PLANNING AND DEVELOPMENT CLASS 12

In the first chapter that is

CHALLENGES OF NATION BUILDING We have studied about the three main challenges that have arrived at the time of independence.

This chapter basically discuss about the third problem that is-  “ELIMINATION OF POVERTY”.

For the independent free India there was a main challenge to ensure development and willbeings of the entire society and not only for some sections.

INDIA has made its own constitution adopted and enacted with the goal of making a “WELFAIRISTIC SOCIETY”.

**PLANNING- it means planning the future for the best use of available resources.

**DEVELOPMENT- It refers to the process of raising living standards and attaining and economic level of industrial production immediately after independence the Indian government took up the task of poverty elimination social and economic redistribution of resources and development of agriculture.

The chapter starts with an real time situation faced by the the tribal  people of Odisha. We know that odisha has rich source of Steel and Iron. So, there the state government signed Memorandum of Understanding(MOU) with both international and domestic steelmakers. 

As most of the iron ore resources are situated in tribal districts of the state; so the tribal people fears that the setting up of industries would mean displacement from their home and livelihood.

The environmentalist fears that mining and industry would pollute the environment.

The central government feels that if the industry is not allowed it would set up bad example and discourage investment in the country.

POLITICAL CONTESTATION-

In a democratic country the final decision must be a political decision taken by people's representatives Who are in touch with the feelings and problems of the peoples.

After independence every one agreed the development of India will take place by economic growth along with social and economic justice.

Although we agree to the model of development all the we want development in economic and social sphere but the decision-making cannot be left in the hands of businessman, industrialist and farmers themselves.

The government has to play a key role. It is the prime aim of the government to ensure growth with justice.

IDEAS OF DEVELOPMENT-

DEVELOPMENT always refers to a positive change.

We can say that development has different meaning for different section of the people.

The goal of development was to achieve economic growth and ensure social economic justice.

After independence, development was a major issue at the time of development. how could we develop, what model should we follow and so on.

people stated referring the westen model of development.

At that time the process of modernisation means breaking down of all social traditional structures and adopting liberalism and sociolism.

Modernization is also associated with the idea of growth of ideas, material progess and scientific rational.

AFTER MANY DEBATE AND DISCUSSIONS ABOUT WHICH KIND OF DEVELOPMENT STRATEGIES SHOULD BE ADOPTED. EVERYONE AGREED UPON TWO THINGS-

1.DEVELOPMENT SHOULD NOT BE LEFT TO PRIVATE ACTORS.

THE GOVT HAD TO PLAY A CRUCIAL ROLE IN PLANNING THE STRATEGIES OF DEVELOPMENT.

HOWEVER THERE ARE MANY QUESTIONS RAISED DURING THIS LIKE-

1. SHOULD THERE BE A CENTRALISED INSTITUTIONS OR NOT?

2. WHO WILL OWN THE INDUSTRIES?

3. IN A BACKWARD COUNTRY LIKE INDIA, BETWEEN AGRICULTURE AND INDUSTRY WHICH ONE SHOULD ATTRACT MORE RESOURCES?

EACH OF THE QUESTION HAS POLITICAL CONTESTATION. MOST OF THESE ISSUES INVOLVED POLITICAL JUDGEMENT AND REQUIRES CONSULTATIONS AMONG POLITICAL PARTIES AND APPROVAL OF THE PUBLIC.

IDEA OF PLANNING

It refers to the process of rebuilding economy, gain a good public support in 1940s and 1950's all over the world.

On the eve of independence, India has two options that is either to join USSR or to make a alliance with USA but India prefer not to join any power bloc or decided to go for a planned mixed economy.

To attain the desired goal, the Indian nationalist established a planning commission in 1950 to formulate plans for economic development.

Although the main motto was the economic growth but the leaders can't deny the actual tension areas of our nation and has to give primary focus on the areas such as-

(I) The task of poverty alleviation and social economic reader strict was being seen primarily as the responsibility of the government. 

(ii) For some industrialization seems to be the preferred path. 

(iii) For others development of agriculture and in particular elevation of ruler poverty was the priority.

India adopted mixed economy in which some characteristics of liberal capitalist model and some are of socialist as in USSR.

✓✓ The planning commission was an institution in the Government of India which formulated India's five year plans.

✓✓ Formed- it was formed in 15 March 1950.

✓✓ Dissolved- in 17 August 2014 by PM Narendra Modi.

✓✓ Planning commission first chairperson was Pandit Jawaharlal Nehru from 1950 to 1964.

