- Five-Year Plans for the National Economy of the Soviet Union
- Five-Year Plans of China
- Five-year plans of Ethiopia
- Five-year plans of India
- Five-year plans of Nepal
- Five-year plans of Pakistan
- Five-year plans of Romania
- Five-year plans of South Korea
- Five-year plans of Vietnam
- First Malayan Five Year Plan
Tuesday, November 23, 2010
Five-year plan
Five-year plans of Vietnam
The five-year plans of Vietnam or the Subsidy phase (Vietnamese: thời bao cấp) were a series of economic development initiatives. The Vietnamese economy was shaped primarily by the Vietnamese Communist Party through the plenary sessions of the Central Committee and national congresses. The party plays a leading role in establishing the foundations and principles of communism, mapping strategies for economic development, setting growth targets, and launching reforms.
Planning is a key characteristic of centralized, communist economies, and one plan established for the entire country normally contains detailed economic development guidelines for all its regions. According to Vietnamese economist Vo Nhan Tri, Vietnam's post-reunification economy was in a "period of transition to socialism." The process was described as consisting of three phases. The first phase, from 1976 through 1980, incorporated the Second Five-Year Plan (1976-80)--the First Five-Year Plan (1960-65) applied to North Vietnam only. The second phase, called "socialist industrialization," was divided into two stages: from 1981 through 1990 and from 1991 through 2005. The third phase, covering the years 2006 through 2010, was to be time allotted to "perfect" the transition.
The party's goal was to unify the economic system of the entire country under communism. Steps were taken to implement this goal at the long-delayed Fourth National Party Congress, convened in December 1976, when the party adopted the Second Five-Year Plan and defined both its "line of socialist revolution" and its "line of building a socialist economy." The next two congresses, held in March 1982 and December 1986, respectively, reiterated this long-term communist objective and approved the five-year plans designed to guide the development of the Vietnamese economy at each specific stage of the communist revolution.
Twenty years were allowed to construct the material and technical bases of communism. In the South, material construction and systemic transformation were to be combined in order to hasten economic integration with the North. It was considered critical for the VCP to improve and extend its involvement in economic affairs so that it could guide this process. Development plans were to focus equally on agriculture and industry, while initial investment was to favor projects that developed both sectors of the economy. Thus, for example, heavy industry was intended to serve agriculture on the premise that a rapid increase in agricultural production would in turn fund further industrial growth. With this strategy, Vietnamese leaders claimed that the country could bypass the capitalist industrialization stage necessary to prepare for communism.
Vietnam was incapable, however, of undertaking such an ambitious program on its own and solicited financial support for its Second Five-Year Plan from Western nations, international organizations, and communist allies. Although the amount of economic aid requested is not known, some idea of the assistance level envisioned by Hanoi can be obtained from available financial data. The Vietnamese government budget for 1976 amounted to US$2.5 billion, while investments amounting to US$7.5 billion were planned for the period between 1976 and 1980.
The economic aid tendered to Hanoi was substantial, but it still fell short of requirements. The Soviet Union, China, and Eastern Europe offered assistance that was probably worth US$3 billion to US$4 billion, and countries of the Western economic community pledged roughly US$1 billion to US$1.5 billion.
To address these problems, at its Fifth National Party Congress held in March 1982, the VCP approved resolutions on "orientations, tasks and objectives of economic and social development for 1981-85 and the 1980s." The resolutions established economic goals and in effect constituted Vietnam's Third Five-Year Plan (1981-85). Because of the failure of the Second Five-Year Plan, however, the Vietnamese leadership proceeded cautiously, presenting the plan one year at a time. The plan as a whole was neither drawn up in final form nor presented to the National Assembly of Vietnam for adoption.
The economic policies set forth in 1982 resulted from a compromise between ideological and pragmatic elements within the party leadership. The question of whether or not to preserve private capitalist activities in the South was addressed, as was the issue of the pace of the South's communist transformation. The policies arrived at called for the temporary retention of private capitalist activities in order to spur economic growth and the completion, more or less, of a communist transformation in the South by the mid-1980s.
The plan's highest priority, however, was to develop agriculture by integrating the collective and individual sectors into an overall system emphasizing intensive cultivation and crop specialization and by employing science and technology. Economic policy encouraged the development of the "family economy"; that is, the peasants' personal use of economic resources, including land, not being used by the cooperative. Through use of an end-product contract system introduced by the plan, peasant households were permitted to sign contracts with the collective to farm land owned by the collective. The households then assumed responsibility for production on the plots. If production fell short of assigned quotas, the households were to be required to make up the deficit the following year. If a surplus was produced, the households were to be allowed to keep it, sell it on the free market, or sell it to the state for a "negotiated price." In 1983 the family economy reportedly supplied 50 to 60 percent of the peasants' total income and 30 to 50 percent of their foodstuffs.
