Kerala with lower per capita income has a better human Development ranking than Punjab has PCI is not useful criterion at all and should not be used compare state do you agree? discuss.
Answers
No, I don't agree with the statement.
•Per Capita Income (PCI) is a useful criterion only when we want to find the development of a country in terms of income.
•However if we want to find the overall development of a country, we cannot depend on per capita income because it is not a sole indicator.
•There are other areas of development like health, education, literacy, gender equality, pollution free environment, etc.
No, I do not agree with the statement that per capita income is not a useful criterion at all. Kerala, with lower per capita income has a better human development ranking than Maharashtra because, human development ranking is determined using a combination of factors such as health, education, and income. So, this does not imply that per capita income is not useful. Rather, per capita income is one of the development factors and can not be neglected. The World Bank uses per capita income as the criterion for measuring development and comparing states. But this criterion has certain limitations because of which determination of Human Development Index (HDI) is done using this criterion along with some other development factors like health, education etc. If the rate of population growth, is higher than the rate of growth of national income, this will lead to fall in per capita availability of goods and services and economic welfare.