\n\n<\/span>The idea of Development Planning and Mixed Economy<\/span><\/span><\/h2>\n\n- Development planning and change are interrelated term. Sociologically development refers to process of social change. Which is planned and desired by society. Therefore development is value laden concept Social Change refers to attrition that occur in the social structure and social relations. It is value free concept Planning implies that ways and means are devised and decisions for future actions are chalked out well in advance. All cases of social change con not be described as development Only planned and desired as development. One such intervention can be seen in planned economy.<\/span><\/li>\n
- A planned economy is an economic system in which decisions about the production, allocation and consumption of goods and services is planned ahead of time, in either a centralized or decentralized fashion. Since most known planned economies rely on plans implemented by the way of command they have become widely known as command economies.The government takes the initiative and set the goals and targets to be followed by the market forces.The private sector becomes partner in the formulation of a plan and responsible for its implementation.<\/span><\/li>\n
- Planning is commitment to concentrated actions. It is adjustment of social institutions to new social, economic and political conditions.<\/strong>\u00a0Target settings for different sectors of economy that determine the supply. It is a type of economy in which some central authority makes a wide range of decisions pertaining to production and wages. The government can harness land labor, and capital to serve the economic objectives of the state (which, in turn, may be decided by the people through a democratic process).<\/span><\/li>\n
- Consumer demand can be restrained in favor of greater capital investment for economic development in a desired pattern. For example, many modern societies fail to develop certain medicines and vaccines which are seen by medical companies as being unprofitable, but by social activists as being necessary for public health. The state can begin building a heavy industry at once in an underdeveloped economy without waiting years for capital to accumulate through the expansion of light industry, and without reliance on external financing. Second a planned economy can maximize the continuous utilization of all available resources.This means that planned economies do not suffer from a business cycle.<\/span><\/li>\n
- Under a planned economy, neither unemployment nor idle production facilities should exist beyond minimal levels, and the economy should develop in a stable manner, unimpeded by inflation or recession. A planned economy can serve social rather than individual ends: under such a system, rewards, whether wages or perequisites, are to be distributed according to the social value of the service performed. A planned economy eliminates the dependence of production on individual profit motives, which may not in themselves provide for all society\u2019s needs.<\/span><\/li>\n<\/ol>\n
Idea of planning and social change<\/span><\/h3>\n\n- Planning has become on importance factor in social change. Changes usually cause positive as well as negative impacts. Planned change or development may be defined as transformation that aims to minimize that negative impacts on society. Planning is a needed strategic intervention for social change. Each Country based on its history socio-political institutions, development priorities, resource endowments and institutional structure undertakes development planning.<\/span><\/li>\n
- That methodologies of planning are usually concerned with the choice of technique. Planning can take place at different depth levels. It may be earned out in many different ways. However it is desirable to have multiple perspective in development planning.<\/span><\/li>\n
- Development planning methods, which take into accounts different dimensions and integrate than into one are in the infancy. Endogenous development is the main focus of development planning efforts. Development planning is usually done from the perspective of government agencies. Sociologists have constantly reminded government agencies to extend the nation of planning from the idea of planned economy to that of planned society.<\/span><\/li>\n
- Bottom more\u2026development planning is at the cross-roads today. Social and cultural dimensions of development are usually understood as additional programmers and as investment outside the industrial and agricultural growth frameworks. This is where sociological analysis assumes immerse values. By \u201ckeeping every things in view\u201d, by defining clearly and describing the inter connections between social phenome\u2026. of different kinds, A sociologist makes planning more effective.<\/span><\/li>\n<\/ol>\n