Free enterprise was sanctioned, thus bringing to an end the nationalization of small enterprises and reversing former policies that had sought the complete and immediate communization of the South. The new policy especially benefited peasants (including the overwhelming majority of peasants in the South) who had refused to join cooperatives, small producers, small traders, and family businesses.
The effort to reduce the capitalist sector in the South nevertheless continued. Late in 1983, a number of import-export firms that had been created in Ho Chi Minh City (formerly Saigon) to spur the development of the export market were integrated into a single enterprise regulated by the state. At the same time, the pace of collectivization in the countryside was accelerated under the plan. By the end of 1985, Hanoi reported that 72 percent of the total number of peasant households in the South were enrolled in some form of cooperative organization.
Despite the plan's emphasis on agricultural development, the industrial sector received a larger share of state investment during the first two years. In 1982, for example, the approximate proportion was 53 percent for industry compared with 18 percent for agriculture. Limiting state investment in agriculture, however, did not appear to affect total food production, which increased 19.5 percent from 1980 to 1984.
The plan also stressed the development of small-scale industry to meet Vietnam's material needs, create goods for export, and lay the foundation for the development of heavy industry. In the South, this entailed transforming some private enterprises into "state-private joint enterprises" and reorganizing some small-scale industries into cooperatives. In other cases, however, individual ownership was maintained. Investment in light industry actually decreased by 48 percent while investment in heavy industry increased by 17 percent during the first two years of the plan. Nonetheless, the increase in light-industry production outpaced that of heavy industry by 33 percent to 28 percent during the same two-year period.
The July 1984 Sixth Plenum (Fifth Congress) of the VCP Central Committee recognized that private sector domination of wholesale and retail trade in the South could not be eliminated until the state was capable of assuming responsibility for trade. Proposals therefore were made to decentralize planning procedures and improve the managerial skills of government and party officials.
These plans were subsequently advanced at the Central Committee's Eighth Plenum (Fifth Congress) in June 1985. Acting to disperse economic decision making, the plenum resolved to grant production autonomy at the factory and individual farm levels. The plenum also sought to reduce government expenditures by ending state subsidies on food and certain consumer goods for state employees. It further determined that all relevant costs to the national government needed to be accounted for in determining production costs and that the state should cease compensating for losses incurred by state enterprises. To implement these resolutions, monetary organizations were required to shift to modern economic accounting. The government created a new dong in September 1985, and set maximum quotas for the amount permitted to be exchanged in bank notes. The dong also was officially devalued.
Grain-production policy was accompanied by measures dealing with land use, water conservation, Mekong Delta irrigation works, Red River Delta dike consolidation, fertilizer imports, pest control, animal husbandry, tractor use, and seed production. The plan also stressed the cultivation and harvesting of marine products and the development of short-term industrial crops (crops that can be planted and harvested in a single growing season and that require some form of processing before being marketed, such as beans, peanuts, and oil-bearing crops) and long-term industrial crops (crops that also include a processing stage but that require a lengthy period of cultivation, such as coffee, tea, pepper, and coconuts). The government also identified forestry as an important sector of the economy to be developed.
Production of consumer goods was improved in order to meet the basic needs of the people, to balance goods and money, to create jobs, and to develop an important source of capital accumulation and export commodities. The volume of consumer goods produced was expected to increase by an average annual rate of 13 to 15 percent, compared with the 11.3 percent average annual increase recorded during the Third Five-Year Plan.
Adequate incentive policies for raw materials production were deemed critical to the development of high-quality consumer goods for internal consumption and export. Priority in using foreign exchange was to be given to importers of needed raw materials. The plan also sought to protect domestic production of consumer goods and to emphasize local production of goods over imports.
In order to obtain the foreign exchange needed to fulfill import requirements and to carry out trade agreements with other countries, the government scheduled a major increase--70 percent above the previous plan's target--in the volume of exports. Under the Fourth Five-Year Plan, particular emphasis was to be given principal products such as processed agricultural goods, light industry, handicraft goods, and fish products.
Planning is a key characteristic of centralized, communist economies, and one plan established for the entire country normally contains detailed economic development guidelines for all its regions. According to Vietnamese economist Vo Nhan Tri, Vietnam's post-reunification economy was in a "period of transition to socialism." The process was described as consisting of three phases. The first phase, from 1976 through 1980, incorporated the Second Five-Year Plan (1976-80)--the First Five-Year Plan (1960-65) applied to North Vietnam only. The second phase, called "socialist industrialization," was divided into two stages: from 1981 through 1990 and from 1991 through 2005. The third phase, covering the years 2006 through 2010, was to be time allotted to "perfect" the transition.
The party's goal was to unify the economic system of the entire country under communism. Steps were taken to implement this goal at the long-delayed Fourth National Party Congress, convened in December 1976, when the party adopted the Second Five-Year Plan and defined both its "line of socialist revolution" and its "line of building a socialist economy." The next two congresses, held in March 1982 and December 1986, respectively, reiterated this long-term communist objective and approved the five-year plans designed to guide the development of the Vietnamese economy at each specific stage of the communist revolution.
