Central Planning
Central planning, also known as centralized planning or command planning, is an economic system in which the government or a central authority has significant control and authority over the allocation of resources, production, distribution, and pricing of goods and services within an economy. Central planning is often associated with socialist or communist economic systems
Five Year Plans
Five-Year Plans are a series of comprehensive, centralized economic plans that have been a prominent feature of the planned economies of several countries, particularly the former Soviet Union, India, and China. These plans are typically used to guide and manage economic and social development over a five-year period. Here’s a general overview of Five-Year Plans:
1. Origin:
- The concept of Five-Year Plans originated in the Soviet Union under the leadership of Joseph Stalin in the 1920s. The Soviet Union introduced its first Five-Year Plan in 1928.
- Five-Year Plans are designed to set specific goals and targets for economic growth, industrialization, agriculture, infrastructure development, and social welfare over a five-year period.
- Objectives may include achieving certain levels of industrial output, increasing agricultural productivity, improving healthcare and education, and reducing poverty and unemployment.
- In countries with Five-Year Plans, central planning authorities, often under government control, play a significant role in determining resource allocation, production targets, and policy priorities.
- Five-Year Plans typically allocate resources and set targets for various sectors, including industry, agriculture, energy, education, and healthcare.
- Progress towards meeting the goals of each Five-Year Plan is monitored and evaluated regularly. Adjustments can be made to plans if necessary.
- Soviet Union: The Soviet Union implemented a series of Five-Year Plans from 1928 to 1991. These plans focused on industrialization, collectivization of agriculture, and military buildup.
- India: India has had a series of Five-Year Plans since its independence in 1947. These plans aimed at economic development, infrastructure building, poverty reduction, and social welfare.
- China: China initiated its Five-Year Plans in 1953, focusing on industrialization, agriculture, and technological development. These plans played a crucial role in China’s economic transformation.
- Five-Year Plans have evolved over time, adapting to changing economic and political circumstances. In some countries, they have been replaced by more flexible and decentralized planning mechanisms.
- Critics argue that centralized planning can be rigid, inefficient, and may not always reflect changing market dynamics. In response, some countries have introduced market-oriented reforms alongside their Five-Year Plans.
20 Point program
The 20-Point Program is a set of socio-economic and political initiatives introduced in India in 1975. It was launched by the then-Prime Minister of India, Indira Gandhi, and aimed to address various pressing issues related to social justice, poverty alleviation, and economic development. The 20-Point Program included a range of measures, policies, and strategies to achieve these goals. Here are the 20 points of the program:
- Land Reforms: To implement land reforms that would benefit landless laborers and small farmers.
- Minimum Wages: To ensure minimum wages for agricultural laborers and laborers in various industries.
- Agricultural Labor: To address the problems of agricultural laborers and ensure they receive a fair share of the benefits of agricultural development.
- Overdue Loans: To provide relief to small and marginalized farmers by rescheduling and remitting overdue loans.
- Fair Price Shops: To expand the network of fair price shops to provide essential commodities at affordable rates to the poor.
- Black Marketing: To take measures to control hoarding and black marketing of essential commodities.
- Public Distribution System (PDS): To strengthen and expand the PDS to make food grains and other essential items available to the poor at reasonable prices.
- Rural Employment: To provide more employment opportunities in rural areas, especially to marginalized sections of the population.
- Removal of Untouchability: To promote social justice by actively working to eradicate the practice of untouchability.
- Harijan Welfare: To improve the welfare of Scheduled Castes and Scheduled Tribes (commonly known as Dalits and Adivasis) through various development programs.
- Women’s Equality: To promote gender equality and ensure equal rights and opportunities for women.
- Family Planning: To encourage family planning and population control measures.
- Consumer Protection: To protect consumers’ interests and provide them with safe and affordable products.
- Environmental Protection: To address environmental degradation and protect natural resources.
- Youth Welfare: To focus on the welfare and development of young people.
- Control of Hoarding: To take measures to control the hoarding and black marketing of essential commodities.
- Corruption: To combat corruption and ensure transparency in government.
- Removal of Poverty: To implement policies that aim to alleviate poverty and reduce income disparities.
- Housing for All: To ensure access to housing for all, especially the poor and marginalized.
- National Integration: To promote national integration and communal harmony.
MPLAD is a central government scheme, under which MPs can recommend development programmes involving the spending of Rs 5 crore every year in their respective constituencies.
MPs from both Lok Sabha and Rajya sabha including nominated ones can do so. States have their version of this scheme with varying amounts per MLA.
- This scheme was announced in December 1993.
- Earlier this month scheme was suspended so that these funds would be available for its COVID -19 management efforts. Suspension of the scheme will make rs 7800 cr available to the government.
How does the Scheme Work?
- MPs and MLAs do not receive any money under these schemes. The government transfers it directly to the respective local authorities. The legislators can only recommend works in their constituencies based on a set of guidelines.
- For the MPLAD scheme the guidelines focus on the creation of durable community assets like roads, school buildings etc
- Recommendations for non-durable assets can be made only under limited circumstances, for e.g. last month government allowed the use of MPLAD funds for the purchase of personal protection equipment, coronavirus testing kits etc
- The guidelines for use of MLALAD funds differ across states. After the legislators give the list of developmental works, they are executed by the district authorities as per the government’s financial, technical and administrative rules
|
Impact of the Scheme
- The government noted that the entire population across the country stands to benefit through the creation of durable assets of locally felt needs, namely drinking water, education, public health, sanitation and roads etc under the MPLAD scheme.
- The government reported that the creation of good quality assets had a positive impact on the local economy, social fabric and feasible environment. Further 82% of the projects have been in rural areas and the remaining in urban /semi-urban areas.
Criticism on the Scheme
- It is inconsistent with the spirit of the constitution as it co-opts legislators into executive functioning
- The workload on MPs created by the scheme diverted their attention from holding the government accountable and other legislative work
- The National commission to review the working of the constitution (2000)and the Second Administrative Reforms Commission headed by Veerappa Moily (2007) recommended discontinuation of the scheme
For detailed notes on Central Planning for the MPSC Exam Mizoram, visit Chase Academy. Enhance your preparation with expertly crafted resources designed to help you succeed.
Download Our App Now!
Discover a world of learning with our app, available now on the Play Store and App Store! Download it today to explore a wide range of study materials, interactive quizzes, and personalized learning plans tailored just for you. Enhance your preparation and stay ahead with all the resources you need at your fingertips.
