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Jul 21, 2015

[CA/GK/Polity] NITI Aayog

NITI Aayog 

Planning Commission in India – a timeline:

1934
Visvesvaraya plan in the book “The Planned Economy of India”.
1938
Nehru’s Congress Plan. But not implemented due to World War II
1944
Bombay Plan by noted industrialists such as JRD Tata, GD Birla, etc
Sriman Narayan Agarwal’s Gandhian Plan
1945
MN Roy’s “People’s Plan” – with socialist leanings
1950
Vinoba Bhave’s Sarvodaya Plan
Mar 15, 1950
Cabinet resolution to form Planning Commission
Aug 1952
National Development Council (NDC) made by Cabinet Resolution
Aug 2014
Modi shuts down Planning Commission
Jan 2015
Govt notified the formation of NITI Aayog (National Institute for Transforming India)

Five Year Plans in India:

Plan
Period
Theme / Model / Target
I
1951-56
Harrod Donar Model
Focus: Agriculture, Irrigation & Power
II
1956-61
P C Mahalanobs Model
Socialist model, Rapid industrialization, Heavy industries
III
1961-66
Gadgil Yojana
Holiday
1966-69

IV
1969-74
Garibi Hatao
V
1974-79
Focus on poverty removal and self-reliance
Rolling Plan
1978-80

VI
1980-85
Poverty removal, IRDP, TRYSEM, etc
VII
1985-89
Focus on employment
2 Annual Plans
1989-91

VIII
1992-97
John W Miller model
IX
1997-02
Growth with social justice and equity
X
2002-07

XI
2007-12
Theme: Inclusive growth
XII
2012-17
Theme: Faster, More Inclusive and Sustainable Growth

  • 1950: Planning commission was established
  • May 29, 2014: The first IEO(Independent Evaluation Office ) assessment report was submitted to Prime Minister Modi on May 29, three days after he was sworn in. According to Ajay Chibber, who heads the IEO, views in the report are based on the views of stakeholders and some Planning Commission members themselves. Planning Commission to be replaced by "control commission"
  • August 13, 2014: Cabinet of Modi govt. scrapped the Planning Commission
  • August 15, 2014: Modi mentioned to replace Planning Commission by National Development and Reform Commission (NDRC) on the line of China
  • January 01, 2015: NITI Aayog came into existence



NITI Aayog – structure:


Planning Commission Vs NITI Aayog:

Position
Planning Commission
NITI Aayog
Born
March 15, 1950
Jan 01, 2015
Death
Aug 15, 2014
---
Chairman
Prime Minister
Prime Minister
Vice Chairman
Last: Montek Singh Ahluwalia as Vice-Chairman (Cabinet Minister Rank)
Free market economist Arvind Panagriya. He was the Chief economist of Asian Development bank, and the brain behind Rajasthan’s land-labour reform.
CEO
Member – Secretary (IAS)
Sindhushree Khullar (IAS)
A secretary level bureaucrat with fixed tenure.
Same Ms. Sindhushree Khullar is the first CEO.
Ex-Officio Members
Finance Minister
Planning Minister
PM can nominate four Union Ministers. Modi has nominated following:
Home
Finance
Railway
Agriculture
Full time Members
4-7 full time members, who enjoys “Ministers of State Rank”
Bibek debroy (Free Market Economist)
V K Saraswat (technocrat, Ex-DRDO Chief)
Ramesh Chand (Agriculture expert)
Special Invitees
----
Union Minister for
HRD,  Transport and Social Justice “+”
PM can invite other experts as and when needed
Part time Members
-----
Tech experts from research institutes. Rotational Posts.
(1) Alok Kumar (2) Jitendra Kumar
Governing Council
-----
Chairman: PM
Chief Ministers of all States
Lieutenant Governors of all UTs
Ad-hoc regional councils
-----
Will have CMs of states that fall in the region. They’ll be dealing with specific issue concerning a group of states for example irrigation, naxal-problem, infrastructure etc.