[edit] The Second Five-Year Plan (1976-80)
The optimism and impatience of Vietnam's leaders were evident in the Second Five-Year Plan. The plan set extraordinarily high goals for the average annual growth rates for industry (16 to 18 percent), agriculture (8 to 10 percent), and national income (13 to 14 percent). It also gave priority to reconstruction and new construction while attempting to develop agricultural resources, to integrate the North and the South, and to proceed with communization.Twenty years were allowed to construct the material and technical bases of communism. In the South, material construction and systemic transformation were to be combined in order to hasten economic integration with the North. It was considered critical for the VCP to improve and extend its involvement in economic affairs so that it could guide this process. Development plans were to focus equally on agriculture and industry, while initial investment was to favor projects that developed both sectors of the economy. Thus, for example, heavy industry was intended to serve agriculture on the premise that a rapid increase in agricultural production would in turn fund further industrial growth. With this strategy, Vietnamese leaders claimed that the country could bypass the capitalist industrialization stage necessary to prepare for communism.
Vietnam was incapable, however, of undertaking such an ambitious program on its own and solicited financial support for its Second Five-Year Plan from Western nations, international organizations, and communist allies. Although the amount of economic aid requested is not known, some idea of the assistance level envisioned by Hanoi can be obtained from available financial data. The Vietnamese government budget for 1976 amounted to US$2.5 billion, while investments amounting to US$7.5 billion were planned for the period between 1976 and 1980.
The economic aid tendered to Hanoi was substantial, but it still fell short of requirements. The Soviet Union, China, and Eastern Europe offered assistance that was probably worth US$3 billion to US$4 billion, and countries of the Western economic community pledged roughly US$1 billion to US$1.5 billion.
[edit] The Third Five Year Plan (1981-85)
By 1979 it was clear that the Second Five-Year Plan had failed to reduce the serious problems facing the newly unified economy. Vietnam's economy remained dominated by small-scale production, low labor productivity, unemployment, material and technological shortfalls, and insufficient food and consumer goods.To address these problems, at its Fifth National Party Congress held in March 1982, the VCP approved resolutions on "orientations, tasks and objectives of economic and social development for 1981-85 and the 1980s." The resolutions established economic goals and in effect constituted Vietnam's Third Five-Year Plan (1981-85). Because of the failure of the Second Five-Year Plan, however, the Vietnamese leadership proceeded cautiously, presenting the plan one year at a time. The plan as a whole was neither drawn up in final form nor presented to the National Assembly of Vietnam for adoption.
The economic policies set forth in 1982 resulted from a compromise between ideological and pragmatic elements within the party leadership. The question of whether or not to preserve private capitalist activities in the South was addressed, as was the issue of the pace of the South's communist transformation. The policies arrived at called for the temporary retention of private capitalist activities in order to spur economic growth and the completion, more or less, of a communist transformation in the South by the mid-1980s.
The plan's highest priority, however, was to develop agriculture by integrating the collective and individual sectors into an overall system emphasizing intensive cultivation and crop specialization and by employing science and technology. Economic policy encouraged the development of the "family economy"; that is, the peasants' personal use of economic resources, including land, not being used by the cooperative. Through use of an end-product contract system introduced by the plan, peasant households were permitted to sign contracts with the collective to farm land owned by the collective. The households then assumed responsibility for production on the plots. If production fell short of assigned quotas, the households were to be required to make up the deficit the following year. If a surplus was produced, the households were to be allowed to keep it, sell it on the free market, or sell it to the state for a "negotiated price." In 1983 the family economy reportedly supplied 50 to 60 percent of the peasants' total income and 30 to 50 percent of their foodstuffs.
Free enterprise was sanctioned, thus bringing to an end the nationalization of small enterprises and reversing former policies that had sought the complete and immediate communization of the South. The new policy especially benefited peasants (including the overwhelming majority of peasants in the South) who had refused to join cooperatives, small producers, small traders, and family businesses.
The effort to reduce the capitalist sector in the South nevertheless continued. Late in 1983, a number of import-export firms that had been created in Ho Chi Minh City (formerly Saigon) to spur the development of the export market were integrated into a single enterprise regulated by the state. At the same time, the pace of collectivization in the countryside was accelerated under the plan. By the end of 1985, Hanoi reported that 72 percent of the total number of peasant households in the South were enrolled in some form of cooperative organization.
Despite the plan's emphasis on agricultural development, the industrial sector received a larger share of state investment during the first two years. In 1982, for example, the approximate proportion was 53 percent for industry compared with 18 percent for agriculture. Limiting state investment in agriculture, however, did not appear to affect total food production, which increased 19.5 percent from 1980 to 1984.
