People's Democracy

COMMENT

On Planning Commission Controversy

THE opposition of the Left parties to the inclusion of representatives of the World Bank and other multilateral agencies in the Planning Commission’s consultative bodies has been received well by the people. But it has met with uninformed and motivated criticism from sections of the media. At the outset it must be made clear that the Left is not opposed to foreign experts being consulted by the Commission. There is no xenophobia. In the past, the Commission has benefited from the advice of internationally renowned economists such as Nurkse, Lange and Kaldor. What is being objected to is the representation given to the World Bank and other foreign agencies in the formal mechanisms of the Commission. 

The Planning Commission is an institution of the Indian state. It is entrusted with the responsibility of finalising the five year plan which is approved by the National Development Council. It also plays a pivotal role in allocating resources to the states based on the plan outlays. As such it is an important instrument in economic policy making, planning and federal relations in the Indian state. Unlike many of its critics, the Left believes national sovereignty is a basic issue and is directly related to the nature of democracy. Economic policy is not something which can be divorced from politics. The suggestion that economic policies must be unchanging while government and ruling parties change is an undemocratic idea propagated by such agencies as the IMF and the World Bank.

The persons included in the consultative groups are still serving in the World Bank and other international/foreign agencies. As individuals, they may be highly competent and knowledgeable, but they are bound by the official position of their employing institutions. For instance one cannot conceive of a World Bank official giving advice which goes against the basic precepts of the bank.

The Commission has, in the past too, set up consultative bodies for the mid-term appraisal of the plan. The functions of these consultative groups are not just to air different views but they are more in the nature of committees whatever nomenclature is used. The Commission itself has spelt out the terms of reference of the groups.  They would “provide guidance in selection of the key issues and emerging problems” and  “review the draft material to be prepared by the Planning Commission on the subject and to give critical advice and directional inputs for further improvement”.  Further, the group will also have the powers to set up sub groups/steering committees of officials both from central and state governments as well as non officials to finalise its views on specific issues.”  Should these functions have the participation of the World Bank and similar agencies is the question. 

The Left and the CPI(M) in particular is being accused of adopting double standards.  In West Bengal and Tripura, the state governments run by the Left are taking loans or assistance from the World Bank, the ADB and other agencies for specific projects and programmes. The state governments hold consultations with personnel from these institutions for this purpose. But their representatives are not given any representation in the bodies/committees of the government including the state planning boards. It should not be difficult to understand the difference between what these state governments are doing and the steps taken by the Planning Commission. In West Bengal even while resorting to such finances from these agencies, the state government is mindful of questions of sovereignty and accepting conditionalities which can subvert the nature of the policies pursued by the state government.

Finally, it will be good if the verdict of the recent Lok Sabha elections are kept in mind.  It was a manifestation of popular disapproval of those very policies which were dictated by the World Bank and similar agencies. Andhra Pradesh being the best example.