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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.
- Financial Economic Planning – This plan deals with how National Income is distributed to various sectors of the economy.
- Strategic Planning – This is a plan designed to address a specific objective in the economy.
- Comprehensive economic planning – This type of plan covers all major aspects of the national economy.
- 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.
- 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
- Frequent change in government i.e. political instability.
- Insufficient capital to execute the project itemized in the plan.
- Misplacement of priorities – Resources are sometimes diverted to white elephant projects i.e. unproductive projects.
- Inaccurate statistical data and information.
- Lack of skilled personnel
- Reliance on foreign aid.
- Rapid population growth
- Corruption and embezzlement.
- 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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