Saturday, December 13, 2014

Dinesh Kamath's Editorial 'Planning Commission to be replaced by a new body?' that was published in Newsband

Planning Commission to be replaced by a new body?
Prime Minister Narendra Modi had a meeting with State Chief Ministers. He spoke about the contours of the new body that will replace the Planning Commission. He wanted the power and planning to be decentralised and States to be empowered to plan, design and manage schemes based on what fits them best. This, Modi felt, was necessary because New Delhi cannot tailor the development plans of States as each State has unique needs and problems. Modi also wanted expertise and knowledge to be tapped by roping in the private sector into the new body.
But the question that arose was what would be the role of the Planning Commission? Who will formulate and monitor the annual and five year plans as the Commission was doing? The meeting also failed to tackle the issue of who will allocate and transfer funds from the Centre to the States for Centrally-sponsored and Plan schemes. It seems that Modi wants something like a public-private think-tank, which can attract top-drawer talent and also network with research bodies and universities in India and abroad.
Yes, the present set up of planning commission is hopelessly bureaucratic. The initiative is laudable even though the new body in place of Planning Commission may take some time to evolve. Many Commissions set up by the previous governments itself had advocated reinvention of the Commission. This non statutory body had not only usurped the powers of the Constitutional body like Finance Commissions but also had vested more power to the Centre in terms of allocation of funds. It s time to get the planning for the country placed in the expert private hands partnering with government.
By observing the shortcomings of planning commission and considering today’s dynamism there will not be any improbity to say India needs a new institution to take the Country to the greater heights. Whatsoever could be the name but the crux is, the new body should have different wings comprising innovation based research and development, expert committee for analyzing how the things happening around the globe, most importantly an executive and monitoring doyen for the implementation of the ideas in the defined time frame. The Government should think of forming a body having young and talented people/entrepreneur from private industries, skilled bureaucrats from Center as well as state Government.
The drawbacks of planning commission were felt as early as in mid sixties. So the complete scrapping of this ornamental body by no means is a misadventure.
It is a right approach of the centre to entrust greater accountability of development to the states. The decentralisation of power and planning to states will provide them greater autonomy in the matters of designing and implementing their own schemes. Such decentralisation will relieve both the centre and the states. The centre on its part can hold the state responsible for development and backwardness of the state, or why a particular state lags behind the others. The states on the other hand will find healthy competition among one another.

Understandably, Modi Government is on an overdrive to restructure the Government apparatus and revamp the Economy. The urgency is welcome in bringing much needed reforms. But, undue haste shouldn't be shown in pulling down Institutions. The alternatives should be equally robust and secure so that the transition is smooth and effective.

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