The Second Five-Year Plan (1933-1937) was considered successful due to massive growth in heavy industry, achieving self-sufficiency in machine-making, and significant infrastructure (rail, Dnieper Dam), alongside improved literacy and some consumer goods, benefiting from First Plan's foundations and eased targets, though focused more on defense later. Key factors were the momentum from the first plan, incentives like small personal plots for peasants, childcare for working mothers, and continued heavy industry focus, leading to increased electricity, steel, and transport, making the USSR a major industrial power despite lagging consumer goods and purges.
The successes of the Second Five Year Plan included: Opening of Moscow Metro in 1935 and Volga Canal's completion by 1937. Ending of bread rationing in 1934 and doubling production of consumer goods between 1933-37. The Stakhanovite movement allowed for an increase in labour productivity across Russian industry.
Second plan, 1932–1937
The second five-year plan gave heavy industry top priority, putting the Soviet Union not far behind Germany as one of the major steel-producing countries of the world. The city of Magnitogorsk was the 5th largest Steel in 1934.
Broadly , the sixth Plan could be taken as a success as most of the target were realised even though during the last year (1984-85) many parts of the country faced severe famine conditions and agricultural output was less than the record output of previous year.
Stalin's First Five-Year Plan. Dramatic developments occurred during the First Five-Year Plan. Hundreds of industrial plants were built. In the period 1928-1932, coal production increased by 84%, oil by 90%, steel by 37%, and electricity by 168%.
What were the Five Year Plans? The Five Year Plans were detailed economic plans drawn up to direct economic development. Each Five Year Plan was organised by Gosplan and set targets for each industry by region, by factory and by individual workers. They were used to replace the New Economic Plan (NEP).
Shortcomings and critiques of ISI
Although results varied from country to country, general trends included production that often did not extend into industries other than consumer goods, slow employment growth, agricultural-sector decline, and minimal productivity growth.
The Twelfth Plan therefore emphasizes that our first priority must be to bring the economy back to rapid growth while ensuring that the growth is both inclusive and sustainable.
Successful sectors
Electricity - production trebled. Coal and iron - output doubled. Steel production - increased by one- third. Engineering industry developed and increased output of machine-tools, turbines, etc.
The five-year strategic plan, once the gold standard, is now an anachronism—outdated, cumbersome, and often ineffective. They may look good on paper but often they take an inordinate amount of staff and board time, are exceedingly expensive, become stale with inaction, and have little mission impact in practice.
Mahalanobis Plan was India's second five-year plan (1956-61) proposed by Professor Prasanta Chandra Mahalanobis. This plan gave priority to investment goods, as they were crucial for the further economic growth of India.
Second Plan (1958–1962)
Expanding heavy industry in China. Furthering the cause of socialism by transferring more property to collective ownership. Encouraging the economic growth of China through industry, agriculture, handicrafts, transportation and commerce.
Economic activity was pushed in the direction of heavy industries, which lead to a 350 percent increase in output, in a bid to prepare Russia for an industrialised war. The first Five Year Plan also had a revolutionary effect on society, as millions left the farms to pursue new lives in the cities.
Despite the disastrous Soviet experiment with collectivization and increasing grumbling from China's population, domestic and international events steeled Mao's resolve to surge ahead with the second Five Year Plan, also known as the Great Leap Forward.
Success of Stalin's Economic Policies
Under the First Five-Year Plan, steel output increased by one-third, iron and coal output doubled, and electricity production tripled.
The Five-Year Plans had a dramatic effect on the Soviet Union, making it the second largest industrial power in the world. Huge new steel plants, hydro-electric power stations, railways and canals were built. Vast numbers of factories in hundreds of new towns poured out manufactured goods.
Second Plan (1956–1961)
The Second Plan focused on the development of the public sector and "rapid Industrialisation". The plan followed the Mahalanobis model, an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953.
What should be included in a 5 year plan?
The main idea of the Five Year Plan was a massive industrialization of the country and combining of independently farms into a collective farm system. This new farm system was different from the old because it took land from the privately owned farms (Kulaks) and placed it in the hands of the Party.
5 Strategic Planning Pitfalls and How to Avoid Them
Then, the FYPs were discontinued because the Indian government decided to adopt a more flexible approach to planning. The NITI Aayog, established in 2015, replaced the Planning Commission and introduced a three-year action plan, along with a 15-year vision document and a seven-year strategy to achieve long-term goals.
The first Indian prime minister, Jawaharlal Nehru, presented the First Five-Year Plan to the Parliament of India. The First Five-year Plan was launched in 1951 and mainly focused on the development of the primary sector.
Third Five Year Plan was a failure due to India-China war followed by Indo-Pakistan. Third Five Year Plan (1961-66) aimed to make India's economy 'self-reliant' and 'self-generating'. It has faced a lot of political and economic crisis.
Stamp commemorating the First Five Year plan depicts a man and woman working together in an industrial setting. Secondly, many western historians point to collectivization as a cause of the large-scale famine in the Soviet Union between 1932 and 1933 in which 3.3 to 7.5 million died.
What Are the Disadvantages of a Planned Economy?