The plan also stressed the development of small-scale industry to meet Vietnam's material needs, create goods for export, and lay the foundation for the development of heavy industry. In the South, this entailed transforming some private enterprises into "state-private joint enterprises" and reorganizing some small-scale industries into cooperatives. In other cases, however, individual ownership was maintained. Investment in light industry actually decreased by 48 percent while investment in heavy industry increased by 17 percent during the first two years of the plan. Nonetheless, the increase in light-industry production outpaced that of heavy industry by 33 percent to 28 percent during the same two-year period.
The July 1984 Sixth Plenum (Fifth Congress) of the VCP Central Committee recognized that private sector domination of wholesale and retail trade in the South could not be eliminated until the state was capable of assuming responsibility for trade. Proposals therefore were made to decentralize planning procedures and improve the managerial skills of government and party officials.
These plans were subsequently advanced at the Central Committee's Eighth Plenum (Fifth Congress) in June 1985. Acting to disperse economic decision making, the plenum resolved to grant production autonomy at the factory and individual farm levels. The plenum also sought to reduce government expenditures by ending state subsidies on food and certain consumer goods for state employees. It further determined that all relevant costs to the national government needed to be accounted for in determining production costs and that the state should cease compensating for losses incurred by state enterprises. To implement these resolutions, monetary organizations were required to shift to modern economic accounting. The government created a new dong in September 1985, and set maximum quotas for the amount permitted to be exchanged in bank notes. The dong also was officially devalued.
[edit] The Fourth Five-Year Plan (1986-90)
The central economic objectives of the Fourth Five-Year Plan were to increase production of food, consumer goods, and export goods. Increasing food production was of primary importance. Grain production was targeted to reach 22 to 23 million tons annually by 1990, and rice production was planned to total 19 to 20 million tons annually. Combined output for subsidiary crops was established at about 3 million tons annually. Planned annual per capita food production was set at 333 to 348 kilograms, and an effort was initiated to bring subsidiary food crops (corn, sweet potatoes, manioc, and white potatoes) into the people's diet.Grain-production policy was accompanied by measures dealing with land use, water conservation, Mekong Delta irrigation works, Red River Delta dike consolidation, fertilizer imports, pest control, animal husbandry, tractor use, and seed production. The plan also stressed the cultivation and harvesting of marine products and the development of short-term industrial crops (crops that can be planted and harvested in a single growing season and that require some form of processing before being marketed, such as beans, peanuts, and oil-bearing crops) and long-term industrial crops (crops that also include a processing stage but that require a lengthy period of cultivation, such as coffee, tea, pepper, and coconuts). The government also identified forestry as an important sector of the economy to be developed.
Production of consumer goods was improved in order to meet the basic needs of the people, to balance goods and money, to create jobs, and to develop an important source of capital accumulation and export commodities. The volume of consumer goods produced was expected to increase by an average annual rate of 13 to 15 percent, compared with the 11.3 percent average annual increase recorded during the Third Five-Year Plan.
Adequate incentive policies for raw materials production were deemed critical to the development of high-quality consumer goods for internal consumption and export. Priority in using foreign exchange was to be given to importers of needed raw materials. The plan also sought to protect domestic production of consumer goods and to emphasize local production of goods over imports.
In order to obtain the foreign exchange needed to fulfill import requirements and to carry out trade agreements with other countries, the government scheduled a major increase--70 percent above the previous plan's target--in the volume of exports. Under the Fourth Five-Year Plan, particular emphasis was to be given principal products such as processed agricultural goods, light industry, handicraft goods, and fish products.
[edit] The Fifth Five-Year Plan (1990-94)
[edit] The Sixth Five-Year Plan (1994-98)
[edit] The Seventh Five-Year Plan (1998-2002)
[edit] The Eight Five-Year Plan (2002-06)
[edit] The Ninth Five-Year Plan (2006-10)
Five-year plans of India
The economy of India is based in part on planning through its five-year plans, developed, executed and monitored by the Planning Commission. With the Prime Minister as the ex officio Chairman, the commission has a nominated Deputy Chairman, who has rank of a Cabinet minister. Montek Singh Ahluwalia is currently the Deputy Chairman of the Commission. The tenth plan completed its term in March 2007 and the eleventh plan is currently underway.[1] Prior to the Fourth plan, the allocation of state resources was based on schematic patterns rather than a transparent and objective mechanism, which lead to the adoption of the Gadgil formula in 1969. Revised versions of the formula have been used since then to determine the allocation of central assistance for state plans.[2]
[edit] First plan (1951-1956)
The first Indian Prime Minister, Jawaharlal Nehru presented the first five-year plan to the Parliament of India on 8 December 1951. The first plan sought to get the country's economy out of the cycle of poverty. The plan addressed, mainly, the agrarian sector, including investments in dams and irrigation. The agricultural sector was hit hardest by the partition of India and needed urgent attention.[3] The total planned budget of
206.8 billion (US$23.6 billion in the 1950 exchange rate) was allocated to seven broad areas: irrigation and energy (27.2 percent), agriculture and community development (17.4 percent), transport and communications (24 percent), industry (8.4 percent), social services (16.64 percent), land rehabilitation (4.1 percent), and for other sectors and services (2.5 percent).[4] The most important feature of this phase was active role of state in all economic sectors. Such a role was justified at that time because immediately after independence, India was facing basic problems like- deficiency of capital and low capacity to save.The target growth rate was 2.1 percent annual gross domestic product (GDP) growth; the achieved growth rate was 3.6 percent. During the first five-year plan the net domestic product went up by 15 percent. The monsoon was good and there were relatively high crop yields, boosting exchange reserves and the per capita income, which increased by 8 percent. National income increased more than the per capita income due to rapid population growth. Many irrigation projects were initiated during this period, including the Bhakra Dam and Hirakud Dam. The World Health Organization, with the Indian government, addressed children's health and reduced infant mortality, indirectly contributing to population growth.
