Chapter No.

1
Economic Growth and Development

• Introduction
1. Science – A systematic body of knowledge.

2. Types of Sciences –
1) Natural Sciences –
Laws are universal and can be tested in laboratories under controlled
conditions.
Also called Exact Sciences due to empirical approach.
Examples: Mathematics, Physics, Chemistry.

2) Social Sciences –
Related to human behaviour (mental, social aspects).
Cannot be tested in laboratories; laws are not universal, only general
tendencies.
Also called Abstract or Behavioural Sciences.

Examples: Psychology (mental aspect), Sociology (social aspect).

• Meaning of Economics:
1.Definition – Economics is the science of production, exchange, and
consumption of goods. It studies how scarce resources are used to increase
wealth and human welfare.
2. Main Focus –Scarcity of resources.
Choices among alternative uses of resources.
3. Example – A farmer chooses crops like paddy, sugarcane, banana, or cotton
based on water availability.

4. Reasons for Economic Problems –

Unlimited human wants.
Scarcity of resources.
5. Concept – Economics is about satisfying unlimited wants with limited
resources (Want → Effort → Satisfaction).
6. Scope –

Individual decision-making.
Macro variables like national income, public finance, international trade, etc.
7. Nature – Economics is a social science.
8. Origin of Term – From Greek word ‘Oikonomia’ (oikos = house, nemein =
manage) → means household management

9. Title – Called “Queen of Social Sciences” by Paul Samuelson.

10. Schools of Thought & Economists –
Classical School (18th Century) – Adam Smith, David Ricardo, J. S. Mill, T. R.
Malthus.
Neo-Classical (19th & early 20th Century) – Alfred Marshall, A. C. Pigou, Irving
Fisher.

Modern School (20th Century onwards) – J. M. Keynes, Lionel Robbins, Paul

Samuelson.

• Definitions of Economics:
Adam Smith’s Wealth-Oriented Definition of Economics
1. Who – Adam Smith, “Father of Economics”, author of The Wealth of Nations
(1776).
2. Definition – Economics is a science of wealth; explains how a nation’s
wealth is created.
3. Idea –Individuals aim for personal gain but, through the “invisible hand”,
they promote society’s interest unintentionally.
4. Key Points –Laissez-faire – No government intervention.
Capital and wealth accumulation – Focus on increasing wealth.
Nature’s law – Natural order governs economic activities.

Division of labour – Important for economic growth.

5. Criticism –Defines economics only in terms of wealth, ignores human
welfare.
Ruskin & Carlyle called it “dismal science” for promoting selfishness against
ethics.

Modern view: Wealth is a means, not an end; human welfare is the end goal.

• Prof. Alfred Marshall's Welfare-Oriented

Definition of Economics:
1. Who & Book – Prof. Alfred Marshall, Principles of Economics (1890).
2. Definition –Economics is the study of mankind in the ordinary business of
life.
It examines individual and social actions connected to attaining and using
material requisites of well-being.
3. Key Points –Economics studies the economic aspect of human life.
Studies individual and social actions for promoting economic welfare.
Differentiates between material things (book, rice) and immaterial things
(skills, knowledge).
Considers only material things that promote welfare.

4. Criticism –Focuses only on material things, ignores immaterial services like

doctors,teachers.
Excludes goods like liquor which have value but do not promote welfare.
Welfare concept is uncertain – meaning changes across people, countries,
and time.
Welfare depends not only on wealth but also on political, social, and cultural

factors.

• Lionel Robbins' Scarcity-Oriented

Definition of Economics:
1. Who & Book – Lionel Robbins, An Essay on the Nature and Significance of
Economic Science (1932).
2. Definition –Economics studies human behaviour as a relationship between
unlimited wants (ends) and scarce means (resources) which have alternative
uses.

3. Key Points –Wants are unlimited.

Means are limited.
Wants can be ranked by priority.
Means have alternative uses.
4. Major Features –Ends = Human wants (unlimited).

Resources = Limited, creating scarcity when demand > supply.

