[Economy] Niti Aayog, Planning Commission: Evolution, Structure, Function and truckload of Criticism explainedDevendra Vishwakarma
- Timeline of planning in India
- Five Year plans: from 1st to 12th
- Planning Commission: Criticism/Anti-Arguments
- Niti Aayog: Structure, Membership
- NITI Aayog: functions, Mandates
- Functional Comparison: Niti vs PC
- Niti Aayog: Criticism/Anti-Arguments
- Allocation of funds to States?
- Chinese Niti Aayog?
- Mock Questions
|1934||Visvesvaraya plan in this book “The planned economy of India”. He was an Engineer, Ex-Diwan of Mysore and Bharat Ratna recipient.|
|1938||Nehru’s Congress plan. But not implemented due to WW2.|
|1944||Bombay plan by noted industrialists such as JRD Tata, GD Birla, Kasturbhai Lalbhai et al.|
|1944||Sriman Narayan Agrawal’s Gandhian plan.|
|1945||MN Roy’s “people’s plan” – with socialist leanings.|
|1950||Jayprakash Narayan’s Sarvodaya Plan based on Vinoba Bhave’s philosophy|
|1950,March 15||Cabinet resolution to form Planning commission.|
|1952,Aug.||National Development council (NDC) made by Cabinet resolution.|
|2014,Aug.||Modi shuts down planning commission.|
|2015, Jan||Government notified the formation of Niti Aayog- National Institution for Transforming India.|
|2 Annual plans||89-91||
Planning Commission: Criticism/Anti-Arguments
- Achieved >9% GDP growth-rate during 2005-07, thanks to American boom prior to sub-prime crisis. But almost all nations of world experienced high growth. So 9% GDP did not come from Montek’s magic wand.
- Post sub-prime crisis, failed to evoke the “animal spirit” in Indian economy. GDP-fell, inflation rose during 2008-13 nonstop.
- Reduced poverty by doctoring the BPL-line. Tendulkar line says 27 crore BPL, if we use Ranga line then 37 crore BPL. Planning commission brags reducing poverty line on Tendulkar’s parameters.
- Toothless body, can’t hold State/union/ministries/departments accountable for failing to achieve targets.
- Hopes that CAG and Public accounts Committee will take care accountability part. But PAC too is pretty much toothless.
- Failed to implement land reforms. Faulty policies for MSME, industrialization, Factory-labour law problems.
- Office manned by Generalist IAS/IES with short tenure; panel members filled with academicians and jholachhap NGOs. Need subject specialists with international exposure like Rajanbhai.
- Designed CSS with One size fits all approach and a few extra crores to NE/J&K/Hill-states and LWE. But for long, it did not use pilot projects / sample testing / interaction with states.
- Hence, IAY, ICDS etc. programs failed to show tangible result despite pumping crores.
- They tried to bypass state Governments via NGO-funding, DRDA. Hence States unenthusiastic about implementing Central-schemes named after you know who.
- Only in 2013- reforms done like reducing number of Centrally sponsored schemes (CSS), 10% flexifund to states, direct transfer of money to state consolidated fun etc. But it’s too little too late.
- Shortcomings in planning commission => new bodies sprung up like PM’s economic advisory council, PM’s project monitoring group and so on=> more brains=> more lack of coordination.
- Hence Modi felt that PC is beyond fixing- just like Gotham city and Delhi city.
- For so many years, Government worked as the “provider of first and last resort”. But, today Indian industry and service sector has reached on global scale, a neo-middle class has emerged.
- Times have changed, from being a underdeveloped country in 1950s – India has become a major economic force.
- Hence our needs have changed- from mere food security to profitable agriculture. In this playground, Government needs to become an “enabler” rather than a “player”.
And thus Niti Aayog was born.