At the end of the plan period in 1956, five Indian Institutes of Technology (IITs) were started as major technical institutions. University Grant Commission was set up to take care of funding and take measures to strengthen the higher education in the country.[5]
Contracts were signed to start five steel plants; however these plants did not come into existence until the middle of the second five-year plan.
[edit] Second plan (1956-1961)
This plan functioned on the basis of a nude model. The Mahalanobis model was propounded by Prasanta Chandra Mahalanobis in the year 1953.[citation needed] The second five-year plan focused on industry, especially heavy industry. Unlike the First plan, which focused mainly on agriculture, domestic production of industrial products was encouraged in the Second plan, particularly in the development of the public sector. The plan followed the Mahalanobis model, an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953. The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximise long-run economic growth . It used the prevalent state of art techniques of operations research and optimization as well as the novel applications of statistical models developed at the Indian Statiatical Institute. The plan assumed a closed economy in which the main trading activity would be centered on importing capital goods.[6][7]Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and Rourkela were established. Coal production was increased. More railway lines were added in the north east.
The Atomic Energy Commission was formed in 1958 with Homi J. Bhabha as the first chairman. The Tata Institute of Fundamental Research was established as a research institute. In 1957 a talent search and scholarship program was begun to find talented young students to train for work in nuclear power.
[edit] Third plan (1961-1966)
The third plan stressed on agriculture and improving production of rice, but the brief Sino-Indian War of 1962 exposed weaknesses in the economy and shifted the focus towards the Defence industry. In 1965-1966, India fought a war with Pakistan. The war led to inflation and the priority was shifted to price stabilisation. The construction of dams continued. Many cement and fertilizer plants were also built. Punjab began producing an abundance of wheat.Many primary schools were started in rural areas. In an effort to bring democracy to the grassroot level, Panchayat elections were started and the states were given more development responsibilities.
State electricity boards and state secondary education boards were formed. States were made responsible for secondary and higher education. State road transportation corporations were formed and local road building became a state responsibility. The target growth rate of GDP(gross domestic product)was 4.5 percent.The achieved growth rate was 4.3 percent.[citation needed]
[edit] Fourth plan (1969-1974)
At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture. In addition, the situation in East Pakistan (now Bangladesh) was becoming dire as the Indo-Pakistani War of 1971 and Bangladesh Liberation War took place.Funds earmarked for the industrial development had to be diverted for the war effort. India also performed the Smiling Buddha underground nuclear test in 1974, partially in response to the United States deployment of the Seventh Fleet in the Bay of Bengal. The fleet had been deployed to warn India against attacking West Pakistan and extending the war.
[edit] Fifth plan (1974-1979)
Stress was laid on employment, poverty alleviation, and justice. The plan also focused on self-reliance in agricultural production and defence. In 1978 the newly elected Morarji Desai government rejected the plan. Electricity Supply Act was enacted in 1975, which enabled the Central Government to enter into power generation and transmission.[citation needed] leaders.The Indian national highway system was introduced for the first time and many roads were widened to accommodate the increasing traffic. Tourism also expanded.
[edit] Sixth plan (1980-1985)
The sixth plan also marked the beginning of economic liberalization. Price controls were eliminated and ration shops were closed. This led to an increase in food prices and an increase in the cost of living. This was the end of Nehruvian Plan and Rajiv Gandhi was prime minister during this period.Family planning was also expanded in order to prevent overpopulation. In contrast to China's strict and binding one-child policy, Indian policy did not rely on the threat of force. More prosperous areas of India adopted family planning more rapidly than less prosperous areas, which continued to have a high birth rate.
[edit] Seventh plan (1985-1990)
The Seventh Plan marked the comeback of the Congress Party to power. The plan laid stress on improving the productivity level of industries by upgrading of technology.The main objectives of the 7th five year plans were to establish growth in areas of increasing economic productivity, production of food grains, and generating employment opportunities.
