NCERT Class 10 Economics Textbook - Consumer Rights PDF

...· ,.....·.~·...· ~ ~ 11'_..........·......... ,..,.·  CONTENTS Foreword iii A few introductory words for teachers v Chapter 1 DEV...

...· ,.....·.~·...· ~ ~ 11'_..........·......... ,..,.·  CONTENTS Foreword iii A few introductory words for teachers v Chapter 1 DEVELOPMENT 2 Chapter 2 SECTORS OF THE INDIAN ECONOMY 18 Chapter 3 MONEY AND CREDIT 38 Chapter 4 GLOBALISATION AND THE INDIAN ECONOMY 54 Chapter 5 CONSUMER RIGHTS 74 Suggested Readings 90  NOTESFORTHETEACHER CHAPTER 5 : CONSUMER RIGHTS This chapter proposes to discuss the issue of understand the issues at a deeper level. Making consumer rights within the context of the ways posters collectively is another way to think about markets operate in our country. There are many these issues. This lesson contains activities, aspects of unequal situations in a market and which require visits – visit to consumer poor enforcement of rules and regulations. Hence, protection councils, consumer organisations, there is a need to sensitise learners and encourage consumer court, retail shops, market places, etc. them to participate in the consumer movement. Organise the visits to maximise learners’ This chapter provides case histories – how some experience. Have a discussion with them about consumers were exploited in a real life situation the purpose of the visit, things they need to do and how legal institutions helped consumers in beforehand and things that need to be collected getting compensated and in upholding their rights and the task (report/ project / article, etc.) they as consumers. The case histories would enable would carry out after the visit. As part of this the students to link these narratives to their life chapter, the learners may do letter-writing and experiences. We have to enable students to speaking activities. We may have to be sensitive understand that the awareness of being a well- to the language aspect of exercises. informed consumer arose out of consumer movement and active participation of people This chapter contains materials collected through their struggles over a long period. This from authenticated websites, books, newspapers chapter also provides details of a few and magazines. For example, http:// organisations helping consumers in different www.mca.gov.in is a website of Central ways. Finally it ends with some critical issues of Government Ministry of Consumer Affairs. the consumer movement in India. Another website www.cuts-international.org is the website of a consumer organisation working in Aspects of Teaching / Sources of Information India for more than 20 years. It publishes a variety of materials to create consumer This chapter has questions, case studies and awareness in India. They need to be shared activities. It would be preferred that students among learners so that they can also collect discuss these in groups orally. Some of these materials as part of their activities. For example, could be answered in writing individually. case histories were taken from newspaper While carrying out each activity you could clippings and consumers who fought in start with a brainstorming session about the consumer courts. Let learners collect and read activity. Similarly there are many opportunities such materials from different sources: consumer for role-play in this chapter and this could be a protection councils, consumer courts and useful way to share their experiences and internet. 74 U NDERST E S ANDING D E CONOMIC N C D EVEL V OPMENT EVELOPMENT  CHAPTER 5 CONSUMER CO ONS UME ER RIGHTS R I GHTS TS The collage you see below contains what are the ways in which they can some news clippings of consumer exercise their rights as consumers to court verdicts. Why did the people go get a fair deal from the sellers when to the consumer court in these cases? they felt they had been denied a just These verdicts came about because treatment? some people persisted and struggled to get justice. In what ways were they denied justice? More importantly, THE CONSUMER IN THE MARKETPLACE We participate in the market both as Likewise, rules and regulations are producers and consumers. As required for the protection of the producers of goods and services we consumers in the marketplace. could be working in any of the sectors Individual consumers often find discussed earlier such as agriculture, themselves in a weak position. industry, or services. Consumers Whenever there is a complaint participate in the market when they regarding a good or service that had purchase goods and services that they been bought, the seller tries to shift need. These are the final goods that all the responsibility on to the buyer. people as consumers use. Their position usually is – “If you didn’t like what you bought, please In the preceding chapters we go elsewhere”. As if the seller has no discussed the need for rules and responsibility once a sale is regulations or steps that would completed! The consumer movement, promote development. These could be as we shall discuss later, is an effort for the protection of workers in the to change this situation. unorganised sector or to protect people from high interest rates Exploitation in the marketplace charged by moneylenders in the happens in various ways. For informal sector. Similarly, rules and example, sometimes traders indulge regulations are also required for in unfair trade practices such as when protecting the environment. shopkeepers weigh less than what they should or when traders add For example, moneylenders in the charges that were not mentioned informal sector that you read about before, or when adulterated/defective in Chapter 3 adopt various tricks to goods are sold. bind the borrower: they could make the producer sell the produce to them Markets do not work in a fair at a low rate in return for a timely loan; manner when producers are few and they could force a small farmer like powerful whereas consumers Swapna to sell her land to pay back purchase in small