Planning aims at:<\/span><\/h4>\n\n- Change in social organization, and<\/span><\/li>\n
- Community welfare like improving educational facilities, increasing employment opportunities, doing away with evil social practices, etc.<\/span><\/li>\n
- Prior determination of objectives and proclamation of values;<\/span><\/li>\n
- Concreteness, that is, laying down concrete details of its subject-matter, and<\/span><\/li>\n
- Co-ordination of diversified skills and diversified professional training.<\/span><\/li>\n<\/ol>\n
For the success of a plan, it is necessary that,<\/span><\/h5>\n\n- Plan must stem from the people themselves,<\/span><\/li>\n
- People\u2019s participation is extremely necessary;<\/span><\/li>\n
- Initiative for implementing the plan is to be taken not by the planners but by the activists in different walks of life,<\/span><\/li>\n
- Priorities have to be decided in advance, and<\/span><\/li>\n
- Arbitration in decision-making must be by a person who has technical knowledge and is a trained professional because he has the capability of visualizing alternative solutions.<\/span><\/li>\n<\/ol>\n
Economic planning was advocated by M. Visveswaraya in the1940s in India.The Indian National Congress appointed a National Planning Committee on the eve of the Second World War (1938-39) to frame an all India plan. But it was the Bombay Plan (known as Tata Birla Plan) which made people planning conscious in India. In 1944, the Department of Planning and Development was also created However, at this stage, government plans were not concerned with definite economic targets.They were mainly concerned with issues like raising standard of living, increasing purchasing power of people, stabilizing agricultural prices, developing industries, removing wealth disparities and raising the level of backward classes.<\/span><\/p>\nAfter independence, Indian Planning commission was set up to access countries need of material capital and human resources and to formulate economic plan for their more blended and effective utilization. It incorporates virtues of both capitalism and socialism aiming at fostering free and faster growth of human personality.<\/span><\/p>\n\n- Planning was taken up in India essentially to give economic content to political freedom it was conceived of as an instrument of socio-economic change and expected to provide a controlled and faster rate of growth. In essence it sought to convert political democracy into socio-economic democracy and resolve the contradictions of an unequal society.<\/span><\/li>\n
- In this context Planning Commission was set up in India to act as an advisory committee of the cabinet It was assigned seven duties :<\/span>\n
\n- To make an assessment of the material capital and human resources of the country<\/span><\/li>\n
- To formulate a plan for the most effective and balanced utilization of the country\u2019s resources,<\/span><\/li>\n
- To determine national priorities of development and define the stages of growth and suggest allocation of resources,<\/span><\/li>\n
- To indicate factors tending to retard eco develop and determine the condos necessary for the successful execution of the plan,<\/span><\/li>\n
- To determine the nature of machinery required for implementation of each stage of the plan,<\/span><\/li>\n
- To appraise periodically the progress,<\/span><\/li>\n
- To make recommendations for its own effective working and regarding necessary changes.<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ul>\n
Objectives of Planning:<\/span><\/h3>\nWhen India became free, the economy was caught up in a Vicious circle of poverty\u2019. It was characterized as underdeveloped and stagnant, marked by one of the lowest per capita consumption and income levels in the world, inequitable distribution of income and wealth, pre-dominance of backward forms of agriculture, weak industrial base and that too controlled by traders and money-lenders, high rate of population growth, rampant unemployment, scarcity of capital lack of entrepreneurs, and overall poverty, illiteracy and lack of scientific and technical personnel The main objective of the planning have been stated in different plan documents underline the following :<\/span><\/p>\n\n- To build the industrial infrastructure,<\/span><\/li>\n
- To expand and improve agricultural production,<\/span><\/li>\n
- To lay down the foundations of a self-reliant and self-generating national economy,<\/span><\/li>\n
- To increase and distribute national wealth,<\/span><\/li>\n
- To promote social justice,<\/span><\/li>\n
- To remove unemployment and poverty,<\/span><\/li>\n
- To remove illiteracy and disease,<\/span><\/li>\n
- To promote trade and commerce,<\/span><\/li>\n
- To give incentives to entrepreneurs for export-oriented and import-substituting production, and<\/span><\/li>\n
- To make the Indian economy modern, efficient and competitive.<\/span><\/li>\n<\/ol>\n