Scarce means can be used in different ways → people choose the best option.
Economics = Science of choice.
5. Criticism -No difference between goods that promote welfare (rice) and
those that don’t (alcohol). Robbins says economics is neutral between ends.

Ignores macroeconomics (national income, growth), focuses only on resource

allocation.
Does not include economic growth and development theory.

• Growth Oriented Definition of Prof. Paul

Samuelson:
Who – Prof. Paul Samuelson.
2. Definition –Economics is the study of how people and society choose to
use scarce resources (with or without money) that have alternative uses, to
produce and distribute goods for present and future consumption.
3. Implications –Dynamic Definition – Includes time, so it covers economic
growth.

Scarcity & Choice – Resources are limited and have alternative uses.
Covers All Aspects – Production, distribution, and consumption.
Considered the most satisfactory definition among all discussed.
4. Modern Economics –Divided into Microeconomics (individual units) and
Macroeconomics (national income, output, employment, growth).

Studies allocation of scarce resources and determinants of income, output,

and growth.

• Modern definition (2011)

1. Definition –Economics is the study of how individuals, institutions,
societies, nations, and the world make choices under scarcity and
2. surplus to maximize benefits and satisfy unlimited needs for present and
future.
In short: Study of choices to maximize production and consumption benefits
with given resources for present and future needs.
3. Features of Modern Definition –
Combines earlier definitions: wealth, welfare, scarcity, and growth.
Covers micro and macro aspects.
Includes production and consumption activities.
Focus on choice-making as key in economics.
Aims to get maximum benefits with available resources.
Applies to both scarcity and surplus conditions.
Considers present and future, including growth and sustainable development.

• Branches of Economics:
Origin of Term – Coined by Sir Ragnar Frisch in 1933.
Derived from Greek word ‘Mikros’ meaning small.
2. Meaning –Studies behaviour of individual units like households, firms,
workers, industries.
3. Definitions –Kenneth Boulding – Study of particular firms, households,
prices, wages, incomes, industries, and commodities.
Maurice Dobb – A microscopic study of the economy.
Prof. A. P. Lerner – Looks at economy through a microscope to see how
individuals (consumers and producers) function as part of the whole
economic system.

• Basic Concepts of Micro Economics

9.1 Want
Meaning – A feeling of lack of satisfaction (need).
Reasons for growth –Better living (inventions, innovations).
Increase in population.
Characteristics of Wants

1. Unlimited – Never-ending.
2.Recurring – Arise again and again.
2.Differ with age – Change as per age.
2. Differ with gender – Men & women want different goods.
3. Differ with preferences – Habits, tastes matter.
4. Differ with seasons – Change with seasons.
5. Differ with culture – Food, clothing, customs affect wants.
Classification of Wants
a) Economic Wants – Need money to satisfy (e.g., food, medicines).
Non-economic Wants – Free of cost (e.g., air, sunlight).
b) Individual Wants – For personal use (e.g., stethoscope for doctor).

Collective Wants – For society (e.g., railway service).

c) Necessities – Basic needs (e.g., food, shelter).
Comforts – Make life easy (e.g., washing machine).
Luxuries – For pleasure (e.g., AC car).

9.2 Goods and Services

Goods – Have material existence, satisfy wants (e.g., chalk).

Services – No material existence but satisfy wants (e.g., teaching).
9.3 Utility
Ability of a commodity to satisfy human wants.
9.4 Value
Value-in-use – Usefulness of commodity (e.g., sunlight).
Value-in-exchange – Worth in terms of another good/money (e.g., TV).

Water-Diamond Paradox – Water: high use value, low exchange value;

Diamond: low use value, high exchange value.
9.5 Wealth
Meaning – Anything with market value & exchangeable for money.
Characteristics:
1. Utility – Satisfies wants.
2. Scarcity – Limited in supply.
3. Transferability – Can be transferred.
4. Externality – Exists outside human body
9.6 Personal Income
Earnings of a person from all sources.

