine what SET UP ALL YOU CAN HOPE FOR IS MAY BE TO ONE DAY OWN THE RICKSHAW YOU PULL! development or progress is likely to mean to different persons listed in Table 1.1. What are their aspirations? You will find that some columns are partially filled. Try to complete the table. You can also add any other category of persons. TABLE 1.1 DEVELOPMENTAL GOALS OF DIFFERENT CATEGORIES OF PERSONS Category of Person Developmental Goals / Aspirations More days of work and better wages; local school is able to Landless rural labourers provide quality education for their children; there is no social discrimination and they too can become leaders in the village. Assured a high family income through higher support prices for Prosperous farmers from Punjab their crops and through hardworking and cheap labourers; they should be able to settle their children abroad. Farmers who depend only on rain for growing crops A rural woman from a land owning family Urban unemployed youth A boy from a rich urban family She gets as much freedom as her brother and is able to A girl from a rich urban family decide what she wants to do in life. She is able to pursue her studies abroad. An adivasi from Narmada valley Having filled Table 1.1, let us now They seek things that are most examine it. Do all of these persons important for them, i.e., that which have the same notion of development can fulfil their aspirations or desires. or progress? Most likely not. Each In fact, at times, two persons or one of them seeks different things. groups of persons may seek things 4 U NDERST ANDING E CONOMIC D EVEL NDERSTANDING OPMENT EVELOPMENT which are conflicting. A girl expects So, two things are quite clear: one, as much freedom and opportunity as different persons can have her brother, and that he also shares different developmental goals and in the household work. Her brother two, what may be development for may not like this. Similarly, to get one may not be development for more electricity, industrialists may the other. It may even be THOSE PEOPLE want more dams. But this may destructive for the other. DON’T WANT TO submerge the land and disrupt the DEVELOP! lives of people who are displaced – such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land. INCOME AND OTHER GOALS If you go over Table 1.1 again, you more income or more consumption will notice one common thing: what because material goods are not all people desire are regular work, better that you need to live. wages, and decent price for their crops Money, or material things that one or other products that they produce. can buy with it, is one factor on which In other words, they want more our life depends. But the quality of our income. life also depends on non-material Besides seeking more income, one- things mentioned above. If it is not way or the other, people also seek obvious to you, then just think of the things like equal treatment, freedom, role of your friends in your life. You A demonstration security, and respect of others. They may desire their friendship. Similarly, meeting against resent discrimination. All these are there are many things that are not raising the height important goals. In fact, in some cases, easily measured but they mean a lot of Sardar Sarovar Dam on these may be more important than to our lives. These are often ignored. Narmada River  However, it will be wrong to conclude Similarly, for development, that what cannot be measured is not people look at a mix of goals. It is important. true that if women are engaged in paid work, their dignity in the household Consider another example. If you and society increases. However, it is get a job in a far off place, before also the case that if there is respect accepting it you would try to consider for women there would be more many factors, apart from income, sharing of housework and a such as facilities for your family, greater acceptance of women working atmosphere, or opportunity working outside. A safe and secure to learn. In another case, a job may environment may allow more women give you less pay but may offer regular to take up a variety of jobs or run employment that enhances your a business. sense of security. Another job, however, may offer high pay but no Hence, the developmental goals job security and also leave no time for that people have are not only about your family. This will reduce your better income but also about other sense of security and freedom. important things in life. LET’S WORK THESE OUT 1. Why do different persons have different notions of development? Which of the following explanations is more important and why? (a) Because people are different. (b) Because life situations of persons are different. 2. Do the following two statements mean the same? Justify your answer. (a) People have different developmental goals. (b) People have conflicting developmental goals. 