The attack by the SARS-CoV-2 virus has highlighted, once again, both the bad shape of the Indian economy and the precariousness in the lives of millions of people. Citizens have been ordered to stay in their homes to prevent the pandemic. But many have no homes. They are being urged to wash their hands frequently, when many do not have access to enough clean water to drink. The public health system is woefully inadequate. GDP growth rates may have been good for sometime. But many systems in the country are fragile.
National planning, by whatever name it is called (Planning Commission or NITI Aayog), has failed to produce all-round development of India’s economy so far. An all-round plan for recovery from the pandemic is required. As Einstein said, “you cannot solve intractable problems with the same thinking that produced the problems”. Therefore, it is time to consider the weakness in India’s national planning.
Any planning institution in a federal and democratic system faces two basic challenges when it comes to performing a long-term role — a constitutional challenge, and the challenge of competence.
The constitutional question
The fundamental issues a national plan must address, such as the condition of the environment, the shape of the economy, and pace of human development, need consistent action over decades. Therefore, policies must continue beyond the terms of governments that change in shorter spans in electoral democracies. Moreover, if the planning body does not have constitutional status independent from that of the government, it will be forced to bend to the will of the latter. Planning in China does not face this disruption.
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