Objective : To explain the concept of development
Development is a dynamic process that brings positive change in every field of the country. Development means change in the present situation for the betterment of the entire society. Progress in technology, trade and commerce, transport, communication, agriculture, industry and proper utilization of the resources in the country leads to uplift the life standard of the people. The positive change in a particular place of a country does not confirm the development of the whole nation. For example, Kathmandu has all these infrastructures well developed but we cannot claim that Nepal is developed because such progress is not noticed in other parts of the country. Most of the European and North American nations are able to bring a very good positive change in the life standard of the people thus, they are called developed countries. However, most Asian, African and South American nations are not able to do so. Thus, they are called underdeveloped or third world countries which includes Nepal.
When a country is able to produce various manufactured goods, it can export them to other countries but if we lack such goods, we have to import them from other countries. When we export goods, we get foreign currencies and importing goods takes our money away. So, we must encourage exports and discourage imports. Some of the important terms related to development:
- GDP: The market value of all final goods and services produced within the country in a year time is called Gross Domestic product (GDP)
- GNP: the sum of GDP and net income from abroad is called Gross National Product (GNP)
- PCI: Per head total income of the people in a country is called Per-Capita Income (PCI). It is calculated by dividing the GDP by the total population of the country.
The major objective of calculating GDP, GNP and PCI is to find the economic progress and development of a country as a whole.