3. Give some examples where factors other than income are important aspects of our lives. 4. Explain some of the important ideas of the above section in your own words. NATIONAL DEVELOPMENT If, as we have seen above, individuals different persons could have seek different goals, then their notion different as well as conflicting of national development is also likely notions of a country’s development. to be different. Discuss among However, can all the ideas be yourselves on what India should do considered equally important? Or, if for development. there are conflicts how does one Most likely, you would find that decide? What would be a fair and just different students in the class have given path for all? We also have to think different answers to the above question. whether there is a better way of doing In fact, you might yourself think of things. Would the idea benefit a large many different answers and not be too number of people or only a small sure of any of these. It is very group? National development means important to keep in mind that thinking about these questions. 6 U NDERST ANDING E CONOMIC D EVEL NDERSTANDING OPMENT EVELOPMENT  LET’S WORK THESE OUT Discuss the following situations: 1. Look at the picture on the right. What should be the developmental goals for such an area? 2. Read this newspaper report and answer the questions that follow: 0 tonnes A vessel dumped 50 st es in to of liq ui d to xic wa in a cit y and open-air dumps This un din g se a. in the surro lle d y ca ha pp en ed in a cit t, a Co as Ab id ja n in Iv or y me s a. Th e fu country in Afric ste gh ly to xic wa fro m th e hi in rashes, caused nausea, sk etc. After a fainting, diarrhoea pe rs on s we re mo nt h se ve n ty in ho sp ita l and dead, twen treated twenty six thousand g. iso nin for symptoms of po mpany A multinational co m an d de al in g in pe tro leu loc al cte d a metals had contra t to e Ivo ry Co as company of th fro m e tox ic wa ste dispose th its ship. (i) Who are the people who benefited and who did not? (ii) What should be the developmental goal for this country? 3. What can be some of the developmental goals for your village, town or locality? ACTIVITY 1 If even the idea of what constitutes development can be varied and conflicting, then certainly there can be differences about ways of developing. If you know of any such controversy, try to find out arguments advanced by different people. You may do so by talking to different persons or you may find it from newspapers and television. DEVELOPMENT 7  HOW TO COMPARE DIFFERENT COUNTRIES OR STATES? You might ask if development can more developed than others with less mean different things, how come some income. This is based on the countries are generally called understanding that more income developed and others under - means more of all things that human developed? Before we come to this, beings need. Whatever people like, let us consider another question. and should have, they will be able to get with greater income. So, greater When we compare different things, income itself is considered to be one they could have similarities as well as important goal. differences. Which aspects do we use to compare them? Let us look at Now, what is the income of a students in the class itself. How do country? Intuitively, the income of the we compare different students? They country is the income of all the differ in their height, health, talents residents of the country. This gives and interests. The healthiest student us the total income of the country. may not be the most studious one. However, for comparison between The most intelligent student may not countries, total income is not such an be the friendliest one. So, how do we useful measure. Since, countries have compare students? The criterion we different populations, comparing total may use depends on the purpose of income will not tell us what an average comparison. We use different criterion person is likely to earn. Are people in to choose a sports team, a debate one country better off than others in a team, a music team or a team to different country? Hence, we compare organise a picnic. Still, if for some the average income which is the total purpose, we have to choose the income of the country divided by its criterion for the all-round progress of total population. The average income children in the class, how shall we is also called per capita income. do it? In World Development Reports, Usually we take one or more brought out by the World Bank, this important characteristics of criterion is used in classifying persons and compare them based countries. Countries with per capita on these characteristics. Of income of US$ 49,300 per annum and course, there can be differences about above in 2019, are called high income what are important characteristics or rich countries and those with per that should form the basis of capita income of US$ 2500 or less are comparison: friendliness and spirit of called low-income countries. India cooperation, creativity or marks comes in the category of low middle secured? income countries because its per capita income in 2019 was just This is true of development too. US$ 6700 per annum. The rich For comparing countries, their countries, excluding countries of income is considered to be one of Middle East and certain other small the most important attributes. countries, are generally called Countries with higher income are developed countries. 