(i) Distinguish between human capital and physical capital. (ii) Describe 'LPG' and 'Gobar Gas' as strategies used to achieve sustainable development in rural areas. (i) Critically appraise the micro-credit programmes in rural India. (ii) State the meaning of sustainable development.

Question

Accepted Answer

(i) Distinguish between human capital and physical capital:

Human Capital: Intangible assets embodied in individuals - skills, knowledge, health, experience. Created through education, training, and healthcare. Cannot be separated from owner. Creates both private and social benefits.

Physical Capital: Tangible assets used in production - machinery, buildings, equipment. Created through financial investment. Can be separated from owner. Creates primarily private benefits.

(ii) LPG and Gobar Gas as sustainable development strategies:

LPG (Liberalization, Privatization, Globalization):
- Liberalization: Reduced government controls, promoting private sector
- Privatization: Transfer of public enterprises to private sector
- Globalization: Integration with world economy

Gobar Gas:
- Biogas plants convert cattle dung into clean energy
- Provides renewable energy for rural households
- Reduces dependence on firewood and fossil fuels
- Produces organic fertilizer as by-product

Both strategies contribute to sustainable development by promoting economic growth while protecting the environment.