amounts and are the loan. Similarly, many people who scattered. This happens especially work in the unorganised sector have when large companies are producing to work at a low wage and accept these goods. These companies with conditions that are not fair and are huge wealth, power and reach can also often harmful to their health. To manipulate the market in various prevent such exploitation, we ways. At times false information is have talked of rules and regulations passed on through the media, and for their protection. There are other sources to attract consumers. organisations that have struggled For example, a company for years for long to ensure that these rules are sold powder milk for babies all over followed. THEY PURPOSELY MADE IT SO IT WOULD FALL APART AFTER A FEW MONTHS SO THAT I WILL BUY A NEW ONE! the world as the most scientific EVERYONE KNOWS product claiming this to be better TOBACCO KILLS PEOPLE, than mother’s milk. It took years of BUT WHO CAN SAY THAT TOBACCO COMPANIES struggle before the company was SHOULD NOT BE FREE forced to accept that it had been TO SELL TOBACCO? making false claims. Similarly, a long battle had to be fought with court cases to make cigarette- manufacturing companies accept that their product could cause cancer. Hence, there is a need for rules and regulations to ensure protection for consumers. LET’S WORK THESE OUT 1. What are the various ways by which people may be exploited in the market? 2. Think of one example from your experience where you thought that there was some ‘cheating’ in the market. Discuss in the classroom. 3. What do you think should be the role of government to protect consumers? CONSUMER MOVEMENT The consumer movement arose out quality of goods and services on the of dissatisfaction of the consumers sellers. as many unfair practices were being In India, the consumer movement indulged in by the sellers. There was as a ‘social force’ originated with the no legal system available to necessity of protecting and promoting consumers to protect them from the interests of consumers against exploitation in the marketplace. For unethical and unfair trade practices. a long time, when a consumer was Rampant food shortages, hoarding, not happy with a particular brand black marketing, adulteration of food product or shop, he or she generally and edible oil gave birth to the avoided buying that brand product, consumer movement in an organised or would stop purchasing from that form in the 1960s. Till the 1970s, shop. It was presumed that it was consumer organisations were largely engaged in writing articles and the responsibility of consumers to be holding exhibitions. They formed careful while buying a commodity consumer groups to look into the or service. It took many years for malpractices in ration shops and organisations in India, and around overcrowding in the road passenger the world, to create awareness transport. More recently, India amongst people. This has also witnessed an upsurge in the number shifted the responsibility of ensuring of consumer groups. S R R IGHTS C ONSUMER HT 77  Consumers International In 1985 United Nations adopted the UN Guidelines for Consumer Protection. This was a tool for nations to adopt measures to protect consumers and for consumer advocacy groups to press their governments to do so. At the international level, this has become the foundation for consumer movement. Today, Consumers International has become an umbrella body of 240 organisations from over 100 countries. Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large. A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA. You will learn more about COPRA later. LET’S WORK THESE OUT 1. What could have been the steps taken by consumer groups? 2. There may be rules and regulations but they are often not followed. Why? Discuss.  CONSUMER RIGHTS SAFETY IS EVERYONE’S RIGHT Reji’s ej ’’ss S Suffering ri ri g Reji’s suffering shows how a hospital, due to negligence by the Reji Mathew, a healthy boy studying in doctors and staff in giving Class IX, was admitted in a private clinic in anaesthesia, crippled a student for Kerala for removal of tonsils. An ENT life. While using many goods and surgeon perfor med the tonsillectomy services, we as consumers, have the operation under general anaesthesia. As a right to be protected against the result of improper anaesthesia Reji showed marketing of goods and delivery of symptoms of some brain abnormalities services that are hazardous to life and because of which he was crippled for life. property. Producers need to strictly His father filed a complaint in the State follow the required safety rules and Consumer Disputes Redressal Commission regulations. There are many goods claiming compensation of Rs 5,00,000 for and services that we purchase that medical negligence and deficiency, in require special attention to safety. For service. The State Commission, saying that example, pressure cookers have a the evidence was not sufficient dismissed safety valve which, if it is defective, can it. Reji’s father appealed again in the cause a serious accident. The National Consumer Disputes Redressal manufacturers of the safety valve have Commission located to ensure high quality. You also need in New Delhi. The public or government action to see National Commission that this quality is maintained. after looking into the However, we do find bad quality complaint, held the products in the market because the hospital responsible supervision of these rules is weak and for medical negligence the consumer movement is also not and directed it to pay strong enough. the compensation. LET’S WORK THESE OUT 1. For the following (you can add to the list) products/services discuss what safety rules should be observed by the producer? (a) LPG cyclinder (b) cinema theatre (c) circus (d) medicines (e) edible oil (f) marriage pandal (g) a high-rise building. 