8 U NDERST ANDING E CONOMIC D EVEL NDERSTANDING OPMENT EVELOPMENT  Average Income While ‘averages’ are useful for comparison, they also hide disparities For example, let us consider two countries, A and assured of being its fifth citizen B. For the sake of simplicity, we have assumed but if it is a lottery that decides that they have only five citizens each. Based on our citizenship number then data given in Table 1.2, calculate the average perhaps most of us will prefer to income for both the countries. live in country A. Even though both the countries have identical TABLE 1.2 COMPARISON OF TWO average income, country A is COUNTRIES preferred because it has more Monthly incomes of citizens equitable distribution. In this Country (in Rupees) country people are neither very I II III IV V Average rich nor extremely poor. On the other hand most citizens in Country A 9500 10500 9800 10000 10200 country B are poor and one Country B 500 500 500 500 48000 person is extremely rich. Hence, while average income is useful for Will you be equally happy to live in both these comparison it does not tell us how countries? Are both equally developed? Perhaps this income is distributed among some of us may like to live in country B if we are people. COUNTRY WITH NO RICH AND NO POOR COUNTRY WITH RICH AND POOR WE MADE THE CHAIRS AND WE USE THEM. WE LET’S WORK THESE OUT MADE THE CHAIRS 1. Give three examples where an average is used for comparing situations. AND HE TOOK 2. Why do you think average income is an important criterion for development? Explain. THEM. 3. Besides size of per capita income, what other property of income is important in comparing two or more societies? 4. Suppose records show that the average income in a country has been increasing over a period of time. From this, can we conclude that all sections of the economy have become better? Illustrate your answer with an example. 5. From the text, find out the per capita income level of about 10-15 low-income countries as per World Development Reports. 6. Write a paragraph on your notion of what should India do, or achieve, to become a developed country. DEVELOPMENT 9  INCOME AND OTHER CRITERIA When we looked at individual aspirations and goals, we found that people not only TABLE 1.3 PER CAPITA INCOME think of better income but OF SELECT STATES also have goals such as State Per Capita Income security, respect for others, for 2018–19 (in Rs) equal treatment, freedom, etc. Haryana 2,36,147 in mind. Similarly, when we Kerala 2,04,105 think of a nation or a region, Bihar 40,982 we may, besides average income, think of other equally Source : Economic Survey 2020–21, P.A 29. important attributes. What could these attributes be? income and Bihar is at the bottom. Let us examine this through an This means that, on an average, example. Table 1.3 gives the per capita a person in Haryana earned income of Haryana, Kerala and Bihar. Rs 2,36,147 in one year whereas, on Actually, these figures are of Per an average, a person in Bihar earned Capita Net State Domestic Product at only around Rs 40,982. So, if per capita income were to be used as the Current Prices for 2018–19. Let us measure of development, Haryana will ignore what this complicated term be considered the most developed exactly means. Roughly, we can take and Bihar the least developed state of it to be the per capita income of the the three. Now, let us look at certain state. We find that of the three, other data pertaining to these states Haryana has the highest per capita given in Table 1.4. TABLE 1.4 SOME COMPARATIVE DATA ON HARYANA, KERALA AND BIHAR State Infant Mortality Literacy Rate % Net Attendance Ratio (per Rate per 1,000 100 persons) secondary stage live births (2018) 2017–18 (age 14 and 15 years) 2017–18 Haryana 30 82 61 Kerala 7 94 83 Bihar 32 62 43 Sources : Economic Survey 2020–21, P.A 157, National Sample Survey Organisation (Report No. 585), National statistical office, Government of India. Explanation of some of the terms used in this table: Infant Mortality Rate (or IMR IMR) indicates the number of children that die before the age of one year as a proportion of 1000 live children born in that particular year. Literacy Rate measures the proportion of literate population in the 7-and-above age group. Net Attendance Ratio is the total number of children of age group 14 and 15 years attending school as a percentage of total number of children in the same age group. 