Read the following passage and answer the questions below:
“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 ?

Solution

(a) The contradiction was between socialist model as existed in the USSR and liberal-capitalist model as existed in much of Europe and the US.

The contradiction like this led to differences among the policy makers about the process of development. Ultimately such differences led to the mixing of elements from both the models.

(b) The Congress was pursuing this policy because it was suitable for the development of the country. It was not related to the nature of the opposition parties.

(c) There was no contradiction between the central leadership of the Congress party and its State level leaders because it was the period of Congress dominance.

Some More Questions From Politics of Planned Development Chapter

What was the Green Revolution ? Mention two positive and two negative consequences of the Green Revolution.

State the main arguments in the debate that ensued between industrialisation and agricultural development at the time of the Second Five Year Plan.

“Indian policy makers made a mistake by emphasising the role of state in the economy. India could have developed much better if private sector was allowed a free play right from the beginning”. Give arguments for or against thisproposition.