Planning by inducement is often referred to as ‘indicative planning’ or ‘market incentives’ . In such type of planning, the market is manipulated through incentives andinducements. Accordingly, in this system there is persuasion rather than compulsion or deliberate enforcement of orders. Here the consumers are free to consume whatsoever they like, producers are free to produce whatsoever they wish. But such freedom of consumption and production are subject to certain controls and regulations.
Theconsumers, producers and other factors of production are induced with the help of variousfiscal and monetary devices. For example, if the planning authority wishes to boost the production of corn oil in Pakistan it will provide subsidies, tax holidays and loans to thefirms involved in production of corn oil. To encourage savings and investment anddiscourage consumption a suitable package of fiscal and monetary policies can beintroduced in the market. Therefore, the desirable results can be attained with the help of incentives and without the imposition of orders and instructions.
Moreover, in such planning there is less sacrifice and less loss of liberty – economic as well as non-economic. Merits of Planning by Inducements: (a) Consumers’ sovereignty remain intact. Planning by inducements is moredemocratic as compare to planning by directions. (b) There is a freedom of choice of profession . (c) In planning by inducements, there is freedom of enterprise . Produces are free to produce whatever they like but within in the capacity of given rights. (d) Planning by inducements is smooth and flexible . It is more popular because itenables to incorporate the changes in resources, technology and taste etc. venafter the finalisation and implementation of plan. (e) Under this sort of planning, the inertia attached with standardisation can be put toan end and producers are free to produce in accordance with the desire of consumers. Therefore, there is a variety of goods and services in the market. (f) There are less administrative costs involved in planning by inducements. (g) The problem of shortages and surpluses is solved as there is an existence of automated market system . The demand and supply is automatically adjusted andremain in balance under market economy.
The Term Paper on McDonald marketing planning
The complexity of marketing planning means that when organizations embark on it, they should expect to encounter a number of organizational, attitudinal, process and cognitive problems (McDonald 2002). This essay is an attempt to outline some of those problems, however it is beyond this essay to clarify all possible barriers in implementing a marketing plan. After the potential barriers are of ...
Demerits of Planning by Inducements: (a) It also fails to achieve 100% targets of economic planning. (b) Under planning by inducements, there are profit motives more than welfare of public. Private entrepreneurs care for those products which yield high profits. Products or services with less profit or no profit do not attract privateentrepreneurs. Such products or services include education, health, defence,security, etc. (c) The producers may find the government policies regarding economic affairs not attractive enough to follow . There may be disputes among entrepreneurs and thegovernment egarding tax rates, investment policies, interest rates, etc. Visit:http://maeconomics. webs. comfor free study-notes on Economics (d) The mechanism of market economy may cause the prices to inflate esp. withreference to under-developed countries or in case of oligopoly where there is ashortage of certain products like petroleum and gas. (e) There may be disharmony between labour and producer , and there may beserious industrial disputes. Planning by Directions This type of planning is practised in socialist countries like China, Former USSR, Cuba, North Korea, etc.
Under planning by direction, there is one central authority which plans,directs and orders the execution of the plan in accordance with the pre-determined targetsand priorities. It determines the production figures, delivery schedules, quotas regardingthe production of the goods, price controls, use of foreign exchange and allocation of resources like labour, etc. amongst different competing uses. Thus, such planning iscomprehensive and encompasses the whole economy. Planning by directions is similar tomilitary or defence plans which are carried through orders and instructions.
The Business plan on Strategic Planning Paper Plan Process Business
The history of strategic planning begins in the military. According to Webster's New World Dictionary, strategy is 'the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy' (Guralnic, 1986). Although our understanding of strategy and applying strategic planning in management has been ...
Thus thestrategy of planning through directions coincides with the military strategy. Alongwiththe disintegration of former Soviet Union, the methodology of planning by directions hasreceived certain serious setbacks. Now most of the UDCs are tend to adopt marketeconomic system. Demerits of Planning by Directions: Planning by direction is undemocratic since the people are ignored all along. (b) It is bureaucratic and totalitarian . Under bureaucratic system, the individual’ssovereignty is completely abolished. Corruption, red tapism, VIP system, tyrannyand austerity are the by products of bureaucracy. (c) Rationing and control result in lack marketing. (d) There are shortages of some goods and as well as surpluses of other goods.