NITI Aayog: functions, Mandates
:
  
·        Think tank for Government policy formulation.
·        Find best practices from other countries, partner with other desi-videsi bodies to help their adoption in India.
·        Cooperative Federalism: Involve state governments and even villages in planning process.
·        Sustainable development: + Modi’s Zero defect-zero effect (on environment) manufacturing mantra.
·        Urban Development: to ensure cities can remain habitable and provide economic venues to everyone.
·        Participatory Development: with help of private sector and citizens.
·        Inclusive Development or Antyodaya. Ensure SC, ST and Women too enjoy the fruits of Development.  (because Din Dayal said so.)
·        Poverty elimination to ensure dignity and self-respect. (because Poet Tiruvalluvar said so)
·        Focus on 5 crore Small enterprises- to generate more employment for weaker sections.
·        Monitoring and feedback. Midway course correction, if needed.
·        Make policies to reap demographic dividend and social capital.
·        Regional Councils will address specific “issues” for a group of states. Example: Regional Council for drought, Left-wing extremism, Tribal welfare and so on.
·        Extract maximum benefit from NRI’s geo-economic and Geo-political strength for India’s Development.
·        Use Social media and ICT tools to ensure transparency, accountability and good governance.
·        Help sorting inter-departmental conflicts.
·        Lot of ideas about national self-interest, capacity-building, participating in ‘global-village’ etc.

Functional Comparison of Planning Commission and NITI Aayog:


Planning Commission
NITI Aayog
Design FYP-Five year plans        
Design national agenda, and cooperative federalism.
Decide two “money” matters:
àHow much money to give to each state for centrally sponsored schemes (CSS)
àHow much money to give for each state’s own state-five-year-plans.
Mostly work as a “policy-formulation-hub”. The Press release is ‘silent’ on money/funding. So, most probably it’ll be left to finance ministry.
Some experts believe Inter-state council will decide money allocation to states, then finance ministry will release the fund.
States/UT were represented in National Development Council.
PC framed FYP => went to Cabinet => NDC approved FYP => Tabled in parliament.
States/UT represented in Governing council. But no specific mention about whether they can approve/reject/amend Niti Ayog’s proposals?
One size fits all, top-down socialist planning by Armchair Nehruvian economists and IES cadre officers (Indian Economic Service).
Press release talks about participatory planning but how exactly will they do that? No specific details laid out.
IES officers are rarely invited in Modi’s meetings.
But given the entry of Free market economists and Technocrats, most probably it’ll be an ‘indicative planning + core planning’ i.e. after inputs of state governments, a broad outline with selected targets, limited subsidies and monitoring through ICT.

Sub groups of Chief Ministers in NITI Aayog:
            Prime Minister, has announced that the NITI Aayog would constitute three sub groups: of Chief Ministers on the following themes:
• Sub-group to study the 66 Centrally Sponsored Schemes and recommend which to continue, which to transfer to states, and which to cut down.
• Sub-group to recommend how NITI Aayog can promote skill development and creation of skilled manpower within states.
• Sub-group to decide on institutional mechanisms to be evolved, and technological inputs, for ensuring that commitment to Swachh Bharat becomes a part of our life in perpetuity.

Sub Group on Swachch Bharat
Convener
Chief Minister, Andhra Pradesh



Member(s):
Chief Minister, Karnataka
Chief Minister, Bihar
Chief Minister, Haryana
Chief Minister, Maharashtra
Chief Minister, Mizoram
Chief Minister, Sikkim
Chief Minister, West Bengal
Chief Minister, Uttarakhand
Chief Minister, Delhi
Coordinator
CEO, NITI Aayog


Sub Group on Skill Development
Convener
Chief Minister, Punjab






Member(s):
Chief Minister, Tamil Nadu
Chief Minister, Asom
Chief Minister, Chhattisgarh
Chief Minister, Goa
Chief Minister, Gujarat
Chief Minister, Himachal Pradesh
Chief Minister, Meghalaya
Chief Minister, Odisha
Chief Minister, Puducherry
Chief Minister, Tripura
Coordinator
CEO, NITI Aayog













Sub Group on Centrally Sponsored Schemes
Convener
Chief Minister, Madhya Pradesh







Member(s):
Chief Minister, Kerala
Chief Minister, Arunachal Pradesh
Chief Minister, Jammu & Kashmir
Chief Minister, Jharkhand
Chief Minister, Manipur
Chief Minister, Nagaland
Chief Minister, Rajasthan
Chief Minister, Telangana
Chief Minister, Uttar Pradesh
Lt. Governor, Andaman & Nicobar Is
Coordinator
CEO, NITI Aayog


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