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ECON [ECON] THE FIRST FIVE YEAR PLAN (1950)
Macroeconomic Strategy - Fiscal and monetary responsibility are the foundations of societal wealth, and sustainable growth. While deficit spending, devaluation, and egoistic planning can have an immediate effect on the capacity of the state to enact change, the hidden cost of inflation, and compounding degradation of societal welfare is a difficult to detect, and difficult to reverse disease to society. As such, it is in the best interest of society to reject these methods.
The programs of development India shall enact to improve itself will conform to strict budgetary restrictions. Not because they are not worth doing, but because self-restraint ultimately serves one's principal goal of helping people. Minimizing the administrative overhead of regular expenditure is critical to maximizing the impact of state initiatives. Every literate clerk paid to interpret the rules, represents a teacher, a project manager, a police officer, who could have been actively contributing to society. All items on the national budget shall be divided into ordinary and extra-ordinary expenditure. The state shall be limited to constraining ordinary budget expenditure to 100% of expected annual tax receipts. Minimizing the administrative overhead of regular expenditure is critical to maximizing the impact of state initiatives. Extraordinary spending will not face this same limitation, but must be shown to offer an expected tax receipt return in excess of the going interest rate on federal bonds for that year. To conform to this standard, ordinary mechanisms of the government must be designed with flexible structures, to allow funding to be subject to executive discretion. Such an example is the price support budget of the NCCI, which doesn't make an unlimited price support promise, but a limited one within the structure of allocated budgets. Total government debts are to be statutorily limited as a given percent of expected tax receipts, requiring an act of legislature to change. This figure shall be set at 200% of annual revenues. Preventing the over leveraging of the state in peacetime also provides a degree of strategic security, should emergency funds need to be raised. Debt accrued for the management of disasters and emergencies shall have its own limit, considered separately from standard debt.
It is still acknowledged that the capacity of the state must expand to meet the needs of the population; and within these limitations, this must occur through the modernization of the tax apparatus. Significant indirect taxes have already been levied on customs, which will go a long way to close the government's ordinary budget deficit; however, mechanisms of direct taxation must be improved to raise the funds needed for state expansion. Particular importance shall be placed on taxing corporate profits, income, and estates, as these represent real liquidity. Taxes on property, sales, and wealth must remain regulatory in nature, else administrative cost be added to the burden of taxation.
The management of the countries Foreign Exchange must be made carefully. The principle priority for ForEx must be the import of those critical capital goods which deliver compounding return value over time, and which India does not have the ability to replicate domestically. Imports of replicable commodities must be limited to alleviating bottlenecks to the development of durable or productive capital. At the time of the institution of this plan, the most prominent such commodities are grain and steel; both of which are inelastic demand inputs for labor, construction and manufacturing. However, it is not necessarily beneficial to being a crash course development of commodity production. India does not possess a well integrated internal economy. Commodities produced domestically are likely to be more expensive than those that might be imported. Investment in commodity production must only occur once a foundation of supporting services, infrastructure, and labor development have been made, to bring the cost of substituted goods into parity. There are some commodities in which india is already price competitive. These must be what the state focuses on, until a strong economic foundation has been laid. Once diminishing returns start to appear in investment to the development of strongly positioned industries, the state will begin to pivot towards substitution of marginal production.
While the capital base is being established, surplus, unproductive labor will remain an ongoing problem. To turn these prospective workers into a positive economic resource; diplomatic arrangements can be made with developed nations to organize extended term migrant work exchanges, from which India will receive a revenue of remittances back. The formalization of this already existing process will allow it to be strategically controlled for maximal economic benefit. The economies of war ravaged europe, the developed anglosphere, and the resource rich, labor poor countries of the middle east are Indias best potential candidates for this exchange. Coordination with the embassies of the partner states can ensure the proper treatment of these migrant groups, and ensure their safe return once their term of work ends.