9.7 Personal Disposable Income (PDI)

Income left after paying direct taxes.
9.8 Economic Activity
Types – Production, Distribution, Exchange, Consumption.
9.8.1 Production – Creation of utility.
Factors of Production:

Land – Natural resources, earns rent.

Labour – Human effort, earns wages.
Capital – Man-made means, earns interest.
Entrepreneur – Organizer, earns profits
9.8.3 Distribution – Division of factor rewards (rent, wages, interest, profit).
9.8.4 Exchange – Sale & purchase of goods/services (monetary).
9.8.5 Consumption – Use of goods/services to satisfy wants.

• Macro-Economics:
Macro Economics
Meaning:Macro means large. It studies aggregates of the economy like total
employment, national income, output, investment, savings, consumption,
aggregate supply and demand, and general price level.
Definitions of Macro Economics
Kenneth Boulding:
Studies aggregates – national income, general price level, national output, not
individual quantities.
J. L. Hansen:Studies relationships between large aggregates like employment,
savings, investment, national income.
Prof. Carl Shapiro:
Deals with functioning of the economy as a whole.
Basic Concepts of Macro Economics
1. National Income:
Total income of a country during a year.
Aggregate value of all final goods and services.
Definition (National Income Committee): Measures the volume of goods and
services produced in a period without duplication.

2. Saving:
Part of income set aside for future needs
Income not spent on current consumption.
3. Investment:
Creation of capital assets by using savings (e.g., machinery, equipment).

4. Trade Cycles:
Fluctuations in economic activity (ups and downs).
Inflation: Continuous rise in general price level.
Depression: Continuous fall in prices and economic activity.
5. Economic Growth:
Quantitative concept.

Increase in real national income over a long period.

6. Economic Development:
Qualitative concept.
Economic growth + improvements in variables like education, health, etc.

• Difference between Microeconomics and

Macroeconomics
Microeconomics
1. Studies decisions of people and businesses about resource allocation and
prices of goods/services.
2. Focuses on individual units like a firm, industry, or consumer.
3. Deals with price determination and resource allocation
4. Assumes other factors remain constant while forming theories.
5. Example: Effect of an individual's salary increase on their purchasing power
Macroeconomics
1. Studies the economy as a whole, not individual firms but entire industries
and economies.

2. Focuses on problems like National Income, Total Savings, etc.

3. Deals with economic growth, employment, and income determination.
4. Considers economic variables as interrelated.
5. Example: Effect of inflation on economic growth or how rising GDP creates
jobs.

• Basic economic questions

Due to scarcity of resources, every economy faces 3 main problems:
1) What to Produce? (Allocation of resources)

Decide which goods and how much to produce.

Choices:
Consumption goods vs Capital goods
Civil goods vs Military goods
Necessities vs Luxuries
Limited resources → To produce more of one good, reduce another.
Final choice depends on economy’s objectives and conditions.
2) How to Produce? (Choice of technique)
After deciding goods and quantities, choose method of production.
Example:
Cloth → Hand looms / Power looms / Automatic looms

Wheat → Primitive tools or Modern machinery

Two main techniques:
Labour-intensive → More labour, less capital
Capital-intensive → More capital, less labour

Choice depends on factor availability and cost.

Aim → Best use of resources to produce maximum goods/services.
3) For Whom to Produce? (Distribution)
Decide who gets the goods in society.
Produce for:
Few rich OR

Large poor population

To benefit maximum people → Produce necessities first, then luxuries.

• Economic systems
The way a society answers the basic economic questions (What, How, For
Whom to produce).
Types: Capitalism, Command Economy, Mixed Economy.

1) Capitalist Economy (Free Market Economy)

Definition: Oldest system; production is privately owned; profit motive;
minimal govt. role.
Features:
Private property rights.

Consumer freedom (consumer is king).

Profit motive for producers.
Competition among sellers, buyers, workers.
Price mechanism solves problems.
Govt. has minor role (defense, law).
Guided by self-interest.

Inequalities of income exist.

