Question: “Average income is an important criterion for development”. Explain.
- Average income gives us an idea what an average person is likely to get out of the total national income.
- Average income is used to classify the countries into rich, poor or developing nations.
- Average income is used to make economic policies.
Question: Besides income, what can be the other attributes to compare economic development?
- Of course, for comparing economic development of countries, their income is considered to be one of the most important attributes. This is based on the understanding that more income means more of all things that human beings need. That is why, the World Bank uses Per Capita Income to compare economic development.
- Apart from income, educational levels of the people and their health status are considered as measures to compare economic development of a nation.
(i) Infant Mortality Rate (IMR): This indicates the number of children that die before the age of one year as a proportion of 1,000 live children born in that particular year. ‘
(ii) Literacy Rate: This measures the proportion of literate population in the 7 years and above age group.
(iii) Net Attendance Ratio: This is the total number of children of age group 6-10 attending school as a percentage of total number of children in the same age group.
(iv) Life Expectancy at birth: It denotes average expected length of life of a person at the time of birth.
Question: What is infant mortality rate? Suggest two measures to keep the infant mortality rate low.
What is the meaning of “Infant Mortality Rate” (IMR)? Give two main reasons for low IMR in Kerala.
- The number of children that die before the age of one year per 1,000 children born alive in a particular year is called Infant Mortality Rate.
- Measures to keep Infant Mortality Rate low:
(i) Provision of basic health.
(ii) Provision of proper educational facility.
(iii) Proper functioning of Public Distribution System.
Question: Define the following terms:
(i) IMR (ii) Literacy Rate (iii) NAR
- Infant Mortality Rate (or IMR) indicates the number of children that die before the age of one year as a proportion of 1000 live children born in that particular year.
- Literacy Rate measures the proportion of literate population in the 7 years and above age group.
- Net Attendance Ratio is the total number of children of age group 6-10 years attending school as a percentage of the total number of children in the same age group.
Question: What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?
Answer: 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 $10066 per annum and above in 2004 are called rich or developed countries. On the other hand, countries with per capita income of $825 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.
Question: In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?
Answer: 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.