PLANNED DEVELOPMENT
Political Contestation Decisions related to development involve weighing the interests of one social group against another, present generation against future generations. In a democracy major decisions should be taken or at least approved by the people themselves. It is important to take advice from experts on mining, from environmentalists and from economists.
Yet the final decision must be a political decision, taken by people's representatives who are in with the feelings of the people.
After Independence our country had to make a series of major decisions like this. Each of these decisions could no be made independent of other such decisions.
All these decisions were bound together by a shared vision or mode of economic development. Almost everyone agreed
that the development of India should mean both economic growth and social and economic justice.
It was also agreed that this matter cannot be left to businessmen, industrialists and farmers themselves, that the government should play a key role in this. There was disagreement, however, on the kind of role that the government must play in ensuring growth with justice.
Ideas of Development
Development is a dynamic concept. There is no agreement on he meaning of development among planners and thinkers In general terms, development has been defined as "a process of growth, expansion or realisation of potential; bringing regional resources into full production base".
In other words, development is a process of change aiming at socio-economic ransformation of traditional societies into modern one which is greatly influenced by human beings. India had two models of development on the eve of Independence
(i) The Socialist Model
followed in USSR. The leaders of the Communist Party of India and the leaders of Socialist Party like Nehru were deeply impressed by the Soviet model of development. The main reason to support this model was that the economic concerns of independent India would have to be different from colonial government. The tasks of poverty alleviation, social and economic redistribution were regarded as the primary responsibility of the government.
(ii) The Liberal-Capitalist
Model as in Europe and USA. This model had very few supporters in India.
Planned Development planning in India
spite the differences over the priority and a towards development, there was an agreement development could not be left to the private sector government must take the responsibility to develop a plan development. Planning a as a process of rebuilding was widely popular in 1940s and 1950s all over the The experience of Great Depression, war Instruction of Japan, and Germany and remarkable and achievements of Soviet Union also brought to planning. approach of planning .
Commission and Five Year plan
Commission was set up in March 1950 by a simple of the Government of India. Prime Minister has made its Chairman. It became the most influential agency for deciding what path and strategy India adopt for its development.
Planning Commission of India opted for Five Year Plans P) like in the USSR.
Five-Year Plans (FYPs)
are raised and integrated national economic programs. this Government of India prepares a plan document all its income and expenditure for the next five years.
budget of the Central and all the State Government was led into two parts i.e.
plan budget that is spent on of next five years and non-plan budget that is on routine items on yearly basis.
draft of the First Five Year Plans and the actual Plan was released in December 1951.
In this Plan, KN Raj mainly focused on poverty alleviation. the Second Five Year Plan came into existence in 1956 Third Five Year Plan in 1961. The Fourth Five Year Plan I start in 1966 due to acute economic crises in India.
Thus, government decided to take a plan holiday this year. Plan of the big industrialist got together in 1944 and a joint proposal for setting 'up a planned economy
e country. This was called the Bombay Plan The Plan wanted the state to take major initiatives in industrial and other economic investments .
The Early Initiatives of Planning Commission
Like in the USSR, the Planning Commission of India opted Five Year Plans (FYP). For that, the Government of India pares a plan document for all its income and expenditure -the next five years. The budget of the central and all the government was divided into two part i.e. plan that is spent on priorities of next five years and n-plan budget that is spent on routine items on yearly.
The draft of the First Five Year Plans and actual plan in December 1951 In this plan.
document released economist KN Raj mainly focused on poverty alleviation second Five Year Plan was started in 1956 and Third Five ear Plan was started in 1961The Fourth Five Year Plan was ie to start in 1966 but government decided to take a plan because of acute economic crisis.
Five Year Plans in India
First Five Year Plan (1951-56)
The First Five year Plan sought to get the country's economy out of the cycle of poverty KN Raj, was involved in drafting the plan
The First Five Year Plan focussed mainly on the agrarian sector including investment in dams and irrigation Huge allocations of funds were made for large-scale projects like Bhakra Nangal Dam. This Plan also identified the pattern of land distribution in the country and focussed on land reforms.
One of the basic aims of the plan was to raise the level of national income which was too difficult for the country with low capital stock and income,
rapid Industrialisation (1956-61)
The rapid industrialisation was concern of the Second Five Year Plan. This Plan was drafted under the leadership of PC Mahalanobis.