Thatis, there is an imbalance in production output . (e) This sort of planning is inflexible . Once the plan is prepared, there is no room for alterations in later phases of planning. A part of the plan cannot be changedwithout simultaneous changes in many interconnected activities. Planning bydirection is so complex that it is impossible to change even a part of it as it willinvolve in altering the whole plan. (f) The fulfilment of plan cannot be guaranteed , as the planning by direction ishampered by black marketing and corruption. g) Planning by direction also leads to excessive standardisation which impinges onconsumer sovereignty. In other words, under planning by direction the goods produced are standardised lacking the variety. As in case of USSR, the producedTV, Fridges and Automobiles were identical having no differentiation. (h) It also involves huge administrative costs , as the planning by direction involvesin elaborate census, numerous forms and army of clerks. Physical and Financial Planning Physical planning is concerned with physical allocation of resources on the one side,while with the product yields on the other side.
Its aim is to bring physical balance in between investment and output. Accordingly, investment coefficients are computed. Visit:http://maeconomics. webs. comfor free study-notes on EconomicsThese coefficients show how much amount of investment will be required for a givenamount of output. Moreover, in such planning it is also analysed that what will be thecomposition of investment to obtain an increase in output. As, how much iron, howmuch coal, oil and electricity will be required to produce some specific amount of steel.
The Term Paper on Growth Rate Indonesia Population Year
Indonesia is located across the equator and stretch from Sumatra in the west to Iranian Jaya in the east, or from Sabang to Merauke (Dari Sabang Ke Merauke). Its geographic coordinates are 5 00 S, 120 00 E. The total area is 1, 919, 440 sq km. But interestingly only 20% consists of land, the rest is water.The number of islands in the Indonesian archipelago is disputed, but a commonly cited figure ...
While making physical planning, an overall assessment is made regarding the realresources of the economy like raw material and manpower. In financial planning, equilibrium is established between demand and supply to avoidinflation and bring economic stability. The difference between physical planning andfinancial planning is that the physical planning tells us the size of investment in terms of real resources, whereas the financial planning tells us the size of investment in terms of money. In financial planning, the planner determines how much money will have to beinvested in order to achieve the pre-determined objectives.
Total outlay is fixed in termsof money on the basis of growth rate to be achieved, the various targets of production,estimates of the required quantity of consumer goods and the various social services,expenditure on the necessary infra structure, etc. as well as revenue from taxations, borrowings and savings. Centralised Planning and Decentralised Planning Under centralised planning, all the economic decisions are taken by the central authorityor the government. It is the government which formulates economic plans, determinesobjectives, sets targets and priorities.
Every member has simply to carry out theinstructions without questioning about its viability. There are more chances of failure asthe individuals are not allowed to carryout the plans in accordance to their needs and preferences. It is the government who takes responsibility of the success or failure of the plan. It is the government who takes all the decisions of consumption, production, wagesand prices. What amount of investment is to be made? , What should be the price? , Whatshould be the output? , How the products are to be distributed? , How much amount of loans is to be granted? What should be the rate of interest? , etc. Centralised planning ismostly executed in socialist or communist countries. Decentralised planning is connected with the capitalistic economies. The decentralised planning is implemented through market mechanism. Decentralised planning empowersthe individuals or small groups to carryout their plans for achievement of a common goal. Under decentralised planning, the operation is from bottom to top. The planningauthority formulates the plan by having made consultation with different administrativeunits of the economy.
The Term Paper on What Role Does Community Planning Have In Economic Development
DBP 411 - Community Planning Assignment 2 Community Planning Practice Paper What role does Community Planning have in Local Economic Development? Lecturers: Fiona Cani glia & Stuart McLaughlin Student: Andreas FaludiStudent ID: 02534955 Due Date: 4 June 2004"Planning ahead is a measure of class. The rich and even the middle class plan for generations, but the poor can plan ahead only a few ...