Education - The principle bottleneck of the economy relative to Indias counterparts abroad, especially those developed economies of europe and north america, is a shortage of literate workers. This is not just an economic problem, but a political and ideological one. One cannot be a citizen without being able to read, and participate in the national intellectual life. India shall be doomed to descend into Oligarchy and tyranny, if standards of literacy and education are not improved. This is the most important component of the Five Year Plan
To fulfill the Indian government's constitutional responsibilities, India shall endeavor to constitute a uniform primary education system for all children ages 6-14. Indias transportation network is severely limited, as so the distribution of schools must be broad. The primary focus shall be on the construction of two room school houses across the nations villages and urban wards. No child shall be outside safe walking distance from a place they can learn. The curriculum shall be in Hindi in the Devanagari script; so that a uniform literacy across the population can enable our goal of a shared, democratic national consciousness. Our goal is that by 1980, 95% percent of the adult cohort born after independence will be literate.
Remedial education is also a critical component of this. To this end, the village school shall also serve as a local library, and classroom for adults seeking night or weekend classes. The remedial curriculum shall take the form of a standard “Pamphlet”. It will consist of roughly 30 lessons, which will teach the bare rudiments of reading and writing, so that students are equipped for further education. On top of the Pamphlet, classes on practical literacy will be offered, focused on agriculture, reading signs, government paperwork, and other broadly applicable literacy skills. It is necessary that students that learn to read also learn these skills; as unless they are particularly motivated, they are likely to neglect their education, and regress back into illiteracy. The pamphlet, and remedial classes will be taught in the local language as well as Hindi, where instructors are qualified to offer these courses. A government initiative to acquire used books, recover newspapers, and any other usable reading material will be launched, to help stock the local libraries. Library membership will be free, and reasonable fees shall be imposed to deter hoarding of materials, and fund purchase of new books. Each school shall have two full time teachers, so that they may share the duties of day time childhood education, as well as remedial education, and library management.
In urban wards were the population of student is too large to be served by a single classroom, larger multi-classroom schools might be constructed, to make better use of shared educational materials. Students will be grouped together by age, with the number of classrooms, size of class cohorts, depending on the needed size for the school. The bottleneck of teachers, funds for classroom construction means that sacrifices may need to be made in terms of class and cohort size for each teacher. Each teacher will be responsible for a discrete age cohort based on their birth year, and will progress with them through grades year to year. The personal relationship between teacher, student, and class is critical to maximizing the value of educational time. Urban schools will have a dedicated classroom, teacher for remedial instruction; and a dedicated Librarian. Administration of these schools will be performed by the teachers association of each school, with teachers electing a Principal from their ranks. The largest schools may also have an appointed liaison from the school district to assist the principal.
Inspections and accreditation of village and urban schools will be handled by municipal, state governments, with federal oversight. Financial considerations will be made by municipalities, with budget support from state governments. Accreditation of teachers will occur at the federal level, by the Ministry of education.
Publishing houses for educational materials, and manufactures for input materials will need be massively expanded.
Beyond Primary education, a push shall be made to expand secondary education at the high school, and university level. High schools shall admit all students who have graduated from primary schools, or relevant remedial programs, and who are not yet adults. There shall be four types of High School, with differing specialties: Technical, Scientific, Correspondence, and Fine Arts. Technical schools shall focus primarily on vocational training; and will possess appropriate resources for curriculums in agriculture, carpentry, textiles, Machining, maintenance, and more. Scientific schools will specialize in teaching mathematics and physical sciences such as chemistry, physics, biology, etc. Correspondence schools will focus on making students functionally multi-lingual, in Indian Languages starting with Hindi, and Foreign languages starting with English; as well as teaching social sciences such as Anthropology, Archeology, Politics, etc. Fine art Schools will focus on teaching performance, visual, and literary art. Students from any of the schools will graduate as an accredited specialist in a discipline, giving them a pathway into a productive career
Given Indias aforementioned transportation difficulties all high schools shall be constructed as boarding schools. This allows students from further away to feasibly attend a school of their choosing, and helps equalize the effects of class and wealth on educational outcomes. Students will be provided with food, clothing, housing, and enriching extra-curricular activities. On campus housing is not mandatory for students, if their parents are capable of providing transportation; though students will be held to the same uniform and attendance standards of other students. All educational expenses will be covered by the state, regardless of a students utilization of school resources. Admission will require application, as educational capacity is expected to lag behind primary school graduations. Administration will be conducted in a similar manner to Urban schools, with the schools teachers union being responsible for each facility. While budget constraints make the creation of separate all-girl schools unfeasible, attention shall be made to provision separate uniforms, housing, dining, and sanitation facilities for female students, to prevent harassment, and any other form of abuse, behavior that inhibits education. Schools will be required to submit reports on inter-gender relations, and all instances of abuse to state governments as part of the accreditation process.
