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Government and Planning
Government and Planning
and
Planning
Conceptual framework
• Why Planning?
• Significance of Planning
• What is Planning
• Types of Planning
Conceptual Framework of
Planning
i.) Why Planning
The spectacular success of the Soviet Five year Plan
launched after 1928 prompted all underdeveloped
countries of the world to adopt the model of
economic planning to eradicate the serious problems
of poverty, inequality and unemployment which they
were facing because the main objective of Planning
is to achieve rapid economic development through
proper use of a country’s natural and manpower
resources. Indeed Economic Planning had become
the foundation stone of economic policy makers al
over the world especially during the period 1940 to
1990.
(ii) Significance of Planning
Planning has many fold significance
especially for an underdeveloped
economy. Since resources whether
natural material or capital are severely
limited, Planning provide choice for
securing the optimum combination of
inputs. It helps to identify their deficiencies
in the economy and social structure which
requires special attention from the point of
view of economic growth.
A plan for mobilising resources and savings is a
necessary counterpart of the scheme of
investment. By facing various critical problems in
development and attempting to give them a
quantitative dimension, planning is calculated to
lead to a higher degree of capital formation than
might be otherwise attainable. Planning also
paves the way for the acceptance of large
institutional changes (by drawing attention to
social prerequisites of growth).
What is planning?
• M. Visviswaraya(1934)
• Conference of Provincial Ministers under the
Chairmanship of Congress President S.C.
Bose (1938)
• National Planning Committee under Pandit
J.L.Nehru
• People’s Plan (1944) – M.N.Roy
• Bombay Plan (1944)
• Gandhian Plan
Evolution Process
Before we discuss Five year plans in India, a
discussion on genesis of planning in India will be
appreciate.
Pages
Youth & Sports -- 73-79
Thrust(contd)
-removal of controls and restrictions on
entrepreneurial initiative so as to welcome an
environment which welcomes
entrepreneurship with open arms
-effective delivery of basic social services
to the people by transferring to Panchayat Raj
Institutions(PRI) both functions and resources
with PRI’s becoming the cutting edge of out
three tier political structure and the focal point
of decentralisation
Tenth Five Year Plan (contd)
Objectives
2. 8% growth target for Tenth Plan period
3. Reduction of poverty ratio by 5 percentage points by
2007 15 percentage points by 2012
4. Providing gainful and high quality employment at
least to the addition to the labour force over the
Tenth Plan period
5. All children in school by 2003, all children to
complete 5years of schooling by 2007
6. Reduction of gender gap in literacy and wage rates
by 50 % by 2007
7. Reduction of decadal rate of population growth
between 2001 and 2011 to 6.2%
Tenth Five Year Plan (contd)
Objectives (contd)
7. Increase in literacy rate to 75% within the plan period
8. Reduction of Maternal Mortality Rate (MMR) to 2 per
1000 live births by 2007 and to 1 by 2012
9. Increase in forest and tree cover to 25% by 2007 and
33%
by 2012
10.All villages to have sustained access to potable
drinking
water within the plan period
11.Reduction of Infant Mortality Rate(IMR) to 45 per
1000
live births by 2007 and 28 by 2012
12.Cleaning of all major polluted rivers by 2007 and
other
notified stretches by 2012
Tenth Five Year Plan (contd)
Key Observations
• The emphasis is clearly on improvement on Human
Development Index, a point emphasized by World
Development Report and renowned economist Dr.
Amartya Sen
• Major transformation in development strategy:
Industrial growth in future will depend largely upon
the private sector’s performance.
• Position of the Public sector will decline relatively as
Government ownership in many existing public sector
organisations decline
Tenth Five Year Plan (contd)
Key Observations (contd)
• Government will play the role of a facilitator.
• Government will play a far greater role in social sectors
where its role has to clearly expand e.g. infrastructure
particularly rural infrastructure including soft
infrastructures
• Presentation for the first time state wise targets in the
National Plan which will serve as a catalyst to
reinvigorate planning at the state level
• Thus emphasising and ensuring balanced development
for all states
Eleventh Five Year Plan
Vision
Broad Vision
To build on our strengths to trigger a development process
which ensures broad-based improvement in the quality of life
of the people, especially the poor, SCs/STs, other backward
castes (OBCs), minorities and women.
The target of 9% GDP growth for the country as a whole is to
be achieved in which the economy is much more integrated
into the global economy.
Achieving 9% growth rate will mean per capita GDP will grow
at 7.6% per year to double in less than 10 years.
Vision continued…
The vision is not just FASTER Growth but also INCLUSIVE Growth :
A growth process which yields broad-based benefits and ensures
equality of opportunity for all.
Interrelated components
• Rapid growth that reduces poverty and creates employment
opportunities
• Access to essential services in health and education especially for
the poor
• Equality of opportunity
• Empowerment through education and skill development.
• Employment opportunities underpinned by the National Rural
Employment Guarantee
• Environmental sustainability
• Recognition of women agencies
• Good Governance.
Thrust
2. A continuation of the policies of economic reform which have
created a buoyant and competitive private sector capable ob
benefiting from the opportunities provided by greater integration
with the world
3. A revival in agriculture growth which is the most important single
factor affecting rural prosperity
4. Improved access to essential services in health and education
(including skill development) especially for the poor, which is
essential to ensure inclusiveness and also to support rapid growth
5. A special thrust on infrastructure development which is a critical
area for accelerating growth
6. Environmental sustainability which is becoming increasingly
important
7. Special attention to the needs of disadvantaged groups
8. Good governance at all levels, Central, State and local
9. Private sector key driver of growth
9. Ensuring Policy environment that is supportive of this vibrant and
globalised private sector.
6. Education
8. Health
12. Infrastructure
6. Environment
Income and Poverty
6. Infrastructure Development
- Total investment in electric power, roads, railways, ports,
airports, telecommunications, irrigation, drinking water, sanitation,
storage, and warehousing was around 5% of tge GDP in 2006-07
and the Plan aims at increasing this to about 9% of GDP by the
terminal annum 2011-12.
Fullest possible use to be made of opportunities to attract private
sector investment is wherever feasible
PPP MODEL
Key Features ( contd….)
7. Urban Infrastructure
- Urbabisation is a natural outcome of the process of
development. Urban infrastructure through Jawaharlal Nehru
National Urban Renewable Mission (JNNURM)
8. Energy
- Integrated Energy Policy for moving to a rational energy policy to
meet the threat of climate change
9. Role of Government
- Mobilising resources through deepening of tax reforms and
reduction of subsidies
- Public sector will increasingly concentrate in areas that lie in
the domain of the state governments, and within the states in the
domain of Panchayati Raj Institutions.
Way Forward….
Prime Minister’s observations
“The higher rate of growth that we have set out for
ourselves, coupled with our thrust on the growth process
being inclusive, should ensure that the struggle for the
removal of chronic poverty, ignorance and disease will
register major gains in the Eleventh Plan . I am confident
that the Eleventh Plan will achieve its targets and
objectives despite the challenges we face. This would be
a major step in realizing our vision of a prosperous,
inclusive , happy, and caring India where all citizens reap
the benefits of economic development and feel
empowered”.