20. Socio-economic Development

The success of political democracy is linked with the social and economic democracy which can be achieved only when the general lot of the people improves socially and economically. When India secured freedom from the British rule, the conditions prevailing here were deplorable. Indians were very much backward both socially and economically. Several sections of the society were backward in both the fields. They are denied rights and privileges enjoyed by high groups or castes. So much so that some of them were considered untouchable. We were extremely poor and backward because the long spell of foreign rule had shattered our economy. When India acquired political freedom, it became imperative for our leaders to plan for the social and economic development of the people. The government took radical steps in this direction and that process is still going on.
Planning
Selecting of the material resources and man-power to perform a function whether by an individual or an association or the government and doing it after thoughtful considerations, in a systematic way is called Planning. Under this system when something is to be done first the target is fixed, the means of doing it are found out and selected and a period of its execution is also fixed. After these the execution of the work is undertaken. In this age of science and technology all projects of development are undertaken in a ‘planned way’. Planning, as a matter of fact, has become a way of life these days.
According to Terry, “Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualisation and formulation of proposed necessary to achieve the desired results.”
According to Simon, Smith Burg and Thompson, “Planning is that activity that concerns itself with the proposals for the future, with the evaluation of attractive proposals: and with the methods by which these proposals may be achieved.
Need of planning
When India became a free nation in 1947, it was horribly backward both socially and economically. As a result of rigid caste system in Indian society, a large number of people were deprived of social equality and justice for centuries. Some of these castes and sub-castes were branded as untouchables, and were denied even the common facilities to improve their condition. They were not allowed to attend any school or draw water from wells and ponds. They could not hold their heads high. They were compelled by the society to serve the upper or forward castes. The British rulers, consistent with their policy of ‘Divide and Rule’, encouraged casteism and communalism. They granted separate voting rights and reservation of seats untouchables or Shudras, and waged a long battle against untouchability. At the time of our independence there was no social equality, social justice and social democracy in India.
Likewise India was a victim of mass poverty and acute economic backwardness. The British robbed us as much as they could. They also ruined our cottage industries. They adopted a policy under which Indian raw material was exported to England and finished goods from U.K. were imported in our country. No industry was allowed to flourish in India. So when we became free, we had to depend totally, even for every little thing on foreign countries. The Indian leaders had this grim fact in mind when they made bonfire of foreign goods and gave a clarion call for ‘Swadeshi’. Not only industries but agriculture also was not allowed to make any progress under alien rule. The bulk of our people lived on farming but the poor farmers could not get even two square meals a day.
A country or community cannot advance politically despite political freedom so long as it is socially and economically backward. Socio-economic development gives strength to the roots of democracy. Democracy cannot function successfully in a society affected with gross inequalities. Keeping this in mind our leader soon after independence turned their attention to social and economic-development of the country, and it was the dire need of hour. It was also necessary to undertake the task of rebuilding India in a planned way in order to preserve our freedom and democratic system.
Importance of planning
Indian leaders realised that the development activities should take off in a planned manner. Planning is an instrument of socio-economic change and rapid progress. It seeks to convert political democracy into socio-economic democracy. The original inspiration for planned development came from the Soviet Union which had made remarkable all-round progress with the help of planning in a few decades. The Soviet example served as a lesson for the newly liberated India. Indian leaders also decided to achieve the desired goal of allround development, and set up the Planning Commission.
The significance of planned economy is that the growth rate for the development of a specified region or field within a definite period is fixed, and intensive efforts are made to achieve the target. Five-Year Plans were formulated. At the end of every plan period, a survey is made to find out the extent of success, the reasons which accounted for the shortfall, and how to remove those bottlenecks. The first five-year plan was prepared in April 1951. The stress was laid on wide-spread economic imbalance and disparities caused by the partition and World War II. The target was to increase national income and to raise the standard of living of the people. The first plan gave top priority to agriculture sector.
The second plan aimed at creating a socialistic pattern of society, so to ensure social and economic equality. The target was to see that the fruits of development percolate to the poor and national income increases by 25 per cent. For this reason, the second plant laid stress on industrialisation.