The plans regarding different industries are designed by therepresentatives of these industries. In such type of planning, the planning authority issuesthe instructions to central and local bodies regarding incentives given over to privatesectors. Structural and Functional Planning The planning which is aimed at bringing changes in socioeconomic set-up of a country istermed as structural planning. This type of planning is attributed to the planning whichwas made in USSR in 1929 when the existing land-lord-system was abolished, collectivefarming was introduced, trade, industries and transport system was nationalised. essential objectives of economic planning in India ANNIE BISWAS Planning without an objective is like driving without any destination. There are generally two sets of objectives for planning, namely the short-term objectives and the long-term objectives. While the short-term objectives vary from plan to plan, depending on the immediate problems faced by the economy, the process of planning is inspired by certain long term objectives. In case of our Five Year plans, the long-term objectives are: (i) A high rate of growth with a view to improvement in standard of living. ii) Economic self-reliance; (iii) Social justice and (iv) Modernization of the economy (v) Economic stability (i) High Rate of Growth All the Indian Five Year Plans have given primary importance to higher growth of real national income. During the British rule, Indian economy was stagnant and the people were living in a state of abject poverty. The Britishers exploited the economy both through foreign trade and colonial administration. While the European industries flourished, the Indian economy was caught in a vicious circle of poverty.
The Business plan on Strategic Plan Part III: Financial Planning
Financial planning according to business dictionary is the “Long-term profit planning aimed at generating greater return on assets, growth in market share, and at solving foreseeable problems” (Businessdictionary.com, 2015, p. 1). Organizations that are in the process of preparing strategies for the firm must prepare a financial plan detailing the budget necessary to achieve the strategies. In ...
The pervasive poverty and misery were the most important problem that has to be tackled through Five Year Plan. During the first three decades of planning, the rate of economic growth was not so encouraging in our economy Till 1980, the average annual growth rate of Gross Domestic Product was 3. 73 percent against the average annual growth rate of population at 2. 5 percent. Hence the per-capita income grew only around 1 percent. But from the 6th plan onwards, there has been considerable change in the Indian economy. In the Sixth, Seventh and Eight plan the growth rate was 5. 4 percent, 5. 8 percent and 6. percent respectively. The Ninth Plan, started in 1997 targeted a growth rate of 6. 5 percent per annum and the actual growth rate was 6. 8 percent in 1998 – 99 and 6. 4 percent in 1999 – 2000. This high rate of growth is considered a significant achievement of the Indian planning against the concept of a Hindu rate of growth. (ii) Economic Self Reliance Self reliance means to stand on one’s own legs. In the Indian context, it implies that dependence on foreign aid should be as minimum as possible. At the beginning of planning, we had to import food grains from USA to meet our domestic demand.
Similarly, for accelerating the process of industrialization, we had to import, capital goods in the form of heavy machinery and technical know-how. For improving infrastructure facilities like roads, railways, power, we had to depend on foreign aid to raise the rate of our investment. As excessive dependence on foreign sector may lead to economic colonialism, the planners rightly mentioned the objective of self-reliance from the third Plan onwards. In the Fourth Plan much emphasis was given to self-reliance, more specially in the production of food grains.
In the Fifth Plan, our objective was to earn sufficient foreign exchange through export promotion and important substitution. By the end of the fifth plan, Indian became self-sufficient in food-grain production. In 1999-2000, our food grain production reached a record of 205. 91 million tons. Further, in the field of industrialization, now we have strong capital industries based on infrastructure. In case of science and technology, our achievements are no less remarkable. The proportion of foreign aid in our plan outlays have declined from 28. 1 percent in the Second Plan to 5. percent in the Eighth Plan. However, in spite of all these achievements, we have to remember that hike in price of petroleum products in the inter national market has made self-reliance a distant possibility in the near future. (iii) Social Justice: Social justice means to equitably distribute the wealth and income of the country among different sections of the society. In India, we find that a large number of people are poor; while few lead a luxurious life. Therefore, another objective of development is to ensure social justice and to take care of the poor and weaker sections of the society.
The Essay on India, China Economic Growth
India with about 1. 2 million populations and china with about 1. 3 billon population are two big demographic and emerging countries in the world . Over a past few decade India’s combination into the economic has been accompanied by remarkable economic growth (World Bank 2011¬). India is having the 3th position on the economy in purchasing power parity (PPP) terms (The Economic Times, 2012). ...