As an outcome of the sixth five year plan, there had been steady growth in agriculture, control on rate of Inflation, and favourable balance of payments which had provided a strong base for the seventh five Year plan to build on the need for further economic growth. The 7th Plan had strived towards socialism and energy production at large. The thrust areas of the 7th Five year plan have been enlisted below:
- Social Justice
- Removal of oppression of the weak
- Using modern technology
- Agricultural development
- Anti-poverty programs
- Full supply of food, clothing, and shelter
- Increasing productivity of small and large scale farmers
- Making India an Independent Economy
Some of the expected outcomes of the Seventh Five Year Plan India are given below:
- Balance of Payments (estimates): Export - 33,000 crore (US$ 7.5 billion), Imports - (-)54,000 crore (US$ 12.3 billion), Trade Balance - (-)21,000 crore (US$ 4.8 billion)
- Merchandise exports (estimates): 60,653 crore (US$ 13.8 billion)
- Merchandise imports (estimates): 95,437 crore (US$ 21.7 billion)
- Projections for Balance of Payments: Export - 60,700 crore (US$ 13.8 billion), Imports - (-) 95,400 crore (US$ 21.7 billion), Trade Balance- (-) 34,700 crore (US$ 7.9 billion)
[edit] Period between 1989-91
1989-91 was a period of political instability in India and hence no five year plan was implemented. Between 1990 and 1992, there were only Annual Plans. In 1991, India faced a crisis in Foreign Exchange (Forex) reserves, left with reserves of only about US$1 billion. Thus, under pressure, the country took the risk of reforming the socialist economy. P.V. Narasimha Rao)was the twelfth Prime Minister of the Republic of India and head of Congress Party, and led one of the most important administrations in India's modern history overseeing a major economic transformation and several incidents affecting national security. At that time Dr. Manmohan Singh (currently, Prime Minister of India) launched India's free market reforms that brought the nearly bankrupt nation back from the edge. It was the beginning of privatisation and liberalisation in India.[edit] Eighth plan (1992-1997)
Modernization of industries was a major highlight of the Eighth Plan. Under this plan, the gradual opening of the Indian economy was undertaken to correct the burgeoning deficit and foreign debt. Meanwhile India became a member of the World Trade Organization on 1 January 1995.This plan can be termed as Rao and Manmohan model of Economic development. The major objectives included, containing population growth, poverty reduction, employment generation, strengthening the infrastructure, Institutional building,tourism management, Human Resource development, Involvement of Panchayat raj, Nagarapalikas, N.G.O'S and Decentralisation and people's participation. Energy was given prority with 26.6% of the outlay. An average annual growth rate of 6.7% against the target 5.6% was achieved.[edit] Ninth Plan (1997 - 2002)
Ninth Five Year Plan India runs through the period from 1997 to 2002 with the main aim of attaining objectives like speedy industrialization, human development, full-scale employment, poverty reduction, and self-reliance on domestic resources.Background of Ninth Five Year Plan India: Ninth Five Year Plan was formulated amidst the backdrop of India's Golden jubilee of Independence.
The main objectives of the Ninth Five Year Plan of India are:
- to prioritize agricultural sector and emphasize on the rural development
- to generate adequate employment opportunities and promote poverty reduction
- to stabilize the prices in order to accelerate the growth rate of the economy
- to ensure food and nutritional security
- to provide for the basic infrastructural facilities like education for all, safe drinking water, primary health care, transport, energy
- to check the growing population increase
- to encourage social issues like women empowerment, conservation of certain benefits for the Special Groups of the society
- to create a liberal market for increase in private investments
[edit] Tenth plan (2002-2007)
- Attain 8% GDP growth per year.
- Reduction of poverty ratio by 5 percentage points by 2007;
- Providing gainful and high-quality employment at least to the addition to the labour force;*All children in India in school by 2003; all children to complete 5 years of schooling by 2007;
- Reduction in gender gaps in literacy and wage rates by at least 50% by 2007;*Reduction in the decadal rate of population growth between 2001 and 2011 to 16.2%;*Increase in Literacy Rates to 75 per cent within the Tenth Plan period (2002 to 2007);
[edit] Eleventh plan (2007-2012)
The eleventh plan has the following objectives:- Income & Poverty
- Accelerate GDP growth from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016-17
- Increase agricultural GDP growth rate to 4% per year to ensure a broader spread of benefits
- Create 70 million new work opportunities.
- Reduce educated unemployment to below 5%.
- Raise real wage rate of unskilled workers by 20 percent.
- Reduce the headcount ratio of consumption poverty by 10 percentage points.
- Education
- Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12
- Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality
- Increase literacy rate for persons of age 7 years or above to 85%
- Lower gender gap in literacy to 10 percentage point
- Increase the percentage of each cohort going to higher education from the present 10% to 15% by the end of the plan
- Health
- Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births
- Reduce Total Fertility Rate to 2.1
- Provide clean drinking water for all by 2009 and ensure that there are no slip-backs
- Reduce malnutrition among children of age group 0-3 to half its present level
- Reduce anaemia among women and girls by 50% by the end of the plan
- Women and Children
- Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17
- Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are women and girl children
- Ensure that all children enjoy a safe childhood, without any compulsion to work
- Infrastructure
- Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power.
