Development (Exercise)

Q.4: What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?

Ans: The average income, i.e. per capita income is the main criterion used by the World Bank in classifying different countries.

According to World Development Report 2006, published by the World Bank, countries with per capita income of Rs.4,53,000 per annum and above in 2004 are called rich or developed countries. On the other hand, countries with per capita income of Rs.37,000 or less are called low-income countries.

Limitations: It does not tell us about how the average income is distributed among the people in the individual countries. 

The countries with the same per capita income might be very different with regard to income distribution. One might have equitable distribution of income, while the other might have great disparities between the rich and the poor.   

Q.5: In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?  

Ans: The criterion used by the UNDP for measuring development is different from the one used by the World Bank in the following respects:

The World Bank - The World Bank uses per capita income as the sole criterion for measuring development.

The UNDP - It uses the Human Development Index (HDI) based on a combination of factors such as health, education, and income as the criterion for measuring development.

Thus, the UNDP does not rely solely on per capita income, as the criterion for measuring development, as in the case with the World Bank.    

Q.6: Why do we use average? Are there any limitations to their use?  

Ans: Average is a single value which summarizes the characteristics of mass of data. 

Since countries have different populations, total income does not tell us what an average person is likely to earn. This is known as the average income.

 That is why we use averages or average income for measuring development.

There are some limitations to their use such as:

1. An average is influenced by extreme values.

2. An average may not give an idea about the formation of the series.

In other words, average income does not tell us about how this income is distributed among the people.

Q.7: Kerala, with lower per capita income has a better human development ranking than Punjab. Hence, per capita income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss.

Ans: No, I do not agree with the statement that per capita income is not a useful criterion at all. 

Kerala, with lower per capita income has a better human development ranking than Punjab because, human development ranking is determined using a combination of factors such as health, education, and income. 

So, this does not imply that per capita income is not useful. Rather, per capita income is one of the development factors and can not be neglected. 

The World Bank uses per capita income as the criterion for measuring development and comparing states. 

But this criterion has certain limitations because of which determination of Human Development Index (HDI) is done using this criterion along with some other development factors like health, education etc.   

Q.9: Why is the issue of sustainability is important for development?

Ans: Sustainability for development or sustainable development refers to the development which is done without damaging the environment and other resources.

 The issue of sustainability is important for the development because development must happen in tandem with future. 

If natural resources are not sustained, it will cause a stagnation of development after a point of time. 

Exploiting resources unethically will ultimately undo the development that a country may have achieved.

Q.10: “The Earth has enough resources to meet the need of all but not enough to satisfy the greed of even one person.” How is this statement relevant to the discussion of development? Discuss.  

Ans:  As the statement claims, our earth has enough resources - renewable and non-renewable to satisfy everyone’s need if we use them in an economic manner. 
For the sustainability of development, the consumption and maintenance of resources is also crucial. We have to use the resources keeping our environment protected and clear so that there is a balance between the development and use of our resources. 
As otherwise after a certain point of time in future the development will be stagnated.