Changing Role of Planning Commission

RSTV - Big Picture - 20 June 2014

Since the context of centralised, state-led planning has changed, is the planning commission still relevant?

• Yes, Planning commission still relevant for strategic planning.

• Example of China -

• Planning commission became more relevant after 70s,  after economic reforms.
  
• It is called Natl Development Reforms commissions.
• Chinese planning commission is fully professional. We too need professionalisation.
• Example of Brazil and Latin America
• Brazil  & latin America have paid the price for lack of strategic planning, reduced growth.
  

• So, in order to set broad directions, Planning commission still required, but not required for micro-management.
• It has institutional memory, a group of advisors with a secreteriat.
• PC should not have veto powers..
• Most CMs have grievences against PC. Want more freedom. But, they don't devolve powers to ZPs themselves..
• PC shouldn't get into micro-management and keep away from power centres.
  

Possible functions/role of planning commission

1. PC brings in long-term planning objective... Most IAS officers in ministries have very short tenures.
2. A body to work on inter-state disparities, development issues.. especially because resoures are limited.
   
3. Policy suggestion across ministries, to ensure convergence.. PC can play this role..
4. Can work as a clearing house of best practices.. Learning across states..
   

What does Rangarajan committee say on role of planning commission ?






Locating PC within FinMin ?
Has failed in many countries..