National Development: Exploring Different Perspectives

It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development. However, can all the ideas be considered equally important? 

• If there are conflicts how does one decide?
• What would be a fair and just path for all? 
• Is there a better way of doing things?
• Would the idea benefit a large number of people or only a small group? 

National development means thinking about these questions.

How do we compare countries or states for national development?

National development status of a country is categorized as either “developed” or “developing” based primarily on their per capita income.

• Per capita income: It refers to the average income of a country’s residents and is calculated by dividing the total income of the country by its population.
• The World Bank employs per capita income as a crucial criterion for classifying countries in its World Development Reports.
• It classifies countries into four categories, namely low-income countries, lower-middle-income countries, higher-middle-income countries, and high-income countries.
  • Countries with a per capita income of US$ 49,300 or more annually in 2019 are labelled as “high-income” or “rich” countries. 
  • Countries with a per capita income of US$ 2,500 or less fall into the category of “low-income” countries.
• India’s Position: India, with a per capita income of US$ 6,700 per annum in 2019, falls into the classification of “low middle-income” countries.
  • Notably, the term “developed countries” is typically reserved for the wealthier nations, excluding some Middle Eastern countries and a few smaller nations, which belong to the category of “high income.”

This classification provides a framework for understanding a country’s economic standing in the context of national development.

• Recent Classification of the World Bank as given in the image below.

How does National Development go beyond Income, considering other criteria?

• Aspirations and Goals Beyond Money: Goals for National Development:  In assessing national development, individual aspirations and goals go beyond just seeking better income. People also value security, respect for others, equal treatment, freedom, and more. 
  • Similarly, when evaluating the development of a nation or region, factors beyond average income come into play.

• Example: Look into the per capita income of Haryana, Kerala, and Bihar given in Figure.
  • Although these figures represent Per Capita Net State Domestic Product at Current Prices for 2018–19, they can be understood as the per capita income of the state.
  • Haryana has the highest per capita income, with an average of Rs 2,36,147 per person, while Bihar has the lowest, with an average of only around Rs 40,982 per person.
•  Other Aspects of Development: True State development: If per capita income alone was a measure of development, Haryana would be considered the most developed state, and Bihar the least developed, among the three. 
  • But this is not true, as there is need to use other aspects in decisive criteria of development of the state. 
• Table below highlights further such contrasts about development of state. 

Role of Public Facilities in National Development:

• Quality of Life in National Development: Beyond Income 
  • The average income of a person in Haryana may be higher than that in Kerala, but it doesn’t necessarily mean a higher quality of life. 
  • Money alone cannot purchase essential services like a pollution-free environment or guarantee access to unadulterated medicines. 
• Collective Solutions for Common Needs: Strengthening Community Well-being
  • Many critical aspects of life are best provided collectively rather than individually, such as security for a neighbourhood versus individual households hiring security staff. 
  • Similarly, access to education often depends on collective efforts, as not every family can afford private schooling. 
• Essential Services:  Pillars of Well-being in State Development: The provision, like healthcare and education, plays a crucial role in determining the overall well-being of citizens. 
  • Example: Kerala’s low infant mortality rate is attributed to its robust healthcare and educational facilities. 
  • Similarly, states with well-functioning Public Distribution Systems (PDS) tend to have better health and nutritional outcomes for their residents.