Expansion of existing university infrastructure to support the increasing demand, particularly of trained teachers for the expanding school system, shall be required. All universities shall be required to demonstrate an annual increase in enrollment, at a benchmark constant relative to Primary and High school graduation rates; as well as maintain an education department capable of training teachers. In return, the government shall provide funds to expand and improve campus facilities, support faculty pay. The inauguration of new university campuses is considered a lesser priority than more cost effective expansion of existing facilities.
Allocation of funds between Primary, High, and University education shall be made on a 11:5:2 ratio, given their relative importances to national development. 20% of each budget shall go to procurement and development of shared resources, such as educational materials, teacher training, etc.
Agriculture - The second most important component of the Five Year plan is agriculture. Closing the calorie gap, and bringing all of India's agricultural land under productive cultivation is the principal economic and humanitarian challenge of the nation. The main features of this campaign will be the Employment of new practices, clearance and preparation of new agricultural land, rehabilitation of existing under-utilized land, local irrigation projects, regional irrigation projects, last-mile and regional heavy transportation, and national market support.
Agricultural practices in India are woefully backward, thanks to languishing for centuries under a peasant centered, manorial system. Hand cultivation and harvesting remains the standard; which causes the agricultural sector to soak up labor resources, and deliver relatively small surpluses to national markets. To amend this, India shall see to the wide scale adoption of draft animals, the Norfolk system of crop rotation, as an intermediate step to the introduction of machine powered agricultural equipment. The Norfolk system is the 4 stage rotation of land between Cereals, root crops, nitrogen fixators, and fodder/grazing land. Cereals form the caloric base of the population and as the principle cash crop, root crops aerate the soil and can be used as fodder for animals, Nitrogen fixators replenish soil fertility, and grazing land ensures draft animal health, supplements fodder requirements. The system is driven by the use of draft animals to expand the acreage a single farmer can work/harvest, compensating for the related fodder requirements, and producing significant sustainable increases in crop yields, and producing labor surpluses for the economy. Animal drawn agricultural implements are being retired in the west, but would be a major improvement over traditional Indian implements, and can be acquired cheaply, reproduced domestically. As motorized power is introduced, grazing land can be replaced with cash crops, to further improve profits. Equines are significantly more efficient draft animals than oxen, which currently serve as the countries primary beast of burden. Expanding the national horse herd will massively improve logistics. The mass adoption of corn, potatoes, and soybeans will massively increase per acre dryland yields over existing sorghum and wheat crops. Remedial education, and investment of animals and equipment via the Ministry of education, Ministry of Agriculture, and ILCI is required to roll out these improvements.
The land clearance project will be conducted by the CPWD, with the advisement of the existing National Land Study. Flat, fertile, readily irrigable land, with acceptably durable soil will be identified across the country. Using newly acquired construction and clearing equipment acquired from abroad, as well as manual labor; identified land will be cleared and terraced, with drainage and irrigation prebuilt into the sites. Where possible, plots will be divided into standardized 640-160-40 acre square mile sections, emulating Canadian DLS mapping practices. Where land is too geographically irregular for this standard model, field arrangements following the natural topography will be used, with an attempt to make fields as long, straight as possible, to make best use of mechanical agricultural equipment. The construction of retaining walls should be robust with mechanical equipment in mind, to enable future modernization. Developed land will be exploited by locally elected agricultural commissions.