10 U NDERST ANDING E CONOMIC D EVEL NDERSTANDING OPMENT EVELOPMENT  What does this table show? The The problem does not end with first column of the table shows that in Infant Mortality Rate. The last column Kerala, out of 1000 children born, 7 of table 1.4 shows that about half of died before completing one year of age the children aged 14-15 in Bihar are but in Haryana the proportion of not attending school beyond Class 8. children dying within one year of birth This means that if you went to school was 30, which is nearly three times in Bihar nearly half of your elementary more than that of Kerala. On the other class friends would be missing. Those hand, the per capita income of who could have been in school are not Haryana is more than that of Kerala there! If this had happened to you, you as shown in Table 1.3. Just think of would not be able to read what you how dear you are to your parents, are reading now. think of how every one is so happy when a child is born. Now, try to think of parents whose children die before they even celebrate their first birthday. How painful it must be to these parents? Next, note the year to which this data pertains. It is 2018. So we are not talking of old times; it is 70 years after independence when our metro cities are full of high rise buildings and shopping malls! Most babies do not get basic healthcare PUBLIC FACILITIES How is it that the average person in Actually for many of the important Haryana has more income than the things in life the best way, also the average person in Kerala but lags cheapest way, is to provide these goods behind in these crucial areas? The and services collectively. Just think – reason is — money in your pocket will it be cheaper to have collective cannot buy all the goods and security for the whole locality or for services that you may need to live each house to have its own security well. So, income by itself is not a staff? What if no one, other than you, completely adequate indicator of in your village or locality is interested material goods and services that in studying? Would you be able to citizens are able to use. For example, study? Not unless your parents could normally, your money cannot buy afford to send you to some private you a pollution-free environment or school elsewhere. So you are actually ensure that you get unadulterated able to study because many other medicines, unless you can afford to children also want to study and shift to a community that already has because many people believe that the all these things. Money may also not government should open schools and be able to protect you from infectious provide other facilities so that all diseases, unless the whole of your children have a chance to study. Even community takes preventive steps. now, in many areas, children, particularly girls, are not able to go to high school because the government/ society has not provided adequate facilities. DEVELOPMENT 11  Kerala has a low Infant Mortality Public Distribution System (PDS) Rate because it has adequate provision functions well. Health and nutritional of basic health and educational status of people of such states is facilities. Similarly, in some states, the certainly likely to be better. LET’S WORK THESE OUT 1. Look at data in Tables 1.3 and 1.4. Is Haryana ahead of Kerala in literacy rate etc., as it is in terms of per capita income? 2. Think of other examples where collective provision of goods and services is cheaper than individual provision. 3. Does availability of good health and educational facilities depend only on amount of money spent by the government on these facilities? What other factors could be relevant? 4. In Tamil Nadu, 90 per cent of the people living in rural areas use a ration shop, whereas in West Bengal only 35 per cent of rural people do so. Where would people be better off and why? ACTIVITY 2 Study Table 1.5 carefully and fill in the blanks in the following paragraphs. For this, you may need to make calculations based on the table. TABLE 1.5 EDUCATIONAL ACHIEVEMENT OF RURAL POPULATION OF UTTAR PRADESH Category Male Female Literacy rate for rural population 76% 54% Literacy rate for rural children in age group 10-14 years 90% 87% Percentage of rural children aged 10-14 attending school 85% 82% (a) The literacy rate for all age groups, including young and old, is _____ for rural males and _____ for rural females. However, it is not just that these many adults could not attend school but that there are _____ who are currently not in school. (b) It is clear from the table that _____ % of rural girls and _____% of rural boys are not attending school. Therefore, illiteracy among children in the age group 10- 14 is as high as _____% for rural females and _____% for rural males. (c) This high level of illiteracy among __________ age group, even after more than 70 years of our independence, is most disturbing. In many other states also we are nowhere near realisation of the constitutional goal of free and compulsory education for all children up to the age of 14, which was expected to be achieved by 1960. 