Politics of Planned Development
Highlight the circumstances which gave birth to the idea of New International Economic Order (NIEO). Explain any two factors that weakened this initiative.
Circumstances for the birth to the idea of NIEO :-
(i) The challenge for most of the non-aligned countries — a majority of them were categorised as the Least Developed Countries (LDCs) — was to be more developed economically
(ii) The people of these countries were to be lifted out of the vicious circle of poverty.
(iii)Economic development was also vital for the independence of the new countries. Without sustained development, a country could not be truly free.
(iv)It would remain dependent on the richer countries including the colonial powers from which political freedom had been achieved.
Factors that weakened this initiative
i) Stiff opposition from the developed countries who acted as a united group
ii) The non-aligned countries struggled to maintain their unity in the face of this opposition.
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(a) the Bombay plan (c) experiences of the Soviet bloc countries
(b) Gandhian vision of society (d) Demand by peasant organisations
“In the early years of Independence, two contradictory tendencies were already well advanced inside the Congress party. On the one hand, the national party executive endorsed socialist principles of state ownership, regulat ion and control over key sectors of the economy in order to improve productivity and at the same time curb economic concentration. On the other hand, the national Congress government pursued liberal economic policies and incentives to private investment that was justified in terms of the sole criterion of achieving maximum increase in production. ” — Francine Frankel
(a) What is the contradiction that the author is talking about ? What would be the political implications of a contradiction like this ?
(b) If the author is correct, why is it that the Congress was pursuing this policy ? Was it related to the nature of the opposition parties ?
(c) Was there also a contradiction between the central leadership of the Congress party and its State level leaders ?
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