4.8 ndian onom
a deflationary package of measures). Since then development via the Washington Consensus
the UK never went for planning.18 (1985), the World Trade Organisation (1995)
Though the first use of economic planning and the Santiago/New Consensus (1998) only
as an instrument of economic progress was done indicative planning has remained possible with the
by the USA (with the Tennessee Valley Authority state playing only a marginal role in the economy,
in 1916 at the regional level), it never went for especially in the areas of social importance (i.e.,
a formal national planning. In the 1940s, some nutrition, healthcare, drinking water, education,
economists had suggested in favour of the use social security, etc.).
of national planning. We may have a reflex of There are still many other types of planning
indicative planning in the USA if we look at depending upon the point of view we are looking
the Presidential Reports which come after regular at. For example, from the territorial point of view,
intervals. These reports are just ‘benchmarks’ in planning could be regional or national. From the
the area of resource utilisation and governmental political point of view planning could be central,
announcements of its objectives—basically trying state or local. Similarly, from the participatory
to motivate the private sector towards the area of point of view, planning has been categorised into
public objectives. The indicative planning as it centralised and decentralised. Again, from the
is practised by the mixed economy, any growth temporal point of view planning could be long-
target could only be achieved once the public and term or short-term (in relative sense). Finally,
the private enterprises worked in tandem. This from the value point of view planning could be
is why besides the plan targets, the governments economic or developmental.
need to announce some set of indicative policies A major classification of planning is done
to encourage and motivate the private sector to on the basis of societal emphasis. The type of
accelerate their economic activities in the direction planning which gives less emphasis upon the
of the plan targets. social and institutional dimensions is known as
After the Second World War, almost all the systems planning. In such planning, the planners
newly independent countries adopted the route of just search for the best possible results in relation
planned development. Though they followed an to the established goals giving less importance
overall model of the indicative planning, many of to issues like caste, creed, religion, region,
them had serious inclination towards imperative language, marriage, family, etc. Opposed to it,
planning. As in the case of India, the heavy the normative planning gives due importance to
bias towards imperative planning could only be the socio-institutional factors. This is a planning
reformed once the process of economic reforms from social-technical point of view, but only
was started in 1991. suitable for a country which has lesser degree of
Today, as there are mostly only mixed social diversities (naturally, not fit for the Indian
economies around the world, any country’s conditions). But in the coming years there was a
development planning has to be only of the shift in the very thinking of policymakers. The
indicative type. After the revival of the role and Economic Survey 2010–11 is probably the first
the need of market in promoting growth and document of the Government of India which
advocates the need for a normative approach
18. Though the planning agencies the National Economic to planning in India. It is believed that until a
Development Council (NEDC) and the Economic programme/scheme run by the governments are
Development Committees (EDCs) continued functioning,
it was in 1992 that the NEDC was abolished (Collins not able to connect with the customs, traditions
Dictionary of Economics, 2006). and ethos of the population, their acceptability