✓✓ Planning commission has been replaced by new institution "NITI AAYOG".

✓✓ the Planning Commission of India opted for five year plans (FYP).

✓✓ The idea is very simple: the government of India prepares a document that has a plan for all its income and expenditure for the next five years. Accordingly the budget of the central and all the State governments is divided into two parts: ‘non-plan’ budget and plan budget.

* FIRST FIVE YEAR PLAN- DEC,1951(AGRI BASED)

** SECOND FIVE YEAR PLAN- 1956(RADIP INDUSTRIALIZATION)

*** THIRD FIVE YEAR PLAN- 1961(SAME AS 2ND)

**** FOURTH FIVE YEAR PLAN- 1966(ECONOMIC CRISIS)

PLAN HOLIDAY-(TAKING LEAVE FOR SOME PERIOD OF TIME)

FIRST FIVE YEAR PLAN(1956-1961)

1. DRAFTED BY- K N RAJ, young economist

2. The first five year plan sort to get the countries economy out of the cycle of poverty.

3.He argued that India should HASTEN SLOWLY for the first two decades as a first rate of development might endanger democracy.

4. GOAL- Eliminate poverty and growth in agrarian sector including investment in dams and irrigation.

5. The focused on land reforms as the key to the countries' development.

• PROJECTS- DAMS AND IRRIGATION. EG- HIRAKUD AND BHAKRA NANGAL.

• PROBLEM- THE PLAN IDENTIFIED THE PATTERN OF LAND DISTRIBUTION IN THE COUNTRY AS THE PRINCIPAL OBSTACLE IN THE WAY OF AGRICULTURAL GROWTH.

•  IT FOCUSSED ON LAND REFORMS AS THE KEY TO THE COUNTRY’S DEVELOPMENT.

SECOND FIVE YEAR PLAN(1956-1961)

The purpose of the plan was established socialist pattern of society.

It was drafted by a team of economics and planners under the leadership of P.C. Mahalanobis.

If the first five year plan, had preached us patience then the second wanted to bring about quick structural transformation means setting up more industries, government imposed substantial tariffs in order to protect domestic industries and other this protected environment both public and private sector industries grew.

THIRD FIVE YEAR PLAN( 1961- 66)

There was a financial crisis, foreign exchange crisis and a food crisis during the third five year plan from 1961 to 66.

This plan designed to provide India is self generating and self Reliance economy (continuation of previous plans)

Objective-

To secure and income of over 5% annum, the pattern of investment being designed so as to sustain this rate of growth during the subsequent plans.

To achieve self sufficiency in food grains and increase agriculture production to meet the requirement of industry and exports.

To establish progressively greater equality of opportunity and to bring about reduction in disparities in income.

Achievements-

♡ National income

♡ Agriculture and power development

♡ Industrial development

♡ Village and small scale industries

♡ Railway development

Key controversies

1...agriculture versus industry

Gandhi economist like JC Kumarappa proposed and alternative blueprint that put greater emphasize on ruler industrialisation.

Chaudhary Charan Singh also emphasized on keeping agriculture

2... public versus private sectors

India adopted mixed economy. Much of the agriculture, trade and industry were left in private hands.

state controlled by heavy industries, provided industrial infrastructure, related trade and made some crucial intervention in agriculture.

state intervene only in those areas where the private sectors was not prepared to go.

MAJOR OUTCOMES

• THE THIRD OBJECTIVE I.E. TO ELIMINATE POVERTY WAS QUITE DIFFICULT TO ACHIEVE.

• LAND REFORMS DID NOT TAKE PLACE EFFECTIVELY IN MOST PARTS OF THE COUNTRY.

• POLITICAL POWER REMAINED IN THE HANDS OF LAND OWNING CLASS

FOUNDATIONS

• An assessment of the outcomes of this early phase of planned development must begin by acknowledging the fact that in this period the foundations of India’s future economic growth were laid. 

• Some of the largest developmental projects in India’s history were undertaken during this period. These included mega-dams like Bhakhra-Nangal and Hirakud Dam for irrigation and power generation. 

• Some of the heavy industries in the public sector – steel plants, oil refineries, manufacturing units, defense production etc. – were started during this period. 

• Infrastructure for transport and communication was improved substantially.

•  Of late, some of these mega projects have come in for a lot of criticism. Yet much of the later economic growth, including that by the private sector, may not have been possible in the absence of these foundations.

