At a recent meeting organized by the Planning Commission on “private Participation in the State Highways which was presided over by Dr Montek Singh Aluwaliah, Dy Chairman of Planning Commission, Shri Kamalnath, India’s Road Transport and Highways Minister, Government of India who played a sheet anchor role in the UPA’s First innings as Commerce Minister which rose to its pinnacle achieving US $ 185 billion in exports through was responsible for India’s exports touching US $ 185 billion (2008-9) against US $ 53 billion (2003-4) when he took over, lambasted the Planning Commission for the nations’ tardy progress in spite of spade work done by different ministries. He cited the example of construction of terminal III of the Indira Gandhi International Airport in record time, so much so, the Prime Minister who inaugurated it was really amazed. When told that it was a Private sector project where Planning Commission had no role, the Prime Minister stood shell shocked. The Transport Minister also called the Planning Commission an ‘armchair advisor’ with no accountability or target. They theorized every development, questioned every practical project, and had no idea of geography which required certain changes in the topology, planning module or methodology.
The High way and Transport Ministry had fixed a per capita target of building at least 20 Kms of highway a day, but the Planning Commission’s spokes in the wheel deterred any improvement in highway building, bemoaned the Minister.
There is an urgent need to restore the usefulness of the Planning Commission in the present context of growing Market Economy. When market forces are free, the Results are often haphazard and therefore, anathema to those who believe in Planning. When the State fails, the Market takes upon itself for a free play and succeeds. This is Economic logic. This takes place time and again in India. The State fails because its extended Organizations like Planning Commission encroaches on the wrong territories with their faulty assumptions and presumptions
The Transport Minister gave vent to the feelings under the very nose of Dy Chairman of Planning Commission by saying, "Producing a book is one thing, while building a road is something different. You collect something from here and there and then produce a book. It's very well when you are an ‘armchair’ adviser. “
Dr Montek Singh Ahluwalia, who was at the dais with Kamal Nath, termed the Minister’s outburst as ''constructive criticism'' and did not verbally react. He said the commission was not an implementing agency. That was where the problems arose. Kerala Government is in dire need for Metro Railway. But Planning Commission is standing in its way while preferential treatment is bestowed on Delhi, Kolkata, Bangalore, etc.
Plan is a realistic view of expectations. It forecasts the roadmap and vision. There are sectors, sub sectors and mini sectors in the Plan. The officials and advisors in the Planning body do not have intricate knowledge of these intricate sectors which provide employment to so many people, The Market Potential Value) and Market Potential indices vary from place to place. The economy of different districts is based on the certain. It can be fishing, it can be vegetables, it can be flowers, tourism, even conversion of wastes into composts, shell dust into charcoal, tailoring, milk, handicrafts, etc. These districts require support, financially, and/or through mechanization, up-gradation of their skills, higher productivity so that they can earn more money using the tools. Between the Planning apparatus and policy makers, there is neither link nor coordination. Theoretically, viability is easy to estimate. We can give conclusions based on ‘V’ curve, Kuznets Curve, ‘U’ shaped growth, ‘M’ (double dip) growth , Inverted double dip (W), can be beautifully sketched in glossy papers. Growth is not the same thing as Development. Economics is one aspect in the process of Economic theory. We talk about ‘Unemployment’. Have we any time factored ‘voluntary unemployment’ in it?
There is a need for a mix between free market play and the Planning evolution in India so that the two give boost to the Indian economy and do not work in cross purposes? The Customary top-down approach to Planning has been going on for decades; people with expertise and knowledge are seldom consulted. This laid back approach of the Planning Commission must go.
Today, Planning Commissions’ bureaucracy-cum-technocracy decides the contents of each Plan and prepares the Plan documents. The Plan spread presently is confined to only 10% of India’s geographical area; the rest 90% are left unattended as the Yojana Bhavan has no ideas of geographical tracts and their features. The fat portion of the allocation goes towards salaries. .. There are some States more equal than others because of their proximity to the ruled and lobbying clout.
The Planning Commission immersed itself in a whole lot of temporizing where economic Policy decisions are concerned resulting in a few unexpected short-term gains but in the near long-time, it left a snarl. We say Indian economy has been integrated with the world economy. The Planning spread is restricted to only 10%, while the rest 90% is unplanned.
One area, which the Plans do not brace itself, revolves around “Perspective Planning”. That is why, it is very important that there is continuity in Planning between two different Plans. In the Context of a rapidly integrating Global economy, the nations Policy makers seem to be grouping for want of a Vision.
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