Data not enough to claim poverty alleviation schemes of XI plan failed: Montek

Chennai:

Deputy chairman of planning commission Montek Singh Ahluwalia on Wednesday defended the new economic policy and poverty alleviation schemes of XI plan saying it is too early to say that the policy has failed.

“We have to look at the data of recent years before we declare the performance of the XI plan’s poverty alleviation schemes failed. The data will be available only two years later,” said Ahluwalia while delivering the V Sankar Aiyar Memorial Lecture here on Wednesday.

He, however, added that not enough has been done to reduce poverty in the country.

Defending the market economy, which is undergoing a churn as growth has collapsed in Western economies, he said while there is a growing protest against market economy in the globe, in the emerging nations like India it is paying dividends as it allows us to show how competitive we are.

Stating the serious dangers of crony capitalism in market economy, he said a strong economy should not encourage crony capitalism and government should be more transparent so that nobody goes away with undeserved gains.

The planning commission chief also stressed the need for devolution of powers in urban local bodies so that other half of the population who are devoid of basic infrastructure can access it.

Reacting to the criticism of Mani Shankar Aiyer on lack of powers to panchayats, the planning commission chief said the onus lies with the state government who have to fulfil the state finance commission (SFC) recommendations.

“The state never takes the recommendation of the SFC seriously and the Centre doesn’t have any powers to intervene,” he said.

He also highlighted the need for a greater flexibility on labour laws to boost industrial growth saying that it should be done only with the consenus of labour unions with a promise of strong social security.

Interestingly, the lecture also highlighted a difference of opinion and exchanges in a lighter vein among Rajya Sabha MP Mani Shankar Aiyar, who is also the elder son of V Sankar Aiyar, and Ahluwalia.