Q7Kerala, with lower per capita income has a better human development ranking than
Punjab. Hence, per capita income is not a useful criterion at all and should not be
used to compare states. Do you agree? Discuss.
Answers
Answer:
Punjab is the most developed state in India ( 2003-03 ) on per capita income basis.
The per capita income of Punjab in 2002-2003 is Rs. 26,000 per annum.
Kerala has low per capita income as compared to Punjab.
But Kerala has HDI rank better than Punjab.
Kerala is having holistic Human Development in terms of education, health, income. Per capita income is vital but not the sole factor in development perspective.
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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.