Economic Development Planning

Back to: ECONOMICS SS3

 

Welcome to class! 

In today’s class, we will be talking about economic development planning. Enjoy the class!

Economic Development Planning

Then Economic planning can be simply defined as a conscious governmental effort to influence some principal economic variables such as production, distribution, inflation import and export to achieve a predetermined goal and objectives.

TYPES OF PLAN

The various types of economic planning are:

• Financial economic planning.
• Strategic planning.
• Comprehensive economic planning.
• Partial economic planning.
• Controlled economic planning.

1. Financial Economic Planning – This plan deals with how National Income is distributed to various sectors of the economy.
2. Strategic Planning – This is a plan designed to address a specific objective in the economy.
3. Comprehensive economic planning – This type of plan covers all major aspects of the national economy.
4. Partial Economic Planning – This is a plan directed or targeted at a specific segment of the national economy e.g. plans to boost agricultural production.
5. Controlled Economic Planning – This plan is common in a socialist economic system. This is a plan in which government formulates and executes plans for the economy. This is also known as authoritarian planning

PROBLEMS OF PLANNING

1. Frequent change in government i.e. political instability.
2. Insufficient capital to execute the project itemized in the plan.
3. Misplacement of priorities – Resources are sometimes diverted to white elephant projects i.e. unproductive projects.
4. Inaccurate statistical data and information.
5. Lack of skilled personnel
6. Reliance on foreign aid.
7. Rapid population growth
8. Corruption and embezzlement.
9. Exchange rate volatility i.e. fluctuation in the exchange rate.

 

In our next class, we will be talking about International Economics Organisation.  We hope you enjoyed the class.

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