The Five-Year Plans have highlighted four aspects of social justice. They are: (i) Application of democratic principles in the political structure of the country; (ii) Establishment of social and economic equity and removal of regional disparity; (iii) Putting an end to the process of centralization of economic power; and (iv) Efforts to raise the condition of backward and depressed classes. Thus the Five Year Plans have targeted to uplift the economic condition of socio-economically weaker sections like scheduled caste and tribes through a number of target oriented programmes.
In order to reduce the inequality in the distribution of landed assets, land reforms have been adopted. Further, to reduce regional inequality specific programmes have been adopted for the backward areas of the country. In spite of various efforts undertaken by the authorities, the problem of inequality remains as great as ever. According to World Development Report (1994) in India the top 20 percent of household enjoy 39. 3 percent of the national income while the lowest 20 percent enjoy only 9. 2 percent of it.
Similarly, another study points out that the lowest 40 percent of rural household own only 1. 58 percent of total landed asset while the top 5. 44 percent own around 40 percent of land. Thus the progress in the field of attaining social justice has been slow and not satisfactory. (iv) Modernization of the Economy: Before independence, our economy was backward and feudal in character. After attainment of independence, the planners and policy makers tried to modernize the economy by changing the structural and institutional set up of the country.
Modernization aims at improving the standard of living of the people by adopting a better scientific technique of production, by replacing the traditional backward ideas by logical reasoning’s and bringing about changes in the rural structure and institutions. These changes aim at increasing the share of industrial output in the national income, upgrading the quality of products and diversifying the Indian industries. Further, it also includes expansion of banking and non-banking financial institutions to agriculture and industry. It envisages modernization of agriculture including land reforms. v) Economic Stability: Economic stability means to control inflation and unemployment. After the Second Plan, the price level started increasing for a long period of time. Therefore, the planners have tried to stabilize the economy by properly controlling the rising trend of the price level. However, the progress in this direction has been far from satisfactory. Thus the broad objective of Indian plans has been a non-inflationary self-reliant growth with social justice. KN Raj shaped India’s economic planning process KN Raj shaped India’s economic planning process
PTI, Sanjiv Shankaran and Asit Ranjan Mishra First Published: Thu, Feb 11 2010. 12 40 AM IST ————————————————- ALSO READ * GMR, GVK protest ministry move to expand Etihad access into India * Politics to dominate economics * Why India should not further delay a credit line from IMF * Photo Essay | Cross-country * India set to start round of flying rights talks, starting with Singapore Key rolein Kerala: K. N. Raj Updated: Thu, Feb 11 2010. 12 40 AM IST KN Raj: 1924-2010 Thiruvananthapuram/New delhi: Economist K. N.
Raj, who made a significant contribution to the preparation of India’s First Plan (1951-56) and set the nation on the path of a planned economy, died in Thiruvananthapuram on Wednesday, his family members said. He was 86 years old. Key rolein Kerala: K. N. Raj Raj had been under treatment for age-related health problems for some time. He is survived by two sons. An alumnus of the London School of Economics, Raj served as economic adviser to prime ministers from Jawaharlal Nehru to P. V. Narasimha Rao. He contributed to the preparation of the First Plan when he was just 26 years old as an expert member in the Planning Commission. Raj was an outstanding economist,” said C. Rangarajan, chairman of the Prime Minister’s economic advisory council and former governor of the Reserve Bank of India (RBI).
“His contribution in the area of developmental economics will always be remembered. He started with monetary economics and later on got interested in every aspect of economics. The country has lost one of its foremost economists in recent times. ” A distinguished academician, Raj also headed the economics department of Delhi University and later served as its vice-chancellor from October 1969 to December 1970.
Raj was one of those instrumental in setting up the prestigious Delhi School of Economics and taught there around the same time as Prime Minister Manmohan Singh and Nobel Prize-winning economist Amartya Sen. In a condolence message, Singh described Raj as a “very close friend and a great economist” and voiced “great sorrow and a profound sense of personal loss” at his passing. “He contributed to the reputation that the Delhi School of Economics enjoys today,” said Suresh Tendulkar, a former chairman of the Prime Minister’s economic advisory council and the National Statistical Commission. In the 1960s, he was instrumental in bringing in economists like Sukhamoy Chakravarty, Amartya Sen and Jagdish Bhagwati to the Delhi School of Economics. His demise is a personal loss to people like me who personally knew him. ” In the 1970s, Raj returned to his home state Kerala and founded the Centre for Development Studies, an institution for applied economics and social science research whose early work gave shape to what later came to be known as the Kerala model of development, marked by high social sector spending that led to human development indices envied by other tates.
