Development Full Notes
1. Different People Different Goals
2. Income and other goals
3. National Development
4. Income and other criteria
5. Public facilities
7. Sustainability of development
Review
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Definition of Development - The process in which someone or something grows or changes with time positively can be termed as development.
In this Chapter we're going to know about the development of any individual and that of any state or country.We'll see and discuss the criteria that can be used as a parameter for any of these development.
Individual Development
1. Different Person,Different Goals
Different people have different goals for development . It means different people donot understand the meaning of development in the same way,they all have different definition for it.
This is because the life situation , priority , likes and desires of people are not same.
e.g :-
b) For a landless labourer it would mean to get more wages and work.
c) For a politician it would mean gaining victory in election.
d) For an unemployed youth it would be development to get a job.
1.1 Different people may have conflicting goals
There may come a situation when Different people do not only have different but also conflicting goals. It means what may be development for one may be destructive for the other.
This can be justified from the following examples.
a) Building more dams to get electricity can be :-
.development for the industrialists but
.destructive for the tribals whose land would get submerged.
b) Setting up factory can be :-
.development for the industrials and workers but
. Destructive for people of neighbouring people who would suffer from pollution.
2. Income and other goals.
From the above mentioned examples we noticed what people desire are :-
a) Regular Work
b) Job
c) better wages etc..
In other words we can say that they want more income.
But besides income people also seek other things like :-
- Equal treatment
- Freedom
- Security
- Respect of others
- friendship
e.g:- A women while working outside also seek respect and security.
Conclusion :- For development people look at a mix of goals including income.
3. National Development
It refers to the development of a nation. Now question that may arise is what makes a country developed ? It is obvious that there would be a variety of opinion on this matter as in the case of individual development.
Important Criterion
- Their income is considered to be
one of the most important attributes to compare the countries. - Countries with the higher incomes are considered to be more developed than others with less income.
- income is considered an important attribute because whatever people like and should have can be easily achieved with the greater income.
- Total Income
- It refers to the income of all the residents of the country. It is also known as the national income .
- However ,this is not considered an useful measure for the comparison between the countries. This is because not all the countries in the world have same population size. In such a case comparing would make no sense.
e.g:- Comparing a country like Belgium (1cr population) with India (1.25Billion population ) based on the income of their citizens would be worthless.
- A new alternative average income was taken into consideration recognisimg the shortcomings of National income.
- It refers to the total income divided by total population.It is also known as per capita income.
Avg Income = Total Income / Total Popl
- This criterion is used by World Bank to classify Countries.
good enough to find out if the wealths are equally distributed or not.
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| Table 1.3 |
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| Table 1.4 |
The Sectors of Indian Economy Notes
1. Sectors of economic activities
2. Comparing the three sectors
3. Primary, secondary and tertiary sectors in India
4. Division of sectors as organised and unorganised
5. Sectors in terms of ownership, Public and Private sector
1. Sectors of economic activities
Economic activities : The activities in which goods or services are produced are referred to as economic activities.
It has been classified into some groups using some important criterion. These groups are also called sectors.
a) Primary sector
The sectors in which goods are produced by exploiting the natural resources are called primary sector.
It is also known as agriculture and related sector.
E. g:-- cultivation of cotton, mining, dairy, forestry etc.
📝 -- It is called primary as it forms the base for all other products that we make.
b) Secondary Sector
➡️ The sector in which natural products are changed into other forms through manufacturing.
➡️The product is manufactured in a factory, a workshop or at home. The product here obtained is called manufactured product.
e.g:- Cotton Industry,sugar Industry etc.
➡️ It is also known as manufacturing or industrial sector.
c) Tertiary Sector
The sector in which services are produced for supporting the development of primary and secondary sector.
e. g:- Transportation, storage,
communication banking, teaching etc.
Note -- Each sector is interdependent on each other.
2. Comparing the three sectors
In this topic we will see
a) How much goods or services are produced?
b) How many people work in each sector?
How to calculate the total production in each sector?
Problem : It may seem an impossible task to count them as there are many thousands of goods and services produced.
Solution : we should add the values of goods and services rather than adding the actual numbers.
e. g:-- If 1000 kg is sold at ₹ 8/kg .The value of wheat will be 80,000.
Precautions : Not every goods or service that is produced needs to bs counted. It makes sense to only include the final goods and services not the intermediate goods.
Intermediate goods : The goods that are used up in producing final goods and services.
e. g:- wheat and flour in making biscuits.
Final goods : The goods that reach the consumers are called final goods.
