Upsetting the Planning Commission: Old Wine in New Bottle

The setting of the planning commission in year 1950, an about 54 years ago and up to 12th five plan it served the nation with advising the central government and directing the states from time to time. The planning commission established to promote and protect the rights of the citizens. The development planning emerges as science which was practiced and researched while we planned for our nation. The basis of planning commission was following;

The Constitution of India has guaranteed certain Fundamental Rights to the citizens of India and enunciates certain Directive Principles of State Policy, in particular, that the State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social economic and political, shall inform all the institutions of the national life and shall direct its policy towards securing, among other things:-
(a) that the citizens, men and women, equally, have the right to an adequate means of livelihood;
(b) that the ownership and control of the material resources of the community are so distributed as best to sub serve the common good; and
(c) that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment.

With new government elected in May2014, there is urge to change and new direction to be sought from the organisation which now is allowed to shut and become defunct. The new regime with eyes on the growth of economy, and post libralization effects give rise to capital and market based policy making. The rights based approach subsided by the economic and employment concerns of the urban India. The rising middle class and their hopes giving way to new thinking promoting greater participation from the enterprises. 

The so called 'think tank' based approach is not new, the guards changed with planning commission paid fitting obituary to its structure and planned era by going beyond the means by extending itself too much into the political economy. India has not achieved coordinated growth among the stakeholders like the states and centre, the federal structure needs to be strengthened with states taking more responsibility in planning.

The tiff between centre and state in earlier regime and emergence of Gujarat Model with more action towards inviting the private players and high stake of state in capital investment. The sector based growth in Gujarat, with more corporate segments of government, due to emergence of companies owned and sustained by Government. The model succeeded in reducing the government department to signing authorities and release of lumpsum financial support to new organisations. The improvised management techniques minus lack of government (middle level management) helped these government run corporate to functions. But none of the corporate (of government) was evaluated for its result except their contribution and zeal in signing the MoUs with limited companies. Public-Private partnership was done in true spirit with both the parties unshackled themselves from the government systems except receiving the financial aid and decision ability. The American dream of Gujarat government to establish the brand succeeded in making the model adaptable to wider use once the ruling party came to power in India.

Now, the model needs to be tested on India's economic fate yet, failing to recognize the need there is little doubt that the re-organised decision making body will not be planning commission. This would work as disinvestment commission on one hand when government departments would give birth to state run enterprises. Eventually, PPP model bringing out the change (financial control) to their own hand for quick decision making. It would be hard to replace the planning commission, by its nature but its easy to open a new way of governance with no government in place to decide the path to development. State and local bodies now need to compete among themselves to get the wider power and investment. It would be not long before they come together to demand more assistance and thus market playing its role.