Gandhian Model of Development

Topics: Investment, Foreign direct investment, Economics Pages: 4 (934 words) Published: December 12, 2010
Gandhian model of development was emphasized by the Janata Party. The model emphasized the rapid development of agriculture and small industries. Village and small industries were emphasized from the point of view of production as well as employment. The model necessitated the following changes in the pattern of planning :

(i) Employment-oriented planning to replace production-oriented planning :

Nehru model by over-empathizing a capital-intensive pattern of development failed to generate enough employment. But unemployment and under-employment are at the root of the problems of poverty and inequality. There is a strong need to demarcate areas with high employment potential and investment should be directed in such areas so that the pattern of investment becomes employment-orated and the economy increases its absorptive capacity of labour.

(ii) Emphasis on development of agriculture as a means of enlarging employment :

Char an Singh, an ardent advocate of the Gandhian model brought out the hard reality that while in India only 39 workers were employed per 100 acres in 1971, in Japan, South Korea and Egypt, the number of workers employed per 100 acres ranged between 87 and 71. In case, intensive cultivation is done, India can enlarge employment by 50 to 60 million in agriculture alone. It is, therefore, necessary that agricultural development be taken as the foundation of the development process. The experience of the development in the states of Punjab and Haryana also corroborates the view that these states were able to achieve high growth rates via agricultural development and thus bring about a sharp reduction of population below the poverty lien as well as unemployment.

(iii) Emphasis on small industries as against large industries :

The Gandhian model emphasised that “no medium or large-scale enterprise shall be allowed to come into existence in future which will produce goods or...
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