- Ensure all-weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015
- Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012
- Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016-17
- Environment
- Increase forest and tree cover by 5 percentage points.
- Attain WHO standards of air quality in all major cities by 2011-12.
- Treat all urban waste water by 2011-12 to clean river waters.
- Increase energy efficiency by 20 percentage points by 2016-17.
Five-Year Plans of China
Five-Year Plans of China
From Wikipedia, the free encyclopedia
 | This article relies largely or entirely upon a single source. Please help improve this article by introducing appropriate citations to additional sources. (May 2009) |
Planning is a key characteristic of centralized, communist economies, and one plan established for the entire country normally contains detailed economic development guidelines for all its regions. As China has transitioned from Soviet-style planned economy to a market economy termed socialist market economy (socialism with Chinese characteristics) following reforms under Deng Xiaoping, the name for the 11th five-year program was changed to "guideline" instead of "plan".
[edit] The First Five-Year Plan, 1953-57
Having restored a viable economic base, the leadership under Mao Zedong, Zhou Enlai, and other revolutionary veterans was prepared to embark on an intensive program of industrial growth and socialization. For this purpose the administration adopted the Soviet economic model, based on state ownership in the modern sector, large collective units in agriculture, and centralized economic planning. The Soviet approach to economic development was manifested in the First Five-Year Plan (1953–57) (see The Transition to Socialism, ch. 1; Organization , ch. 7). As in the Soviet economy, the main objective was a high rate of economic growth, with primary emphasis on industrial development at the expense of agriculture and particular concentration on heavy industry and capital-intensive technology. Soviet planners helped their Chinese counterparts formulate the plan. Large numbers of Soviet engineers, technicians, and scientists assisted in developing and installing new heavy industrial facilities, including many entire plants and pieces of equipment purchased from the Soviet Union. Government control over industry was increased during this period by applying financial pressures and inducements to convince owners of private, modern firms to sell them to the state or convert them into joint public-private enterprises under state control. By 1956 approximately 67.5 percent of all modern industrial enterprises were state owned, and 32.5 percent were under joint public-private ownership. No privately owned firms remained. During the same period, the handicraft industries were organized into cooperatives, which accounted for 91.7 percent of all handicraft workers by 1956.Agriculture also underwent extensive organizational changes. To facilitate the mobilization of agricultural resources, improve the efficiency of farming, and increase government access to agricultural products, the authorities encouraged farmers to organize increasingly large and socialized collective units. From the loosely structured, tiny mutual aid teams, villages were to advance first to lower-stage, agricultural producers' cooperatives, in which families still received some income on the basis of the amount of land they contributed, and eventually to advanced cooperatives, or collectives. In the agricultural producers' cooperatives, income shares were based only on the amount of labor contributed. In addition, each family was allowed to retain a small private plot on which to grow vegetables, fruit, and livestock for its own use. The collectivization process began slowly but accelerated in 1955 and 1956. In 1957 about 93.5 percent of all farm households had joined advanced producers' cooperatives.
In terms of economic growth the First Five-Year Plan was quite successful, especially in those areas emphasized by the Soviet-style development strategy. A solid foundation was created in heavy industry. Key industries, including iron and steel manufacturing, coal mining, cement production, electricity generation, and machine building were greatly expanded and were put on a firm, modern technological footing. Thousands of industrial and mining enterprises were constructed, including 156 major facilities. Industrial production increased at an average annual rate of 19 percent between 1952 and 1957, and national income grew at a rate of 9 percent a year.
Despite the lack of state investment in agriculture, agricultural output increased substantially, averaging increases of about 4 percent a year. This growth resulted primarily from gains in efficiency brought about by the reorganization and cooperation achieved through collectivization. As the First Five-Year Plan wore on, however, Chinese leaders became increasingly concerned over the relatively sluggish performance of agriculture and the inability of state trading companies to increase significantly the amount of grain procured from rural units for urban consumption.[1]
[edit] The Second Five-Year Plan, 1958-1962
Main article: Great Leap Forward
This plan was created to accomplish several tasks, including:- expanding heavy industry in China.
- furthering the cause of socialism by transferring more property to collective ownership.
- encouraging the economic growth of China through industry, agriculture, handicrafts, transportation and commerce.
- cultivating cultural and scientific development of the Chinese people.
- strengthening national defense and improving living standards in China.
However, the Great Leap Forward, which diverted millions of agricultural workers into industry, and the great sparrow campaign, which led to an infestation of locusts, caused a huge decrease in food production. Simultaneously, rural officials, under huge pressure to meet their quotas, vastly overstated how much grain was available. As a result, most of it was allocated to urban areas or even exported, while twenty million peasants starved to death.[3]
[edit] The Third Five-Year Plan, 1966-1970
The goals of this plan were:[4]- developing agriculture to feed the populace and meet other basic needs (such as clothing).
