Planning Types (General): part 3

 Here are notes from the video transcript about the types of planning discussed:

Recap from Previous Video:

• Discussed types of economic systems: Samyavada (Socialist), Petubadidari (Capitalist), Mishrama (Mixed). (0:10)

• Socialist economies are suited for Centralized Planning. (0:33)

• Mixed economies are suited for Economic Planning. (1:16)

• Key exam points from the previous video mentioned:

  • Centralized planning is favorable in socialist economies. (0:36)

  • Economic planning is favorable in mixed economies. (1:17)

  • Keynesian concept of unemployment: Cyclical unemployment arises when effective demand is low and disappears when effective demand increases. (1:35-1:58)

Planning Types (General):

• There are about 25 types of planning, but only 11 are crucial for exams. (2:31-2:44)

1. Directive / Imperative Planning (ఆదేశాత్మక లేదా నిర్దేశాత్మక ప్రణాళిక)

• Definition: Planning where the government controls all sectors/areas of the economy, sets targets for them, applies pressure to achieve those targets, and implements plans to ensure the chosen goals are met. (4:02-4:24, 7:58-8:08)

• Key Characteristic: Government has full control and ownership of the means of production and actively directs activities in all sectors. (9:21-9:30)

• Economic System: Suitable for Socialist Economies. (0:33, 9:13)

• Example Countries: Russia (9:08), Socialist nations. (9:09)

• Relevance to India: Not seen in India. (9:07)

• Key Feature: Government sets specific targets and enforces them. (10:00-10:02, 8:12-8:48)

2. Indicative Planning (సూచనాత్మక ప్రణాళిక)

• Definition: Planning where the government sets targets (or provides guidance) even for sectors outside its direct control (like the private sector) but does not apply pressure for target achievement. It's implemented in a relatively free/flexible environment. (10:05-10:19, 12:53-13:04)

• Key Characteristic: Government does not have full control over all means of production (private ownership exists). (10:41-10:52) It acts more as a facilitator and supporter rather than a strict controller. (11:10-11:12)

• Economic System: Suitable for Mixed Economies (specifically India). (10:20, 22:40-22:44)

• Example Country: India. (10:20)

• Time Period in India: Implemented since 1992 (10:24), specifically from the 8th Five-Year Plan onwards. (10:28)

• Reason for Shift in India (from more directive to indicative): Economic liberalization in 1991 led to increased privatization and reduced government control over many sectors. (14:03-14:17, 14:27-14:30)

3. Physical Planning (భౌతిక ప్రణాళిక)

• Definition: Planning that primarily focuses on increasing the production (quantity and value) of goods and services in the economy. (16:41-17:14)

• Key Assumption: Increased production will automatically lead to increased income for people. (17:16-17:18)

• Example Country: China. (15:45-15:46)

• Preference: Considered "better" because it directly addresses the source of wealth creation (production), and a balance between money supply and the value of produced goods/services is essential for economic stability. (18:50-19:15)

4. Economic Planning (ఆర్థిక ప్రణాళిక)

• Definition: Planning that primarily focuses on directly increasing the income of the people. (17:28-17:31)

• Approach: Sets income growth targets for different sectors (e.g., 4% agricultural income growth) (17:33-17:50). Government supports sectors to achieve these targets. Can also involve direct income transfers (pensions, scholarships) not tied to production. (18:21-18:31, 18:38-18:42)

• Example Country: India. (15:47-15:48)

• Connection: Suitable for Mixed Economies. (22:40-22:44)

• Introduced by: Christian Kofaidh (క్రిస్టియన్ కోఫైడర్). (3:02, 3:26, 23:02-23:09, 23:16-23:19)

5. Perspective Planning / Long-Term Planning (దీర్ఘదర్శి ప్రణాళిక)

• Definition: Planning for a shorter term (e.g., 5 years) while keeping a longer-term vision (10, 15, 20+ years) in mind. (24:20-24:39, 24:41-24:46) The current plan is designed to contribute towards the distant future goal.

• Exam Question Example: What type of plan is designed for a current period with a view towards a period of 10, 15, or more years? (24:27-24:32) Answer: దీర్ఘదర్శి ప్రణాళిక.

• Example Plans in India:

  • Third Five-Year Plan (1961-1966): Targeted food grain self-sufficiency in the long run. (25:02-25:11, 26:43-26:49) This long-term goal was pursued through specific programs (like IADP, IAAP) and eventually led to self-sufficiency. (27:45-29:16, 29:39-29:46)

  • Seventh Five-Year Plan (1985-1990): Targeted increased food production, productivity, employment, and poverty eradication in the long run. (30:12-30:24, 30:28-30:48)

6. Rolling Plan (నిరంతర ప్రణాళిక)

• Definition: A plan system where the plan period is not fixed in terms of starting and ending years. At the end of each year, the past year's performance is reviewed, that year is dropped from the plan's scope, and a new year is added at the end, maintaining a rolling window of several years (e.g., a 5-year plan becomes a new 5-year plan every year). This allows for continuous adjustment and flexibility. (42:11-42:27)

• Introduced by: Gunnar Myrdal. (42:00-42:06)

• Implementation in India:

  • Introduced by the first non-Congress government (Janata Party) led by Morarji Desai. (42:31-42:43, 43:10)

  • Period: Briefly implemented from 1978 to 1980. (43:50-44:00)

  • Context: Replaced the Fifth Five-Year Plan (1974-1979), which was terminated a year early in 1978. (43:34-43:58)

  • Reason for Introduction: Belief that fixed Five-Year Plans were not effectively addressing poverty and unemployment. (43:17-43:21)

  • Reason for Discontinuation: When Indira Gandhi's government returned to power in 1980, they discontinued the Rolling Plan and reverted to the Five-Year Plan system. (58:15-58:41)

• Impact on Sixth Plan (1980-1985): The Sixth Plan was designed twice. Initially planned as a Rolling Plan (1978-1983 period), it was re-designed as a standard Five-Year Plan (1980-1985) after the government change. (58:32-58:50)

• Key Figure (Architect) in India: Dr. Lakdawala (డాక్టర్ లక్డావాలా), who was the Deputy Chairman of the Planning Commission under Morarji Desai. (1:04:31-1:05:07, 1:05:51-1:06:00) (Note: Gunnar Myrdal is the general concept originator, Dr. Lakdawala is the Indian architect).

• Chairman in India (during implementation): Prime Minister Morarji Desai. (1:19:00-1:19:15)

• Exam Relevance: Frequently asked about. Often referred to as an "ideal planning concept" in the context of India's 6th Plan period (even though its implementation was short-lived). (1:13:33-1:13:51, 1:19:52-1:20:00)

Plans in India Summary (Related to above):

• 5th Plan (1974-1979) ended early in 1978. (43:34-43:58)

• Rolling Plan (1978-1980) implemented briefly. (43:50-44:00)

• 6th Plan (1980-1985) began, designed as a Five-Year Plan after the Rolling Plan was discontinued. (58:32-58:50)

• 8th Plan (1992-1997) marked the shift to Indicative Planning. (10:28)

• Plans implemented twice in India: 6th Plan (once as Rolling, once as Five-Year). (58:44-58:53, 1:14:39-1:14:45)