Q. Why are only final goods and services counted?
The final goods and services are only counted because they already include the value of all the intermediate goods.
GDP(Gross Domestic Product)
It refers to the sum of value of final goods and services produced in each sector during a particular year.
The task of measuring GDP in India is undertaken by a central government ministry with the help of various states and UTs.
#Historical change in sectors
➡️Initially primary sector was the most important sector of economic activity in now developed countries .
➡️Due to development in farming method, agriculture sector began to prosper. It began producing sufficient foods .
Many people could now take up other activities like trading, transportation ,Army Handicrafts etc.
However at this stage most of the goods produced were natural products from the primary sector.
➡️ Due to introduction of new machine and new methods, factory began growing. secondary sector gradually became the most important in total production and employment.
➡️ In the past 100 years there has been further shift from secondary to tertiary sector in developed countries . The service sector has become the most important in terms of total production. Most of the people are employed in in the service sector. This is the general pattern observed in developed countries .
3. Primary secondary and tertiary sector in India
Over the last 40 years production in all three sectors has increased but tertiary sectors saw the most enhancement. As a result tertiary sector has emerged as the largest producing sector in India replacing the primary sector.
Reason for the growth of tertiary sectors in India
a. Requirement of basic services
several services such as hospitals, post office, Police Station,courts, defence, transport ,bank and insurance etc are considered as basic services in a developing country. The government has to take responsibility of the services.
b. Development of the first two sectors
The improvement in primary and secondary sector leads to the development of services such as transport trade as each one is interdependent on each other .
c. Rise in income level
As income goes up, certain group of people start demanding many more services like:
eating out, shopping ,tourism, private hospitals, private schools ,professional training.
Note 📝 These changes are easily visible in cities, especially in big cities.
d) Improvement of ICT
Over the past 10 years many new services based on information and Communication Technology have become important and essential .
Note -- you must remember that only a part of this section is growing in importance .
Large number of people are still engaged in services such as small shopkeepers repair persons etc.
Where are most of the people employed?
The primary sector continue to be the largest employer even now.
Class -- 10. Sub - Economics
Money and Credit Full Notes
Money and Credit Class 10 Notes Social Science Economics Chapter 3 SST Pdf free download is part of Class 10 Social Science Notes for Quick Revision. Here we have given Money and Credit Class 10 Economics Chapter 3 Notes.
#Barter System
The system in which goods are directly exchanged without the use of money.
e.g :- exchange of Shoe with wheat
#Problem with this system
Double coincidence of wants
When what a person desires to sell is exactly the same other wishes to buy and vice versa.
Such a coincidence is called double coincidence of wants.
e.g:- when a shoe manufacturer had to directly exchange shoes for wheat without the use of money.
It would be very difficult for him to find for a wheat growing farmer who do not only want to sell but also want to buy the shoes in exchange.
#Money solve the matter
Money eliminates the need of double coincidence of wants by acting as a medium of exchange.
With money all shoemakers has to do is find a buyer for his shoes. Once he has exchanged his shoes for money , he can purchase wheat in the market
Modern forms of money
Before the introduction of coins different kinds of object were used as Money (Medium of Exchange ).
e.g :- grains , cattles
Then came the Metallic coins of gold, silver and copper
Types of modern forms of money
a) Currency
➡️ it includes paper nets notes and coins
➡️ Modern Currency is not made up of precious metals such as gold , silver and copper.
➡️ They are neither things of daily use like grains and cattles.
➡️ The Modern currency has no intrinsic value like Gold and Silver coins which means it has no use of its own .
Why it is accepted as medium of exchange ?
➡️ It is accepted as a medium of exchange because the currency is authorised by the government of the country.
➡️ In India Reserve Bank of India issues the currency notes on behalf of the central government .
#More important facts about Currency
➡️ No individual or organisation is allowed to issue currency as per Indian law
➡️The use of rupees as a medium of payment has been made legal , which means no person in India can legally refuse a payment made in rupees .
Note -- The Rupees is widely accepted as medium of exchange in India .
b) Deposit with banks
➡️ This is other form of holding money by people
➡️ The extra cash that people keep in banks is called Deposit with Banks. For this they must have an account in the concerning bank with their names.
Benefits
i. Their money remains safe from theft , robbery etc .
ii. They also get some interests from the bank on the amount deposited by them.
iii. They can withdraw the money when they require , that is why this deposit in the bank is also called demand deposits .
why it is considered as money ?
➡️ It is considered so because of the facility of demand deposits.
➡️ People generally use cheque for payments instead of cash.Since It acts as a medium of exchange ,it can be considered modern forms of money.
