2.2. THE GOALS OF FIVE YEAR PLANS

A plan should have some clearly specified goals. The goals of the five year plans were: growth, modernisation, self-reliance and equity.

Five Year Plans are crucial in setting the direction for India's economic development. They outline specific goals that guide the nation's priorities and actions over a five-year period. The primary goals of these plans include growth (increasing the production capacity of the economy), modernisation (upgrading technology and practices), self-reliance (utilizing domestic resources), and equity (ensuring fair distribution of wealth). However, it's important to note that not all plans prioritize these goals equally due to resource limitations.

Consider a school project where a class must decide how to manage their limited budget. They aim for growth by purchasing new materials (growth), modern tools (modernisation), reducing dependency on outside suppliers (self-reliance), and ensuring all students benefit equally from the resources (equity). Like the planning committee, they need to prioritize based on what can realistically be achieved with the funds they have.

Growth: It refers to increase in the country’s capacity to produce the output of goods and services within the country.

Growth is measured by how much more goods and services a nation can produce. This can occur through increasing productive capital (like factories and machinery), enhancing services (like transportation and banking), or improving efficiency (how effectively these resources are used). A primary indicator of this growth is the Gross Domestic Product (GDP), which is the total market value of all final goods and services produced in a country during a specific time.

Imagine baking a cake for a party. If you have a bigger oven (productive capital) or learn a faster baking technique (efficiency), you can bake more cakes in the same amount of time. The larger cake represents economic growth, allowing more guests to enjoy the delicious treat.

Modernisation: To increase the production of goods and services the producers have to adopt new technology.

Modernisation involves adopting new technologies and methods that can enhance productivity and efficiency. This not only refers to implementing the latest farming techniques but also shifts in societal values, such as promoting equal rights for women in the workforce. A society that embraces modernisation is likely to be more prosperous as it fully utilizes the talents and resources available.

Think of a farmer who starts using solar-powered irrigation systems (new technology) instead of relying solely on traditional methods. This change not only improves crop yields but also creates an inclusive environment where family members, including women, can play significant roles in farming, leading to a stronger overall farm economy.

Self-reliance: A nation can promote economic growth and modernisation by using its own resources or by using resources imported from other nations.

Self-reliance means reducing dependency on foreign imports by focusing on developing and utilizing domestic resources. This strategy is particularly vital for essential goods like food, as it helps a nation maintain sovereignty and helps in safeguarding against external pressures. Emphasizing self-reliance can bolster the economy by fostering local industries and creating jobs.

Picture a family that decides to grow its own vegetables instead of buying them from the grocery store. This decision not only cuts costs but also ensures that they're less reliant on fluctuating market prices. By using their own resources (land, seeds), they gain more control over what they consume, much like a nation that focuses on self-reliance.

Equity: Now growth, modernisation and self-reliance, by themselves, may not improve the kind of life which people are living.

Equity is concerned with ensuring that the benefits of economic achievements reach everyone in society, particularly the poorer segments. Simply increasing economic output is not enough if it doesn't translate into improved living conditions for all. Equity aims to provide basic needs such as food, shelter, healthcare, and education, and reduce wealth disparities.

Consider a sports team where one player scores all the goals and becomes a star, while the rest of the team barely gets any recognition. If the team wins but only the star enjoys the rewards, it doesn't create a supportive environment. Instead, a good team fosters collaboration and equal recognition, ensuring that every player feels valued and shares in the success, mirroring the principles of equity in economic policies.

Nevertheless, the planners have to ensure that, as far as possible, the policies of the plans do not contradict these four goals.

While each of the four goals of the Five Year Plans is important, planners must skillfully balance these goals to avoid conflicts. For instance, pursuing rapid growth through advanced technologies might lead to job losses, which contradicts the goal of equity. Therefore, effective planning involves careful consideration of how each goal interacts with and impacts the others.

Imagine a school where the principal wants to improve academic performance (growth) by focusing solely on test scores. If this means cutting arts and sports programs, student well-being could suffer (equity). A balanced approach ensures that while grades improve, students also receive a well-rounded education that fosters overall development.

Let us now see how the first seven five year plans, covering the period 1950-1990, attempted to attain these four goals...

The concluding section sets the stage for evaluating how the first seven Five Year Plans (1950-1990) sought to achieve these four goals: growth, modernisation, self-reliance, and equity. It provides a context for understanding the successes and challenges faced in various sectors such as agriculture, industry, and trade.

This can be likened to a long-term project where students monitor their progress over several semesters. Just as they assess which strategies worked well and where improvements could be made, the evaluation of the Five Year Plans looks at their effectiveness in reaching economic goals over time.

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