The author of several works, Raj delivered lectures in leading universities in India and abroad. He was awarded the Padma Vibhushan in 2000. Raj was looked up to as “an institution builder” by younger generations of economists, said Mintcolumnist Himanshu, a professor at the Jawaharlal Nehru University, who didn’t know Raj personally. Former RBI governor Bimal Jalan, who worked with Raj, described his death as a “great loss for the country and all the institutions he built”. The most striking thing about him, apart from the institutions building, was his tremendous sense of humour,” Jalan said. “It’s hard to believe how modest, kind and friendly he was. He must have nurtured so many of today’s economists. ” The Year Gone Past-2012 The year 2012 has been a roller coaster for Indian retail investors. The economy had been greatly influenced by the foreign issues such as Euro zone debt crisis, US economic slump, gulf’s domestic outrages and hounding Inflation.
The domestic issues such as low GDP growth, burning inflation, widening fiscal deficit burden, weaken the Rupee value and political policy paralysis too created havoc in the economy. However the last quarter of 2012 turned around dramatically and the Indian equity market bounced back steeply with the news flow of FDI in retail, insurance and aviation have been allowed, after lots of hue and cry. Indian financial market observed stagnancy in the beginning but shown some sign of revival along with reform taking the pace.
Adhaar based subsidy credit, price hike in diesel, subsidy lift in LPG gas cylinder and opening up the pension sector to foreign investment were other major issues that boosted the market sentiment. The year 2012 had been a period of economic toughness. Economic Outlook-2013 In 2013, it is expected that the reform process will continue till the mid of the year until central government enters into election mode and falls back to popular steps rather than reform centric decisions. The first quarter of 2013 is expected to build around pre and post budget effects.
The other major economies in the world are tightening its tax policy and trying to bring in more regulatory bodies for better control over the market. India has already adopted the regulatory system for various sectors but tax reform is still on the card. It is expected that government would tighten tax enforcement along with other reforms for overcoming fiscal deficit burden. The real estate, automotive sector and other major industries had been eagerly waiting for interest rate cut in 2012 and it is expected that rate would start easing in the starting of 2013 itself.
The key rate cuts would also help retail investors to plan for a new home, buy cars on easy loans and take other banking facilities at lower cost. With declining interest rate, investment products is expected to change the side of debt instruments to equities, real estate and gold related products, at around mid of 2013. Gold has already taken a huge leap in the last few years to surpass other investment assets in popularity. The outlook for gold is still remaining to be positive for long term with uncertainty and risk continued to stay in the global market.
However, gold price is expected to stay range bound in the short term, if the Rupee value appreciates significantly along with industrial growth and global market revival. The retail investors are expected to experience economic resilience in 2013. The various effects on Investors and Industries as expected in 2013 due to various economic actions are as follows: Economic Activities/ Financial Market| Expected Action and Effects-2013| Inflation control| An inflation level below 7% would relieve retail investors.
It is expected to remain around 7% in first half of the year| Industrial growth rate| It would help in taming inflation and create more jobs. | Reform Centric Budget| It would improve overall market sentiment and help in cutting fiscal deficit| Interest rate cuts| Good for Real estate sector, home buyers and it will boost growth| Tax Reform| Stringent Tax reform at par with global standards is expected. It would directly or indirectly put pressure on the retail investor’s pocket. | Subsidy rolls back| Subsidies in all fronts are expected to be reduced. It would help reduce fiscal deficit. Energy prices| Prices of diesel and coal is expected to rise, hence power tariff will also go up. It would put heavy pressure on the investor’s pocket. | Political Stability| Last year of the government’s term is expected to be stable and positive for investors. | Global Financial Risk| India’s protective cover is already blown in previous slowdown. Any kind of global financial breakdown would certainly affect Indian economy and revival would depend on the intensity of damage. | Debt Market| Attractive in early 2013 up till interest rate cut is announced by RBI. Equity Market| Attractive with lots of reform on the card, expected interest rate cut and improving the industrial growth rate| Real Estate| Very attractive for new home buyers with interest rates expected to fall| Gold Investment| Gold is expected to remain range bound till risk is subdued in the domestic and global market| Conclusion The 2013 is expected to be a year of growth, tough decisions and financial resurrection. The subsidy rollback, energy price hike and tax reform could worry an investor/households but it would help the economy to frame a robust system for the long-term.
