This MCQ module is based on: Measuring Development – Income and Beyond
Measuring Development – Income and Beyond
Study Notes and Summary
Income as a Measure of Development:
Economic development is often measured by income, with total income being the income of all residents in a country.
Per Capita Income (Average Income): Total income of a country divided by its total population. This is used for comparing countries because total income doesn’t account for population differences.
World Bank Classification (2019):
High-income (Rich) Countries: Per capita income of US$ 49,300 per annum and above.
Low-income Countries: Per capita income of US$ 2500 or less.
India’s Category: Low-middle income country with a per capita income of US$ 6700 per annum in 2019.
Rich countries (excluding Middle East and small states) are generally called developed countries.
Limitations of Average Income: Averages hide disparities in income distribution within a country, meaning a high average income might mask significant poverty.
Other Important Criteria for Development:
Beyond income, other crucial attributes for comparing nations or regions include:
Infant Mortality Rate (IMR): Number of children dying before one year of age per 1000 live births.
Literacy Rate: Proportion of literate population in the 7-and-above age group.
Net Attendance Ratio: Total number of children aged 14-15 attending school as a percentage of the total in that age group.
Public Facilities: The availability and quality of public facilities (e.g., healthcare, education, pollution-free environment, unadulterated medicines) significantly impact the quality of life, and money alone cannot always buy these.
Kerala vs. Haryana Example: Kerala has a lower Infant Mortality Rate and higher literacy despite lower per capita income than Haryana, due to adequate basic health and educational facilities.
Practice MCQs
Assessment Worksheets
This assessment will be based on: Measuring Development – Income and Beyond
Olympiad Focus & Application
Real-Life Connections & General Knowledge:
The comparison between Haryana, Kerala, and Bihar using per capita income, IMR, literacy rate, and net attendance ratio illustrates how different indicators present a more complete picture of development.
Case-based Scenarios & Reasoning:
Scenario: Country X has a very high per capita income, but a significant portion of its population lacks access to basic healthcare and quality education. Discuss why, despite its high income, Country X might not be considered “developed” in a holistic sense.
Scenario: A remote rural area has a very low literacy rate. Propose collective government and community initiatives that could improve this, considering the limitations of individual efforts.
Conceptual Application:
Discuss the multi-dimensional nature of development, moving beyond purely economic indicators.
Analyze the ethical implications of using only per capita income as a development indicator when significant disparities exist.
Numerical/Data Interpretation:
Table 1.2: Comparison of Two Countries (Monthly Incomes)
Country A: Citizens’ incomes are 9500, 10500, 10000, 9800, 10200. Average income: 10000.
Country B: Citizens’ incomes are 500, 500, 500, 500, 48000. Average income: 10000.
This table demonstrates how identical average incomes can hide vast disparities in income distribution, making Country A preferable due to more equitable distribution.
Table 1.3: Per Capita Income of Select States (2018-19)
Haryana: Rs 2,36,147
Kerala: Rs 2,04,105
Bihar: Rs 40,982
Table 1.4: Some Comparative Data on Haryana, Kerala and Bihar (2017-18, 2018)
Infant Mortality Rate per 1,000 live births (2018):
Haryana: 30
Kerala: 7
Bihar: 32
Literacy Rate % (2017-18):
Haryana: 82
Kerala: 94
Bihar: 62
Net Attendance Ratio (per 100 persons) secondary stage (age 14 and 15 years) 2017-18:
Haryana: 61
Kerala: 83
Bihar: 43
Table 1.5: Educational Achievement of Rural Population of Uttar Pradesh
Literacy rate for rural population: Male 76%, Female 54%
Literacy rate for rural children in age group 10-14 years: Male 90%, Female 87%
Percentage of rural children aged 10-14 attending school: Male 85%, Female 82%
Comparative & Analytical Points:
Analyze the strengths and weaknesses of using only per capita income as a development indicator.
Discuss how social and public infrastructure (like health and education) can contribute to a higher quality of life even with lower average incomes, as seen in the Kerala example.
