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The First Words and The Last Word Dear Readers THE INDIA ECONOMY REVIEW E DITORIAL RE-PLANNING THE PLANNING COMMISSION THE INDIA ECONOMY REVIEW 2010 Volume VII | Quarterly Issue: 30th September 2010 SPECIAL ISSUE RETHINK EDIFY DELINEATE DOES COMMISSIONING NEED PLANNING? Makeover of planning and the Planning Commission www.iipmthinktank.com www.gidf.org A N I I P M T H I N K T A N K & G R E A T I N D I A N D R E A M F O U N D A T I O N P R E S E N T A T I O N Centralised planning has failed but more on account of the failure in the administrative framework The transformation process of the Planning Commission has been a subject to an intense debate, after being in a state of suspended animation for long. But precisely since last few months the raison d’être of the institution is being examined afresh; especially in the backdrop of burgeoning market economy. With market economy becoming stronger, the role of the Planning Commission seems to become even more signifi cant, considering the complexities and challenges of the Indian economy. But then, for that to happen, we need to revisit and re-look the entire organisation of the Planning Commission and its objectives. We may still fi ght shy of renaming our Planning Commission as it has happened in other countries, yet there are belligerent voices suggesting that the focus of the institution has to change with emergence of new development ethos. A cross country analysis would suggest that suggest that centralised planning has failed but more on account of the failure in the administrative framework, which has been bereft of any accountability, at all hierarchical levels. Which in turn slackened the pace of implementation considerably, and the Planning Commission became a universal ‘villain’. What’s required today is a resolve, which is directed towards creation of a new organisation that will facilitate the private endeavours amidst the ever growing market economy through judicial allocation of resources and carefully devised policies that allow government intervention at necessary junctures, so as to neutralise the perils of the market economy. They need to readjust and take into consideration the universal social agenda, taking into account the interests of every stakeholder of the market economy! As pointed out by Hemanta Saikia, there is an urgent need for integrated planning since interpersonal and interspatial inequalities persist in India despite nearly six decades of planned economic development. Raj Aggarwal likewise advocates a balanced approach and spells out fi ve principles as a guide to national economic planning. Rabin Majumder recommends the exploitation of Private Public Partnership (PPP) for success of planning and gradually decommissioning the Planning Commission. This issue also carries opinion pieces by Anindo Banerjee who writes about the importance of integrated district planning exercise, while Debnarayan Sarker argues that lack of technological progress will cause a fall in the growth of worker’s income. Even Gouri Pada Dutta agrees on the criticality of technological progress, but also mentions a word of caution on importance on the social aspect of science and need for an eco-friendly developmental approach. This issue of IER carries voices of those who seek to provide the Planning commission with alternative approaches to Indian development. But more signifi cantly they recommend transformation and makeover of the Planning Commission. We at the IIPM Think Tank, would enjoy the numerous seminal opinion pieces and research articles by eminent economists from world over. Best, Team – The IIPM Think Tank 5
CREDITS Founder Dr. M. K. Chaudhuri Editor-in-Chief Arindam Chaudhuri Managing Editor Prasoon.S. Majumdar Deputy Editor Sray Agarwal Consulting Editor Prashanto Banerji K K Srivastava Research Fellows Akram Hoque Mrinmoy Dey H.Divya Sharma Mufaddal Poonawala Group Design Director Satyajit Datta Senior Designer Dinesh Chandelkar Designer Saurabh Mishra Parvesh Kumar Swami, Sujit Singh, Karan Singh, Vikas Gulyani Senior Illustrator Shantanu Mitra Production Manager Gurudas Mallik Thakur Production Supervisors Digember Singh Chauhan Soumyajeet Gupta Satbir Chauhan Chief Marketing Advisor Amit Saxena Marketing & Sales Shweta Shukla IER Online Neel Verma, Anil Kumar Sheoran, Christopher Mani Principal Offices Satbari, Chandan Haula, Chattarpur, Bhatimines Road, New Delhi - 110074 IIPM Tower, Junction of , 32nd Road & S.V. Road, Bandra (W), Mumbai - 400 050 IIPM Tower, 419 100ft. Road, Koramangala, Bangalore - 560 034 IIPM Tower, 893/4, Bhandarkar Road, Deccan Gymkhana, Pune - 411 004 IIPM Tower, 145, Marshall’s Road, Egmore, Chennai - 600 008 IIPM Tower , 19, Inqulab Society, gulbai Tekra, Off C.G. Road, Ahmedabad - 380 015 IIPM Tower, 6-3-252/2, Erramanzil, Banjara Hills, Hyderabad - 500 082 We are keen to hear from anyone, who would like to know more about IIPM Publications. You can e-mail on shweta.shukla@iipm.edu or alternatively call Ms.Shweta at +91 11 42789904 Additional Thinking www.iipmthinktank.com www.iipm.edu www.iipmpublications.com www.arindamchaudhuri.com www.thesundayindian.com www.thedailyindian.com www.businessandeconomy.org www.gidf.org www.planmanconsulting.com Printed by: Rolleract Press Servies, C-163, Ground Floor, Naraina industrial Area, Phase-I, New Delhi - 16 Disclaimer : All efforts have been taken to ensure the veracity of the information contained in the research, however the IIPM Think Tank expressly disclaims any and all warranties, express or implied, including without limitation warranties of merchantability and fitness for a particular purpose, with respect to any service or material. In no event shall the IIPM Think Tank be liable for any direct, indirect, incidental, punitive, or consequential damages of any kind whatsoever with respect to the and materials, although the reader may freely use the research and material provided, the IIPM Think Tank retains all trademark right and copyright on all the text and graphics. 6 THE IIPM THINK TANK (F)ACT SHEET INTEGRATED PLANNING (Examines economic, social and environmental costs and benefi ts, in order to determine most appropriate option to plan the best and most feasible course of action for the country’s economy) Central Agency in Plural Democracy Sony Pellissery 12 The Complexity and Need for Evaluation of Planning Agencies William R. DiPietro 16 Economic Planning and Industrial Policy Raj Aggarwal 22 Economic Planning: Revisiting Early Debates Pradeep Banerjee 30 Indicative Role and Planning Reintegration Hemanta Saikia 42 Foresight of Planning and Clarity in Commissioning Prashant Singh 48 TRANSFORMATIVE PLANNING (Attempts at changing the psychology of the locale and community in order to attract economic and social capital which eventually leads to sustainable regeneration through synergising systems and accountability — this type of planning is predominantly forte of transition economies) What Do We Want Them to Do Now? Amal Sanyal 52 Makeover of Planning and it’s Commission V.K. Srinivasan and S. Chakravarthy 58 Decommissioning the Planning Commission Rabin Majumder 68 Whither Economic Planning? MK Datar 74 Legitimatization of Planning Bodies for Development Gouri Pada Dutta 80 Don’t Throw the Baby with the Bath Water Manoj Kumar 86 COMPARATIVE PLANNING (Provides grounded understanding of globally-practiced planning and key international actor while establishing a rigorous theoretical framework about global change at
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