The expected interest rate cuts, industrial growth and revival of the Indian financial market would boost the Indian economy to the GDP growth around 6-7% in 2013. The 2012 has gone past along with so called doomsday 21st Dec 12, what’s next is a hope of revival, growth and acceleration towards the financial paramount in the year 2013. What are the Achievements of India’s Five Year Plans? KARUNA What are the Achievements of India’s Five Year Plans? The main achievements of Indian Plans are as under: 1. Increase in National Income: During planning period national income has increased manifold.
The average annual increase in national income was registered to be 1. 2 percent from 1901 to 1947. This increase was recorded to be 3 percent in two decades i. e. 1950-70. Moreover, average annual growth rate of national income was 4 per cent in 1970-80 which, further, increased to 5 percent in 1980-90. From 1980-81 to 2000-01, it increased to 5. 8 per cent. Thus, a rise in national income has been key indicator for economic development of India. 2. Increase in Per Capita Income: Before independence, increase in per capita income was almost zero.
But after the adoption of economic planning in free India, per capita income has continuously been increased. In the first plan, it raised . by 1. 8 per cent and in Second Plan, it was 2. 0 per cent. During Third Plan, it declined to (-) 6. 8 per cent. In Three annual plans, growth of per capita income was registered at 1. 5 per cent. In Fourth Plan, it came down to 1. 0 per cent. In Fifth Plan, it was 2. 7 per cent. During Sixth and Seventh Plan, it was 3. 2 per cent and 3. 6 per cent respectively. In Eighth Plan, it rose to 4. 6 per cent. In 2000-01, its rise was registered at 4. at 1993-94 prices. 3. Development in Agriculture: Agricultural productivity has also marked an upward trend during the plan period. The production of food grains which has 510 lakh tonnes in 1950-51 increased to 1804 lakh tonnes in 1990-91 and further to 212. 0 million tonnes in 2000-01. Similarly, the production of cotton which was 21 lakh bales in 1950-51 was expected to be 10. 1 million bales in 2000-01. In the same period, the production of sugarcane was expected to be 300. 1 lakh tonnes in 2000-01 against the 69 lakh in 1950-51. Thus, agriculture production during planning period has increased.
During the entire planning period, growth rate of agricultural production remained 2. 8 per cent per annum. However, use of chemical fertilizer, better seeds, irrigation and improved methods of cultivation has increased productivity per hectare and per worker many times. This development has laid the foundation of green revolution and other institutional changes in agriculture sector. 4. Development of Industry: In the first five year plan much of the capital was invested to develop the industry and defense. About fifty percent of the total outlay of the plan was invested for their development.
As a result, industrial production increased to a great extent. For instance, the production of cotton cloth which was 4210 million sq. meters in 1950-51 increased to 18989 million sq. metres in 1999-2000. The production of finished steel increased to 31. 1 million tones in 2001-02 from 10 lakh tonnes in 1950-51. In the same fashion, the production of coal was recorded to be 3226 million tonnes in 2001-02 against the 323 million tonnes in 1950-51. 5. Development of Transport and Communication: During the planning period, much attention has been paid towards the development of transport and communication.
In the first two plans, more than one-fourth of the total outlay was invested on the development of transport and communication. In 1990-91, the total length of roads increased to 1024. 4 thousand kms from 157. 0 thousand km. However, further it increased to 1448. 6 thousand km in 1998-99. In order to encourage trade goods rail was developed. 6. Self Reliance: During the last four decades, considerable progress seems to have been made towards the achievement of self reliance. We are no longer dependent on other countries for the supply of food grains and a number of agricultural crops.
