11 Most VSAQ’s of Economic Growth and Economic Development Chapter in Inter 2nd Year Commerce (TS/AP)

2 Marks

VSAQ-1 : Economic Growth

Economic growth stands as a barometer, quantifying the expansion in a nation’s capacity to produce goods and services. Typically gauged by the steady elevation of its Gross Domestic Product (GDP) across time, economic growth is a pivotal component in the realm of economic advancement. It signifies the upward trajectory of a country’s economic prowess, symbolizing progress, development, and the pursuit of prosperity.

VSAQ-2 : Physical Quality of life Index (OR) What is physical Quality of Life Index (PQLI)?

The Physical Quality of Life Index (PQLI), created by M.D. Morris in 1971, is a comprehensive measure of a nation’s economic development that goes beyond income considerations. It takes into account factors like life expectancy, basic literacy, and infant mortality rate to assess a country’s physical quality of life. PQLI provides a holistic view of well-being, including health, education, access to clean water, nutrition, and sanitation. An increase in a country’s PQLI score indicates an improvement in the overall quality of life of its population, making it a valuable tool for assessing development beyond just income levels.

VSAQ-3 : Economic Development.

Economic development surpasses economic growth in scope, as it covers enhancements in living standards, changes in socio-economic structure, and the overall quality of life. This concept goes beyond mere income growth or an increase in Gross Domestic Product (GDP), focusing on holistic improvements in various aspects of a nation’s well-being and prosperity.

VSAQ-4 : Self-reliance (OR) What is economic self-reliance?

Self-reliance in economics refers to a nation’s capacity to generate adequate resources to fulfill its requirements without excessive dependence on foreign aid or external resources. This concept emphasizes economic independence and the reduction of reliance on other countries for financial assistance. Notable examples of nations progressing towards economic self-reliance include India, China, Brazil, and South Africa.

VSAQ-5 : Substainable development.

Sustainable development, as defined by the Brundtland report, involves fulfilling the present generation’s needs without compromising the ability of future generations to meet their own needs. The central objective of sustainable development is to encourage economic growth while concurrently safeguarding and enhancing environmental, human, and physical resources. This approach seeks to mitigate the adverse effects of economic expansion on the environment through strategic policies and investments that strike a balance between economic development and environmental preservation.

VSAQ-6 : Inclusive Growth.

Inclusive growth encompasses both the rate and distribution of economic growth. Defined by the World Bank, it extends beyond mere economic expansion to encompass the equitable distribution of growth’s advantages to all sections of the populace, especially those who have historically been marginalized or excluded. Inclusive growth underscores the significance of incorporating all segments of society into the economic growth process, fostering comprehensive development and social well-being.

VSAQ-7 : Social progress Index (SPI)

The Social Progress Index (SPI) serves as a measure to gauge how well countries are fulfilling the requirements of their citizens. It analyzes social and environmental dimensions across categories like basic human needs, the basis for well-being, and avenues for advancement. The index encompasses numerous indicators associated with equality, security, inclusivity, individual liberties, sustainability, and health to evaluate the comprehensive welfare and societal advancement of a nation.

VSAQ-8 : National Resources.

National resources comprise a wide array of assets owned by a nation, among which human resources hold a prominent position. Human resources pertain to the abilities, competencies, and productivity of a country’s population. A proficient and skilled workforce can make substantial contributions to a nation’s economic advancement and overall development. Education plays a pivotal role in augmenting human resources by imparting knowledge and expertise, thus elevating individuals’ effectiveness and output. The dissemination of education stands as a vital factor in promoting economic growth and harnessing the potential of human resources for the nation’s prosperity.

VSAQ-9 : Vicious circles of poverty.

The vicious circle of poverty represents a self-perpetuating cycle of economic stagnation. Factors such as insufficient capital and economic underdevelopment result in low productivity, leading to diminished income and demand. Consequently, economic growth is impeded, and poverty persists. Escaping this cycle necessitates strategic policies and investments in economic progress.

VSAQ-10 : Marketable surplus of agriculture.

The marketable surplus of agriculture is of paramount importance for economic advancement. It signifies the surplus agricultural production that extends beyond local consumption. This surplus can be sold in markets, resulting in increased income for farmers and a rise in rural demand for both consumer products and agricultural inputs. Consequently, it can stimulate the growth of the industrial sector and contribute significantly to overall economic development.

The Gender-Related Development Index (GDI), introduced in the 1995 Human Development Report (HDR), is a composite indicator designed to assess the average attainment of a population, similar to the Human Development Index (HDI). However, the GDI specifically emphasizes addressing gender inequalities in three crucial dimensions of human development. A greater disparity between HDI and GDI signifies more pronounced levels of gender inequality within a given region or country.