Chapter 1 Development

The concept of development or progress is inherent in human aspirations. Individuals have desires for their own lives and for the kind of society or country they want to live in. They question what is essential, how life can be improved for everyone, how people should coexist, and whether greater equality is possible.

Development involves contemplating these fundamental questions and identifying ways to achieve desired goals. It's a complex topic studied not only in economics but also in history and political science, as our present is shaped by the past, and achieving change requires democratic political processes.

What Development Promises — Different People, Different Goals

The idea of development is not uniform across all people. It is deeply personal and depends on an individual's life situation, background, and aspirations.

Different Aspirations

When considering development, people tend to focus on what is most important or desired for them. For a landless rural labourer, development might mean more workdays, better wages, access to quality education for children in the local school, and the absence of social discrimination, allowing them to participate in village leadership.

A prosperous farmer from Punjab might aspire to higher income through guaranteed support prices for crops and access to affordable labour, perhaps also hoping to send their children abroad.

Farmers relying only on rain would prioritise reliable irrigation methods, better yield, and fair prices for their produce.

An urban unemployed youth would primarily seek stable employment opportunities.

For a girl from a rich urban family, development goals might include gaining as much freedom and opportunity as her brother, having household work shared more equally, and being able to pursue higher education or studies abroad.

An adivasi from the Narmada valley might value the preservation of their land, culture, and way of life, potentially opposing large development projects like dams that cause displacement.

This diverse range of aspirations highlights that different people envision development in vastly different ways based on their circumstances.

Different Goals

Based on their varying aspirations, different people have different developmental goals. What constitutes 'development' is not a universal concept; it varies from person to person.

Conflicting Goals

It's important to note that the developmental goals of different people or groups can sometimes be in conflict. For instance, the desire for a girl from a rich urban family to have equal freedom and shared household work might conflict with her brother's expectations or preferences.

Another classic example is the conflict between industrialists' desire for more electricity (potentially requiring large dams) and the aspirations of indigenous or rural communities whose land might be submerged and lives disrupted by such dams. These communities might prefer smaller-scale irrigation methods that protect their land and way of life. This demonstrates that what is considered development for one group could be detrimental or even destructive for another.

Therefore, two key takeaways are: 1. Different individuals and groups pursue different developmental goals, and 2. These goals can sometimes be in opposition to each other.

Income And Other Goals

Looking back at the diverse developmental goals, a common thread for many is the desire for more income or better financial prospects.

More Income

Whether it's more days of work, better wages, fair prices for crops, or seeking stable employment, increasing one's income is a significant developmental goal for many. More income is generally desired because it allows people to acquire more material goods and services that they need or want to live comfortably.

Non-material Goals

However, development is not solely about increasing income. People also desire non-material things that are crucial for a good life. These include:

• Equal treatment
• Freedom
• Security
• Respect from others

People often resent being discriminated against. These non-material goals can be as, or even more, important than income or consumption levels because a fulfilling life requires more than just material possessions.

Importance Of Non-material Things

Many aspects of life that contribute significantly to well-being are not easily measured in monetary terms. The value of friendship, for example, cannot be quantified but is highly important. These non-material factors are often overlooked in simple economic analyses but hold great meaning in people's lives.

It's important not to dismiss the significance of something just because it cannot be easily measured.

A Mix Of Goals

When people consider opportunities, such as taking a job, they look at a combination of factors, not just the income offered. They might consider:

• Facilities available for their family (e.g., schools, healthcare).
• The working atmosphere.
• Opportunities for learning and growth.
• Job security.

For instance, a job with lower pay but higher job security might be preferred over a high-paying job with no security and long hours that leave no time for family, as it provides a better sense of security and freedom.

Similarly, societal development involves a mix of goals. When women are in paid work, their dignity often increases, but genuine progress also requires respect for women leading to more sharing of housework and acceptance of women working outside the home. A safe and secure environment is crucial for women to pursue various jobs or start businesses.

Therefore, people's developmental goals are a blend of seeking better income and other important aspects that enhance the quality of life.

National Development

Just as individuals have different and potentially conflicting goals, the concept of national development is also subject to varied interpretations and disagreements.

Different Notions

If individual development means different things, then the idea of what constitutes national development for a country like India is also likely to be diverse among its citizens. Different people will have different ideas about what India should prioritise for development.

Conflicting Notions

It is very possible, even likely, that different individuals or groups will hold different, and potentially conflicting, notions of what national development should entail. For example, priorities might differ greatly between urban and rural populations, or between different socio-economic groups.

Answer:

How To Decide

Given varied and conflicting ideas about national development, the challenge lies in determining which ideas are most important and how to reconcile conflicts. Key questions arise:

• What would be a fair and just approach for the country's development?
• Is there a better way to achieve these goals?
• Would the proposed ideas benefit a large proportion of the population or only a select few?

