Politics of Planned Development Notes in English Class 12 Political Science Chapter-3 Book-POLITICS IN INDIA SINCE INDEPENDENCE

 

Chapter - 3  

Politics of planned development

Iron Ore Resources of Orissa

• The Indian state of Orissa is a state rich in iron ore resources

• There were huge deposits of iron ore here

• When the demand for steel increased, Orissa emerged as an important state on the basis of investment. The Government of Orissa wanted to meet the demand for iron and steel. 

• Signed a Memorandum of Understanding with International Steel Manufacturers and National Steel Manufacturer for this purpose

• The government was thinking that this would lead to capital investment and the people there would also get employment

• The tribals were afraid that with the coming of industry

1.  They will be displaced

2. They will lose  their jobs and livelihood

• Environmentalists were saying that mining and industry will pollute the environment  

Political conflict over industry​

• Expert advice is necessary before taking any decision .​​

• Take the advice of economists and environmentalists .

• People should also be asked .

• Why should the politicians make the final decision ?

Protest against Grameen logo at POSCO plant​

Bhubaneswar : Protest against Korean company POSCO India steel plant in Jagatsinghpur district​

माँग → सरकार इस कंपनी से सहमति पत्र को रदद करे ।

Meaning of development

Development means economic prosperity and economic social justice

Development can have different meanings​ ​​​  

• Example For the installer of a steel plant, the profit on installing a steel plant was |

• But on the other hand, the rural tribals had a disadvantage from the steel plant .

• After independence , there were many debates and discussions regarding development .

• At that time , development meant becoming more and more modern , like the western countries , like  the industrial countries .

• There were two models of development before independent India

1. Capitalist model

2. The socialist model

• India took some important things from both the models and adopted a new system which was named mixed economy​​​​

 

Leftist ideology

• In this, poor and backward people are favored.

• It is said that the government should make such policies which benefit the poor people.

• Development policies should be adopted keeping the interests of the poor in mind

Right wing ideology

• Open competition and market economy

• The government did not intervene in the economy

• In this , capitalism is considered better

•  It is said that the government should ease the rules of trade  

 

Planning Commission

Made in 1950

• The Planning Commission prepared the five year plans

• Its chairman was the Prime Minister of the country

• Its recommendations were implemented after the approval of the cabinet

 

Policy Commission

Made in 2015  

• Planning Commission was renamed as Niti Aayog

• Chairman- is the Prime Minister

• Full form of NITI Aayog

• National Institution for Transforming India

 

Bombay Plan

• In 1944 a group of industrialists gathered​​

• This group proposed to run a planned economy in the country

• This is known as the Bombay Plan .​​

• Its objective was for the government to take major steps I in the field of industrial and other economic investment

Five year plan

• The government will prepare a document

• In which there will be a plan for income and expenditure for the next 5 years

• The budget of the central government and the state government will be divided into two parts

• It was called the five year plan

• It is derived from the Soviet Union

 

First Five-Year Plan   1951-56

• Emphasis on agriculture 

• Chairman KN RAJ

• Getting out of poverty  is slow development

• dams and irrigation

• Bhakra Nangal Project

• Emphasis on land reform

Second Five Year Plan  1956-61

• Industries Emphasis on

• Chairman   PC Mahalnobis

• Industrialisation (heavy industry)

• fast paced development

• protection of indigenous industries

• heavy duty on import

• Electricity , Railways , Steel , Communication

 

The capitalist model

• The US had adopted

• Personalization is given importance

• Competition

• Exploitation of workers

• Market economy

• Greater focus on business

 

Socialist Model

• The Soviet Union adopted it

• Opposition to private ownership

• Emphasis on equality

• state ownership

• makes state policy

• Nehru ji was a supporter of socialism

 

Private sector versus public sector

• There were two models of development before independent India

1. The capitalist model
2. Socialist Model

• India took some important things from both the models and adopted a new system which was named mixed economy

• A large part of agriculture, farming, business and industries are in private hands

• Regulation of heavy industries, trade, intervention in agriculture – in the hands of the state

• This mixed model was criticized by both the right and the left

• Critics said the government did not give much space to the private sector

• The licensing system for investment was wrong; the permit system hindered private capital

• Restrictions were put on the import of products produced in the domestic market, which was wrong; there was no competition in the market

• Corruption increased

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