the first five year plan begain in india in 1951.
when did the first five year plan begin in india?
1951
the model was created as an analytical framework for india’s second five year plan in 1955 by appointment of prime minister jawaharlal nehru, as india felt there was a need to introduce a formal plan model after the first five year plan (1951–1956). the first five year plan stressed investment for capital accumulation in the spirit of the one-sector harrod–domar model. it argued that production required capital and that capital can be accumulated through investment; the faster one accumulates, the higher the growth rate will be. the most fundamental criticisms came from mahalanobis, who himself was working with a variant of it in 1951 and 1952. the criticisms were mostly around the model’s inability to cope with the real constraints of the economy; it’s ignoring of the fundamental choice problems of planning over time; and the lack of connection between the model and the actual selection of projects for governmental expenditure. subsequently mahalanobis introduced his celebrated two-sector model, which he later expanded into a four-sector version.
feldman–mahalanobis model
in 1936, kishi was one of the drafters of a proposed 3.13 billion yen five year plan, which was intended to drastically increase industrial production both within manchukuo and japan itself to the point that japan could fight a total war by 1941. kishi's "communistic" five year plan created much opposition from the "zaibatsu", who were not keen to see his statist manchurian system extended to japan; not the least because in kishi's system, the purpose of private enterprise was to serve the state rather than make a profit, and in december 1936 following an extensive lobbying campaign by the industrialists, the five year plan was rejected by the imperial diet. however, the five year plan, which rejected for japan, went ahead in manchukuo. the intention of the five year plan was to focus on heavy industry for military purposes and to vastly increase production of coal, steel, electricity and weapons. one of the corporations founded for the five year plan was the state-owned manchurian corporation for development of heavy industry in 1937, which in its first year, had 5.2 billion yen invested in it by the japanese state, making it by far the largest capital project in the japanese empire; the total expenditure by the state for 1937 was 2.5 billion yen and for 1938 3.2 billion yen. the japanese historian hotta eri wrote that never before in japanese history had the state ever embarked upon such a gigantic project such as the five year plan.
nobusuke kishi