Thinking about national development involves considering these questions and striving for paths that lead to the overall well-being of the majority.

How To Compare Different Countries Or States?

If development can mean different things, how do we justify calling some countries 'developed' and others 'underdeveloped' or 'developing'? Comparing different entities, whether countries or students, requires deciding on specific criteria.

Comparison Criteria

When comparing diverse things, like students in a class with varying height, health, talents, and interests, the criteria used depend entirely on the purpose of the comparison. Different criteria are used to select a sports team versus a debate team.

However, for a general comparison, such as the all-round progress of students, one or more important characteristics are typically chosen as the basis. There can be disagreements on which characteristics are most important (e.g., friendliness, creativity, or academic marks).

Income For Comparison

Similarly, when comparing countries, income is conventionally considered one of the most important attributes for assessing development. The reasoning is that countries with higher incomes can afford more of the goods and services that people need or desire. Thus, a higher income is seen as directly linked to having more of the things that human beings value.

Average Income

While the total income of a country (the sum of incomes of all residents) gives some sense of its wealth, it is not useful for comparing countries with different populations. To understand how well-off an average person is in a country, we use the average income.

The average income is calculated by dividing the total income of the country by its total population. This is also known as per capita income.

The World Bank uses this criterion in its World Development Reports to classify countries:

• High-income or Rich Countries: Per capita income of US\$ 49,300 per annum and above (in 2019).
• Low-income Countries: Per capita income of US\$ 2500 or less (in 2019).
• Low Middle-Income Countries: India falls into this category, with a per capita income of US\$ 6700 per annum in 2019.

Rich countries (excluding certain exceptions) are generally referred to as developed countries.

Limitations Of Average Income

While useful for broad comparisons, averages can hide significant disparities within a country. Consider two hypothetical countries, A and B, with the same average income.

Both countries have an average income of $\textsf{₹}\,10000$. However, the distribution of income is vastly different. Country A has a relatively equitable distribution where everyone earns a similar moderate income. Country B has a highly unequal distribution, with four citizens being very poor ($\textsf{₹}\,500$) and one being extremely rich ($\textsf{₹}\,48000$).

Most people would prefer to live in Country A, despite the same average income, because it offers more equitable distribution and avoids extreme poverty. This demonstrates that average income, while useful for comparison, does not reveal how income is distributed among the population. It hides disparities between the rich and the poor.

Income And Other Criteria

Just as individuals consider a mix of goals beyond just income (like security, respect, freedom), when evaluating the development of a nation or region, other important attributes besides average income should be considered.

Income As Inadequate Measure

While a higher income level is important, it is not a sufficient indicator of the overall development or quality of life. Money alone cannot buy everything needed to live well.

Other Important Attributes

Besides average income, other crucial aspects reflect the well-being of a population. While a long list is possible, some key indicators commonly used include: Health status and Educational levels.

State Comparison: Income

Let's compare three Indian states: Haryana, Kerala, and Bihar, using per capita income (specifically, Per Capita Net State Domestic Product at Current Prices for 2018–19, which can be roughly taken as per capita income).

Based on per capita income, Haryana is the highest and Bihar the lowest among the three. If income were the sole measure, Haryana would be considered the most developed.

State Comparison: Other Data

However, let's look at other comparative data for these states:

Key Terms Explained:

• Infant Mortality Rate (IMR): Number of children dying before turning one year old, per 1000 live births in a year.
• Literacy Rate: Proportion of the population aged 7 and above who are literate.
• Net Attendance Ratio (Secondary Stage): Percentage of children aged 14 and 15 who are attending school, out of the total number of children in that age group.

This table reveals a different picture. Kerala has a much lower Infant Mortality Rate (7) compared to Haryana (30) and Bihar (32). It also has significantly higher Literacy Rate (94%) and Net Attendance Ratio (83%). Despite having a lower per capita income than Haryana, Kerala performs much better in these crucial health and education indicators. This clearly shows that a higher average income does not automatically translate to better outcomes in other important areas of life.

Public Facilities

The comparison between Kerala, Haryana, and Bihar underscores that while income is important, it cannot guarantee access to all necessary goods and services. Many essential aspects of life depend on collective provision rather than individual purchasing power.

Limitations Of Income

The money in your pocket cannot necessarily buy you everything you need for a good life. For example, a pollution-free environment or access to unadulterated medicines may not be purchasable unless you move to a clean community. Money cannot protect you from infectious diseases if the broader community does not take preventive measures like vaccination or sanitation.

Income is limited as an indicator of the material goods and services citizens can actually use.