This Plan emphasised upon heavy industriesIt wanted to ring about quick structural transformation by making hanges simultaneously in all possible directions..
Under this plan, substantial tariffs on imports were imposed so that domestic industries in both public and private sector can grow easily. This led to rise in savings and vestments among several public sector industries such as electricity, railways, steel, machineries and communication. forever, it has provided a push to industrialisation that helped further in India's development.
despite of that, this Plan too has faced difficulties. problems like technological backwardness led to huge pending of foreign exchange on technology from global market attracted more investments in industrial sector
stead of agricultural sector. led to the possibility of food shortage in the country. must, it becomes difficult for the planners to manage a lance between industry and agriculture.
Third Five Year Plan (1961-66)
was not much different from the Second Five Year Plan. me critics believed that the plan strategies of this time played urban bias and other thought that industry wrongly given priority over agriculture were also many economists who wanted to focus on Agriculture then heavy industries.
Fourth Five Year Plan (1969-74)
Under this Plan, Indira Gandhi government nationalised 14 major Indian banks. The Green Revolution was also implemented to advance the agriculture practices.
Thus, the main emphasis was on growth rate of agriculture to enable other sectors to move forward.
Fifth Five Year Plan (1974-79)
The Indian national highway system was introduced for th first time. It proposed to achieve two main objectives that were removal of poverty and attainment of self-reliance.
This plan was terminated in 1978 by the Janata government
National Development Council (NDC)
National Development Council (NDC) is an executive body established by the Government of India in August 19 It is neither a constitutional nor a statutory body rather it is advisory body to the Planning Commission. The Council ordinarily meets twice a year. Prime Minister is the ex-offi chairman of the National Development Council. It symbolic -the federal approach to planning and is the instrument for ensuring that the planning system adopts a truly national perspective.
Composition of National Development Council
The National Development Council is composed of the following members
• Prime Minister as the Chairman of the National Development Council.
• Chief Ministers of all the states
Administrators of all the Union Territories.
• Cabinet Ministers
• Members of Planning Commission
The secretary of the Planning Commission is also the sec of the NDC.
Objectives of National Development Council
Following are the objectives of National Development Council To strengthen and mobilise the effort and resources of the nation in support of the Plan.
- To promote common economic policies all here's
- To ensure the balanced and rapid development of all parts of the country to addition to this NDC provides a platform for all states to discuss their problems and issues related t development. Thus, it secures the co-operation of the states in the execution of developmental plans.
NITI Aayog (National Institution for Transforming India)
After independence a Planning Commission which w based on a socialist model formed for the planned development official. But in the era of globalisation.
especially in the 21st century, it was becoming ineffective and irrelevant particularly in terms of coping with the present challenges of development Hence, on 15th August, 2014 during the Independence Day speech
PM Narendra Modi announced about the abolition of the Planning Commission
On 1st January, 2015 NITI Aayog was constituted in lace of Planning Commission with the objective of providing the necessary and technical advice to the Union Government regarding the policy making at the Central and State levels.
Under this agency, the Prime Minister is he ex-officio chairman of NITI Aayog and is responsible or appointing the vice chairperson of NITI Aayog
The first vice chairperson of NITI Aayog was Arvind anagariya Shri Suman Bery is the current vice chairperson of NITI Aayog This body harmonies the interests of national security and economic policy and reparse strategic and long-term framework of policy and program.
It also acts as a think-tank of the Union government. By adopting Bottom-Up Approach, the ITI Aayog acts in the spirit of co-operative federalism as ensure equal participation of all states in the country.
Objectives of NITI Aayog
To evolve a shared vision of national development priorities, sectors and strategies with the active involvement of states.
To foster co-operative federalism through structured support initiatives and mechanisms with the states on a continuous basis, recognizing that strong states make a strong nation.
To develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government.
To ensure on areas that are specifically referred to it. hat the interests of national security are incorporated an economic strategy and policy.
To pay special attention to the sections of our society that y be at risk of not benefiting adequately from economy may progress.
To design strategic and long term policy and programme frameworks and initiatives, and monitor their progress and their efficacy.
To evolve a shared vision of national development priorities, sectors and strategies with the active involvement of states.
To actively monitor and evaluate the implementation of programmes and initiatives including the identification The needed resources so as to strengthen the probability success and scope of delivery.