2. Find out any case of accident or negligence from people around you, where you think that the responsibility lay with the producer. Discuss. S R R IGHTS C ONSUMER HT 79  Information about goods and product and find it defective well services within the expiry period, we can ask for a replacement. If the expiry period When you buy any commodity, you was not printed, the manufacturer will find certain details given on the would blame the shopkeeper and will packing. These details are about not accept the responsibility. If people ingredients used, price, batch sell medicines that have expired number, date of manufacture, expiry date and the address of the severe action can be taken against manufacturer. When we buy them. Similarly, one can protest and medicines, on the packets, you might complain if someone sells a good at find ‘directions for proper use’ and more than the printed price on the information relating to side effects and packet. This is indicated by ‘MRP’ — risks associated with usage of that maximum retail price. In fact medicine. When you buy garments, consumers can bargain with the seller you will find information on to sell at less than the MRP. ‘instructions for washing’. In recent times, the right to Why is it that rules have been made information has been expanded to so that the manufacturer displays this cover various services provided by the information? It is because consumers Government. In October 2005, the have the right to be informed about Government of India enacted a law, the particulars of goods and services popularly known as RTI (Right to that they purchase. Consumers Information) Act, which ensures its can then complain and ask for citizens all the information about the compensation or replacement if the functions of government departments. product proves to be defective in any The effect of the R TI Act can be manner. For example, if we buy a understood from the following case. Waiting... g Amritha, an engineering graduate after submitting all the certificates and attending the interview for a job in a government department, did not receive any news of the result. The officials also refused to comply with her queries. She therefore filed an application using the RTI Act saying that it was her right to know the result in a reasonable time so that she could plan her future. She soon got her call letter for appointment. 80 UN T ANDING NDERSTA I EC O CONOMIC D EVELO E LOPMENT N  LET’S WORK THESE OUT 1. When we buy commodities we find that the price charged is sometimes higher or lower than the Maximum Retail Price printed on the pack. Discuss the possible reasons. Should consumer groups do something about this? 2. Pick up a few packaged goods that you want to buy and examine the information given. In what ways are they useful? Is there some information that you think should be given on those packaged goods but is not? Discuss. 3. People make complaints about the lack of civic amenities such as bad roads or poor water and health facilities but no one listens. Now the RTI Act gives you the power to question. Do you agree? Discuss. When choice is denied Re nd A Refund Abirami, a student of choose. The Institute Ansari Nagar, joined a two- again appealed in the year course at a local State Consumer Com- coaching institute for mission. The State professional courses in Commission upheld the New Delhi. At the time of district court’s direction joining the course, she and further fined the paid the fees Rs 61,020 institute Rs 25,000 for a as lumpsum for the entire frivolous appeal. It also course of two years. directed the institute to However, she decided to opt out of the pay Rs 7000 as compensation and course at the end of one year as she litigation cost. found that the quality of teaching was The State Commission also restrained not up to the mark. When she asked all the educational and professional for a refund of the fee for one year, it institutions in the state from charging was denied to her. fees from students for the entire When she filed the case in the District duration of the course in advance and Consumer Court, the Court directed that too at one go. Any violation of this the Institute to refund Rs 28,000 order may invite penalties and saying that she had the right to imprisonment, the commission said. What do we understand from this if you buy a tooth brush. If you are incident? Any consumer who receives a not interested in buying the brush, service in whatever capacity, regardless your right to choice is denied. Similarly, of age, gender and nature of service, has sometimes gas supply dealers insist the right to choose whether to continue that you have to buy the stove from to receive the service. them when you take a new connection. Suppose you want to buy In this way many a times you are toothpaste, and the shop owner says forced to buy things that you may not that she can sell the toothpaste only wish to and you are left with no choice. S R R IGHTS C ONSUMER HT 81  LET’S WORK THIS OUT The following are some of the catchy advertisements of products that we purchase from the market. Which of the following offers would really benefit consumers? Discuss. z 15 gm more in every 500 gm pack. z Subscribe for a newspaper with a gift at the end of a year. z Scratch and win gifts worth Rs 10 lakhs. z A milk chocolate inside a 500 gram glucose box. z Win a gold coin inside a pack. z Buy shoes worth Rs 2000 and get one pair of shoes worth Rs 500 free. Where should consumers go depending on the degree of damage. to get justice? There is a need to provide an easy and effective public system by which this Read again the cases of Reji Mathew can be done. and Abirami given earlier in the chapter. You might be interested in knowing how an aggrieved person gets his or These are some examples in which her compensation. Let us take the consumers are denied their rights. case of Prakash. He had sent a Such instances occur quite often in money-order to his village for his our country. Where should these daughter’s marriage. The money did consumers go to get justice? not reach his daughter at the time Consumers have