1. Development is the sum total of income plus quality of life. Besides seeking more income one way or another, people also seek things like equal treatment, freedom, security, respect of others.
Fig: Economic development of India
2. Different people have different goals in their life. What may be development for one may not be development for another. This can be understood by the following:
Example: To get more electricity, an industrialist may want more dams. But this may submerge the land and disrupt the lives of people who are displaced, such as tribes.
3. One common thing among all people is the desire for more income. With this income they buy goods and services for their daily needs. Quality of life depends on non-material things also.
Example: A job may give you less pay but may offer regular employment that enhances your sense of security.
4. Ideas of development differ at individual and national level.
Example: A landless rural laborer may desire more days of work and better wages at the individual level; but at national level he may want good education and health facilities in the local area.
5. The average income can be calculated by dividing national income by the population. It is also called per capita income.
Fig: Gini coefficient of India and other countries according to The World Bank (2014). Higher Gini Index means more income inequality
6. Standard of living of people in a country depends on their per capita income. Countries with higher per capita income are more developed than others with less per capita income.
7. Education and health also play an important role in the country’s development. To know about other criteria we should be familiar with some terms:
(a) Infant Mortality Rate (IMF): It indicates the number of children who die before the age of one year, as a proportion of 1000 live children born in that particular year.
(b) Literacy Rate: It measures the proportion of literate population in the 7 and above age group.
(c) Net Attendance Ratio: It is the total number of children of age group 6-10 attending school as a percentage of a total number of children in the same age group.
8. Public facilities are those which are provided by the government to satisfy collective needs of the people.
Example: schools, hospitals, community halls etc. It is the best and the cheapest way to provide these goods and services collectively.
9. Human development index is the quality of life index prepared by UNDP. It has mainly three indicators.
(a) Life Expectancy at Birth: It denotes average expected length of life of a person at the time of birth.
(b) Gross Enrollment Ratio: It shows the enrollment ratio in primary schools, secondary schools and in higher education.
(c) Per Capita Income: It is calculated in dollars for all countries so that it can be compared.
Adding all the three indicators and dividing by 3, gives the human development index:
LE = Life expectancy
GER = Gross enrollment ratio
10. Human Development Report published by UNDP is useful for comparison between different countries regarding the educational level of their people, their health status and real per capita income.
11. Sustainable development is that process which fulfills the needs of the present generation, without causing any harm to the ability of the future generations to meet their own needs.
Fig: Achieving sustainability will enable the Earth to continue supporting human life
12. It requires preservation of stock of resources including exhaustible natural resources and environmental resources.
13. Recent studies show that groundwater in India is exhausted because of overuse. 1/3rd of the country is overusing its groundwater reserves.
14. Another area is the exhaustion of natural resources. The resources of crude oil would last only for 43 years.