(a)OR(b)

(i)

Distinguish between human capital and physical capital.

(ii)

Describe ‘LPG’ and ‘Gobar Gas’ as strategies used to achieve sustainable development in rural areas.

Human capital refers to the stock of knowledge, skill and ability imbibed in the owner of the same, i.e., human capital is inseparable from its owner. It cannot be sold in the market, only its services can be sold in the market.

Whereas;

Physical capital are the assets (plant and machinery, building etc.), which are tangible in nature. It is separable from its owner. It can be transacted in the market.

Liquified Petroleum Gas (LPG) is a clean fuel that reduces household fuel pollution to a large extent and minimises energy wastage. For the gobar gas plant to function, cattle dung is fed to the plant and gas is produced which is used as fuel while the slurry which is left over is a very good organic manure and soil conditioner.

Micro-credit programmes fill the gaps in the formal credit system. Due to non-availability of collateral a vast proportion of rural households go out of the credit network. Micro-credit system has brought these poor households in the ambit of formal credit system by providing them loans at a concessional rate of interest. However, it is alleged that the borrowings are mainly confined to consumption purposes.

Sustainable Development is the development that meets the need of the present generation without compromising the ability of the future generation to meet their own needs.