Comparing with other developing countries it is found that rates of growth of countries like China, Thailand, Malaysia, Egypt, Maxico and Brazil have been higher than India\u2019s. But a more realistic index of growth is to see the rise of per capita income.<\/span><\/p>\nMoreover, India\u2019s plans aim at increasing the national income. Each plan deals with comprehensive aspects of development, by establishing certain developmental priorities between different sectors of economy like heavy industry, light industry, agricultural irrigation, infrastructural services etc. To obtain required resources, plans lay down certain imperatives for mobilization of resources. These include imposition of taxes, regulation of private trade and industry through licensing policy, issue of foreign exchange permits and control of capital issues etc.<\/span><\/p>\nSince its inception, Planning Commission has so far prepared Five Year Plans, each focusing on different objectives, say, family planning, increasing employment opportunities, increasing Annual National Income by 5 per cent to 7 per cent, growth of basic industries (like, steel power, chemicals), maximum use of manpower resources, decentralization of economic power, reducing inequalities in income distribution, achieving social justice with equality, and so on.<\/strong>\u00a0It could be said that the central objective of planning in India has been to raise the standard of living of the people and to open out to them opportunities for a richer and more varied life.<\/span><\/p>\nEconomic Planning for Removal of Poverty:<\/span><\/h3>\n\n- Rapid economic growth :\u00a0<\/strong>Rise in GNP, rise in GDP, improvement in quality of life, will ultimately lead to reduction of poverty. Fourth plan onward \u2018Garibi Hatao\u2019 and \u2018Growth with justice\u2019. Focus on raising living standard of the people.<\/span><\/li>\n
- Increase in employment :\u00a0<\/strong>It was Assumed inherent in economic growth through increase in investment irrespective of choice of technique. Economic Planning for Social Change.<\/span><\/li>\n
- Reduction of inequality of incomes :\u00a0<\/strong>Two aspect of equality as the result of traditional semi-feudal social formation and large disparities between rural and urban incomes.<\/span><\/li>\n
- Establishment of a socialist society :\u00a0<\/strong>Inclusive of social and economic democracy -availability of opportunities for large mares of people irrespective of whether they are rich or poor \u2013 Economic Planning and Democratic Socialism.<\/span><\/li>\n
- Faith in democratic values for the enrichment of individual and common man\u2019s life for self expression.\u00a0<\/strong>A socialist society aims at the removal of poverty and the provision of a national minimum income. A socialist economic aims at the reduction of inequalities of income and wealth, through redistribution of income. A socialist economy aims at the provision of equal opportunities for all through provision of gainful employment for every able bodied citizen-raising investment level \u2013 expansion of rural industry along with urban.<\/span><\/li>\n
- Faith in mixed economy :\u00a0<\/strong>A socialist economy endeavours to check concentration of economic power and the growth of monopolistic tendencies through:<\/span>\n
\n- Extension of the public sector into fields requiring establishment of large scale units and heavy investment.<\/span><\/li>\n
- Widening of opportunities for new entrants.<\/span><\/li>\n
- Setting up SMEs and cooperatives as well<\/span><\/li>\n
- Effective exercise of government power of control and regulation and use of appropriate fiscal measures.<\/span><\/li>\n<\/ul>\n<\/li>\n
- The basic criterion of economic decisions in a socialist economy is not private profit but social gain. State controlled the commanding height of the economy through the public sector.<\/span><\/li>\n<\/ol>\n
Nehru Mahalanobis Strategy of Planning:<\/span><\/h3>\n\n- Emphasized on development of basic industries so as to achieve long term goal of development.<\/span><\/li>\n
- A high rate of saving so as to boost investment.<\/span><\/li>\n
- Opted for protectionist path so as to safeguard infant industry.Encourage import substitution to achieve self-reliance.<\/span><\/li>\n
- Aimed at enlargement of opportunities for less privileged section of the society.<\/span><\/li>\n
- Assumed agriculture, light industries, private sector export to play supplemental role of so as not to limit the industrial progress.<\/span><\/li>\n<\/ol>\n
Gandhian Model of Planning: Tried by Janta Government 1978-83.<\/span><\/h3>\n\n- Basic objective of the Gandhian model is to raise the material as well as the cultural level of the Indian masses so as to provide basic standard of life.<\/span><\/li>\n
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