Chapter 1 — Development

Development involves thinking about what a country should be like, what is essential for people to live well, and how we can work towards achieving goals of equality, better living standards, and improved quality of life. Different people have different notions of what development means based on their life situations.

People have different life situations and aspirations. A landless laborer may want more days of work and quality education for their children, while a prosperous farmer may want higher support prices and the ability to settle children abroad. A girl from a rich family may seek the freedom to pursue studies abroad, while an adivasi may be concerned about displacement due to dam projects.

The World Bank primarily uses per capita income, which is the average income calculated as total income of the country divided by its total population. In 2024, countries with per capita income of US$ 66,500 per annum and above are called high-income countries, while those with about US$ 2,300 or less are called low-income countries. India is a low middle-income country with per capita income of about US$ 11,000 per annum.

Per capita income hides disparities in income distribution. Two countries with identical average income can be very different if one has equitable distribution while the other has extreme inequality with many poor people and a few very rich people. Additionally, income alone does not account for important non-material factors like freedom, security, respect, and environmental quality.

Key indicators include literacy rate (proportion of literate population aged 7 and above), infant mortality rate (children dying before age one), life expectancy (expected length of life at birth), and net attendance ratio (children of school age attending school). These measure the quality of life and well-being of a country's people.

The HDI, published by UNDP in the Human Development Report, measures development using three key indicators: educational level, health status, and per capita income. Unlike per capita income alone, HDI recognizes that development is about people—their health, well-being, and education. It provides a more comprehensive picture of whether citizens have a good quality of life.

Public facilities and collective services are often the most efficient and cheapest way to provide important goods and services. For example, collective security is cheaper than individual security for each house. Similarly, public schools allow children to study together, and public health systems prevent infectious diseases better than individual prevention. States with better public health and education facilities, like Kerala, have lower infant mortality rates even if their per capita income is lower.

Renewable resources are replenished by nature, such as crops and plants. However, they can be overused if we extract more than nature replenishes. For example, groundwater is renewable but is being overused in many parts of India. Non-renewable resources are finite and will get exhausted after use. Crude oil is a non-renewable resource; global reserves at current extraction rates will last only about 47 years.

Scientists have warned since the second half of the twentieth century that present types and levels of development are not sustainable. If we overuse renewable resources like groundwater or exhaust non-renewable resources like crude oil, future generations will not have access to these essential resources. Sustainability ensures that development benefits continue for future generations and does not destroy the environment.

Yes. The chapter shows that Haryana has higher per capita income than Kerala, but Kerala has better infant mortality rate (6 per 1,000 live births versus 28), higher literacy rate (94% versus 82%), and higher net attendance ratio in secondary school (94 versus 73). This is because Haryana's wealth may not translate to better public health and education facilities available to all citizens.

The chapter uses the example of India and its neighbors from the 2025 Human Development Report. Sri Lanka ranks much higher in the world (89th) despite being smaller, while India ranks 130th. Nepal and Bangladesh, which have lower per capita income than India, still have better life expectancy. This shows that development depends on how governments invest in public services, health, and education, not just total income.

The chapter emphasizes that material goods are not all that is needed to live. Beyond income and consumption, people desire equal treatment, freedom, security, and respect from others. They value things like friendship, a safe environment, and dignity. These non-material goals are often more important than income alone and should be considered when measuring development.

Yes, the NCERT Class 10 Economics textbook "Understanding Economic Development" is free to download. You can access it on CBSE PrepMaster without any sign-up required. All NCERT textbooks are published by the Government of India and are available free of cost.