LAND REFORMS

1. Abolition of colonial sy instem of zamidhari

2. Land leased from the clutches of a class that had little interest in agriculture.

3. Attempts were made for consolidation of land

4. Laws made to put proper upper limit or ceiling to how much agriculture land one can own.

5. People with excess land managed to invade the laws.

6. Some laws not implemented effectively.

GREEN REVOLUTION-

1. The agriculture situation went from bad to worsen during 1960s

2. Several droughts occurred in many parts.

3. Country also faced two words in 1962 and 1965.

4. Food crisis felt in all districts of Bihar.

5. The government had to import wheat and accept foreign aids.

Now after overcoming from this difficult situation our national leaders realised that there first priority was to achieve self sufficiency in food.

© The government decided to put more resources into the areas which already had irrigation.

© The government offers high yield variety of seeds fertilizers history pesticides at subsidized rates.

© The government also give a guarantee to buy the products.

This was the begining of what was called as GREEN REVOLUTION.

GREEN REVOLUTION: ITS EFFECTS

~ The rich peasants and the large landholders wear the major beneficiaries.

~The green revolution delivered only a moderate agricultural growth (mainly arise in wheat production)

~ It increased polarization between classes and regions..

~ Punjab Haryana and western UP became agriculturally prosperous while others remained backward.

~ the sharp contrast between the poor peasantry and landlords produced conditions for left wing organisations to organise for poor peasants.

~ The green revolution also resulted in rise of middle peasants sections.

PLANNING COMMISSION-

1. THE PLANNING COMMISSION WAS SETUP IN MARCH,1950.

2. The Chairman of the planning commission is PRIME MINISTER.

3. India adopted five year plans from USSR.

4. The Government of India prepares a document that has a plan for all its income and expenditure for next years.

5. The budget of the central and all the state governments is divided into two parts non plan budget and plan budget.

National Development Council-

° National Development Council or the Rastriya Vikash Parishad is an executive body established by the government of India in August 6,1952- which is neither a constitutional nor a statutory body.

• It is the Apex body to take decisions and deliberations on development matters and to strengthen and mobilize the efforts and resources of the nation.

• Prime minister is the ex officio chairman of NDC.

• NDC was made to promote common economic policies for all and to ensure the balanced and rapid development of all parts of the country.

National Development Council: composition

• Prime minister of India (chairman of NDC).

• Chief minister of all states

• Administrators of all union territories

• All union cabinet ministers

• Members of the planning commission

• The secretary of the planning commission is also the secretary of NDC.

• The administrative assistance is also provided by the planning commission.

“OBJECTIVES”

NDC is an advisory body to the planning commission. Major objectives of ndc can be listed below-

1-To strengthen and mobilize the efforts and resources of the nation in support the plan.

2- To promote common economic policies in all vital spheres.

3- To ensure the balanced and rapid development of all parts of the country.

4- In addition to this NDC provides a platform to all the states to discuss their problems and issues related to development.

5- Thus, it secure the cooperation of the states in the execution of development plans.

FUNCTIONS

To meet its objectives the NDC has been assigned below functions-

• To prescribe guideline for the formation of the national plan including the assessment of resources for the plan.

• To consider the national plan as formulated by the Niti Aayog.

• To make an evaluation of the resources required to implement the plan.

• To consider important questions of social and economic policy affecting national development.

• To review the working of the plan from time to time.

• To recommend such measures that are necessary for achieving the aim and targets set out in the national plan.

Niti Aayog

After independence, planning commission based on socialist model was formed for the planned development of India.

But in the era of globalization especially in the 21st century, it was becoming ineffective and irrelevant particularly in terms of coping with the pressing challenges of development.

Hence, on 15 August 2014 Prime minister Narendra Modi top about the evolution of the planning commission.

Niti aayog was constituted in the place of planning commission on 1st January 2015 with the objective of providing the necessary and technical advice to the union government regarding policy making at the Central and state levels.

The Niti Aayog comprises the following members-

1- Chairperson: The prime minister of India

2- Vice chairperson: Presently- Rajiv Kumar

3- Governing Council : Chief Minister of all states

4- Regional Council : composed of Chief ministers of states and Lt. Governors of union territories.

5- Ex-officio Members: composed of Amit Shah, Rajnath Singh, Nirmal Sitaram and Narendra Singh tomar.

6- Special Invitees: eminities experts, specialists with relevant domain knowledge, which will be nominated by the prime mijister. Eg- Nitin Gadkari, Piyush Goyal, Thawar Chand Gehlot and Rao Inderjit Singh

7- Full Time Members: V.K. Saraswat(formal DRDO Chief), Ramesh Chand(Agriculture expert) and Dr. Vinod Paul(public health expert)

8- Chief Executive Members(CEO): Amitabh Kant

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• To harmonize the interest of the national security and economic policy and to prepare strategic and long-term framework of policy and program, Niti Aayog acts as a “think tank” of the union government.

