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P LANNING P ARADIGM
Commission plays an integrative
role in the development of a holistic
approach to policy formulation
Any One-shot Solution?
That it is often opined that crisis prevention
measures not only reduce the probability
of crises occurring, they also reduce
their severity if and when they do
occur, which makes crisis resolution much
easier. Hence, in the wake of economic
liberalization and the world’s economic
downturn and as per past experiences, a
characteristic overhaul of Planning Commission
from a highly centralized planning
system of the Indian economy is
suggested to gradually moving towards
indicative planning where Planning Commission
would concern itself with the
building of a long term strategic vision of
the future and decides on national priorities.
Since, it is matter of common
awareness that Planning Commission of
India plays an integrative role in the development
of a holistic approach to policy
formulation in critical areas of human
and economic development leading to
multiplicity of agencies.
It is also felt that the effort of the Planning
Commission, instead of looking for
mere increase in the plan outlays, should
be to look for increases in the effi ciency
of utilisation of the allocations being
made making itself to play a mediatory
and facilitating role, keeping in view the
best interests of all concerned, ensuring
a smooth management of the change and
help in creating a culture of high productivity
and effi ciency in the Government.
It is in this backdrop, it may also be submitted
that under new technology regimes,
government management information
systems and public
72 THE IIPM THINK TANK
accountability information system, with
inevitable modifi cations and adaptations
arising out of implementation experience,
may considerably improve the effi
ciency and effectiveness of governance
over the years through the Planning
Commission.
Discussion
As has been often viewed, the plan process
in Indian economy has suffered from
a “chronic under-activity” of the government
in some fi elds (particularly in basic
education and elementary heath care,
food, etc.) while being overactive in others
(in the form in the so-called "license
Raj" in particular). That probably the
fi rst time the Planning Commission in
1992 changed itself to as “Reforms
Commission” which attempted to address
the latter problem in a visionary
way but it did not reach
the goal. There is considerable
evidence that the present Indian
government, led by Sh. Manmohan
Singh himself, is much more committed
to removing that imbalance.
The underinvestment in
the social sector is now more
fully recognized.
As has been felt, in order to revive
investment and the confi dence in Planning
Commission aiming to contain
fi scal defi cit, achieving effi ciency in the
use of resources is need of the hour.
And as Hon’ble Prime Minister Manmohan
Singh opined "One consequence of
scarce resources is that we should fully
explore the scope for Private Public Part-
nership (PPP). This has been attempted
in the infrastructure sectors where we
have had some success, although
progress has been less than what we
would have wanted. We are taking steps
to streamline the process so that PPP
projects can move faster”.
Hon’ble Prime Minister further emphasized
the present economic picture as a
combination of strengths built up over
several years, the lingering effect of the
global slowdown and the temporary effect
of the drought in the current year, particularly
on agricultural output and food
infl ation. And he thus felt