4 types of development planning

 

development planning
the four development plans

 

The four types of development plans that can be adopted to achieve growth and development in a nation are presented as follows:

1.      Short-range plans

2.      Medium-range plans

3.      Perspective plans

4.      Rolling plans

 

Short-range plans:

 

They are usually annual and biannual; the aims of the planning unit are expressed more concretely in terms of planed activities for existing enterprises, and for the construction of new projects.

The main task of short range plans is to maintain internal laid and external balance of the national economy, as well as to rise (if possible ) to a higher level both production and expenditure than in the previous years. Such plan is drawn up in conjunction with the estimates of the annual budget and both constitute an obligation for the government. In a sense, short-range plans can be seen as extensions of the budget to the whole economy.

 

Medium-range plans:

 

These are plans that last between three to seven years though usually for five years. Such plan presents a set of centrally co-ordinate and internally consistent policies which would help achieve a set of specified targets found within some broader social goals of government. The time period of the plan is considered sufficient for the construction and operation of large enterprise like electrical plants road construction and irrigation project etc.

It is feasible within the duration of the plan to determine the prospective direction and economic effects of technological progress.

Perspective plans:

 

These are documents that express a coherent series of objectives and method for an economy in respect of a distant future stated in the form of general guidelines and approved by the component authority. It provides a futuristic and predictive frame work that seeks t chart the course of economic development process over a long period of time. Broad programs and policy decision are made which provide a basis for developing the organizational relationship and administrative policies. The primary purpose is to provide a background to the shorter plans so that the problems that have to be solved over a very long period can be taken into account in planning over a short time. Longer term projects are brought into perspective plan.

 

Rolling plans:

 

These are usually drawn up as part of perspective plans. The purpose of the rolling plan is to ensure continuity in the implementation of a perspective plan objective/ project. Under this arrangement, a project that is not fulfilled during the duration of a plan for example is rolled into another period. In addition, a roiling plan can assume the form of a multiyear budget system which corrects the inadequately for the one year budget by capturing the requirement of most capital projects which require more than one year to complete.

                                                                                                        

How to succeed in development planning

 

To formulate a plan and succeed the following requirement are necessary:

 

1.      Planning commission; the first pre-requisite for a plan is the setting up of a planning commission which should be organized in a proper way.

2.      Statistical data; a pre- requisite for sound planning is a through survey of the existing potentials of resources of a country together with its deficiencies. As baykov says ,
“every act of planning in so far as it is not mere fantastic castle building presuppose a preliminary investigation of existing resources. Such a survey is essential for the collection of statistical data and information with regard to the total available material, capital and human resources of the country.

3.      Objectives; the plan may lay down the following objectives to increase national income and per capital income of the citizens of the country, to expand employment opportunities; to reduce inequalities of income and wealth and concentrate of economy power, etc. the various goal and objectives should be realistic, mutually compatible and flexible enough in keeping with the requirement of the economy.

4.      Fixation of targets and priorities for achieving the objectives laid down in the plan. They should be both global. Targets must be bold and cover every aspect of economy. They include quantitative production targets, so many more millions tons of food stuffs, coal, steel, fertilizer etc.

5.      Mobilization of resources; a plan fixes the public sector outlay for which resources are required to be mobilized. There are various internal and external resources for financing a plan. Savings, profits of public enterprises; net marketing, borrowing, taxation and deficit financing are the principal internal sources of financing the plan. The plan should lay down such policies and instrument for mobilizing resources which fulfill the financial outlay of the same time, they should encourage corporate and household savings of the private sector

6.      Balancing in a plan; a plan should ensure proper balance in the economy otherwise shortage or surpluses will arise as the plan progresses. There should be balance savings and investment, between available supply of goods and the demand for them, between manpower requirements and their availabilities and between the demand for imports and the available foreign exchange.

7.      Incorrupt and efficient administration; a strong efficient and incorrupt administration is the sine qua non of successful planning. But this is what most underdeveloped countries lack the most. Lewis regards a strong, competent and incorrupt administration as the first condition for the success of a development plan.

 

 

 

 

 

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