Planning and Economic Development

 India grows at night- Gurucharan Das

Gandhi Not an economist in conventional sense  Hind Swaraj Swaraj - Minimisation of wants 3 pillars  Econ growth ,Redistributive justice,Moral regeneration  Gandhian Plan Reform of Agri, Revival of Cottage for the need and not for greed Non violence - towards nature Trusteeship and not statism - Bhudaan  Not against industrialisation  against Machines replacing man (Production by masses rather than mass prodn and Acc of wealth  Khadi and Village MSMEs Not adopted  India and Bharat gap  SN Agrwal- made Gandhian planning

Nehru Progressive Socialism -Gandhi -people led, Nehru - State led Mahalanobis Model - Nehru- admirer of modernity, Gandhi-critic of modernity Influenced by Russian Growth and Laski's Fabian socialism. PSU,Heavy industries, IITs, Dams, State led socialism Land reforms- 1st Const Amend. Best of both world- growth of capitalism, equity of socialism without the violence of communism. Conclusion  Garibi Hatao remained a rhetoric  45% population under BPL

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India as a developmental state

• Developmental state - Conceptualisation in Comparative Pol Economy - for those states which play a role in dev & modernisation 
• As opposed to lassez Faire state 
• First used in context of Japan 
• Extraordinary role played by Japan - in post World War economic miracle 
• Even SE Asian states have played a role in development 
• Generic term - to show active intervention of state towards dev and modernisation
• Features 
• Relative autonomy of state
• Competent and powerful bureaucracy 
• Based on ideology of welfare 
• India 
• Preamble 
• DPSPs 
• Govt programs 
• Land Reforms 
• Green Revolution 
• Industrial revolution 

Planning 

Bimal Jalan  PSUs were like old family silver where the family had to spend to keep it shining

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Impacts of Liberalisation 

LPG reforms were aimed at freeing the Indian tiger from the cage of populist policies 

India - Mahalanobis model

Needed to change - Hindu rate of growth 

Unfortunate - wait till crisis

• Gulf War 
• USSR 

LPG reforms 

Social and Economic Inequalities 

Jagdish Bhagwati  Trickle down  Inequality diminished - First time  Life Expectancy - double  IMR - declined Global literacy - 60-80% Globn itself not solution - many steps needed If properly governed, globalisation is the most powerful social good today	Montek Singh Ahluiawalia  Article - Economic Reforms : a Retrospective view Social indicators - bad performance Large unhealthy, uneducated and unskilled population  Jobless growth Middle Income trap	Amartya Sen  Tiger sprint has not been as how it should have been  Agri stagnation Manufacturing sector - bypassed   Services sector - ground lvl no skills Social indicators down Increase in Poverty in BIMARU There are 'islands of prosperity' in the sea of poverty Hunger amidst plenty  Feminisation of Poverty

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LPG 

2 kinds of effects 

• Economic (given above) 
• Process of democratisation (given below)

Positive	Negative	Negative
Washington Consensus Good governance measures  External pressure - IMF and WB 73rd and 74th CAA  Grassroot Democracy	Atul Kohli  Consensus on LPG - has made ideological differences redundant ->Mobilisation on the lines of identity  Led to Crisis of Governability  Democracy has widened but the ethos has not deepened	Rolling back of the state  Post democracy  Unelected non representative regulatory institutions have gained importance
		Competitive federalism  Unintended consequence  Ppl belonging to poorer states have lost in the process due to

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Capability approach of Amartya Sen 

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Land Reforms - Socialist ideology of redistributive justice 

It was a way to solve rural poverty

Daniel Thorner  India is the most interesting case study of land reforms. Lack of Land records was the reason  Lack of any powerful peasant movement		Conclusion  Hamza Alavi’s theory of overdeveloped state and Gunnar Myrdal’s theory of India as a soft state offer similar explanations for failure of land reforms in South Asia

LAND REFORMS :

Gunnar Myrdal  India a soft state - even a person like Nehru failed to achieve success in LR	Atul Kohli State of India lacks the political and organisational capacity to confront the properties class Crisis of Governability of Indian state KE and WB - Communist	Sudipto Kaviraj  State of India represents the interest of the bourgeoise class	Francine Frankel Radical agenda jeopardised by accommodative policies

Way F 

• Intellectual class - bring back land reforms in public sphere 
• Civil society - mobilisation 
• GoI - address LWE
• Legal machinery revamped 
• Redistribute remaining land 
• Fertile Agri Land

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Green Revolution 

Made India self sufficient nation in food grain production.

VKRV Rao  Gains of GR at significant social and pol cost Increased inequality  Rural indebtedness inc Reversed the process of land reform	GS Bhalla  Agri wages inc Total income 4 times and increase the bargaining powers of the farmers	Sarla Grewal ( Cabinet Secy) ECON No increase in real wages Inflation in foodgrains Actual fall in living standards	Rudolph and Rudolph  POL Political analysis of GR Rise of Bullock capitalist  Strengthened the role of caste in politics

Usha Patnaik  Focus on poor distributive aspect giving rise to frustration and unrest	Vandana Shiva  ENVT Violence of Green Revolution  Shows the negative effects of GR on society as well as nature	KR Narayanan Conclusion  Neglecting land reforms - counter revolution — already started in rural areas GR should not give rise to Red Revolution

New agri reform- it is a 1991 moment for India- Ashok Gulati