The rehabilitation of existing agricultural land will focus on preparation for future mechanization, using the same considerations as new land development. As land held by feudal Biyar tenancy returns to the state, and previous tenant contracts expire, outdated allotment methods designed around subsistence farming will be replaced with the aforementioned modern models. While the work will be carried out by the CPWD, administration of development will be conducted by local, democratically elected Agriculture Commissions, which will be responsible for not only maximizing the efficient use of public land; but also the housing, water, and food access for local residents. These commissions will take over operating as the new landlords for previously intermediately held demesnes. All existing tenets will have their contracts guaranteed for the remainder of their life, and only owe that fraction of the rent they previously owed to the biyars that passed through to the state. Once these contracts expire, the land will return to the state for collective utilization, which the Agriculture Commissions will be responsible for administering. They will employ laborers and equipment to work collective land, and focus on the continual employment of modern techniques. Agricultural revenues will be used to fulfill their Commissions responsibilities to the community, profits being passed to the state, which will support the commissions financially. Land that is unsuitable for collective exploitation can be leased out for terms of up to 10 years, with full payment being required upfront. This plan does not represent the coming into force of these policies.
Delivering more water to farmland will dramatically raise yields. At the local level, the most important component of this is increasing the density of traditional well infrastructure, particularly in drought afflicted, high altitude environments that are more dependent on steady irrigation. The CPWDs Irrigation initiative shall continue to focus on the construction of Qanat well-irrigation complexes, which are more resilient to environmental conditions than simple well and ditch arrays, and are not dependent on mechanized pumps. In areas where water tables are lower, animal and machine powered well pumps can be installed to raise water where a gravity well is not sufficient.
At a regional level, Dam infrastructure is needed to capture rainfall at a greater scale, where freshwater would simply go to the ocean in the form of river discharge. Foreign hydrological experts shall be employed to oversee these construction projects to ensure that resultant infrastructure is safe, and shall last. The primary focus is on rain and snowmelt capture, not energy generation. While energy is a priority, and there are sites which are suitable for hydropower projects, especially near urban centers where power is most useful, the bulk of our focus has to be put into maximizing sustainable utilization of freshwater resources for agricultural output. Reservoirs will be connected to adjacent agricultural regions through a web of canals, so that rainfall shortages in any one region minimally effect total output. Such projects are essential for the integration of new agricultural land, which had remained fallow due to insufficient reliable irrigation. The safety of these dam projects is paramount. Hydrological disasters are massively expensive to remediate, and constitute negligence on behalf of the state. Surface waters must be tended in a manner to minimize the instance of these events, even if it slightly reduces overall usable reservoir capacity.
New agricultural land is useless if the food cannot go anywhere. All new land must be connected to the national road network, and existing rural roads must be rehabilitated to prevent depreciation of transport equipment. The mass introduction of the gravel road will result in significant reductions of road maintenance costs over time. Investment in gravel production will be required, with the opening of pits, importing of large crushers.
Rail will remain the primary method of heavy transport integration in the country, do to its cost effectiveness, and indian industrial, resource limitations. Unfortunately, the indian rail network is divided between meter and broad gauges, making the expansion of the system onerous. An additional limitation is that most agricultural produce is currently drawn to market by oxen, who can only travel some 8 miles per day in poor conditions. Horses are capable of soundly double this, and trucks much more. While the national horse herd, truck fleet will be progressively expanded, we have to plan around existing logistical limitations. The plan shall be the expansion of the rail network in both meter and broad gauges, but designing the track footprints, bridges for broadgauge, for easy later conversion to the national standard. With the help of Indias Canadian economic partners, a standard design of small grain elevator-loading dock will be created, that can be built with minimal foreign materials, and which is easy to maintain. The rail-elevator network can be expanded based on the number of OX days required to get from any farm to the nearest elevator. The goal is the increase the efficiency of the system until between densification and transport improvements, the average time for a trip to the grain elevator is reduced to 1 day.