12 U NDERST ANDING E CONOMIC D EVEL NDERSTANDING OPMENT EVELOPMENT ACTIVITY 3 HUMAN DEVELOPMENT One way to find out if we are properly nourished is to REPOR REPORTT calculate what nutrition scientists call Body Mass Index Once it is realised that even though (BMI). This is easy to calculate. Let each student in the class find out his or her weight and height. Take the the level of income is important, yet it weight of each student in kilograms (kg). Then, take is an inadequate measure of the level the height by drawing up a scale on the wall and of development, we begin to think of measuring accurately with the head straight. Convert other criterion. There could be a long the height recorded in centimeters into meters. Divide list of such criterion but then it would the weight in kg by the square of the height. The number not be so useful. What we need is a you get is called BMI. Then, look at the BMI-for-Age small number of the most important tables given on pages 90–91. A student’s BMI things. Health and education could be within the normal indicators, such as the ones we used range or less than that in comparison of Kerala and Haryana, (underweight) or more are among them. Over the past decade (obesity). For example, if or so, health and education indicators a girl student is 14 years have come to be widely used along and 8 month old and the BMI is 15.2, then she is with income as a measure of undernourished. Similarly, development. For instance, Human if the BMI of a boy aged Development Report published by 15 years and 6 months is UNDP compares countries based on 28, then he is overweight. the educational levels of the people, Discuss the life situation, their health status and per capita food and exercise habits income. It would be interesting to look of students, in general, without body shaming at certain relevant data regarding anyone. India and its neighbours from Human Development Report 2020. TABLE 1.6 SOME DATA REGARDING INDIA AND ITS NEIGHBOURS FOR 2019 Country Gross National Life Mean Years of HDI Rank in Income (GNI) Expectancy Schooling of the world per capita at birth People aged 25 (2018) (2011 PPP $) and above Sri Lanka 12,707 77 10.6 73 India 6,681 69.7 6.5 130 Myanmar 4,961 67.1 5.0 148 Pakistan 5,005 67.3 5.2 154 Nepal 3,457 70.8 5.0 143 Bangladesh 4,976 72.6 6.2 134 Source : Human Development Report, 2020, United Nations Development Programme, New York. NOTES 1. HDI stands for Human Development Index. HDI ranks in above table are out of 189 countries in all. 2. Life Expectancy at birth denotes, as the name suggests, average expected length of life of a person at the time of birth. 3. Per Capita Income is calculated in dollars for all countries so that it can be compared. It is also done in a way so that every dollar would buy the same amount of goods and services in any country. DEVELOPMENT 13  Isn’t it surprising that a small many new components have been country in our neighbourhood, Sri added to the Human Development Lanka, is much ahead of India in every Report but, by pre-fixing Human to respect and a big country like ours has Development, it has made it very clear such a low rank in the world? Table that what is important in development is what is happening to citizens of a 1.6 also shows that though Nepal and country. It is people, their health, their Bangladesh have low per capita well being, that is most important. income than that of India, yet they are better than India in life expectancy. Do you think there are certain other aspects that should be Many improvements have been considered in measuring human suggested in calculating HDI and development? SUSTAINABILITY OF DEVELOPMENT Suppose for the present that a particular country is quite developed. “We have not inherited We would certainly like this level of the world from our development to go up further or at forefathers — we have least be maintained for future borrowed it from our generations. This is obviously children.” desirable. However, since the second half of the twentieth century, a number of scientists have been warning that the present type, and levels, of development are not sustainable. ND WHY LET’S UNDERSTA IS IS SO TH RO UGH THE TH PLE: FOLLOWING EXAM Example 1: Groundwater in India “Recent evidence suggests that the groundwater is under serious threat of overuse in many parts of the country. About 300 districts have reported a water level decline of over 4 metres during the past 20 years. Nearly one-third of the country is overusing their groundwater reserves. In another 25 years, 60 per cent of the country would be doing the same if the present way of using this resource continues. Groundwater overuse is particularly found in the agriculturally prosperous regions of Punjab and Western U.P., hard rock plateau areas of central and south India, some coastal areas and the rapidly growing urban settlements.” (a) Why groundwater is overused? (b) Can there be development without overuse? 