economic planning
TRANSCRIPT
ECONOMIC
PLANNING
IT REFERS TO THE CONSCIOUSLY DIRECTED EFFORTS OF ORGANISING
AND USING RESOURCES FOR PRODUCTIVE PURPOSES BY A
CENTRAL AUTHORITY FOR ACHIEVING CERTAIN
PREDETERMINED AND WELL DEFINED OBJECTIVES OR
GOALS WITHING A SPECIFIED PERIOD OF TIME.
THE PRE-INDEPENDENCE PERIOD IN INDIA WAS A PERIOD OF ECONOMIC
STAGNATION.AT THE TIME OF INDEPENDENCE, INDIA WAS
AN UNDEVELOPED COUNTRY CHARACTERISED
BY LOW PER CAPITA INCOME, ABJECT POVERTY AND VERY POOR QUALITY
OF LIFE.
THEREFORE, THE GOVERNMENT
UNDERTOOK THE TASK OF
PROMOTING ECONOMIC
DEVELOPMENT THROUGH ECONOMIC PLANNING.
THE PLANNING COMMISSION WAS SET UP IN MARCH 1950 AND HEREBY
INDIA ADOPTED FIVE YEAR PLANS
FOR THE DEVELOPMENT OF INDIAN ECONOMY.
FIRST FIVE YEAR PLAN : LAUNCHED ON 1ST
APRIL 1951 FOR THE PERIOD 1951-1956.
CURRENTLY ELEVENTH PLAN IS IN
OPERATION SINCE 1ST APRIL 2007-2012.
LONG TERM
OBJECTIVES OF
THESE PLANS
ECONOMIC
GROWTH
oFIRST AND FOREMOST OBJECTIVE.
oECONOMIC GROWTH TRADITIONALLY MEASURED AND EXPRESSED IN TERMS OF INCREASE IN THE LEVEL OF PER CAPITA INCOME.
oAIM TO BRING ABOUT RAPID ECONOMIC GROWTH THROUGH DEVELOPMENT IN ALL THE MAJOR SECTORS OF THE ECONOMY.
o “MAJOR THRUST”OF ECONOMIC PLANNING IN INDIA IS ECONOMIC GROWTH.
o HIGH PRIORITY TO GDP GROWTH SEEMS TO BE JUSTIFIED KEEPING IN VIEW THE LONG PERIOD OF STAGNATION DURING 19TH CENTURY AND EARLY 20TH CENTURY.
o IT WAS EXPECTED THAT THE FRUITS OF ECONOMIC GROWTH WOULD BENEFIT DIFFERENT SECTIONS OF THE PEOPLE AS THIS WAS TERMED AS“TRICKLE DOWN THEORY”.
REMOVAL OF UNEMPLOYM
ENT
o UNEMPLOYMENT AND UNDEREMPLOYMENT ARE IMPORTANT FACTORS RESPONSIBLE FOR LOW LEVEL OF INCOME AND POVERTY IN THE COUNTRY.
o NO SERIOUS ATTEMPTS WERE MADE TO WORK OUT A STRATERGY FOR EMPLOYMENT GENERATION.
o PLANNING COMMISSION BELIEVED THAT INCREASE IN INVESTMENT AND INCREASE IN NATIONAL INCOME WOULD AUTOMATICALLY GENERATE MORE EMPLOYMENT.o EFFORTS HAVE BEEN MADE TOWARDS CREATION OF MORE EMPLOYMENT THROUGH INCREASE IN INVESTMENT AND INCOME EXPANSION OF SMALL SCALE LABOUR INTENSIVE INDUSTRIES.
SPECIFIC SCHEMES UNDERTAKEN:
MGNREGA
Mahatma Gandhi National Rural Employment Guarantee Act.
JRY Jawahar Razgar Yojana.
PMIUPEP
Prime Ministers Integrated Urban Poverty
SELF RELIAN
CE
REDUCTION OF
INCOME INEQUALIT
IES
o INDIAN ECONOMY IS CHARACTERISED BY GLARING INEQUALITES OF INCOME AND WEALTH.
o PRESENT DEGREE OF INEQUALITY OF INCOME – UNDESIRABLE – NEEDS TO BE REDUCED.o FRUITS OF GROWTH SHOULD BE AVAILABLE TO DIFFERENT SECTIONS OF THE SOCIETY.
o PROCESS OF REDUCING INEQUALITIES IS TWO FOLD:
1.IT MUST RAISE INCOME AT LOW LEVEL.
2.IT MUST REDUCE CONCENTRATION OF WEALTH AT HIGHER LEVELS.
o INCOME EQUALITY ALSO DUE TO DISPARITY IN THE LEVEL OF ECONOMIC DEVELOPMENT ATTAINED BY DIFFERENT STATE AND REGIONS.
o RECOGNITION OF THE NEED FOR GIVING SPECIAL ATTENTION TO BACKWARD STATES AND HILLY AREAS.
o NOT MUCH PRIORITY GIVEN TO THIS OBJECTIVE – BELIEVING ECONOMIC GROWTH WILL AUTOMATICALLY REDUCE INCOME INEQUALITY.
o THERE HAS BEEN A SLOW DECREASE IN INCOME INEQUALITY DURING THE PERIOD OF ECONOMIC PLANNING.
o ABOLITION OF ZAMINDARI SYSTEM, IMPOSING CEILING ON LAND HOLDINGS, DISTRIBUTING SURPLUS LAND AMONG LANDLESS.o INCOME INEQUALITY ARISING OUT OF INDUSTRIALISATION AND GROWTH WERE FAR MORE COMPLEX.REGIONAL INEQUALITY – LARGE DISPARITY BETWEEN RURAL AND URBAN INCOME.
ELIMINATION OF
POVERTY
o ONE OF THE FUNDAMENTAL OBJECTIVES.
o REMOVAL OF POVERTY TAKEN AS SPECIFIC OBJECTIVE FROM FIFTH PLAN (1974-1979)
o IT WAS BELIEVED THAT BENEFITS OF DEVELOPMENT WOULD AUTOMATICALLY REACH THE POOR MASSES.
o THIS EXPECTATION WAS NOT REALISED – INFACT INCREASE IN NATIONAL INCOME WAS ACCOMPANIED BY INCREASE IN THE DEGREE OF POVERTY.
o IN THE FIFTH PLAN, THERE WAS A VISIBLE SHIFT IN PLANNING THE ISSUE OF POVERTY.
GARIBI HATAOMINIMUM NEEDS
PROGRAMMEGROWTH WITH JUSTICE.
ESTABLISHMENT OF A
SOCIALISTIC SOCIETY
THIS IMPLIES:
1. EQUAL OPPORTUNITES TO ALL IN THE MATTER OF EDUCATION, PUBLIC HEALTH, OCCUPATION, ECONOMIC OPPORTUNITIES, ETC.2. JUST AND EQUITABLE DISTRIBUTION OF WEALTH AND ABSENCE OF CONCENTRATION OF ECONOMIC POWER.3. SOCIALISTIC SOCIETY CHARACTERISED BY ABSENCE OF EXPLOITATION OF MAN BY MAN.
MODERNISATION