the right to seek when she needed it nor did it reach redressal against unfair trade months later. Prakash filed a case in practices and exploitation. If any a district level consumer court in New damage is done to a consumer, she Delhi. All the steps he undertook are has the right to get compensation illustrated here. 1. PRAKASH GOES TO THE POST OFFICE TO PRAKASH COMES TO KNOW THAT THE SEND MONEY ORDER TO HIS DAUGHTER 2. MONEY HAS NOT REACHED HIS DAUGHTER 82 U NDERST E S ANDING D E CONOMIC N C D EVEL V OPMENT EVELOPMENT 3. PRAKASH ENQUIRES ABOUT THE MONEY ORDER IN THE POST OFFICE 4. THE POST OFFICE DOES NOT RESPOND TO THE QUERY SATISFACTORILY 5. PRAKASH GOES TO THE LOCAL CONSUMER PRAKASH GOES TO A CONSUMER COURT TO FILE PROTECTION COUNCIL FOR ADVICE 6. A CASE.. HE FILLS A REGISTRATIONFORM 7. HE HIMSELF PLEADS THE CASE IN THE COURT 8. THE COURT JUDGE VERIFIES THE DOCUMENTS 9. THE JUDGE ANNOUNCES THE COURT VERDICT. C ONSUMER N M R IGHTS G 83  The consumer movement in India Under COPRA, a three-tier quasi- has led to the formation of various judicial machinery at the district, organisations locally known as state and national levels was set up consumer forums or consumer for redressal of consumer disputes. protection councils. They guide The district level court deals with the consumers on how to file cases in the cases involving claims upto Rs 20 consumer court. On many occasions, lakhs, the state level courts between they also represent individual Rs 20 lakhs and Rs 1 crore and the consumers in the consumer courts. national level court deals with cases These voluntary organisations also involving claims exceeding Rs 1 crore. receive financial support from the If a case is dismissed in district level government for creating awareness court, the consumer can also appeal among the people. in state and then in National level If you are living in a residential courts. colony, you might have noticed Thus, the Act has enabled us as name boards of Resident Welfare consumers to have the right to Associations. If there is any unfair represent in the consumer courts. trade practice meted out to their members they take up the case on their behalf. LET’S WORK THIS OUT Arrange the following in the correct order. (a) Arita files a case in the District Consumer Court. (b) She engages a professional person. (c) She realises that the dealer has given her defective material. (d) She starts attending the court proceedings. (e) She goes and complains to the dealer and the Branch office, to no effect. (f) She is asked to produce the bill and warranty before the court. (g) She purchases a wall clock from a retail outlet. (h) Within a few months, the dealer was ordered by the court to replace her old wall clock with a brand new one at no extra cost. LEARNING TO BECOME WELL-INFORMED CONSUMERS When we as consumers become conscious of our rights, while purchasing various goods and services, we will be able to discriminate and make informed choices. This calls for acquiring the knowledge and skill to become a well-informed consumer. How do we become conscious 84 UN T ANDING NDERSTA I EC O CONOMIC D EVELO E LOPMENT N of our rights? Look at the posters on the right and in the previous page. What do you think? The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state governments. The posters that you have seen are one example through which government spread information about legal process which people can use. You might also be seeing such advertisements on television channels. I and ISI n ndd Agmark Agm rk While buying many commodities, on the cover, you might have seen a logo with the letters ISI, Agmark or Hallmark. These logos and certification help consumers get assured of quality while purchasing the goods and services. The organisations that monitor and issue these certificates allow producers to use their logos provided they follow certain quality standards. Though these organisations develop quality standards for many products, it is not compulsory for all the producers to follow standards. However, for some products that affect the health and safety of consumers or of products of mass consumption like LPG cylinders, food colours and additives, cement, packaged drinking water, it is mandatory on the part of the producers to get certified by these organisations.  LET’S WORK THESE OUT 1. Look at the posters and cartoons in this chapter. Think of any particular commodity and the aspects that need to be looked at as a consumer. Design a poster for this. 2. Find out the nearest consumer court for your area. 3. What is the difference between consumer protection council and consumer court? 4. The Consumer Protection Act 1986 ensures the following as rights which every consumer in India should possess (i) Right to choice. (iv) Right to representation. (ii) Right to information. (v) Right to safety. (iii) Right to redressal. (vi) Right to consumer education. Categorise the following cases under different heads and mark against each in brackets. (a) Lata got an electric shock from a newly purchased iron. She complained to the shopkeeper immediately. ( ) (b) John is dissatisfied with the services provided by MTNL for the past few months. He files a case in the District Level Consumer Forum. ( ) (c) Your friend has been sold a medicine that has crossed the expiry date and you are advising her to lodge a complaint ( ). (d) Iqbal makes it a point to scan through all the particulars given on the pack of any item that he buys. ( ) (e) You are not satisfied with the services of the cable operator catering to your locality but you are unable to switch over to anybody else. ( ) (f) You realise that you have received a defective camera from a dealer. You are complaining to the head office persistently ( ). 5. If the standardisation ensures the quality of a commodity, why are many goods available in the market without ISI or Agmark certification? 