Comparing Countries, HDI & Sustainability

NCERT Understanding Economic Development | Chapter 1 — Development

How to Compare Countries Using Development Indicators?

When we compare different things, they may have both similarities and differences. The criterion we choose depends on the purpose of comparison — just as we select different criteria to pick a sports team versus a debate team. For comparing countries, income^? is considered one of the most important attributes because higher income generally enables people to access more goods and services.

The World Bank^? uses per capita income as its primary criterion for classifying nations. According to the World Development Reports (2023 data), countries with per capita income of US$ 63,400 or above are classified as high-income or rich countries, while those with per capita income of US$ 2,400 or less are low-income countries. India, with a per capita income of approximately US$ 10,030, falls in the low middle income category.

The Problem with Averages

While averages are useful, they can hide important disparities. Consider two hypothetical countries with five citizens each:

Both countries have the same average income of Rs 10,000. But would you be equally happy living in either one? In Country A, income is distributed fairly evenly — no one is extremely rich or desperately poor. In Country B, four out of five citizens earn only Rs 500 while one person earns Rs 48,000. Most people would prefer Country A because of its more equitable distribution. This shows that while average income is useful for comparison, it does not reveal how income is distributed among the population.

Income and Other Criteria

Just as individuals value more than just income, comparing states or countries also requires looking beyond per capita income. Consider three Indian states: Haryana, Kerala, and Bihar.

Haryana has the highest per capita income, yet Kerala outperforms it dramatically on health and education. Kerala's Infant Mortality Rate^? is just 6 per 1,000 live births compared to 28 in Haryana — nearly five times lower. Kerala's literacy rate stands at 94% compared to Haryana's 82%, and its secondary school attendance is far superior.

The Role of Public Facilities

Kerala's superior health and education outcomes stem from its adequate provision of basic public facilities — hospitals, schools, and the Public Distribution System (PDS). Many essential services are best provided collectively because it is both more effective and cheaper. Collective security for a locality costs less than private guards for each home. A functioning school system requires community demand, not just individual wealth.

In Bihar, about one-third of children aged 15-17 are not attending secondary school. This means that if you were in a Bihar classroom, nearly a third of your potential classmates would be missing. Without government investment in accessible schools, even families who value education cannot send their children to learn.

What Is the Human Development Index (HDI)?

Since income alone is inadequate, the UNDP^? publishes the Human Development Report which compares countries using a broader set of criteria: educational levels, health status, and per capita income. This combined measure is called the Human Development Index (HDI)^?.

Notably, Sri Lanka — a much smaller neighbour — is far ahead of India on every indicator and ranks 78th globally. Even Bangladesh (rank 129) outperforms India (rank 134) despite having a lower per capita income, largely because of better life expectancy and schooling outcomes. Nepal, with much lower income than India, achieves higher life expectancy. By prefixing "Human" to Development, the HDR makes clear that what truly matters is the well-being of people — their health, their education, and their standard of living.

What Is Sustainability of Development in Class 10 Economics?

Even if a country achieves a high level of development, can it be maintained for future generations? Since the second half of the twentieth century, scientists have warned that current patterns and levels of development are not sustainable. The concept of sustainable development^? raises fundamental questions about how we use natural resources.

Groundwater: A Renewable Resource Under Threat

Groundwater is a renewable resource^? — replenished naturally by rainfall. Yet evidence shows that approximately 300 districts in India have experienced water-level declines exceeding 4 metres over 20 years. Nearly one-third of the country is overusing its groundwater reserves, and if this continues, 60 per cent of the country would be in the same situation within 25 years. The problem is particularly severe in agriculturally prosperous regions like Punjab and Western Uttar Pradesh, as well as rapidly growing urban areas.

Crude Oil: A Non-Renewable Resource Running Out

Non-renewable resources^? exist in a fixed stock on Earth and will eventually be exhausted. Consider crude oil:

At current extraction rates, global crude oil reserves would last only about 50 years. India, which depends on imported oil, faces particular vulnerability — price increases become a burden on the entire economy. This underscores why the question of sustainability is inseparable from the question of development. Environmental degradation does not respect national boundaries, making this a collective global challenge.