We have identified key strategy challenge: Montek Singh Ahluwalia
Montek Singh Ahluwalia, apart from being the only Deputy Chairperson of
the Commission to have two consecutive terms, has done stints at the
finance ministry and the International Monetary Fund. But will he manage
to reinvent planning? Edited excerpts from an interview with Puja
Mehra.
Montek Singh Ahluwalia , apart from being the only Deputy Chairperson of the Commission to have two consecutive terms, has done stints at the finance ministry and the International Monetary Fund. But will he manage to reinvent planning? Edited excerpts from an interview with Puja Mehra.
What is planning's role today?
The old view of planning was about setting detailed targets, such as how many cars and scooters must an economy produce, so that it can decide how many components for these products need to be imported. Such planning is not needed in a market economy where industrial economic agents, including PSUs, take decisions on commercial lines. If the item is not produced domestically, it can be imported. However, setting targets for non-tradable infrastructure such as roads and ports is needed, since these items have to be domestically supplied.
The job of the Commission in the 21st century is to identify critical constraints, recognising that we are planning for a dominantly market-driven economy. Planning must aim at ensuring full inclusion... so that those at the bottom of the pyramid are included. We have to coordinate not just the growth policy of the Central ministries, but also that of the Centre with the states.
What can the Commission contribute to the economy?
Three things: First, someone has to allocate development expenditure across sectors. The Commission works out detailed guidelines for states and ministries on how they can best spend their allocations. Two, the Commission is engaged in programme and policy evaluation not just from the point of view of whether money has been spent well, but also whether the policies in place are supportive. So, for instance, we are concerned about policies relating to agriculture markets and contract farming, and their relevance to agriculture development. Of course, the ministries tend to be very defensive about such critiques. That's normal.
Three, there are cross-sector issues involving many ministries. For example, pricing policies for coal and petroleum ought to be similar as both are importable energy products.
The 12th Plan is going to be completely your baby. Will it be different from the earlier plans?
The Plan will obviously carry forward what we have been working for. Problems don't change overnight. But we have decided to do things differently this time. We have identified key strategy challenges that we must address if we are to prepare a better Five Year Plan.
Some examples of effective intervention by the Commission...
Emphasis on public-private partnerships in building infrastructure; government money no longer goes into manufacturing; the independent evaluation office; the restructuring and award of the contract for the modernisation of the Delhi airport; the Rashtriya Krishi Vikas Yojana… there are so many examples.
What is planning's role today?
Montek Singh Ahluwalia
The job of the Commission in the 21st century is to identify critical constraints, recognising that we are planning for a dominantly market-driven economy. Planning must aim at ensuring full inclusion... so that those at the bottom of the pyramid are included. We have to coordinate not just the growth policy of the Central ministries, but also that of the Centre with the states.
What can the Commission contribute to the economy?
Three things: First, someone has to allocate development expenditure across sectors. The Commission works out detailed guidelines for states and ministries on how they can best spend their allocations. Two, the Commission is engaged in programme and policy evaluation not just from the point of view of whether money has been spent well, but also whether the policies in place are supportive. So, for instance, we are concerned about policies relating to agriculture markets and contract farming, and their relevance to agriculture development. Of course, the ministries tend to be very defensive about such critiques. That's normal.
Three, there are cross-sector issues involving many ministries. For example, pricing policies for coal and petroleum ought to be similar as both are importable energy products.
The 12th Plan is going to be completely your baby. Will it be different from the earlier plans?
The Plan will obviously carry forward what we have been working for. Problems don't change overnight. But we have decided to do things differently this time. We have identified key strategy challenges that we must address if we are to prepare a better Five Year Plan.
Some examples of effective intervention by the Commission...
Emphasis on public-private partnerships in building infrastructure; government money no longer goes into manufacturing; the independent evaluation office; the restructuring and award of the contract for the modernisation of the Delhi airport; the Rashtriya Krishi Vikas Yojana… there are so many examples.
