Syllabus section – Phase 2- RBI Grade B- Economic and Social Issues (ESI)- Growth and Development – The level of the material is kept at basic minimum so that aspirants from non-eco/commerce field can also understand.
What is economic development?
Economic development has been defined as the improvement in the social, political, and economic well-being of a nation and its people.
It is a qualitative phenomenon which focuses on improvement in the quality and standard of living of the people.
Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care, less economic disparity etc. It is a wider concept than growth.
Difference between growth and development
|It is a narrow concept||It is a wider concept|
|Concerned with quantitative changes– national income, per capita income||Concerned with qualitative changes– education, quality of life|
|Related to economic factors||Related to economic and non economic factors|
|Growth is possible without development||Growth is prerequisite for development|
|Concerned with increase in an economy’s output||It is concerned with structural changes in the economy.|
We can not use GDP as a true indicator of development. Various issues related to GDP are as follows:
- Distribution of GDP– Distribution of GDP may not be uniform. There may be wide spread economic disparities in a country. The wealth might be concentrated in hands of a few people.
- Non- economic activities: GDP does not take into account non economic activities like home care services provided by mother, house chores done by ladies at home etc.
- Growth is different from development: Growth and development are different. Development is a wider concept. There may be growth in the country along with various social evils like poverty, malnutrition etc. In order to assess the actual level of disparities in the country, we should calculate other economic indicators also (along with GDP) e.g. Gini coefficient, Lorenz Curve, HDI, inequality adjusted HDI.
Sustainable development has been defined in many ways, but the most frequently quoted definition is from Our Common Future, also known as the Brundtland Report:
“ Sustainable development is development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs.“
Sustainability is the foundation for today’s leading global framework for international cooperation—the 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs).Our Common Future
Sustainable Development Goals
List of SDGs
Total goals- 17, Total targets- 169 to be achieved by 2030
SDGs are successor to the Millennium Development Goals (MDGs). The United Nations Millennium Development Goals are eight goals that all 191 UN member states have agreed to try to achieve by the year 2015. The United Nations Millennium Declaration, signed in September 2000 commited world leaders to combat poverty, hunger, disease, illiteracy, environmental degradation, and discrimination against women.
SDG India Index:
The indicator set for SDG India Index 2019-2020 is large (100 indicators) as compared to SDG India Index 2018 ( 62 indicators). There are 40 indicators that are common across SDG India Index 2018 and SDG India Index 2019-2020.
- The index documents the progress made by India’s States and Union Territories towards achieving the 2030 SDG targets.
- The Index uses 16 out of 17 SDGs.
- The SDG India Index has been developed in collaboration with the Ministry of Statistics and Programme Implementation (MoSPI), the United Nations, and the Global Green Growth Institute.
- A composite score for SDG Index (2019) is computed in the range of 0–100 for each State/UT based on its aggregate performance across 16 SDGs.
- The higher the score of a State/UT, the closer it is towards achieving the 2030 national targets.
- States /UTs are classified based on the SDG India Index Score as follows:
- Aspirant: 0–49
- Performer: 50–64
- Front Runner: 65–99
- Achiever: 100
- Kerala has the top rank followed by Himachal Pradesh. Andhra Pradesh, Tamil Nadu and Telangana shared the third spot.
- Bihar has emerged as the worst performer.
- Uttar Pradesh has shown maximum improvement followed by Odisha and Sikkim.
- Chandigarh has topped the list of UTs followed by Puducherry.
Goal Wise topper States