6. Find out the details of who provides Hallmark and ISO certification. TAKING THE CONSUMER MOVEMENT FORWARD India has been observing 24 their activities. There are today more December as the National Consumers’ than 700 consumer groups in the Day. It was on this day that the Indian country of which only about 20-25 Parliament enacted the Consumer are well organised and recognised for Protection Act in 1986. India is one their work. of the countries that have exclusive However, the consumer redressal courts for consumer redressal. process is becoming cumbersome, The consumer movement in India expensive and time consuming. Many has made some progress in terms of a time, consumers are required to numbers of organised groups and engage lawyers. These cases require time for filing and attending the court of laws that protect workers, proceedings etc. In most purchases especially in the unorganised sectors cash memos are not issued hence is weak. Similarly, rules and evidence is not easy to gather. regulations for working of markets are Moreover most purchases in the often not followed. market are small retail sales. The Nevertheless, there is scope for existing laws also are not very clear consumers to realise their role and on the issue of compensation to importance. It is often said that consumers injured by defective consumer movements can be effective products. After 20 years of the only with the consumers’ active enactment of COPRA, consumer involvement. It requires a voluntary awareness in India is spreading but effort and struggle involving the slowly. Besides this the enforcement participation of one and all. EXERCISES 1. Why are rules and regulations required in the marketplace? Illustrate with a few examples. 2. What factors gave birth to the consumer movement in India? Trace its evolution. 3. Explain the need for consumer consciousness by giving two examples. 4. Mention a few factors which cause exploitation of consumers. 5. What is the rationale behind the enactment of Consumer Protection Act 1986? 6. Describe some of your duties as consumers if you visit a shopping complex in your locality. 7. Suppose you buy a bottle of honey and a biscuit packet. Which logo or mark you will have to look for and why? 8. What legal measures were taken by the government to empower the consumers in India? 9. Mention some of the rights of consumers and write a few sentences on each. 10. By what means can the consumers express their solidarity? 11. Critically examine the progress of consumer movement in India. 12. Match the following. (i) Availing details of ingredients of a product (a) Right to safety (ii) Agmark (b) Dealing with consumer cases (iii) Accident due to faulty engine in a scooter (c) Certification of edible oil and cereals (iv) District Consumer Court (d) Agency that develop standards for goods and services (v) Consumers International (e) Right to information (vi) Bureau of Indian Standards (f) Global level institution of consumer welfare organisations 13. Say True or False. (i) COPRA applies only to goods. (ii) India is one of the many countries in the world which has exclusive courts for consumer redressal. C ONSUMER UM R IGHTSS 7 87  (iii) When a consumer feels that he has been exploited, he must file a case in the District Consumer Court. (iv) It is worthwhile to move to consumer courts only if the damages incurred are of high value. (v) Hallmark is the certification maintained for standardisation of jewellry. (vi) The consumer redressal process is very simple and quick. (vii) A consumer has the right to get compensation depending on the degree of the damage. ADDITIONAL PROJECTS / ACTIVITIES 1. Your school organises a consumer awareness week. As the Secretary of the Consumer Awareness Forum, draft a poster covering all the consumer rights. You may use the clues and ideas given in the poster on page 84 and 85. This activity can be done with the help of your English teacher. 2. Mrs. Krishna bought a colour television (CTV) against six months warranty. The CTV stopped working after three months. When she complained to the dealer / shop where it was purchased, they sent an engineer to set it right. The CTV continues to give trouble and Mrs Krishna no longer gets any reply to the complaint she made to the dealer / shop. She decides to write to the Consumer Forum in her area. Write a letter on her behalf. You may discuss with your partner / group members before you write it. 3. Establish a consumer club in your school. Organise mock consumer awareness workshops like monitoring bookshops, canteen, and shops in your school area. 4. Prepare posters with catchy slogans like: – An alert consumer is a safe consumer – Buyers, Beware – Consumers be cautious – Be aware of your rights – As consumers, assert your right – Arise, awake and stop not till ______________________ (Complete it) 5. Interview 4-5 persons in your neighbourhood and collect varied experiences regarding how they have been victims of such exploitation and their responses. 6. Conduct a survey in you locality by supplying the following questionnaire to get an idea as to how alert they are as consumers. 88 UN T ANDING NDERSTA I EC O CONOMIC D EVELO E LOPMENT N  For each question, tick one. Always Sometimes Never A B C 1. When you buy some item, do you insist on a bill? 2. Do you keep the bill carefully? 3. If you realise that you have been tricked by the shop- keeper, have you bothered to complain to him? 4. Have you been able to convince him that you’ve been cheated? 5. Do you simply grumble to yourself reconciling that it is your fate that you are often being victimised so and it is nothing new? 6. Do you look for ISI mark, expiry date etc.? 7. If the expiry date mentioned is just a month or so away, do you insist on a fresh packet? 8. Do you weigh the new gas cylinder/old newspapers yourself before buying/selling? 9. Do you raise an objection if a vegetable seller uses stones in place of the exact weight? 10. Do excessively bright coloured vegetables arouse your suspicion? 11. Are you brand-conscious? 12. Do you associate high price with good quality (to reassure yourself that after all you have not paid a higher price just like that)? 