POLITICS OF PLANNED DEVELOPMENT:-

I. MEMORANDUM OF UNDERSTANDING (MOU):-

1. The global demand for steel increased.
2. Odisha has one of the largest reserves of Iron Ore in the country and it was seen as an important
investment destination.
3. The state government of Odisha signed Memorandum of Understanding (MOU) with both
international and domestic steel makers.
4. Advantages of MOU:-
a. It would bring necessary capital investment.
b. It would also provide lot of employment opportunities.
5. Disadvantages of MOU:-
a. Most of the iron rich areas are underdeveloped tribal districts and setting up of industries there
will displace the tribal from their home and livelihood.
b. Environmentalists feared that mining and industry would pollute the environment.
II. IDEAS OF DEVELOPMENT:-
1. Meaning of development differed among different sections of society. For example:-
a. Development for a industrialist means setting up of an industry in resourceful areas along with
production of goods and selling them in the market.
b. Development for an urban consumer means availability of diverse products in the market.
c. Development for the people of this resourceful area is displacement of home and livelihood
because of setting up of industries.
2. The common belief about development was becoming modernised and modernisation meant
becoming more industrialised like west.
West was seen as a standard for measuring development.
3. The process of modernisation involves:-
a. Breakdown of traditional social structures.
b. Adoption of capitalism and liberalism along with ideas of growth, material progress and
rationality.
4. There were two types of economic model of modern development:-
a. The Liberal Capitalist Model - followed by countries of Europe and America.
b. The Socialist Model - followed by USSR.
The leaders of India were greatly influenced by the Socialist Model but adopted Mixed Economic
System which is the combination of the advantages of Capitalist and Socialist model.
5. The nationalist leaders were clear that the economic concerns of the government of free India
would have to be different from narrowly defined commercial functions of the colonial
government.
6. The primary responsibilities of the government after independence were:-
a. The task of poverty alleviation.
b. Socio economic redistribution.
7. Some preferred industrialisation for the path of development and others preferred path of
agricultural development and in particular alleviation of rural poverty.
III. PLANNING:-
1. There was a consensus on one point that development could not be left to private actors and
there was the need of government to develop a design or plan for development.
2. The idea of planning as a process of rebuilding economy earned a good deal of public support in
1940s and 50s all over the world because of:-
a. The experience of Great Depression in Europe.
b. The inter war reconstruction in Japan and Germany.
c. Spectacular economic growth against heavy odds in the Soviet Union in the 1930s and 40s.
IV. MAJOR OUTCOMES:-
1. Land reforms were not very much effective in most parts of the country.
2. Political powers remained in the hand of landowning classes.
3. Industrialist continued to benefit from thieves and poverty did not reduce.
4. Those who benefitted from unequal developments soon became politically powerful and made
the path of development more difficult.
V. FOUNDATIONS:-
1. Some largest development took place in India during this period such as building of mega dams ---
Bhakra Nangal and Hirakud dams were made for irrigation and power generation.
2. Establishment of heavy industries in public sectors such as steel plants oil refiners and defence
production.
3. Development of infrastructure for transportation and communication also improved. All these
major projects have been criticised but later the economic growth by the private sector would not
be possible in the absence of these foundations.
VI. LAND REFORMS:-
1. The agrarian sector witnessed serious attempts at land reforms.
2. One of the most successful land reforms were The Abolition of Colonial System of Zamindari.
It released land from the clutches of a class that had little interest in agriculture.
It also reduced the capacity of landlords to dominate politics.
2. Attempts were also made for the consolidation of lands that is accommodation of small lands
into larger agricultural lands for better cultivation.
It was fairly successful.
3. Land Ceiling - the laws were made to put an upper limit to how much agricultural land a person
can own.
People with excess land managed to evade laws.
4. The tenants who worked on someone else's land were given greater legal security from eviction.
This provision was rarely implemented.
5. Reasons for failure of Land Reforms:-
a. The landlords were powerful and exercised considerable political influence and managed to evade
laws and retain their land.
b. There were many loopholes in the legislation.
c. Lack of mobility among the poor landless people of rural areas.
d. Many proposals of either not translated into laws or when made into law they reminded only on
paper.
This shows that the economic policies are the part of political situation in the society.
The dominant social groups would always effectively control policy making and implementation.
VII. THE FOOD CRISIS:-
1. The agricultural situation went from bad to worse in 1960s.
2. Between 1940 to 50 the food grain production rate was barely above the population growth rate.
3. Between 1965 and 1967 a severe drought occurred in many parts of the country and as a result
severe food shortages and famine took place.
4. Bihar was mostly affected by the drought.
5. 9 districts of Bihar were producing less than half of their total input.
5 districts produced less thay 1/3rd.
6. Because of food deprivation there was a wide spread malnutrition.
7. In many states the calorie intake dropped from 2200 per capita per day to 1200 per capita per
day and the avg intake must be 2450 per capita per day.
8. The death rate in Bihar rose to 34% in 1967.
9. The Zoning Policy that is the prohibition of trade of food grains among the states reduced the
availability of food in Bihar and the par section suffered the most.
10. In the end India largely imported food grains from US as foreign aid.
VIII. THE GREEN REVOLUTION:-
1. In the face of prevailing food crisis the country was clearly vulnerable to external pressure and
depended on food aid especially from US.
2. The US in turn pushed India to change its economic policies.
3. The Green Revolution is the government programme of agricultural modernisation introduced in
1960s and 70s.
4. It was a new strategy adopted by the government to ensure food sufficiency.
5. Under this strategy it was decided to invest resources in those areas which already had irrigation
facilities and the farmers are economically well off rather than in the areas which were lagging
behind.
