Economic Contradictions

The Janata Party had no single ideology; its members were a mix of veteran socialists, trade unionists and pro-business leaders. It made the achievement of major economic reforms difficult. With Charan Singh in a prominent position, it was inevitable that agriculture and the rural sector got importance. The Sixth Five-Year Plan (meant for 1978-83 but also curtailed due to change of regime in 1980), launched by the government after curtailing the Fifth Plan, aimed to boost agricultural production and rural industries. It was called the rolling plan. In aa rolling plan, planning is at three levels: first, for the current year as decided by the annual budget; second, a plan for a slightly longer fixed period which allows flexibility to change priorities as per the need of the economic and political situation; and third, a perspective plan which is for 10, 15 or 20 years. There are no fixed dates and the targets can be revised every now and then as per the annual reviews which are very important. While flexibility is a plus point with this type of planning, a major drawback is that targets are difficult to achieve as they could keep

changing.

With the fiery Socialist George Fernandes in charge of the industries ministry, the aim was to promote economic self-reliance and indigenous industries and, if need be, even

expel the American multinational companies, such as Coca- Cola and IBM (which indeed was accomplished). Such policies led to a reduction in foreign investment. However, the problems of resurging inflation, fuel shortages, unemployment and poverty could not be effectively addressed as no effective alternative economic policy was evolved to deal with the economic situation.

The government failed to work on the radical reforms the party had promised in the run up to the elections.

There were some bright spots. The Food for Work programme, launched in April 1977 envisaged some of the stocks of food grains with the government to be used for payment as wages in kind to workers in rural areas who helped to build roads and water ponds during the season when agricultural employment was low.

Madhu Dandavate, also a socialist but on the moderate side, undertook some important reforms of the railways of which he was in charge. It was he who initiated steps to reduce the corruption in ticket reservation. He initiated steps to repair worn-out tracks. He did a huge favour to the travellers in the sleeper second class compartments: he directed that the hard bare wooden seats be cushioned with two inches of foam.