- strengthening national defense (a priority given Chinese concerns of a potential war).
- advancing technology.
- developing infrastructure.
- encouraging economic self-reliance.
[edit] The Fourth Five-Year Plan, 1971-1975
In September 1970, the Plan was drafted with such goals as maintaining an annual growth rate of 12.5% in industry and agriculture as well as specific budget allowances for infrastructure construction (130 billion yuan over the period of the Plan).[5] In July, 1973, some of the specific provisions of the plan were amended to lower the targets. All targets had been reached or surpassed by the end of 1973.[5] China experienced a vibrant economy in the years 1972 and 1973.[5][edit] The Fifth Five-Year Plan, 1976-1980
In 1975, China arrived at a draft for a "Ten Year Plan Outline of Developing National Economy" which set out the Fifth Five-Year Plan.[6] The gross domestic product and gross output values of industry and agriculture soon surpassed expectations, but the goals were felt to be unrealistic and unsustainable and were amended in March 1978.[6] The Communist Party Central Committee began to refocus in December of that year, and by April 1979 had embraced a set of principles engineered to modernization and economic exploration, mindful of economic rules.[6] the fifth five year plan doneted prime minister[edit] The Sixth Five-Year Plan, 1981-1985
Although the Sixth Five-Year Plan had been incorporated into the "Ten Year Plan Outline of Developing National Economy", the process of redafting it began in February 1980 and was not completed until December, 1982.[7] The goal of the Sixth Five-Year Plan was to promote sustaining economic growth. The plans included:- Achieving a 5% annual growth rate for industry and agriculture.
- Stabilizing commercial prices and ensuring that production matched demand.
- Conserving energy and other resources.
- Updating technology particularly in the area of energy consumption.
- Strengthening education with an emphasis on science and the application of new technologies.
- Strengthening national defense.
- Balancing the governmental budget while also increasing governmental spending on the economy and culture.
- Developing trade.
- Strictly regulating population growth.
- Protecting the environment.
[edit] The Seventh Five-Year Plan, 1986-1990
The Seventh Five-Year Plan was the first in the history of the Five-Years Plans when a comprehensive Plan was created and ratified at the start of the five-year plan period (in March 1986).[8] Among the plans basic goals were maintaining balance in the national budget and in ensuring that supply met, but did not exceed, demand; ensuring the efficient production of quality products; furthering international trade and the development of infrastructure to keep pace with a modernized economy; and maintaining the social and economic ideals of China by emphasizing education, culture and the socialist ideology.[8] From a practical perspective, the goals included a 38% increase in gross national and industrial agricultural output during the time and a 44% increase in gross national output.[8][edit] The Eighth Five-Year Plan, 1991-1995
The Eighth Five-Year Plan was approved in March 1991 in concordance with a Ten-year Layout for National Economy and Social Development.[9] The Chinese government reported success for the plan, with ongoing growth in the gross national product and an 11% annual growth in the economy.[9] Expansion continued of the infrastructure, including transportation, and industrial growth continued. Taxes were restructured, with a value added tax prioritized.[9] China continued to focus on foreign trade, standing in 1995 at 11th in the world by import and export trade volume.[9] Population growth dropped from 14.39% in 1990 to 10.55% in 1995.[9][edit] The Ninth Five-Year Plan, 1996-2000
The Ninth Plan was adopted on September 28, 1995 by the Fifth Plenary Session of the 14th CPC Central Committee.[10] Its goals included capping population growth at 300 million, continuing modernization, eliminating poverty and quadrupling the gross national product in comparison to the gross national product of 1980.[10][edit] The Tenth Five-Year Plan, 2001-2005
The Tenth Five-Year Plan focused on achieving economic growth at an average of 7% per year; stabilizing prices and balancing the national budget; controlling unemployment rates in urban areas; upgrading industry and improving information technology; urbanize underdeveloped areas; improve education; reduce population growth rate to less than 9 per 1000; expand green space and reduce pollution; conserve natural resources; and increase disposable income levels of the population as well as improving access to housing space, cable television and medical care.[11][edit] The Eleventh Five-Year Plan, 2006-2010
See also: China Next Generation Internet
Among the main purposes of the Eleventh Five-Year Guideline are securing economic growth and economic structure, urbanizing the population, conserving energy and national resources, encouraging sound environmental practices, and improving education.[12] In addition, the plan seeks to increase access to employment and medical care and to improve pensions for the elderly.[12]The Hong Kong Special Administrative Region is traditionally not mentioned in the Five-Year guidelines as under the framework of one country, two systems, Central Government does not take Hong Kong into the national administrative planning. For the first time however, pledges were made to uphold Hong Kong's international centers status and strengthen cooperation. Nevertheless, this is more of a symbolic gesture aimed at clarifying the Central Government's stance instead of making detailed plans on behalf of Hong Kong.[13][14]
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