Ramesh Singh Test: Economic Planning - UPSC MCQ

Sectoral and Spatial View in planning emphasizes the distribution of people and activities within a geographic area to influence spatial development patterns. This aspect of planning is crucial in considering the spatial organization of resources, infrastructure, and communities within a given region, impacting how land is used, cities are planned, and resources are allocated to promote sustainable development and efficient spatial utilization.

- Statement 1 is correct: H.D. Dickinson defines economic planning as involving major economic decisions like what and how much to produce, and to whom it should be allocated, by a specific authority based on a thorough understanding of the entire economic system.

- Statement 2 is incorrect: The Planning Commission of India was established in the early 1950s, not the early 1940s.

- Statement 3 is correct: Comprehensive plans in economic planning indeed cover all major aspects of the economy.

Therefore, the correct answer is Option C.

Statement-I highlights the essence of economic planning, emphasizing major economic decisions and resource allocation under a specific authority. Statement-II delves into the technical process of planning, especially within a democratic framework, covering various sectors and aligning with social objectives. Both statements individually provide valid perspectives on economic planning, but they address different aspects of the process without one directly explaining the other. Hence, the correct answer is option (b).

1. Regional Planning: Correctly matched. Regional planning focuses on a specific area or region within a country.

2. Central Planning: Incorrectly matched. Central planning is directed by the national government, not state governments.

3. Normative Planning: Correctly matched. Normative planning considers societal values and norms.

4. Spatial Planning: Incorrectly matched. Spatial planning focuses on the distribution of people and activities within a geographic area, not specific sectors of the economy.

Thus, only pairs 1 and 3 are correctly matched.

Statement-I correctly describes the origins of Regional Planning with the establishment of the Tennessee Valley Authority in the 1930s in the United States. This agency focused on various aspects of regional development. Statement-II accurately captures the essence of Planning as an ongoing process that involves setting goals and objectives which can evolve over time to meet changing needs. While both statements are factually correct, Statement-II does not provide an explanation or further elaboration on Statement-I, hence the correct answer is option (b).

In Imperative Planning or Command Economy, the government exercises centralized control over all economic decisions, setting targets for growth and development quantitatively. On the other hand, Indicative Planning, used in mixed economies, allows for the influence of market forces in economic decision-making. This system sets targets with flexibility, adapting to market conditions. Statement-I correctly describes Imperative Planning, while Statement-II accurately characterizes Indicative Planning. Therefore, both statements are correct, and Statement-II explains the nature of Statement-I.

1. Optimum Utilization of Resources - Shifted focus towards sustainability in 1987: Correct. Initially focused on maximizing resource exploitation, the focus shifted towards sustainability in 1987 to minimize environmental damage and ensure resources for future generations.

2. Urban Planning - Involves organizing and developing cities and towns: Correct. Urban planning is indeed about organizing and developing cities and towns, including infrastructure and amenities like housing, transportation, parks, and public services.

3. Regional Planning - Began in the United States with the establishment of the Tennessee Valley Authority (TVA) in the 1930s: Correct. The TVA, established in the 1930s, focused on regional development, including industrialization, conservation, and infrastructure projects like dams and electricity generation.

4. Family Planning - First initiated by China in the 1950s: Incorrect. Family planning efforts have been undertaken by various countries at different times. China's significant family planning policies, such as the one-child policy, started later, around 1979. Other nations had family planning initiatives before this time.

Thus, only three pairs are correctly matched.

Urban planning primarily revolves around organizing and developing cities and towns to ensure they have the necessary infrastructure and amenities for residents. This process involves making decisions regarding housing, transportation, parks, and public services to enhance the quality of urban life and promote sustainable development.

1. Imperative planning involves centralized control by the government with no private participation.

This statement is correct. Imperative planning, also known as command economy, is characterized by the government's centralized control over all economic decisions. The state dominates the economy with no private sector involvement, setting quantitative targets for growth and development.

2. Indicative planning is used in mixed economies where both the government and market play roles.

This statement is correct. Indicative planning is prevalent in mixed economies where economic decisions are influenced by market forces rather than being directed solely by the government. It encourages private sector involvement while the government sets broad targets and policies with flexibility to adjust based on market conditions.

3. France adopted national planning strategies in the early 1940s, marking a shift towards a purely market-driven economy.

This statement is incorrect. While France did adopt national planning strategies in the early 1940s, these strategies showcased how even capitalist economies could embrace planning strategies, marking a shift towards mixed economies rather than a purely market-driven economy. The government played a significant role in economic planning alongside market forces.

Thus, the correct answer is Option B.

Statement 1 is correct. NITI Aayog indeed replaced the Planning Commission in January 2015, marking a significant shift in India's planning approach towards a more inclusive and holistic model.

Statement 2 is correct. The Atmanirbharta push focuses on local empowerment, aiming to reduce dependency on global supply chains. This initiative is guided by normative insights and aims to foster self-reliance in various sectors, including pharmaceuticals.

Statement 3 is incorrect. The Economic Survey 2010-11 emphasized the need for a normative approach to planning in India, which considers the customs, traditions, and ethos of the population for greater acceptability of government programs, rather than a centralized approach.

Thus, the correct answer is Option B: 1 and 2 Only.