Negative externalities (pollution, harm to others).
Advantages:
Flexible and adaptable.
Decentralized economic power.
Higher per-capita income & living standards.

Variety of goods.
Growth of entrepreneurship.
Optimum use of resources.
High capital formation.
Disadvantages:

Income inequality.
Unbalanced growth (regional, social).
Exploitation of labor.
Negative externalities (pollution, etc.).
2) Command Economy (Socialistic Economy)
Definition: All production and distribution owned and controlled by the state.

Features:Collective ownership (no private property).

Central planning by govt.
Complete govt. control.
Aims at social welfare.
Income equality.
Advantages:

No wasteful competition.
Balanced growth (through planning).
No private monopolies or big inequalities.
Disadvantages:
No automatic price mechanism.
No incentive for hard work → slow growth.

Lack of economic freedom.

Red-tapism and bureaucracy.
3) Mixed Economy
Definition: Combines features of both capitalism and socialism. Public and
private sectors co-exist.

Features:Co-existence of public and private sectors.

Economic welfare as main aim.
Govt. planning for growth.
Price mechanism in private sector; controlled prices for essentials.
Economic equality through laws, taxes, subsidies.
Advantages:

Combines benefits of capitalism (profit motive, property rights) and socialism

(control to avoid exploitation).
Freedom for economic units.
Rapid, planned development.
Social welfare and reduced inequality.
Disadvantages: May lack advantages of both sectors.
Economic fluctuations possible.

Corruption and black markets if rules are weak.

• Economic Growth
Meaning: Increase in the value of goods and services produced in an economy
per person during a specific period.
Measure:Indicated by rise in Gross Domestic Product (GDP).
GDP = total monetary value of goods & services produced in a country in a
given time.
Also expressed as Gross National Product (GNP).

Nature:Quantitative measure (shows increase in commercial transactions).

Purpose:Helps compare economy in absolute and percentage change from
previous year.
Determinants:Increase in quality and quantity of resources.
Advancement in technology.

• Definition of Economic Development

Economic Development
Definition: Increase in production with improvement in technology, living
standards, and institutional changes.
Nature: Progress in the socio-economic structure of the economy.
Human Development Index (HDI)

Purpose: Tool to measure development of an economy.

Ranking: Countries ranked based on development.
Factors considered:
Standard of living

GDP
Living conditions
Technological advancement
Self-esteem needs
Creation of opportunities
Per capita income

Infrastructure and industrial development

Economic Health Measurement
Measured through economic growth and economic development.
Economic Development Indicators
Main Indicator: Increase in quality of life of citizens.

Measured by: HDI (Human Development Index).

HDI Considers:
Literacy rates
Life expectancy
Poverty rates
Difference from Economic Growth

Economic Growth: Increase in GDP (output value).

Limitations of GDP: Does not include
Leisure time
Environmental quality
Freedom from oppression
Relationship

Economic growth often leads to economic development, but they are not the
same.
Higher literacy and life expectancy → Higher per capita income → Economic
development.

• Economic Growth Vs Economic

Development
Economic Growth:
Narrower concept.

Increase in a country’s real national output (GDP).

Caused by better quality/quantity of resources & improved technology.
Measured by GDP growth.
Does not account for informal economy or natural resource depletion.
Economic Development:
Broader, normative concept (linked to morality, well-being).
Defined by Michael Todaro: higher living standards, self-esteem, freedom,
choice.
Measured by Human Development Index (literacy, life expectancy, etc.).
Includes opportunities in education, healthcare, employment, environment.
Focuses on sustainability & equitable income distribution.

Key Differences:
Growth ≠ Development (growth is necessary but not sufficient for
development).
Growth: quantitative; Development: qualitative + quantitative.

Development addresses social welfare & environmental sustainability;Growth

may ignore them.

• Determinants or indicators of Growth and

Developments:
1. Economic Factors
1. Natural resources – Essential for development; depends on factor
endowment.
2. Human resource & population growth – Quality labour force is vital.

