2. Meaning of economic development
• There is no agreement among economists with
regard to the meaning of planning.
• The term has been used loosely in economic
literature.
• It is often confused with communism, socialism, or
economic development.
• Any type of state intervention in the economic
affairs is treated as planning.
• Planning: is a technique, a means to an end being
the realization of a certain pre-determined and
well-defined aims and objective laid down by a
central planning authority.
3. Need for planning in underdeveloped
countries
• There are many reasons for which underdeveloped
countries need planning. These reasons are:
• To increase rate of economic development
• To improve and strengthen market mechanism
• To remove unemployment
• Balanced development of the economy
• Removing poverty and inequalities
4. Plan formation and requirements for
successful planning
• The formation and success of a plan require the
following:
• Planning commission.
• Statistical date.
• Objectives.
• Fixation of targets and priorities.
• Mobilization of resources.
• Balancing in the plan.
• Incorrupt and efficient administration.
5. Plan formation and requirements for
successful planning
• Proper development policy.
• Economy in administration.
• An education base.
• A theory of consumption.
• Public cooperation.
6. Problems of development planning
• Inadequate statistical data.
• Problems of macroeconomic estimates.
• Limitation of the use of models.
• No control over private sector plan.
• Constant capital-output ratio.
• Problems of fixed relation b/w inputs and outputs.
• Lack of coordination b/w plan policies and annual
budgets.
• Problems of balancing the plans.
• uncertainties.
7. Types of planning
1.Planning by direction.
2.Planning by inducement.
3.Financial planning.
4.Physical planning
5.Perspective planning.
6.Annual planning.
7.Indicative planning.
8.Imperative planning.
9.Democratic planning.
10.Totalitarian planning.
8. Types of planning
11.Rolling plan.
12.Fixed plan.
13.Planning under capitalism.
14.Planning under socialism.
15.Centralized planning.
16.Decentralized planning.
17.Corrective planning.
18.Development planning.
19.Planning in a mixed economy.