Cheque
➡️ It comes from Arabic word sak.
➡️ It is a paper that gives instruction to the bank. The instruction is to pay specific amount from the person's account .
➡️ it is to be paid to the person in whose name the cheque has been issued.
Loan activities of the bank
The bank do the following with the deposits:
a) Banks Keep only a small portion of their deposits as cash with themselves.
This is kept to pay the person who may come to withdraw money from the bank on any day.
b)Banks use the major portion of the deposits to extend loans .
Income of Banks
Banks charge a higher interest rate on loans than what they offer on deposits.
The difference between what is charged from the borrower and what is paid to the depositors is their main source of income.
Two Different Credit Situations
Credit -- It refers to an agreement in which the lender supplies the borrower with money, goods or services.And it is done in return for the promise of future payment.
1. Story of Salim
Salim ,the shoe manufacturer has received an order from large traders in town . The order is there for 3000 pairs of shoes to be delivered in a month time.
Work Ahead :- To complete production on time
a) Salim has to hire few more workers for stitching and pasting work .
b) To purchase the raw material
loan taken -- He took loans from 2 sources.
a) he asked the weather supply to supply leather now promise into pay later
b) He took the loans in cash from the large trader as advance payment for 1000 pair of shoes.
Result :-
At the end of the month Salim is able to deliver the order , make a good profit and repair the money that he had borrowed.
Role of credit in the case of Salim
credit therefore plays a vital and positive role in this situation .
2. Story of Swapna
Swapna is a small farmer grows groundnut on her 3 acres of land.
she takes a loan from the money lender for cultivation hoping that her harvest would help her repay the loan.
Unfortunate incident
Midway through the season the crop failed due to invention of paste
Result
➡️ She is unable to pay the money lender and the debt grows into a large amount.
➡️Next years she takes fresh loan for cultivation . Due to normal crop this year the earnings are not enough to cover the old loan .
so she has to sell a part of the land to pay off the debt.
Conclusion
in case of Sapna the credit pushes her into a debt trap.
To repay the loan she has to sell a portion of a land.
she is much worse off than before.
conclusion of both stories
the usefulness of credit depends on the a) risk in the situation
b) support in case of loss
Terms of Credit
The terms required for obtaining the credit from the formal sector are called terms of credit .
There are four terms of credit .
a) Documents :- It may be salary slip , bank account statements and residential certificates.
b) Collateral ( security against loan )
c) Mode of Repayment
d) Interest Rate
#Collateral
➡️ it is an asset that is owned by the borrower.
➡️ it is used as a guarantee until the loan is repaid.
e.g:- Land , building , vehicles, livestocks and deposit with banks .
➡️In case of non-payment of loans the lender has the right to sell the assets to obtain the payment .
Note -- The term of credit vary from one credit arrangement to another.
It depends on the nature of the lender and the borrower.
Sources of the Credit
There are generally two types of sources of the credit .
a) Formal Sectors
b) Informal Sectors
a) Formal Sectors
➡️ They include banks and cooperatives.
➡️ They charge less interest rate as compared to informal sectors.
Role of RBI
➡️ The formal sectors are supervised by the RBI .
➡️ The RBI monitors the bank in actually maintaining cash balance .
➡️ They also see that the banks give loans to not just profit making businesses and traders but also to small scale industries.
➡️ Periodically Banks have to submit information to RBI regarding the loan activities.
b) Informal Sectors
➡️ They include friends , relatives , Boss and money lenders .
➡️They do not seek collateral while issuing credit .
➡️They charge very high interest rate
➡️ Nobody supervises the credit activities of the money lender
➡️ In the informal sector there is no one to stop them from using unfair means to get their money back.
Demerits
➡️ Higher cost of borrowing means a large part of earning of the borrower is used to repay the loan.
➡️ In certain cases the amount to be paid is greater than the income of the borrower.
➡️ This could lead to increasing debt and debt trap .
Q. Why banks and Cooperatives need to lend more ?
Banks and Cooperative Societies need to lend more due to the following reasons :
a) Informal sector provides loan at very high interest rate which does little to increase the income of the borrower.
b) Getting loan from banks and cooperatives will help them in gaining higher incomes.
Q. Why the poor households are mostly dependent on informal sources of credit ?
The poor households are mostly dependent on informal sources of credit due to the following reasons :
a) Mostly banks are not present everywhere in the rural India.
b) They required Collateral and documents.
The poor are not able to get bank loan due to absence of collateral .
