Development

Economics chapter 1
Revision notes class 10
Introduction:
People always want to make their lives better. We have
dreams about what we want to do and how we want to
live. Just like that, we also have ideas about how a
country should be.

We ask many important questions, like:

• What do we really need to live a good life?
• Can life be better for everyone?
• How should people live together peacefully?
• Can we make sure that everyone is treated equally?
Introduction:
Thinking about these questions and finding ways to make life better
is called development. But making these changes is not easy—it
takes time and effort.
In this chapter, we will start learning about development. As you
grow and study more, you will understand it even better. Not just
in economics, but also in history and political science. This is
because our lives today are shaped by what happened in the past.
• If we want change, we must first understand how things have
worked before. Also, to make our dreams come true, we need a
government where people can share their ideas and make
decisions together. This is called democracy, and it helps us
achieve our hopes in real life.
What development promises — different
people, different goals
Different people have different ideas about what development or
progress means. For example:

• A farmer might want better seeds, good rainfall, and fair prices for
crops.

• A student might want a good school, fun learning, and a safe place
to study.

• In your textbook, there is a table (Table 1.1) that shows different people
and what they want for a better life. Some parts of the table are not
filled. You can try to complete it by thinking about what each person
might need.
What development promises —
different people, different goals
Not everyone thinks about development in the same way. What
one person sees as progress might not be the same for another
person.
Each person or group wants things that are most important to
them. These are their dreams and goals. But sometimes,
people’s wishes can clash or conflict with each other.
For example:
• A girl may want the same freedom as her brother. She wants
to study, work, and live her life the way she chooses. She may
also expect her brother to help with household chores. But her
brother may not agree and may feel that housework is not his
responsibility.
What development promises —
different people, different goals
• Big industries need more electricity to run factories, so they may
support building large dams. But tribal people living near the river
may lose their homes because of the dam and prefer small water
tanks instead.

1️⃣Different people have different goals – Everyone wants something

different based on their life situation.

2️⃣One person’s development can be another person’s problem –

What helps one group may harm another.

• This is why it’s important to find fair and balanced solutions so that
development benefits everyone, not just a few people. 😊
Income and other goals
If we look at the table again, we will see that most people
want:
• Regular work (so they don’t have to worry about losing
their job).
• Better wages (so they can afford a good life).
• Fair prices for their crops or products (so they don’t
suffer losses).
In short, they want more income because money helps
them buy things they need.
But Money is Not Everything!
Income and other goals
People also want other things that money can’t buy,
such as:
• Equality – Everyone should be treated the same, no
matter their gender, caste, or background.
• Freedom – The right to make choices in life.
• Safety – Feeling secure at home, work, and in society.
• Respect – Being valued by others
Income and other goals
Think about your friends. You want their love and
support, not just gifts or money from them, right?
Similarly, people need things like:
• Good relationships
• Peace of mind
• A caring and fair society

• Many people hate discrimination and want to be

treated fairly. These things are often more important
than money because a happy life is not just about
earning more.
Income and other goals
Just because something can’t be measured doesn’t mean it’s
not important. Some things, like happiness, respect, and
safety, can’t be counted in numbers, but they still matter a lot.

