What was not correct about the idea of planning as a process of rebuilding economy that earned a good deal of public support in the 1940s and 1950s all over the world?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → The growth of capitalist economy and the compulsion of globalisation pushed for the idea.
Option (1) The experience of Great Depression helped the formulation of this idea. True.
Option (2) The inter-war reconstruction of Japan and Germany was one of the contributory factors. True.
Option (3) The spectacular economic growth against heavy odds in the Soviet Union in the 1930s and 1940s. True. This, most of all, built the consensus for planning.
Option (4) The growth of capitalist economy and the compulsion of globalisation pushed for the idea. False. Only the three experiences above contributed to the consensus. Planning meant the state deciding the path of the economy, which is not what an open capitalist market or globalisation pushes for.
NCERT (2025-26): “Planning Commission … In fact the idea of planning as a process of rebuilding economy earned a good deal of public support in the 1940s and 1950s all over the world. The experience of Great Depression in Europe, the inter-war reconstruction of Japan and Germany, and most of all the spectacular economic growth against heavy odds in the Soviet Union in the 1930s and 1940s contributed to this consensus. Thus the Planning Commission was not a sudden invention.…” |