CLASS-3
KEY CONTRADICTORIES for strategy of development
1.AGRICULTURE VERSUS INDUSTRY
- which one should attract more public resources in a backward economy like that of India?
vSome were in fabour of Aagriculture:
i.J. C. Kumarappa:
- Gandhian economists.
- proposed an alternative blueprint that put greater emphasis on rural industrialisation
- Chaudhary Charan Singh:
- Congress leader, later form Bharatiya Lok Dal.
- Blamed that planning was leading to creation of prosperity in urban and industrial section at the expense of the farmers and rural population.
vSome were in fabour of Industries:
- For elimination poverty, drastic increase in industrial production should be.
- Already Indian planning did have an agrarian strategy to boost the production of foodgrains. Ex. Land reforms.
- They argue after effort Govt can not solve problems in rural area because policies are good but implementation has problems.
- PUBLIC VERSUS PRIVATE SECTOR
Meaning
Critics by laft and right
- PUBLIC VERSUS PRIVATE SECTOR
- Out of two paths to development (Capitalism & Socialism), India didn’t follow any.
- Capitalist Path for development:
- Where development work left entirely for private sector.
- Why India not follow Capitalism model for development?
- Socialist Path for development:
- Where private property abolishes and all the production control by the state.
- Why India not follow Socialism model for development?
- ‘Mixed Economy’ Model for development:
- Private hand – Much of the agriculture, trade and industry
- State control- key heavy industries, industrial infrastructure, regulated trade, made some crucial interventions in agriculture
CRITICISM OF MIXED ECONOMY:
- Leftist and Rightist: Private sector couldn’t receive enough space and the stimulus to grow.
- Public sector created enough hurdles for private capital for own powerful interests through installing systems of licenses and permits for investment.
- State restricted import of those goods which can be produce in the domestic market easily but due to this this policy, Competition among producers X, Quality X so Costly.
- State controlled more things than necessary; so inefficiency, corruption.
- state did not do enough in education, healthcare,
- state intervened only there, where private sector was not prepared to go, So govt helped this sector to gain profit more.
- instead of helping the poor, State intervention created middle class who enjoyed privileges without accountability.
- Proportion of poverty decreased but total number of poor increased.
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