The third plan aimed at achieving self-sufficiency in foodgrains, and stopping import of farm products. Some emphasis was also laid on the development of basic or key industries, on providing more avenues of employment, on reducing inequality in income and on ensuring social justice and equality, and improving the lot of the weaker sections of the society.
Thus we see how important planning is for socio-economic development. The main characteristic of India’s plans have so far been to increase national income and let the poorest have a share in prosperity. The success of our plans has, however, been disappointing.
Socio-economic objectives of planning
India gained independence in 1947. We got political independence, but a major part of the society was economically and socially very backward. Political democracy cannot work successfully in the absence of economic and social equality and economic and social democracy. Framers of the constitution were aware of this condition of the society. They aimed at attaining socio-economic democracy through Directive Principles of state policy. Keeping this in view the leaders of the nation feel the need of undertaking all developmental activities through planning and Planning Commission was appointed for the purpose. Planning Commission prepared five-year plans.
Economic and social conditions in India at the time of independence in 1947, were very much deplorable and a big part of the Indian society was considered of low status and these low caste people were not allowed to make use to social facilities for promotion of their life. Indian society was divided into castes and sub-castes and many did not enjoy social equality and social justice. Economic development was also at standstill. Per capita income was very low. There was very unequal distribution of income and wealth. Problems like backwardness in agriculture, high rate of birth, poor public health, very low average age, illiteracy, unemployment, poverty, industrial backwardness needed immediate attentions of the government for their solution. The leaders of the nation decided to solve these problems and gain rapid socio-economic development through five-year plans.
The Socio-economic objectives of planning were as given below:
To Promote Social Justice : One of the objectives of planning was to promote social justice in India. This aim is evident from the preamble to the constitution and Directive Principles of state policy also. At the time when India became free many sections of the society who were not allow to make use of social facilities on equal basis and they were considered untouchables, they were socially very backward. To get them social equality and social justice was one of the objectives of the planning.
To Remove Illiteracy and diseases: In 1947 a large percentage of society was uneducated. Literacy rate was about 16%. With such a large number of people being illiterate Indian democracy could not be real and successful. Moreover average age in India was 37 years and public health was poor. To remove illiteracy and improve public health was another objective of socio-economic planning.
To Remove Unemployment and Poverty : Another objective of planning was to remove unemployment and poverty by providing new resources of employment and raising national income so that society may have rapid growth and Indian democracy may be a real one.
To Build Industrial Infrastructure : For the rapid industrialisation of the country, it was essential to build industrial infrastructure. Emphasis was to be laid on the manufacture and development of basic machinery upon which the industries were based so that India may not be dependent upon other nations for the basic machinery for our industrialisation.
To Improve and Expand Agricultural Production : Though 70% of population had agriculture as profession yet it was very backward in agriculture. Per acreage yield was very low. So, another objective of the planning was to improve and expand agricultural production. It was planned to improve agricultural production by technical methods and high quality seeds and good manure. It was also to help in raising per capita income and remove poverty and unemployment.
To Increase National Wealth and its Equitable Distribution : Another objective of planning was to increase national wealth and raise living standard of the people. It was planned to raise national income 5% every year. It was also planned that economic inequality may be reduced as far as possible and national wealth be equally distributed and there may be economic balance in the society. It was aimed that national wealth may not be concentrated into the hands of a few and all should get economic and social justice.
To lay Foundation of a Self-reliant and Self-generating National Economy : Another objective of the planning was that a strong foundation may be laid for our economy which may make it self-reliant and self-generating its objective was that India may not be forced to beg before others for our economic development. It was aimed that India may produce all she wants from her own resources.
To Encourage Export Oriented Production : At the time when India gained independence, she had to import many items. The objective of the planning was to encourage the production of such goods which may be exported and which may earn foreign exchange and which may reduce imports. The aim was to bring the import balance in our favour.
To Promote Trade and Commerce: It was also an objective of planning that Indian trade and commerce may be promoted. This could strengthen and develop Indian economy and the nation could march ahead with other nations. It would also remove our backwardness.
To Make Indian Economy Modern, Efficient and Competitive: Another important objective of planning was to develop Indian economy which had remained backward for long, on modern lines in such a way that it may make its mark in world market. It was very essential to make Indian economy efficient and competitive. It was aimed to raise the investment in such a way that it may boost export.

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