Paradigm Shifts and the need for

Planning

Dr. K. Narayanan
Professor
Department of Humanities & Social Sciences, IIT Bombay
knn@iitb.ac.in
 Why Paradigm Shift?
• Incremental changes versus paradigm shift

• Import Substitution to Export promotion

• Changing Structural Constraints

 Closed to Open economy
• Open economy macro economics – Structural
Adjustment Programme and globalisation

• Truncated opening up

• Regulating Capital inflow and outflows

 Why paradigm shift?
• Absence of long-term perspectives

• Dependence on foreign technology [inspite

of all efforts to build institutions]

• Attitude of Public and Private Sectors

 Need - Cont…
• Neglecting Employment generation
• Facilitating technical training and skill
development in rural areas
• Priority for education and health facilities
• Inability to use public-private partnership:
low quality and integrity of public services
and low levels of business ethics in
community [private] services.
• Joint effort by public and private sectors
require institutional arrangements – mixed
economy status alone will not do.

• Changing attitude and values, along with

demographic change [increasing youth
population], “modernisation” require fresh
thinking in public policy.
 Most recent approach
• Discard Planning Commission?

• Throwing baby with the bath water..

• Fresh thinking is good, but could improve

upon the institutions that have been created
for specific purpose.
 Role of Planning Commission
• Inter sectoral balance
• Long term vision
• Inter-state disbursal of public Investment
• Think tank on leading issues
 Role – cont…..

The rationale has not disappeared, however

calls for fresh approach.

Planning needed for achieving sustainable

development and mainstreaming adaptation to
climate change.