POLITICS OF PLANNED DEVELOPMENT  

Planned Development 

It aims to achieve improved quality of life for the citizens of the state and contribute to the larger national goals of socio-economic development.

Before Independence, not much was done neither by Muslim Rulers nor Britishers for the development of Indian masses. Britishers, however, did launch some development( like railways) programmes and enacted some laws to bring changes in the social and economic life of people.

But the major problem that confronted India immediately after independence was development. 

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 of the people.

After independence, everyone agreed that the development of India should mean both economic growth and social and economic justice.

There was disagreement, however, on the kind of role that the government must play in ensuring growth with justice.

Idea of Development

Development has different meanings for different sections of the people.

‘Development’ was about becoming more ‘modern’ and modern was about becoming more like the industrialised countries of the West.

Modernisation was also associated with the ideas of growth, material progress and scientific rationality.

This kind of idea of development allowed for the classification of countries as developed, developing and underdeveloped.

There are two models of modern development. One is liberal -capitalist model and the other is socialist model.

Planning

Despite the various differences, there was a consensus on one point: that development could not be left to private actors, that there was the need for the government to develop a design or plan for development.

In 1944, a big section of industrialists drafted a proposal for setting up a planned economy in the country. And this plan is called ‘Bombay plan.’

Soon after independence, the planning commission came into being and the Prime Minister was its chairperson. And it became the most influential and central machinery for deciding what path and strategy India would adopt for its development.

Early Initiatives

As in the USSR, the planning commission of india opted for five year plan(FYP)

The draft of the first five year plan and then the actual plan document , released in december 1951 and it generated a lot of excitement .

The excitement with planning reached its peak with the launch of 1956 second five year plan and continued to somewhat till the third five year plan 1961.

The fourth plan was due to start in 1966, and planning had declined considerably, and moreover India was facing an acute economic crisis. The government decided to take a ‘‘Plan Holiday’’(1966-1969) because the government failed miserably in implementing the third five year plan because of war.

First Five Year Plan

The first five year plan (1951-1956) sought to get the country’s economy out of the cycle of poverty.

K.N. Raj, a young economist involved in drafting the plan.

The First Five Year Plan addressed, mainly, the agrarian sector including investment in dams and irrigation, like Bhakra Nangal Dam etc.

The plan identified the pattern of land distribution as the principle of obstacle in the way of agricultural growth. Therefore focused on land reforms as the key of development.

One of the basic aims of the planners was to raise the level of national income, which could be possible only if the people saved more money than they spent. People’s money saving did rise in the first phase of the planned process until the end of the third five year plan.

Rapid Industrialisation

The Second FYP stressed on heavy industries. It was drafted by a team of economists and planners under the leadership of P. C. Mahalanobis.

India was technologically backward, so it had to spend precious foreign exchange to buy technology from the global market. As industry attracted more investment than agriculture, this led to food shortage.

Thus Indian planners found it difficult to balance between industry and agriculture. Critics pointed out that planning was urban bias.

Key Controversies

The strategy of development followed in early years raised several important questions they are:

Agriculture vs Industry

After the First two plans, agriculture could not develop at an appreciable level. Gandhian economists like J. C. Kumarappa proposed an alternative blueprint that put greater emphasis on rural industrialisation.

Some others thought that without a drastic increase in industrial production, there could be no escape from the cycle of poverty.

The state made laws for land reforms and distribution of resources among the poor in the villages. The failure was not that of policy but its non-implementation.

Public vs Private

Unlike the US or USSR ,India adopted a ‘mixed economy,’ where both public and private exist together.

Much of the agriculture, trade and industry were left in private hands. The state controlled key heavy industries, provided industrial infrastructure, regulated trade and made some crucial interventions in agriculture.

Critics argued that the planners refused to provide the private sector with enough space and the stimulus to grow.

The state controlled more things than were necessary and this led to inefficiency and corruption. Critics pointed out that the state did not spend any significant amount for public education and healthcare.

Major Outcomes

The early initiatives for planned development were at best realising the goals of economic development of the country and well-being of all its citizens.

Land reforms did not take place effectively in most parts of the country; political power remained in the hands of the landowning classes; and big industrialists continued to benefit and thrive while poverty did not reduce much. Those who benefited from unequal development soon became politically powerful and made it even more difficult to move in the desired direction.

Economic Foundations:

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 Bhakra-Nangal and Hirakud for irrigation and power generation. Some of the heavy industries in the public sector like steel plants, oil refineries, defence production, etc. were started during this period.

Infrastructure for transport and communication was improved substantially.

 Land Reforms

Abolition of the colonial system of zamindari, and attempts at consolidation of land. It also reduced the capacity of landlords to dominate politics. Many proposals for land reforms were either not translated into laws or when made into laws, they remained only on paper.

Green Revolution

During the 1960s, the government offered high-yielding variety seeds, fertilizers, pesticides and better irrigation at highly subsidised prices. This was termed the Green Revolution.

The rich peasants and the large landholders were the major beneficiaries of this.the argument was that those who already had the capacity could help increase production rapidly in the short run.

Some regions like Punjab, Haryana, and Western Uttar Pradesh became agriculturally prosperous, while others remained backward.

The green revolution had two effects. One is, the stark contrast between the poor peasantry and the landlords while the other is, rise of the middle peasants section.

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

Later Developments

The period from 1967 onwards witnessed many new restrictions on private industry. Fourteen private banks were nationalised (during Indira Gandhi's period).

Between 1950 and 1980 the Indian economy grew at a sluggish per annum rate of 3 to 3.5%.

The presence of inefficiency, corruption etc forced people to lose faith in the country's economic system thus it resulted in decreasing the significance of state in India’s economy from 1980s onwards. 

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