3. Capital formation & accumulation – Growth depends on capital

mobilization.
4. Technological progress – Advances improve resource utilization.
5. Entrepreneurship – Innovation & new products need risk-taking
entrepreneurs.
6. Investment criteria – Sound policies/regulations boost investment &
growth.
7. Removal of market imperfections – Reduce monopoly & ensure fair
competition.
8. Capital-output ratio – Higher ratio shows better productivity of invested
capital.

2. Non-Economic Factors
1. Desire for development – Strong will to progress in the right direction.
2. Widespread education – Improves skills & accelerates growth.
3. Social & industrial reforms – Liberal systems & reduced inequality aid
growth.
4. Good government – Stable law & order for international competitiveness.

• Key Differences between Economic

Growth and Economic Development
1. Meaning

Growth: Positive change in real output (GDP) in a given time.

Development: Increase in production + technology + improved living
standards.
2. Relation
Growth is a part/feature of development.

3. Nature
Growth: Automatic process.
Development: Planned, result-oriented.
4. Indicators
Growth: GDP, per capita income.
Development: Life expectancy, infant mortality, literacy, poverty rates.
5. Measurement
Growth: Positive change in national income.
Development: Increase in real national income.
6. Time Frame
Growth: Short-term (yearly).

Development: Long-term.
7. Applicability
Growth: Developed & developing nations.
Development: Mainly for developing nations to measure progress.

8. Nature of Change
Growth: Quantitative changes.
Development: Quantitative + qualitative changes.

• Concepts such as HDI, PQLI, GEM, TAI,

Green Index:
[HDI – Human Development Index
Introduction:
Developed by UNDP (1990) to measure development beyond GDP.
Focuses on quality of life, human capabilities & opportunities.
Dimensions:
1. Health – Life Expectancy at Birth.
2. Education –
Mean Years of Schooling (25+ age group).
Expected Years of Schooling (for a child starting school).
3. Standard of Living – GNI per capita (PPP US$).
Calculation:
1. Dimension Index Formula:
\text{Index} = \frac{\text{Actual Value} - \text{Minimum Value}}{\text{Maximum
Value} - \text{Minimum Value}}
2. HDI Formula:
\text{HDI} = (\text{Health Index} \times \text{Education Index} \times
\text{Income Index})^{1/3}
HDI Groups:
Very High: ≥ 0.800
High: 0.700 – 0.799
Medium: 0.550 – 0.699
Low: < 0.550
Recent Trends (2023 Data / 2025 Report):
Top countries: Switzerland, Norway, Iceland.
Many developing nations improved via education & healthcare, but face
inequality & climate issues.
India (2025 Report):
Rank: 130/193 (up from 133 in 2022).
HDI value: 0.685 (up from 0.676).
Still in medium human development tier.
Inequality reduces effective HDI by ~30.7%.