Self Help Groups
This refers to a group of nearly 15-20 members belonging to the same neighbourhood .
They meet and save regularly according to their ability.
They are generally composed in rural areas by poor women.
features
➡️ Small Loan
Group members can take a small loan from the group itself to meet their needs.
They charge interest on these loans but this is still less than what the money lender charges .
➡️ Loan from the banks
If the group is regular in saving , it becomes eligible for getting loans from the bank.
The loan is sanctioned in the name of the group and helps to create self employment opportunities for the members.
➡️ Decision-making
Most of the important decisions regarding the savings and loan activities are taken by the group members.
In case of non payment of loan by any one member is followed up seriously by other members in the group .
Advantages
➡️ They help overcome the problem of lack of collateral .
➡ ️They can get loans at reasonable interest rate .
➡️ Self help groups are building blocks of organisation of the rural poor .
➡️ It helped the women to become financially self dependent .
➡️ It also provided a platform to discuss or act on many social issues like health and domestic violence etc...
# Example of Grameen Bank Of Bangladesh
➡️ Grameen Bank of Bangladesh is one of the biggest success stories in reaching the poor to meet their credit needs at reasonable rates.
➡️ It was started in 1970 as a small project but spread very soon in large number of villages across Bangladesh.
~ Seminary Classes
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Globalisation and Indian Economy Notes Economics Chapter - 4
1. Production across countries
2. Interlinking Production across countries
3. Foriegn trade and integration of markets
4. What is globalisation
5. Factors that have enabled globalisation
6. World Trade Organisation
7. Impact of globalisation in India.
8. The struggle for fair globalisation
Overview
Today when you visit market you have variety of choice available before you.You can find the latest models of digital cameras, mobile phones and televisions, which was not possible even twenty years ago. Our markets have been transformed in a matter of few years.
This led to many Questions :
a) How do we understand these rapid transformation?
b) What are the factors that are bringing about these changes?
c) And how are these changes affecting our lives.
In this chapter we are going to find the answers of all these puzzling questions.
1. Production across countries
Till the mid -20th century only raw materials, food stuffs and finished products were moving from one country to another.
e. g:- India
Exported ---- raw materials, food stuffs like cotton, spices etc.
Imported --- Finished goods.
Note -- This happened before large companies called Multinational Coorporation(MNC) begin to emerge.
MNC
A MNC is a company that owns or controls production in more than one nation.
Objective :- This is done to reduce the cost of production and earn greater benefits.
Q. What are the things MNC consider before setting up the production?
Ans. MNCs consider the following things before setting up the production:-
a) Closeness to the markets.
b) Availability of skilled And unskilled labour at cheaper rates.
c) Favourable policies of the government.
d) Availability of water, electricity and other resource at low costs.
E.g:- There is a large MNC which produce its goods and services globally in the following way:-
a) Design of product -- US
b) Components Manufactured -- China
c) Assembling and Sale -- Mexico & Europe
d) Tech Services -- India
In this example:-
a) US provides the best design at low price.
b) China provides the advantage of being a cheap manufacturing location.
c) Mexico and Eastern Europe are useful for their closeness to the market in US and Europe.
d) India has highly skilled engineer who can understand the technical aspects of production.
It also has educated English speaking youth who can provide customer care services.
2. Interlinking Production Across Countries
What are the ways in which MNCs spread their production?
MNCs spread their production in the following ways :
a) MNCs set up production jointly with some of the local companies of these countries.
b) The most common way is to buy up local companies and then to expand production.
c) Some of them place orders for production with the small producers. The products are supplied to MNC ,which then sell these under their own brand names to the customers.
e. g:- Garments, Footwear and sports items etc.
Advantage of to local companies in joining hand with MNCs
➡️ MNCs can provide money for additional investments like buying new machines.
➡️MNCs might bring with them the latest technology for production.
3.Foreign Trade and Integration of Market
Foreign trade -- It refers to the trade in which goods travelled from one country to other. For a long time it has been the main channel of connecting countries.
Benefits
a) Producers -- They get an opportunity to sell their product beyond the domestic market.
b) Buyers ---- They get more options of goods.
Integration of Markets
➡️In general with the opening of trade, goods travel from one market to another.
➡️Prices of similar goods tend to become equal and producers in the two countries closely compete against each other.
➡️ This results in integrating the markets in different countries.
4. What is Globalisation ?
➡️It refers to the process of rapid interconnection or integration between countries.
➡️This integration is created by the movement of more goods and services, investment and technology.