13. Do you unhesitatingly respond to catchy offers? 14. Do you compare the price paid by you with those of others? 15. Do you strongly believe that your shopkeeper never cheats a regular customer like you? 16. Do you favour ‘home delivery’ of provision items without any doubt regarding weight etc.? 17. Do you insist on ‘paying by meter’ when you travel by auto? Note (i) You are extremely aware as a consumer if your answers for Qns. 5, 12, 13, 15 and 16 are (C) and for the rest (A). (ii) If your answers are (A) for Qns. 5, 12, 13, 15 and 16 and the rest (C), then you have to wake up as consumer. (iii) If your answer is (B) for all the questions – you are somewhat aware. S R R IGHTS C ONSUMER HT 89  SUGGESTED READINGS Books Abijit Vinayak Banerjee, Roland Benabou and Dilip Mookherjee (eds.), Understanding Poverty, Oxford University Press, New York, 2006. Amit Bhaduri and Deepak Nayyar, Intelligent Person’s Guide to Liberalisation, Penguin Books, New Delhi, 1996. Amit Bhaduri, Development with Dignity: The Case for Full Employment, National Book Trust, New Delhi, 2005. Amit Bhaduri, Macroeconomics: The Dynamics of Commodity Production, Macmillan, London, 1986. Bimal Jalan (ed.), Indian Economy, Penguin Books, New Delhi, 2002. CUTS, Is it Really Safe, Consumer Unity Trust Society, Jaipur, 2004. CUTS, State of the Indian Consumer: Analyses of the Implementation of the United Nations Guidelines for Consumer Protection, 1985 in India, Consumer Unity Trust Society, Jaipur, 2001. Indrani Mazumdar, Women and Globalisation: The Impact on Women Workers in the Formal and Informal Sectors in India, Stree, Delhi, 2007. Jagdish Bhagwati In Defence of Globalisation, Oxford University Press, Delhi, 2004. Jan Breman and Parthiv Shah, Working in the mill no more, Oxford University Press, Delhi, 2005. Jan Breman, Footloose Labour: Working in India’s Informal Economy, Cambridge University Press, Cambridge, 1996. Jean Dreze and Amartya Sen, India: Development and Participation, Oxford University Press, Delhi, Third Impression, 2007. John K.Galbraith, Money: Whence it Came, Whence it Went, Indian Book Company, New Delhi, 1975. Joseph Stiglitz, Globalisation and its Discontents, Penguin Books India, New Delhi, 2003. National Consumer Disputes Redressal Commission, Landmark Judgments on Consumer Protection, Universal Law Publishing Co., Delhi, 2005. Tirthankar Roy, The Economic History of India, 1857-1947, Oxford University Press, Delhi, Second Edition, 2006. 90 UN T ANDING NDERSTA I EC O CONOMIC D EVELO E LOPMENT N Government Publications Ministry of Finance, Economic Survey, Government of India. NSSO, Key Results of Employment-Unemployment Rounds, National Sample Survey Organisation, Ministry of Statistics and Programme Implementation, Govt of India, New Delhi. Planning Commission, National Human Development Report 2001, Government of India, New Delhi. Other Reports Reserve Bank of India, Handbook of Statistics on Indian Economy, Mumbai. UNDP, Human Development Report 2006, United Nations Development Programme, Geneva. World Bank, World Development Indicators, The World Bank, Washington. World Bank, World Development Indicators, The World Bank, Washington. S R R IGHTS C ONSUMER HT 91  No tes Notes 92 UN T ANDING NDERSTA I EC O CONOMIC D EVELO E LOPMENT N  N OT E F NOTES NOTE O T FOR FO E TE A CH E R THE C A E I : DEVELOPMENT CHAPTER V L M N Development has many aspects. The bringing the learners closer to their real-life purpose of this chapter is to enable situations. students to understand this idea. They have to understand that people have different There are certain terms used in this perspectives on development and there are chapter that would require clarification ways by which we can arrive at common — Per Capita Income, Literacy Rate, indicators for development. To do this, we Infant Mortality Rate, Attendance Ratio, have used situations that they can respond Life Expectancy, Gross Enrolment Ratio, to in an intuitive manner; we have also and Human Development Index. Though presented analysis that is more complex and data pertaining to these terms are macro in nature. provided, these would need further explanation. You may also need to clarify How can countries or states be the concept of purchasing power parity compared using some selected development indicators is another question that that is used to calculate per capita income students would read about in this chapter. in Table 1.6. It is necessary to keep in Economic development can be measured mind that these terms are used as an aid and income is the most common method to the discussion and not something to for measuring development. However, the be memorised. income method, though useful, has several Sources for Information weaknesses. Hence, we need newer ways of looking at development using indicators The data for this chapter is taken from reports of quality of life and environmental published by the Government of India sustainability. (Economic Survey), United Nations It is necessary for you to expect the Development Programme (Human Development students to respond actively in the Report) and World Bank (World Development classroom and on a topic such as the above Indicators). These reports are being published there would be wide variation in opinion every year. It may be interesting to look up and possibility of debate. Allow students to these reports if they are available in your school argue their point of view. At the end of each library. If not, you may log on to the websites section there are a few questions and of these institutions (www.bugetindia.nic.in, activities. These serve two purposes: first, www.undp.org, www.worldbank.org). Data is they recap the ideas discussed in the also available from the Reserve Bank’s section and second, they enable better Handbook of Statistics on Indian Economy, understanding of the themes discussed by available at www.rbi.org). 