6. The government offered HYV seeds, fertilisers, pesticides and better irrigational facilities at a
highly subsidised price.
7. It helped in increasing production rapidly in a short span of time.
8. The government also guaranteed the farmers to but the products at a determined price.
9. Positive Impact of Green Revolution:-
a. Agricultural productivity increased sharply because of new technologies.
b. India was able to become self sufficient in food grain production for the first time.
c. Green revolution was a major achievement for the Indian government and the scientists who
contributed to the effort.
d. Green Revolution lowered the price of the food grain in the market for which economically
backward section of the society was able to afford food.
e. It also able the Indian government to stock food for future crisis.
f. Because of Green Revolution government was able to recognise the poor and marginalised
farmers and provided them with subsidies and concession for farming.
10. Negative Impact of Green Revolution:-
a. It increased polarisation between classes and regions.
b. Some regions like Punjab, Haryana and UP became prosperous and others lagged behind.
c. Green Revolution delivered moderate agricultural growth.
IX. WHITE REVOLUTION:-
1. In the Anand town of Gujarat a cooperative movement called Amul formed where 2.5 million
milk producers.
2. Amul pattern became a unique and appropriate model for rural development and poverty
alleviation.
3. In 1970 rural development programme called Operation Flood started.
4. It organised all the milk producers of the nation in a grid.
5. Their main purposes were:-
a. Increase the production of milk.
b. To bring the producer and the consumer closer by eliminating the middle man.
c. Assurance of regular income to the producers throughout the year.
d. Generating employment and income for rural areas.
e. Alleviation of rural poverty.
6. This whole thing is termed as White Revolution.
7. Verghese Kurien nicknamed as the milkman of India.
He played a crucial role in the formation of Gujarat Cooperative Milk and Marketing Federation
Limited that launched AMUL.
X. LATER DEVELOPMENTS:-
1. The end of 1960 marked the turning point of Indian Development.
2. The period of 1967 witnessed many restrictions on the private sectors.
3. 14 leading private banks were nationalised.
4. Government announced many pro poor programmes.
5. The changes were accompanied towards Socialist Policies.
6. Between 1950 to 60 Indian Economy grew at a very slow per annum rate - 3% to 3.5%.
7. Reasons behind this:-
a. Inefficiency and corruption of public sector.
b. Not so positive role of bureaucracy in the development of India.
XI. NITI AAYOG:-
1. After Independence a Planning Commission based in Socialist Model was formed for Planned
Development of India.
2. But in the era of globalization especially in the 21st century the Planning Commission was
becoming ineffective and irrelevant in term of coping the pressing challenge of development.
3. During the Independence Day speech on 15th August 2014 PM Narendra Modi declared the
abolition of Planning Commission.
4. NITI Aayog was constituted in the place of PC on 1st January 2015.
5. Full form of NITI Aayog is National Institution for Transforming India.
6. Objectives of NITI Aayog are:-
a. Providing necessary and technical advice to the union government regarding policy making in
central and state.
b. To harmonize the interest of national security and economic policy.
c. To prepare strategy and long term frame work for policy and programme.
d. Act as a think tank of the government.
7. By adopting a Bottom Up Approach the NITI Aayog act in the spirit of cooperative federalism as it
ensures equal participation of all states in the development process of India.
8. The PM is the chairperson of NITI Aayog and appointed the Vice Chairperson NITI Aayog.
9. The first VC of NITI Aayog was Arvind Panagariya and the latest VC is Dr. Rajiv Kumar.
XII. NATIONAL DEVELOPMENT COUNCIL:-
1. The NDC is an apex body for decision making and deliberations regarding the development of
India.
2. It was established on 6th August 1952 by an executive resolution on the recommendation of first
FYP.
3. Like the Planning Commission NDC was neither a Constitutional nor a Statutory body.
4. Composition:-
a. PM as Chairperson. b. PC members. c. UTs representation.
d. CM of all the states. e. Cabinet Ministers.
5. Functions:-
a. Guidelines for the preparation of national plans.
b. Considering the national plan prepared by PC.
c. Assessment of the resources those are required for implementation.
d. Consider important questions affecting national development.
e. Review the working national plan from time to time.
f. Recommend measure for achievements of aims and targets.
6. Objectives:-
a. To secure cooperation of states in execution of plans.
b. To strengthen and mobilize the effort and resources of the nation in support to the planning.
c. To promote common economic policies in all vital spheres.
d. To ensure rapid and balanced development in the country.
e. To provide social amenities to the citizens of the country.
f. To improve living standards of the people.
g. To increase per capita income.
7. The NDC is proposed to be abolished but till date no resolution had been passed.
The NDC has had no work assigned nor did it conduct any meeting.
XIII. MEANING OF LEFT AND RIGHT:-
A. LEFT:-
1. The concerned groups who are favoured of the poor and downtrodden section.
2. Support the government policies for the benefit of this section.
B. RIGHT:-
1. Those who believe that free competition and market economy alone ensure development and
there is no need of unnecessary state intervention in the economy.
These two terms characterise the position of parties regarding the social change and role of the
state affecting economic redistribution.
XIV. IMPORTANT LEADERS:-
A. P.C MAHALANOBIS (1893 - 1972):-
1. Scientist and Statistician of international repute.
2. Founder of Indian Statistical Institute in 1931.
3. Architect of the 2nd FYP.
4. Supported rapid industrialisation and active role of public sector.
B. J.C KUMARAPPA (1892 - 1960):-
1. Original name J.C Cornelius.
2. Economist and Chartered Accountant and studied from England & US.
3. Follower of Mahatma Gandhi and tried to applied Gandhian principles to economic policies.
4. Author of Economy of Permanence.
5. Participated in planning process as member of PC.