Example: Choosing a Job

Imagine you get a job far away from home. Before saying "yes,"
you will think about:
• How much you will earn (income).
• Whether your family will be comfortable (facilities like
housing, schools, and hospitals).
• If the workplace is friendly and safe (working atmosphere).
• If you will have time to learn new skills (growth
Income and other goals
Now, compare two job offers:
1️⃣One job pays less, but it is stable and secure (you
don’t have to worry about losing it).
2️⃣Another job pays more, but it has no job security
and no free time for family.
• Even though the second job gives more money, it may
not make you happy because you will always feel
stressed and have no time for loved ones.
Income and other goals
People don’t just want money. They also want:
• Dignity and respect (especially for women and
marginalized groups).
• Freedom to make choices (like working outside the
home).
• Safety and security (so they can live without fear).
National development
Just like different people have different dreams for their
own lives, they also have different ideas about how a
country should develop.
For example, some people might say:
• India should build more factories to create jobs.
• India should focus on education so everyone gets a
good future.
• India should protect the environment so that
nature is not destroyed.
• India should build better roads and transport to
make travel easier.
National development
Since everyone thinks differently, their ideas might
sometimes clash.
• A businessman may want more industries to grow the
economy.
• A farmer may worry that industries will take away
farmland.
• A tribal person may want forests to be protected,
while a builder may want to cut trees to make cities.
National development
• ❓ Are all ideas equally important?
❓ If two ideas clash, how do we decide what’s
best?
❓ How can we make a fair decision that helps
everyone?

•The best ideas for national development should help a large number of
people, not just a few.
•We should think about long-term benefits, not just quick profits.
• Development should balance economic growth and social
welfare—meaning both money and people’s well-being
matter.
National development
•✔ Jobs and income for people.
✔ Education and healthcare for all.
✔ Equality and fairness in society.
✔ A clean environment for future generations.
How to compare different countries
or states?
• You may wonder—if development means different
things to different people, why are some countries
called developed while others are called
underdeveloped? To understand this, we must first
think about how we compare things in general.
How to compare different countries
or states?
When we compare two things, we look at both
similarities and differences. For example, in a
classroom:

• Students have different heights, health, talents,

and interests.
• The healthiest student may not be the best at
studies.
• The most intelligent student may not be the most
friendly.
• So, the way we compare depends on what we want to
How to compare different countries
or states
The way we compare students changes based on the
purpose:
• For a sports team, we look at physical fitness.
• For a debate team, we check speaking skills.
• For a music team, we focus on musical talent.
• For organizing a picnic, we choose someone who is
responsible and organized.
• However, if we need to find a way to compare overall
progress in the class, we must decide on the right
factors to use.
How to compare different countries
or states
• Similarly, when comparing countries, we need to
decide on the best way to measure development. Some
countries may be better in one area but weaker in
another. So, choosing the right criteria is very
important for a fair comparison.
How to compare different countries
or states
When we compare people, we usually focus on one or more important
characteristics. However, people may disagree on which
characteristics are most important.

For example, some might say that a student’s friendliness and

teamwork are most important. Others might believe creativity is more
valuable. Some may think marks in exams should be the main factor
for comparison.

Since different characteristics matter in different situations, choosing

the right basis for comparison depends on the purpose. Similarly, when
comparing countries, we need to decide which factors are most
important for development.
How to compare different countries
or states
Just like we compare students based on different
characteristics, we also compare countries to
understand their level of development.
One of the most important factors used for comparison
is income.
• Countries with higher income are considered more
developed.
• Countries with lower income are considered less
developed.
How to compare different countries
or states
The idea behind this is simple:
• More income means people can afford better food,
housing, education, and healthcare.
• Whatever people need or want, they can buy if they
have higher income.
• Because of this, income is seen as a key measure of
development.
How to compare different countries
or states
The income of a country is the total income earned by
all its people. This is called the total income of the
country.
However, using total income to compare countries is not
very useful because:
• Different countries have different population sizes.
• A country with a large population may have a high total
income, but each person may not earn much.
How to compare different countries
or states
How Do We Compare Countries Fairly?
To compare how well people live in different countries, we use
average income instead of total income.

What is Average Income?