2 U NDERST D G E CONOMIC E S ANDING N C D EVELO V OPMENT N  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 C R THE WAY OUR COUNTRY IS CAR? 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 D G E CONOMIC E S ANDING N C D EVELO V OPMENT N 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 T OS PEOPLE L 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 these may be more important than to our lives. These are often ignored. Sarovar Dam on 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 D G E CONOMIC E S ANDING N C D EVELO V OPMENT N  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 wa st es in to of liq ui d to xic mp s in a cit y and open-air du se This a. in the surrounding cit y ca lle d ha pp en ed in a Iv or y Co as t, a Ab id ja n in Af ric a. Th e fumes country in xic wa ste fro m th e hi gh ly to sk in rashes, caused nausea, oe a etc. After a fainting, diarrh we re ve n pe rs on s mo nt h se and sp ita l dead, twenty in ho at ed nd tre twenty six thousa g. of po iso nin for symptoms mpany A multinational co leu m an d de al in g in pe tro loc al co nt ra cte d a metals had t to Co as company of the Ivory fro m ste dispose the toxic wa 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 Report Usually we take one or more 2006, brought out by the World important characteristics of Bank, this criterion is used in persons and compare them based classifying countries. Countries with on these characteristics. Of per capita income of Rs 4,53,000 per course, there can be differences about annum and above in 2004, are called what are important characteristics rich countries and those with per that should form the basis of capita income of Rs 37,000 or less are comparison: friendliness and spirit of called low-income countries. India cooperation, creativity or marks comes in the category of low-income secured? countries because its per capita This is true of development too. income in 2004 was just Rs 28,000 For comparing countries, their per annum. The rich countries, income is considered to be one of excluding countries of Middle East the most important attributes. and certain other small countries, are Countries with higher income are generally called developed countries. 8 U NDERST D G E CONOMIC E S ANDING N C D EVELO V OPMENT N  Av era g I Average me 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 perhaps most of us will prefer to average 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 in 2007 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 Will you be equally happy to live in both these for comparison it does not tell us countries? Are both equally developed? Perhaps how this income is distributed some of us may like to live in country B if we are among 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 middle-income countries as per WDR 2006. 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 2002-03 (in Rs) equal treatment, freedom etc. Punjab 26000 in mind. Similarly, when we Kerala 22800 think of a nation or a region, Bihar 5700 we may, besides average income, think of other equally important attributes. What could these attributes be? Bihar is at the bottom. This means Let us examine this through an that, on an average, a person in example. Table 1.3 gives the per capita Punjab earned Rs 26,000 in one year income of Punjab, Kerala and Bihar. whereas, on an average, a person in Actually, these figures are of Per Bihar would earn only around Rs 5,500. So, if per capita income Capita Net State Domestic Product at were to be used as the measure of Current Prices for 2002-03. Let us development, Punjab will be ignore what this complicated term considered the most developed and exactly means. Roughly we can take Bihar the least developed state of the it to be per capita income of the state. three. Now, let us look at certain other We find that of the three, Punjab has data pertaining to these states given the highest per capita income and in Table 1.4. TABLE 1.4 SOME COMPARATIVE DATA ON PUNJAB, KERALA AND BIHAR State Infant Mortality Rate Literacy Rate (%) Net Attendance Ratio per 1,000 (2003) (2001) for Class I-V (1995-96) Punjab 49 70 81 Kerala 11 91 91 Bihar 60 47 41 Explanation of some of the terms used in this table: Infant Mortality Rate (or 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 6-10 attending school as a percentage of total number of children in the same age group. 10 1 0 U NDERST D G E CONOMIC E S ANDING N C D EVELO V OPMENT N  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 alive shows that more that half of the 11 died before completing one year of children in Bihar do not even get to age but in Punjab the proportion of go to school. This means that if you children dying within one year of birth went to school in Bihar more than half is 49, which is nearly five times more. of your class would be missing. Those On the other hand, the per capita who could have been in school are not income of Punjab is much more than there! If this had happened to you, Kerala as shown in Table 1.3. Just you would not be able to read what think of how dear you are to your you are reading now. parents, 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 2003. So we are not talking of old times; it is 56 years after independence when our metro towns are full of high-rise buildings and shopping malls! Most babies do not get basic health care PUBLIC FACILITIES How is it that the average person in Actually for many of the important Punjab 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 man? 