[QLI – Physical Quality of Life Index

Introduction & History:
Developed mid-1970s by M.D. Morris & Overseas Development Council.
Alternative to income-based measures (GDP/GNP).
Focus: basic health & education outcomes.
Dimensions / Indicators (0–100 scale):
1. Adult literacy rate (% who can read/write).
2. Infant mortality rate (IMR) – deaths under 1 year per 1,000 births (lower is
better).
3. Life expectancy at age 1 – expected years of life for a one-year-old.
Rationale: Measures basic health, survival, longevity & capability.
Calculation:
1. Collect data for literacy %, IMR, and life expectancy at age 1.
2. Index each to 0–100:
Literacy: direct % value.
IMR: reverse & scale (e.g. Indexed IMR = (166 – IMR) × 0.625).
Life expectancy: scale (e.g. Indexed LE = (LE – 42) × 2.7).
3. Average the three indexed scores:
PQLI=
Literacy%+Indexed IMR+Indexed LE/3
GEM – Gender Empowerment Measur
Introduction:
Introduced by UNDP (1995) in Human Development Report.
Focus: Women’s economic & political participation, capturing gender
inequality in opportunities (not just capabilities like HDI/GDI).
Objectives:
1. Measure empowerment, not just welfare.
2. Highlight gaps in leadership & income.
3. Guide policy for better female representation & income parity.
4. Complement HDI/GDI by adding empowerment dimension.
Dimensions & Indicators:
1. Political Participation – % of parliamentary seats held by women.
2. Economic Participation – % of women in senior roles + % in
professional/technical jobs.
3. Power over Economic Resources – Female share of earned income vs male
share
Calculation:
1. Normalize indicators using EDEP (Equally Distributed Equivalent
Percentage) → penalizes gender inequality.
2. Dimension indices:
Political Participation Index = EDEP of parliamentary seats.
Economic Participation Index = Avg. EDEP of senior roles & professional jobs.
Income Index = EDEP of earned income (from GNI per capita by gender).
3. GEM score = Average of the three indices (0 = no empowerment, 1 = full
equality).
Limitations:
Ignores informal/unpaid work.
Parliamentary share may not reflect real influence.
Data gaps in many countries.
Replaced in 2010 by GII (Gender Inequality Index) adding health &
reproductive rights.
Technology Achievement Index (TAI)
Meaning:Composite index to measure how well a country creates, diffuses,
and uses technology for development.
Introduced in UNDP Human Development Report 2001 (Desai et al.).
Goes beyond GDP—focuses on technological capacity as a driver of human
progress.
Purpose:
1. Compare tech achievements between countries.
2. Assess readiness for the network/digital age.
3. Identify strengths/weaknesses in tech performance.
4. Guide policy improvements.
Structure (4 Dimensions – 25% weight each)
A. Technology Creation (TC)
Patents per capita.
Receipts from royalties/licences per capita.
B. Diffusion of Recent Innovations (DRI)
Internet hosts/users per 1,000 people.
Share of high- & medium-tech exports in total exports.
C. Diffusion of Old Innovations (DOI)
Telephones (fixed + mobile) per 1,000 people.
Electricity consumption per capita.
D. Human Skills (HS)
Mean years of schooling (15+).
Gross tertiary science enrolment ratio.
Calculation Method
Step 1 – Normalize each indicator (Value Index):
Value Index= Actual Value – Minimum Value/ Maximum Value – Minimum
Value
Step 2 – Dimension Score:
\text{Dimension Score} = \frac{\text{Index of Indicator 1} + \text{Index of
Indicator 2}}{2}
Step 3 – Final TAI:
TAI= TC+DRI+DOI+HS /4
Closer to 1.0 → High tech achievement (Leaders).
Closer to 0.0 → Low tech achievement (Marginalized).
Classification: Leaders, Potential Leaders, Dynamic Adopters, Marginalized.
Uses:
Policy-making (e.g., invest in R&D, internet infrastructure, education).
Business market targeting.
International comparisons.
Academic research on tech–development links.
Limitations:
Missing data for low-income countries.
Equal weighting may not reflect true importance.
Tech changes fast—indicators can become outdated.