Need For Collective Provision

Many important things in life are best, and often most affordably, provided collectively. Think about security: providing collective security for a neighbourhood is usually cheaper and more effective than each household hiring its own security staff. Similarly, education relies heavily on collective provision.

If you were the only child in your village interested in studying, accessing education would be very difficult and expensive unless your parents could send you elsewhere. You are able to study because many other children also attend school, and because society and the government collectively provide schools and facilities, making education accessible to all children.

Examples Of Public Facilities

Areas where collective provision of goods and services is crucial and often managed by the government include:

• Basic healthcare facilities (e.g., clinics, hospitals).
• Educational institutions (schools, colleges).
• Public Distribution System (PDS) for essential goods like foodgrains.
• Sanitation and clean water supply.

Kerala's low Infant Mortality Rate and high literacy are attributed to adequate provision of basic health and educational facilities. States with well-functioning PDS are likely to have better health and nutritional outcomes for their populations. This demonstrates that the availability and effectiveness of these public facilities significantly impact the quality of life, often more so than individual income levels.

Human Development Report

Recognising that income alone is an insufficient measure of development, alternative criteria have gained prominence. Health and education indicators, as shown in the state comparison, are now widely used alongside income.

Beyond Income Criteria

The limitations of using only income for comparing development levels have led to the inclusion of other crucial aspects of human well-being.

Human Development Index (HDI)

The Human Development Report, published by the United Nations Development Programme (UNDP), is a key example of this broader approach. It compares countries based on a composite index called the Human Development Index (HDI), which takes into account:

• Educational levels of the people.
• Health status (measured by life expectancy).
• Per capita income (measured in terms of Purchasing Power Parity - PPP dollars for comparison).

Comparison With Neighbours

Looking at data from the Human Development Report 2021-22 for India and some of its neighbours provides interesting comparisons (see Table 1.6 in text):

• Sri Lanka performs significantly better than India in all key aspects (GNI per capita, Life Expectancy, Mean Years of Schooling) and has a much higher HDI rank (73 vs. India's 132).
• Countries like Nepal and Bangladesh, despite having lower GNI per capita than India, have higher life expectancy. Bangladesh also has a higher HDI rank than India.
• Myanmar and Pakistan generally rank lower than India on most indicators.

This data highlights that even countries with lower average incomes can surpass others in health and education outcomes, influencing their overall human development ranking. India's relatively low HDI rank despite its size and economic growth underscores the importance of factors beyond just income.

Focus On People

By adding "Human" to "Development," the UNDP report explicitly emphasizes that development is fundamentally about what happens to the citizens of a country. The well-being, health, and education of people are the most important aspects of development.

While the HDI has seen improvements and new components added over time, its core message remains clear: true development must center on improving human lives.

Sustainability Of Development

The concept of development has evolved beyond simply achieving a certain level of income or human development indicators. A critical issue that emerged in the latter half of the 20th century is the sustainability of development.

Need For Sustainable Development

If a country is currently developed, the goal should be to maintain or improve this level for future generations. However, current development practices are often deemed unsustainable, raising warnings from scientists about their long-term viability.

Sustainable development essentially means using resources and carrying out development in a way that meets the needs of the present generation without compromising the ability of future generations to meet their own needs.

Groundwater Overuse

Groundwater in India is a prime example of unsustainable resource use. It is a renewable resource, replenished by rain. However, if the rate of extraction exceeds the rate of replenishment, it leads to overuse.

Answer:

Overuse of groundwater is prevalent in about one-third of India's districts, and projections indicate this could rise significantly if current practices continue. This highlights that even renewable resources are vulnerable to unsustainable use if extraction rates are too high.

Exhaustion Of Natural Resources

Many natural resources are non-renewable, meaning their stock on Earth is finite and cannot be replenished once used up over years. Examples include fossil fuels like crude oil.

Answer:

Even if new reserves are discovered, the stock is finite. The data on crude oil reserves shows that at current extraction rates, known global reserves might last only around 50 years. This poses significant challenges, especially for countries like India that rely heavily on importing oil. Rising oil prices and potential scarcity create economic burdens and energy security concerns.

Environmental Degradation

The consequences of unsustainable development and resource depletion often manifest as environmental degradation. Issues like pollution, deforestation, and resource depletion impact not only the immediate area but can have global effects, as environmental problems do not respect national boundaries. Our shared future is linked to the health of the planet.

The Debate Continues

The issue of sustainability is a relatively new but crucial area of study involving collaboration across various disciplines (science, economics, philosophy, social sciences). The fundamental question of development and progress – where we want to go and what our goals are – remains constant. The debate on how to achieve development in a way that is both equitable and sustainable is ongoing.