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 achieve secondary level schooling because government/society has not provided adequate facilities. DEVELOPMENT 11  Kerala has a low Infant Mortality PDS shop, i.e. ration shop, does not Rate because it has adequate function properly in such places, the provision of basic health and people there are able to get the educational facilities. Similarly, in problem rectified. Health and some states, the Public Distribution nutritional status of people of such System (PDS) functions well. If some states is certainly likely to be better. LET’S WORK THESE OUT 1. Look at data in Table 1.3 and 1.4. Is Punjab ahead of Bihar 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, 75 per cent of the people living in rural areas use a ration shop, whereas in Jharkhand only 8 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 52% 19% Literacy rate for children in age group 10-14 years 68% 39% Percentage of rural children aged 10-14 attending school 64% 31% (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 60 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 1 2 U NDERST D G E CONOMIC E S ANDING N C D EVELO V OPMENT N ACTIVITY 3 HUMAN A DEVELOPMENT D VE VE OP E T One way to find out if adults are undernourished is to R REPORT calculate what nutrition scientists call Body Mass Once it is realised that even though Index (BMI). This is easy to calculate. Take the weight the level of income is important, yet of the person in kg. Then take the height in metres. Divide the weight by the square of the height. If this it is an inadequate measure of the figure is less than 18.5 then the person would be level of development, we begin to considered undernourished. However, if this BMI is think of other criterion. There could more than 25, then a person is overweight. Do be a long list of such criterion but remember that this criterion is not applicable to growing then it would not be so useful. What children. we need is a small number of the Let each student in a most important things. Health and class find out the weight education indicators, such as the and height of three adult persons of different ones we used in comparison of economic backgrounds Kerala and Punjab, are among them. such as construction Over the past decade or so, health workers, domestic and education indicators have come servants, office workers, to be widely used along with income business-persons etc. Collect the data from as a measure of development. For all the students and instance, Human Development make a combined table. Report published by UNDP compares Calculate their BMI. Do countries based on the educational you find any relationship levels of the people, their health between economic status and per capita income. It background of person and her/his nutritional status? would be interesting to look at certain relevant data regarding India and its neighbours from Human Development Report 2006. TABLE 1.6 SOME DATA REGARDING INDIA AND ITS NEIGHBOURS FOR 2004 Country Per Capita Life Literacy rate Gross enrolment HDI rank in Income expectancy for 15+ yrs ratio for three the world in US$ at birth population levels Sri Lanka 4390 74 91 69 93 India 3139 64 61 60 126 Myanmar 1027 61 90 48 130 Pakistan 2225 63 50 35 134 Nepal 1490 62 50 61 138 Bangladesh 1870 63 41 53 137 NOTES 1. HDI stands for Human Development Index. HDI ranks in above table are out of 177 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. Gross Enrolment Ratio for three levels means enrolment ratio for primary school, secondary school and higher education beyond secondary school. 4. 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 added to the Human Development country in our neighbourhood, Sri Report but, by pre-fixing Human to Lanka, is much ahead of India in every Development, it has made it very clear respect and a big country like ours that what is important in has such a low rank in the world? development is what is happening to Table 1.6 also shows that though citizens of a country. It is people, their Nepal has half the per capita income health, their well being, that is most of India, yet it is not far behind India important. in life expectancy and literacy levels. Do you think there are certain Many improvements have been other aspects that should be suggested in calculating HDI and considered in measuring human many new components have been development? SUSTAINABILITY OF DEVELOPMENT Whichever way we define development, suppose for the present “We have not inherited that a particular country is quite the world from our developed. We would certainly like this forefathers — we have level of development to go up further borrowed it from our or at least be maintained for future children.” generations. This is obviously 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 RO UG H THE THIS IS SO TH LL OW IN G EX AM PLE: FO Example xa p e 1:: Groundwater Gro nd Gro n d a e in Ind India a “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 ground water is overused? (b) Can there be development without overuse? 14 1 4 U NDERST D G E CONOMIC E S ANDING N C D EVELO V OPMENT N  Groundwater is an example of Non-renewable resources are those renewable resources. These resources which will get exhausted after years are replenished by nature as in the of use. We have a fixed stock on earth case of crops and plants. However, which cannot be replenished. We do even these resources may be 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 NS RLIER. EXPLORATIO NOT KNOW OF EA TIME. RTAKEN ALL THE ARE BEING UNDE mp Example 2 2:: E xhau t o off Exhaustion N u a l Resources Natural es u rces Look at the following data for crude oil. TABLE 1.7 CRUDE OIL RESERVES Region/Country Reserves Number of Years (Billion Tonnes) Reserves will last Middle East 89 93 United States of America 4 10 World 137 43 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 43 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 Punjab. 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 present sources of energy used by people in India. What could be possibilities fifty years from now? 9. Why is the issue of sustainability important for development? 16 1 6 U NDERST D G E CONOMIC E S ANDING N C D EVELO V OPMENT N 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 undernourished adults in India. It is based on a survey of various states for the year 2001. Look at the table and answer the following questions. State Male Female (%) (%) Kerala 22 19 Karnataka 36 38