Green Index

Meaning:
Composite environmental performance indicator measuring how well
countries, regions, or organizations manage natural resources and
environmental sustainability while supporting economic growth.
Not a single global standard—varies by institution (e.g., Global Green
Economy Index – GGEI).
Linked to the green economy concept: growth that is environmentally
sustainable.
Purpose:
1. Evaluate environmental responsibility of nations’ policies and practices.
2. Compare environmental performance globally or regionally
3. Encourage measurable sustainable development policies.
4. Integrate environmental health into economic assessment (beyond GDP).
Common Dimensions:
A. Environmental Health
Air quality (PM2.5, ozone).
Water quality (safe drinking water, sanitation)
Waste management (recycling rates, landfill reduction).
B. Ecosystem Vitality
Biodiversity protection (protected areas, endangered species).
Forest cover and deforestation rates.
Marine & freshwater ecosystem health.
C. Climate & Energy
Carbon emissions per capita.
Renewable energy share.
Energy efficiency performance.
D. Natural Resource Management
Sustainable agriculture.
Fisheries management.
Land degradation prevention.
Example – GGEI Dimensions:
1. Leadership & Climate Change.
2. Efficiency Sectors (transport, buildings, energy, tourism).
3. Markets & Investment.
4. Environment & Natural Capital.
Calculation Method (Typical):
Step 1 – Select Indicators:
Choose measurable variables for each dimension.
Step 2 – Normalize Indicators:
Normalise Indicator Formula
Value Index = (Actual Value − Minimum Value) ÷ (Maximum Value − Minimum
Value)
Step 3 – Weight Dimensions:
Assign weights (often equal; sometimes climate gets higher weight).
Step 4 – Aggregate:
Green Index Formula
Green Index = (Sum of each Dimension Score × its Weight) ÷ (Total Weights)
Interpretation:
Higher score → More sustainable, greener economy.
 Lower score → Higher environmental risk, poor sustainability performance.
Uses:
Governments: Policy benchmarking, sustainability planning.
Businesses: ESG investment analysis.
NGOs & Researchers: Track climate target progress.
International comparisons: Identify leaders and laggards.
Limitations:1. Data gaps for developing countries.
2. Different methodologies make cross-index comparisons difficult.
3. Risk of greenwashing if indicators are poorly chosen.

• Sustainable Development:
Sustainable Development – Notes
1.Introduction
Development that meets present needs without compromising future
generations’ ability to meet theirs.
Focus: long-term economic growth + social well-being + environmental
protection.
Balances development and environmental conservation.

1. Meaning
Goes beyond environment → includes strong, healthy, just society.
Ensures equal opportunity, social inclusion, and personal well-being.
Based on three pillars:
1. Economic development
2. Social development
3. Environmental protection
4. Features
1. Intergenerational Equity – Meet present needs without harming future
needs.
2. Integration of Environment & Development – Link eco concerns into
policies.
3. Inclusive Economic Growth – Benefits for all, reduce inequality.
4. Social Inclusion & Equity – Equal access to services & resources.
5. Sustainable Resource Management – Responsible use, reduce waste.
6. Participatory Governance – Community involvement in decisions.
7. Resilience & Adaptability – Systems to handle shocks.
8. Technological Innovation – Use sustainable technologies.
5. Objectives
1. Eliminate poverty.
2. Inclusive growth → jobs, reduce inequality, protect environment.
3. Equal access to resources, gender equality, empower marginalized.
4. Protect ecosystems & biodiversity.
5. Promote resource efficiency & reduce waste.
6. Mitigate climate change & adapt to impacts.
7. Build sustainable, resilient cities.
8. Ensure quality education for all
9. Strengthen partnerships (local–global).
10. Ensure healthy lives & well-being.
6. Need & Importance

Resources are limited; cannot expand Earth’s capacity.

Must use resources prudently for future survival.
Balance economic, social, environmental needs.
Encourage resource conservation and sustainable technology use.
Meet basic needs (food, water, energy, sanitation) without damaging
environment.
Reduce excessive human demands.
7. Principles
1. Holistic Approach – Consider interconnected systems.
2. Social Justice – Equal rights & opportunities
 3. Inter- & Intra-generational Equity – Balance present & future needs.
4. Sustainable Resource Management – Respect carrying capacity,
conserve biodiversity.
5. Integration – Link economic, social, environmental policies.
6. Use of Local Resources – Rely on local supply, preserve diversity.
7. Social Responsibility – Shift unsustainable consumption & production.
8. Public Participation – Access to info & decision-making.
9. Polluter Pays Principle – Polluters bear environmental costs.
10. Precaution & Prevention – Act to avoid serious/irreversible harm.
8. Components
A) Environmental:
Increase forest cover, conserve biodiversity, protect watersheds.
Promote eco-friendly tech to fight climate change, biodiversity loss.
B) Economic:

Self-sustaining projects, poverty alleviation, income generation.

Transparent budgeting, fair benefit sharing, equity in economy.
C) Social:
Public participation, meet basic needs (health, education).
Awareness programs, empower disadvantaged groups, guide indigenous
communities.