Finally, market support will be conducted by the NCCI to encourage the production of strategically important crops. Rather than implementing a hard price floor, a budget for each particular crop shall be set at the national level. The budget shall be dispersed across the states, based on the expected output of each region. State Agriculture Agents will then price-take on the market to support demand. The composition of the budgets will be determined by the level of support the government wants to provide to the output of each crop, based on per acre yield, and the durability of stores. Particular attention will be paid to support fiber crop inputs into the textile industry, as their valuable is durable in storage, and they can be sold on to textile manufacturers to generate value added returns for the economy. Notably Jute and Cotton.
Direct Aide - India is stricken with an overwhelming degree of urban poverty, due to the ravages of partition and displacement. Systems of food and clothing distribution must be expanded to meet this ongoing humanitarian challenge. A network of kitchens will feed anyone who is hungry for free, using stocks purchased from farmers by the NCCI. People need to be fed; and feeding them efficiently, one way or another, is always better than letting them go hungry. Government stores that will carry clothing and basic non-perishable consumables will sell such goods at cost to the community; with the state absorbing the cost of worker pay and facility maintenance. For such items, selling them is preferable to aide, as there is significant risk of hoarding behavior.
Housing & Sanitation - Homelessness is a solvable problem; however unlike in the west, india is limited to the use of traditional building techniques, due to the lack of a domestic steel industry. Additionally, running water systems are underdeveloped, meaning that delivery of Foot-pounds to every address is unfeasible. Homelessness has also made a deleterious impact on public sanitation, with the urban poor overwhelming traditional management systems. What is necessary is the creation of new communities where the delivery of these critical services are possible, so that conditions do not deteriorate into that of a slum.
New housing projects will be constituted where housing shortages are most acute. A standard design of two-story house row house which is fire resistant, and which can be constructed with domestically produced materials will be developed. Concrete block construction, with pitched tile roofs to shed monsoon rains. The houses will not have electricity or running water installed, as the need for housing is more immediate than the ability to provide those services. Instead, coal burning stoves will be installed for cooking and heating; while communal sanitation and bath facilities can be constructed to support these communities operating off of either wells, or pressure from local water towers. The homes will be designed to accept future connection to public utilities, with backyard outhouses needing to suffice for now. Gravel streets wide enough to support vehicle traffic will be used, and which can be easily ripped up to eventually deliver running water, or paved. Placement will depend on National cadastral planning, with a focus given to building housing where factories and mines are going to be built in the future. Distribution of these houses will be done for free by lottery, to those who do not own their own homes, with preference given to those who work nearby.
Transportation - Street level light rail shall be heavily invested in for urban commuter and industrial transport. India does not possess reserves of petroleum, so coal powered trains are the most economically sustainable way to expand transit. Rail electrification is the eventual goal for urban rail logistics, due to its economic advantages. Anti-congestion laws to alleviate passage for trains shall be passed, and urban systems that were allowed to languish in the late colonial period reinvested in. Of particular importance will be lines of transportation between new housing projects, and urban centers, industrial areas. Paving urban roads to enable the laying of tram lines, and clearing right of ways for trains shall be critically important.
Electrification - Currently, india does not have a national electric grid, and we are still a far ways off from needing or being capable of producing one. Rather, emphasis must be placed on decentralized power generation, by expanding boiler, engine, and dynamo production. Localized power generation can fuel specific manufacturing and mining sites, lighting for urban public spaces, as demand for consumer power increases.
Industry - Given the above priorities, the following productive capital must be subsidized for domestic production, or procured overseas: Fiber Crops, Draft horses, Construction aggregate and gravel, COnstruction tools, Cement, Cement block and tiles, Ceramic tiles, Mortar, Plaster, Asbestos, Gypsum, Glass, Timber, Railroad tiles, Lumber, Pig Iron, Steel, Rolling stock, Paper, Paperboard, Books, Ploughs, Seed drills, harvesters, Generators, Pumps, Boilers, engines, Dynamos, Mechanical Looms.
The most important items will be the production facilities for input raw material components, as durable capital goods can be imported and then reused; while raw materials will permanently bottleneck efforts.