• By adopting a “bottom-up” approach, the niti aayog act in the spirit of cooperative federalism as it ensures equal participation of all states in the country.

• NITI AAYOG stands for "National Institute for Transforming India". it is the country's premier policy making institutions which is expected to push the economic growth of the country.

• the motive for setting up the NITI AAYOG is that people had expectations for growth and development in the administration through their participation.

• The NITI AAYOG creation has two hubs called "team India Hub" and "knowledge and innovation Hub".

OBJECTIVES OF NITI AAYOG-

• Active participation of state in the light of national agenda.
• To promote cooperative federalism.
• To construct reliable strategy at village level then take it to high level.
• Economic policy that make national security interest.
• Pay special attention to underdeveloped areas.
• To grant advices
• Platform for resolving intersectoral development issues.
• To pay attention to technological improvement.
• To make a economic policy that incorporates national security interests.
• To tackle other necessary activities to the implementation of the national development agenda.

Niti Aayog is based on the 7 pillars of effective governance-

7 PILLARS OF NITI AAYOG

■ PRO-PEOPLE: IT FULFILLS THE ASPIRATIONS AND NEED OF SOCIETY AS WELL AS INDIVIDUALS.

■ PRO- ACTIVITY: IT IS FOR ANTICIPATION OF AND RESPONSE TO CITIZEN NEEDS .

■ PARTICIPATION: IT ENSURES INVOLVEMENT OF THE CITIZENRY.

■ EMPOWERING: EMPOWERING ESPECIALLY WOMEN IN ALL ASPECTS

■ INCLUSION AT ALL : IT ENSURES THE INCLUSION OF ALL PEOPLE IRRESPEFTIVE OF CASTE, CREED, AND GENDER

■ EQUALITY: ITPROVIDES EQUAL OPPORTUNITIES YO ALL ESPECIALLY FOR YOUTH.

■ TRANSPARENCY: MAKING THE GOVERNMENT VISIBLE AND RESPONSIVE

THE UN HUMAN DEVELOPMENT REPORT

• THE UN DEVELOPMENT REPORT,2012 PAINTS A DISMAL PICTURE OF SOCIAL DEVELOPMENT IN INDIA AND HAS PUT IT AMONG THE MEDIUM HUMAN DEVELOPMENT IN INDIA AND HAS IT AMONG THE MEDIUM HUMAN DEVELOPMENT COUNTRIES. 

• IT HAS RANKED INDIA AT 134TH  OUT OF 188 COUNTRIES.

• HUMAN DEVELOPMENT INDEX(HDI) IS BASED ON LIFE EXPECTANCY,HEALTH AND EDUCATIONAL OPPORTUNITIES.

WORDS TO REMEMBER-

Planning: A systematic regulation to optimum use of resources and to reduce wastage of time.

left- Favours poor backward classes and have faith in government policies of development, centralize control and traditional government.

RIGHT- FREE COMPITITIOPN AND MARKET ECONOMY, GOVERNMENT LESS INTERVENTION AND PROVIDE NO SUBSIDARY.

Capitalist Economy: The economy in which private sectors are prioritized in place of social welfare.

Socialist Economy: It aims at the public sector and planning with the aim to establish egalitarian society.

Plan Budget: It is the amount that is spent on a five-year basis as per the priorities fixed by the plan.

Mixed Economy: The economy in which the private and the public sector both co-exist.

Planning Commission: It is an ‘extra-constitutional body’ to make plans for the country to set up in March 1950 with the Prime Minister as chairman.

Operation flood:- it was launched in 1970s, was s project of India's National Dairy development programme. It transformed India from a milk producer of world. The process has been called white revolution. Amul, cooperativedairy was the engine behind the success of the program. Dr. Verghese kurein known as the father of white revolution.

Bombay Plan: a big section of the big industrialists got together in 1944 and drafted a joint proposal for setting up a planned economy in the country. It was called the Bombay Plan. The Bombay Plan wanted the state to take major initiatives in industrial and other economic investments.

In 1970 the rural development programme called Operation Flood was started. Operation flood organized cooperatives of milk producers into a nationwide milk grid, with the purpose of increasing milk production. This was termed as White Revolution. Verghese Kurien is known as ‘Milkman of India.’

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