The correct option is 2 and 3 only.
Explanation
The relationship between economic growth and human development posits that per capita income is not the sole indicator of well-being. While income provides access to material goods, quality of life depends significantly on non-material factors and public facilities that require collective or state provision.
Statement-wise Analysis:
- Statement 1 is Incorrect. Higher average income (per capita income) does not guarantee better social indicators. For instance, historically, states like Haryana or Maharashtra have had higher per capita incomes than Kerala, yet Kerala consistently outperforms them in Infant Mortality Rates (IMR) and literacy levels. This demonstrates that income distribution and the availability of public facilities are more critical than average income alone.
- Statement 2 is Correct. Money cannot purchase a pollution-free environment or unadulterated medicines for an individual acting alone. Environmental quality is a public good; it requires collective community action or state regulation to ensure a clean environment. Similarly, protection from infectious diseases requires collective preventive steps rather than individual spending.
- Statement 3 is Correct. The collective provision of goods and services is often more economically efficient than individual provision. For example, it is cheaper and more effective to have collective security for a locality or a public transport system than for every individual to arrange their own security or private transport. This principle justifies the existence of public facilities.
Key Takeaway:
Development is multidimensional; high per capita income is a necessary but not sufficient condition for human development. Public facilities and collective action are essential to secure non-material goods like health, education, and environmental quality.