• Average income is found by dividing the total income of a
country by its total population.
• This tells us how much each person earns on average.
• Average income is also called per capita income (where
"per capita" means "per person").
How to compare different countries
or states
How Are Countries Classified Based on Income?
• The World Bank publishes the World Development
Report, which uses per capita income to classify
countries into different categories.
How to compare different countries
or states
Categories of Countries (2019 Data)
[Link]-Income (Rich) Countries
[Link] with a per capita income of US$ 49,300 or
more per year.
[Link]-Income (Poor) Countries
[Link] with a per capita income of US$ 2,500 or less
per year.
[Link]-Income Countries
[Link] that fall between these two categories.
[Link] is considered a low-middle-income country because
its per capita income in 2019 was US$ 6,700 per year.
How to compare different countries
or states
Which Countries Are Considered Developed?

• Rich countries (except some small countries and those

in the Middle East) are usually called developed
countries.
• These countries generally have better living
conditions, healthcare, and education compared to
others.
Income and other criteria
When we looked at what individuals want in life, we saw
that people do not only aim for better income. They
also want:
• Security (feeling safe in life)
• Respect from others
• Equal treatment (fairness for all)
• Freedom (to make their own choices)
Income and other criteria
Similarly, when we talk about a nation’s development,
we should not focus only on average income. Other
important factors also matter, such as:
• Good healthcare and education
• Equal rights for all people
• Safety and law enforcement
• Clean environment
• This means that a truly developed country is one that not
only has high income but also provides a good
quality of life for its people.
Income and other criteria
Does High Income Always Mean More
Development?
To understand development better, let’s compare three
Indian states: Haryana, Kerala, and Bihar.
Comparing Per Capita Income
The per capita income (average income per person) in
2018–19 was:
• Haryana – ₹2,36,147 (Highest)
• Kerala – (In between)
• Bihar – ₹40,982 (Lowest)
Income and other criteria
Is Income the Only Factor?
However, development is not just about income. Other
factors like education, health, and quality of life are
also important.
• Now, let’s look at other data to see if income alone
gives the full picture of development
Income and other criteria
state may have high income, but if people do not have
good healthcare, education, and safety, can we call
it truly developed?
For example, Kerala has lower per capita income than
Haryana, but it has:
✔ Better healthcare (people live longer)
✔ Higher literacy rate (almost everyone can read and
write)
✔ Lower infant mortality rate (fewer babies die
young)
• So, development is not just about money—it is
also about well-being and quality of life!
Income and other criteria
What Does This Table Show?
The table gives important data about infant mortality
rate (IMR)—the number of babies who die before their
first birthday out of every 1,000 born.
• In Kerala, only 7 out of 1,000 babies died before
turning one.
• In Haryana, 30 out of 1,000 babies died—three
times more than Kerala!
Income and other criteria
What Does This Mean?
Even though Haryana has a higher per capita
income than Kerala, its infant mortality rate is
much worse. This shows that:
• Higher income does not always mean better
healthcare.
• Kerala has better medical facilities, nutrition, and
care for newborns despite lower income.
Income and other criteria
Why Is This Important?
Think about how much parents love and care for their
children. Imagine how painful it is when a baby dies
before even celebrating its first birthday.
This data is from 2018—not from history, but from
modern times when India has big cities, tall
buildings, and shopping malls. Even with economic
progress, there are still huge differences in
development across states.
• This proves that true development is not just about
income, but also about health, safety, and well-
being.
Income and other criteria
The Problem Goes Beyond Infant Mortality
The last column of the table shows another major issue
—school attendance.
• In Bihar, about half of the children aged 14-15 are
not attending school beyond Class 8.
• This means that if you were studying in Bihar, almost
half of your classmates would have dropped out.
Income and other criteria
Why Is This a Big Problem?
• Imagine if you never got the chance to continue
school—you wouldn’t be able to read, write, or learn
new things. Education is important because:
✔ It helps people get better jobs and earn more.
✔ It improves thinking skills and knowledge.
✔ It gives people the power to make better decisions
in life.
Income and other criteria
What Does This Show About Development?
Even though some states have higher income, they
might not have better education.
• Bihar’s low school attendance shows that many
children miss the opportunity to learn and grow.
• This proves that true development is not just about
money—it also includes education and
knowledge.