2. Economic Development
• Economic Growth & Economic Development are
used as synonymous
• However, there is a difference. Economic
Development is a Broader concept
• Economic Growth implies rise in National Income
• Whereas Economic Development implies economic
growth with economic welfare
3. Economic Development
• Economic Development is economic growth and
other changes leading to overall development of the
economy
• For Instance, rise in productivity, development of
capital mkt, reduction in poverty & unemployment,
etc.
• Economic D. is multi dimensional & hence cannot e
measured By 1 Index
4. Economic Development
• Economists use variety of parameters to indicate process
of development
• All parameters which indicate improvement in the quality
of life of people are termed as Indicators of Development
• Below are 4 major indicators of Economic D
– Per Capita Income
– Physical Quality of Life Index
– Human Development Index
– Quality of Life Index
5. Human Development Index (HDI)
• HDI was developed by a special agency of United
Nations (UN) viz United Nations Development
Program (UNDP)
• HDI is a summary of 3 criteria's
– Life Expectancy Index – Long & Healthy Life
– Educational Attainment Index – Literacy Rate
– Std of Living Index – measured in Per Capita Income
6. Human Development Index (HDI)
• Index of each criteria is calculated & simple average of
them will give HDI
• Value of HDI varies from 0 – 1
• Countries with 1 HDI have higher level of economic
welfare and countries with 0 HDI have least economic
welfare
• As per HDI, countries below 0.5 are low HD countries
• 0.5-0.8 – Medium HD countries
• 0.8 & above are high HD countries
7. Human Development Index (HDI)
• Achievement Level of Components Indices =
Actual Value – Minimum Value / Maximum
Value – Minimum Value
• HDI = 1/3 * (LEI + EAI + SLI)
Measures
Index Components Unit Minimum
Maximu
m
Actual
I Life Expectancy Years 25 85 60
II
Educational
Attainment
% 0 100 40
III Std of Living PCI 100 40000 20000
8. Inclusive Growth
• India is a Mixed Economy i.e. Private & Public Sector
coexist
• Equality in distribution of income & wealth is a major
objective of Indian Economic Planning however, the goal
is not yet achieved
• Growth Rate in India has increased considerably post LPG
program
• However the economists are of view that the benefits of
the growth have not reached to the poor people
9. Inclusive Growth
• Growth in India is termed as “Jobless Growth” as
many sections of society like SC, ST, Women & other
minorities do not get a share of the benefits
• Viz lack of Inclusiveness of weaker sections of
society
• To ensure that benefits reach to the poor people UN
Millennium Declaration was adopted in Sept 2000
by UN member Nations
10. Inclusive Growth
• This declaration helped in forming Millennium
Declaration Goals (MDG) viz reduction of
poverty, empowerment of women, environment
stability, control of diseases etc.
• Term Inclusive Growth means equitable growth
• Implies benefits of growth should reach to poor
namely, SC, ST, women
11. Inclusive Growth
• To achieve inclusive growth, growth should not
only take place in cities but also in small villages
and town
• Due to LPG campaign growth rate of India was 8-9
% but it did not reach to all the sections of the
society
• For instance, slow reduction in poverty, high
unemployment, low literacy rate etc.
12. Inclusive Growth
• To ensure benefits of growth reaching all
sections of society, govt adopted Inclusive
Growth as theme of 11th 5 year Plan (2007-
2012)
13. 11th Five Year Plan (2007-2012)
• Objectives of 11th Five Year Plan (2007-2012)
– Equal opportunities to all
– Reduction of Poverty & unemployment
– National Rural Employment Guarantee Program to
be used to generate jobs
– Environment Sustainability
– Providing Good Governance
14. Importance of Inclusive Growth in
11th Plan
• Reduction in Poverty & Rise in Income
• Development of Agriculture Sector
• Human Resource Development
• Infrastructural Development
• Environmental Protection
15. Millennium Development Goals
• In Sept 2000, UN organized a summit known as
Millennium Summit wherein “Millennium
Development Goals” was signed y 189 countries
• They agreed to work together in a time bound
period to improve std of living in poor countries
• As per declaration, 8 goals have to be achieved by
2015 and these goals are called as “Millennium
Development Goals” MDG
16. Millennium Development Goals
• Eradicate extreme poverty & hunger
• Achieve Universal primary education
• Promote Gender equality & empower women
• Reduce Child Mortality
• Improve maternal health
• Combat HIV/AIDS, malaria & other epidemic diseases
• Ensure environment stability
• Develop Global partnership for development
17. Questions
• Explain Economic Development and Human
Development Index
• Throw light on Inclusive Growth
• Discuss 11th 5 year Plan in India
• Short Note on MDG