In the same fashion, we have made substantial investment in basic and heavy industries. We are in a position to produce all varieties of basic consumer goods. 7. Employment: During the planning period, many steps have been taken to increase the employment opportunities in the country. In the first five year plan employment opportunities to 70 lakh people were provided. In the fourth and fifth plans about 370 lakh persons got employment. In the seventh five year plan, provisions have been made to provide employment to 340 lakh people. 8. Development of Science and Technology:
In the era of planning, India has made much progress in the field of science and technology. In reality, the development is so fast that India stands third in the world in the sphere of science and technology. Indian engineers and scientists are in a position that they can independently establish any industrial venture. 9. Capital Formation: In India due to the development of agriculture, industry and defense, the rate of capital formation has also increased. In 1950-51, the rate of capital formation was 11. 5 percent. The rate of capital formation during Second, Third and Fourth plan was 12. 7 per cent, 13. 5 per cent and 14. per cent respectively. It was 24. 1 per cent in seventh plan and 26 per cent in Eighth plan and 24 percent in Ninth Flan. 10. Social Services: Social services, like, education, health and medical facilities, I family planning and the like have also expanded considerably. As a result of these services: (i) Death rate reduced from 27 per thousand in 1951 to 8 per thousand in 2000-01. (ii) Average life-expectancy increased from 32 years in 1951 to 638 in 2000-01. (iii) Several deadly diseases like malaria etc. have been eradicated, (iv) The number of school going students has increased three-fold and that of collegiate five-fold since 1951.
The number of annual admissions to degree courses in Engineering Colleges increased from 7100 in 1950 to 1, 33,000 and the number of universities increased from 27 to 254 by now. (v) A chain of National Laboratories and Research Centers has been set up across the country. (vi) Number of hospital-beds, doctors, nurses, medicines and family planning clinics and medical facilities has greatly increased. Number of hospitals and dispensaries has increased to 68396. Now there is one doctor per 5. 2 per ten thousand. First Five Year Development Plan (1961-1966)
The first 5 Year Plan set Bhutan on the way to planned national development. With an approved outlay of 1747 lakhs of rupees the plan aimed at creating in the country Basic infrastructural facilities like roads, power, communication system, transport , agriculture and animal husbandry. It provided for the development of various project viz. , (1) Roads – 620 lakhs, (2) Education – 100 lakhs (3) Transport – 75 lakhs, (4) Health – 32 lakhs, (5) Forests – 32 lakhs, (6) Agriculture – 20 lakhs, (7) Power – 16 lakhs, (8) Animal Husbandry – 15 Lakhs, (9) Industries – 11 lakhs and (10) Miscellaneous – 91 Lakhs.
The main achievements of the First Five Years Plan can now be described as under: (1) 1770kms of roads were constructed including the 208 kms highway which connected Phuntsholing on the Indian borders with Paro and Thimphu. Other roads constructed were from Paro to Haa, from Tashigang to Darrang , and from Sarbang and Gelegphu to Charing and Trongsa. (2)Improvements were effected in the road transport systems, and communication facilities on the modern lines were begun in the country. (3)In the field of education, considerable progress was made.
By 1966 there were 108 schools in Bhutan, including 2 public schools with a total enrolment of 15000 students. (4)A Public Health Department under a chief medical officer was set up at Thimphu. Steps were taken to eradicate malaria. 3 hospitals and 40 new dispensaries were established in different parts of country. (5)Department of Agriculture was established, which started a number of model agricultural farms, seeds multiplication farms, agricultural research station, and development of extension work. Efforts were made to increase the area under fruit and vegetable cultivation. 6)A department of Animal Husbandry was set up and many live stock and sheep breeding farms were established in different parts of the country. (7)The forest department of Bhutan initiated many measures for conserving the forest wealth and the exploitation of the forest products. (8)Steps were taken in concert with Geological Survey of India to discover deposits of coal, dolomite, graphite, gypsum and lime stone. (9)The Production capacities of the fruits preserving plants at Samtse and also a distillery there were increased , and theirs sale and marketing was organised in the country and India.
Trade relations with India were improved. (10) The Bhutan Government established a hydel directorate and two 400 KW Hydel Projects were constructed to served the needs of Thimphu and Paro. By an agreement with India, and Bhutan received 250 KW of power daily from the 2 Jaldhaka river hydroelectric project for its south western region. The achievements of the First Five Years Development Plan satisfied both Bhutan and India, an in order to accomplish a continued advance towards modernization and economic development of the country the second Five Year Plan was launched in 1966
