Politics of planned development

Politics of planned development
Ideas of development
Idea of five year plan
Goals of five year plan
First five year plan
SECOND FIVE YEAR PLAN
THIRD FIVE YEAR PLAN
Agriculture Vs. Industry
Land reforms
The green revolution
The white revolution
Farmers using new technology
Public Vs. Private sector
development of agricultural
euility
modernisation
Self Reliance
Growth
Bombay Plan.
Planning Commission

1. Politics of planned development Politics in India since independence

2. Political argumentation Everyone wanted that development of India should mean both :- economic growth and economic justice . Government of India should play an important role in the development. LEFT VS. RIGHT Left refers to those who are in favour of the poor, downtrodden sections and support government policies for benefit of these sections Right refers to those who believe that free competition and market economy can ensure progress and the government should not unnecessarily interfere in the economy.

3. Development has different meanings for different groups. Many refer to the ‘West’ as the meaning of development. Development was more about being modern and industrialised. Modernisation is also about ideas of growth, material progress and scientific rationality. The main task of the government was poverty alleviation anf and social and economic redistribution. There were two power blocs when India got independent- liberalist – capitalist model of USA and socialist model of USSR. Many supported the model of liberalism and capitalism and others wanted India to adopt the socialist model. Ideas of development

4. Planning All agreed that the government need to develop a plan for development. The Planning Commission was set up in 1950 to make a design of development. A group of big industrial owners made a joint proposal for setting up a planned economy in the country (1944) This was known as the Bombay Plan . The plan wanted to take initiatives in industrial and economic investments.

5. Idea of five year plan The idea of five year plan was borrowed form USSR. The government of India prepares a document that has a plan for its income and expenditure for next five years. The main aim was to raise the level of National economy. The budget is divided into:- Non –plan budget ( spent on routine items on yearly basis) and Plan budget ( spent on priorities on a five year basis) ADVANTAGE The government can interfere in the economy for long.

6. Goals of five year plan

7. First five year plan K. N. Raj designed the First Five Year Plan (1951-56) . He argued that country should pace slowly for development as fast rate might harm democracy. The Plan was aiming at development of agricultural sector and investment in dams and irrigation. Investment was done in projects like Bhakhra Mangal Dam. It focused on land reforms or land distribution.

8. SECOND FIVE YEAR PLAN The Second Five Year Plan focused on heavy industries. It was designed by a team of economists and planners under the leadership of P. C. Mahalanobis. It wanted quick transformation in the structure. The Congress declared at its session in Avadi that its main aim was the socialist pattern of society. The Government imposed taxes on imports to protect local industries this helped in growth of public and private sector. Many Industries such as electricity Railways communication were developed in the private sector

9. P. C. Mahalanobis

10. THIRD FIVE YEAR PLAN The country was technologically backward and it had to spend on foreign exchange to buy technology from global market. As industries developed, the country saw an increase in food shortage. The planners tried to balance the industry and agriculture. But the Third Plan was criticized because of urban – bias. Plan holiday The fourth plan was about to start but by this time these plans lacked novelty and decided to take a plan holiday.

11. Agriculture Vs. Industry Second plan was more inclined towards the industry and the agriculture and rural societies suffered due to this. J. C. Kumarappa proposed a plan for rural industrialization (encouraging establishment of production units in rural areas). Chaudhary Charan Singh promoted that agriculture should be kept at the centre of planning as farmers and rural population were suffering. Others thought that increase in industrial production will help in escaping from poverty. The government made land reforms but the implementation lacked because of power of social and political power of landowning classes.

12. Public Vs. Private sector India adopted a mixed economy where we have taken from both capitalist and socialist model. The state controlled agriculture, trade, heavy industries. The state policy restricted important of goods that were produced in local market with little competition . The private sector improved their products and made them cheaper. The state controlled many areas which led to corruption. A new middle-class emerged because of state interference.

13. Achievemts Many projects were completed as:- Bhakhra nangal dam Hirakud dam Heavy industries ( steel plants, oil refineries, manufacturing units, defense production)

14. Land reforms The government abolished the the colonial system of zamindari. The government also made attempts at consolidation of land that increased the area under agriculture The tenants were given security from sudden expulsion by the landlord. But many of these reforms were not implemented because of illiteracy among the lower classes.

15. The green revolution It was decided to put more resources into areas which had irrigation techniques and were rich. The government offered HYV (hiegh yield variety) seeds, fertilizer, pesticides, and better irrigation at highly subsidised or low prices. The government also have guarantee to farmers to buy the produce at a given price. Wheat production and food availability was increased in green revolution. It brought prosperity in areas like Punjab, Haryana, western Uttar Pradesh.

16. Farmers using new technology for production

17. The white revolution Verghese kurien , also known as the Milkman of India, played major role in launching Amul by Gujarat Cooperative Milk and Marketing Federation Ltd. The Amul (Anand) is dairy cooperative movement joined by 2 . 5 million milk producers in Gujarat. It helped in poverty alleviation. This helped in providing employment to many women also.