Other ways to connect countries
Besides the movements of goods, services, investments and technology, there is one way in which the countries can be connected. This is done through the movement of people between countries.
➡️People usually move from one country to another in search of better income, better jobs or education.
5.Factors that have enabled globalisation
These are the following factors that have enabled globalisation :-
1) Advancement in technology :
Rapid improvement in technology has been one major factor in the growth of globalisation process.
i) Transportation
a) Fast transportation system
In the past 50 years several improvements in the transport Technology took place.This has made faster delivery of goods across long distance
possible at lower cost .
example :- ✈ Airplane ,Ship etc.
b) Containers
Containers have led to to use reduction in port handling cost .
They have also increased the speed with which exports can reach the markets.
ii) Information and Communication Technology
Fast changes in this technology has further made it easier the interconnection of the world. It has done so by spreading the production of services across the countries.
a) Mobile phone and Fax:-
They are used to contact one another around the world .
b) Internet
It provides many facilities like gaining and sharing information on anything, having video call and sending email etc.
2. Liberalisation of foreign trade and investment
Before understanding the liberalisation we need to understand the concept of trade barrier.
Trade barriers
Restriction on foreign trade and investment imposed by the government is called trade barrier. Tax on import is an example of trade barrier .
Government can use this to increase or decrease foreign trade with any country.
Why put trade barriers?
Indian government had put barriers to foreign trade and investment to protect the producers of India from foreign competition .
Removing the barriers around 1991
Around 1991 the government decided to remove the trade barriers as it felt that Indian producers had now become strong enough to compete with producers around the world .
They thought that it would force the Indian producers to improve their quality which would lead to improvement in the performance.
This decision of liberalisation was supported by powerful International Organisation.
liberalisation
Removing barriers or restrictions on foreign trade and investment is called liberalisation .
6. WTO(World Trade Organisation)
World Trade Organisation was founded in 1995, headquartered at Geneva, Switzerland.
It was started by the developed countries to regulate the international trade.
This organisation believes in liberalizing international trade as it considered it to be harmful.
They establish rules regarding international trade and see that these are obeyed.
Discrimination by WTO
Developed countries have unfairly written trade barriers while developing countries were forced to remove them by WTO.
7.Impact of Globalisation in India
Among consumers
a) The choice for product has increased as the latest models of digital cameras, mobile phones and televisions are available .
b) They are now enjoying good quality products at lower prices .
c) This resulted in in increasing their standard of living.
Impact over MNC
a) They increased their investment in India over the past 20 years which clearly indicates that investing has been beneficial to them.
b) They are interested in the products which have a large number of well-off buyers.
e.g:- cellphones,automobiles, electronics and soft drink etc.
Impact over Top Indian companies
Top Indian companies have also benefited from this competition in the following ways:
a) They have invested in newer technology and raised their production standards.
b) Globalisation has enabled some large Indian companies to emerge as multinational themselves.
e. g:- Tata Motors, Infosys, Ranbaxy etc.
c) Some have gained a lot from successful partnerships with the foreign companies.
d) It has also created new opportunities for companies providing the services.
e. g:-- Data entry, BPO, Accounting etc.
Impact over Small producers
The small producers have been hard hit due to rising competition from MNCs. As a result many of them have been shut down.
Impact over Workers
➡️Some of the workers have become jobless.
➡️The workers working in any local companies which supply goods to MNC is also not in good condition.
➡️Their working hours have increased and they are paid less as compared to earlier.
SEZs
It stands for Special Economic Zones.These zones are being created by the central and state government in India to attract the foreign companies to invest here.
Facilities
They have world class facilities of : Electricity, water, roads, transports, storage and recreational activities .
The companies who set up production units in the SEZs do not have to pay taxes for the initial period of five years.
The government has allowed companies to ignore many of the labour laws.
So they hire workers for short periods instead of hiring them on a regular basis.
8.The struggle for fair globalisation
Need for fair globalisation
The benefits of globalization has been not shared equally to all.
People with education, skill and wealth have made the best use the new opportunities. Whereas people lacking these qualities could not take its benefits.
What is fair Globalisation?
A Globalisation that would create opportunities for all and also ensure that its benefits are shared better.
How to make it fair?
The role of the government
a) The government needs to check that labour laws are properly implemented and the workers get their rights.
b) It can also support small producers till they become strong enough to compete.
c) It can negotiate at WTO for fairer rules.
d) It can fight against the domination of the developed countries in the WTO by aligning with other developing nations.
People's role
People can also play a role by massive campaigns and protests. This can influence the decisions of World Trade Organisation.
~Seminaryclasses
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