14 U NDERST ANDING E CONOMIC D EVEL NDERSTANDING OPMENT EVELOPMENT  Groundwater is an example of Non-renewable resources are those renewable resources. These resources which will get exhausted after a few are replenished by nature as in the years of use. We have a fixed stock on case of crops and plants. However, earth which cannot be replenished. We even these resources may be do discover new resources that we did overused. For example, in the case of not know of earlier. New sources in groundwater, if we use more than this way add to the stock. However, what is being replenished by rain then over time, even this will get exhausted. we would be overusing this resource. UDE OIL THAT WE FOR EXAMPLE, CR E EARTH IS A NON- EXTRACT FROM TH URCE. HOWEVER WE RENEWABLE RESO DID CE OF OIL THAT WE MAY FIND A SOUR ION S RLIER. EXPLORAT NOT KNOW OF EA E TIM E. RTAKEN ALL TH ARE BEING UNDE Example 2: Exhaustion of Natural Resources Look at the following data for crude oil. TABLE 1.7 CRUDE OIL RESERVES Region/Country Reserves (2017) Number of Years (Thousand Million Barrels) Reserves will last Middle East 808 70 United States of America 50 10.5 World 1697 50.2 Source : BP Statistical Review of World Energy, June 2018, P.12. The table gives an estimate of reserves of crude oil (column1). More important, it also tells us for how many years the stock of crude oil will last if people continue to extract it at the present rate. The reserves would last only 50 years more. This is for the world as a whole. However, different countries face different situations. Countries like India depend on importing oil from abroad because they do not have enough stocks of their own. If prices of oil increase this becomes a burden for everyone. There are countries like USA which have low reserves and hence want to secure oil through military or economic power. The question of sustainability of development raises many fundamentally new issues about the nature and process of development. (a) Is crude oil essential for the development process in a country? Discuss. (b) India has to import crude oil. What problems do you anticipate for the country looking at the above situation? DEVELOPMENT 15  Consequences of environmental social scientists are working degradation do not respect national together. or state boundaries; this issue is In general, the question of no longer region or nation specific. development or progress is perennial. Our future is linked together. At all times as a member of society Sustainability of development is and as individuals we need to ask comparatively a new area of where we want to go, what we wish to knowledge in which scientists, become and what our goals are. So economists, philosophers and other the debate on development continues. EXERCISES 1. Development of a country can generally be determined by (i) its per capita income (ii) its average literacy level (iii) health status of its people (iv) all the above 2. Which of the following neighbouring countries has better performance in terms of human development than India? (i) Bangladesh (ii) Sri Lanka (iii) Nepal (iv) Pakistan 3. Assume there are four families in a country. The average per capita income of these families is Rs 5000. If the income of three families is Rs 4000, Rs 7000 and Rs 3000 respectively, what is the income of the fourth family? (i) Rs 7500 (ii) Rs 3000 (iii) Rs 2000 (iv) Rs 6000 4. What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any? 5. In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank? 6. Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to development. 7. Kerala, with lower per capita income has a better human development ranking than Haryana. Hence, per capita income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss. 8. Find out the present sources of energy that are used by the people in India. What could be the other possibilities fifty years from now? 9. Why is the issue of sustainability important for development? 16 U NDERST ANDING E CONOMIC D EVEL NDERSTANDING OPMENT EVELOPMENT 10. “The Earth has enough resources to meet the needs of all but not enough to satisfy the greed of even one person”. How is this statement relevant to the disscusion of development? Discuss. 11. List a few examples of environmental degradation that you may have observed around you. 12. For each of the items given in Table 1.6, find out which country is at the top and which is at the bottom. 13. The following table shows the proportion of adults (aged 15-49 years) whose BMI is below normal (BMI