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Economic Planning

ECONOMIC PLANNING

Is a technique of achieving predefined and well defined aims and objectives laid down by certain planning body or organization.
Dr. Daton Defines Economic Planning AsEconomic Planning in its widest sense is the deliberate direction by person incharge of large resources of economic activity towards a chosen end.
Dickinson Defines Economic Planning As The making of major economic decisions i.e. what and how much to produce, how, when and where is to be produced, to whom it is to be allocated. By the conscious decision of determined authority on the bases of comprehensive survey of the economic system as a whole.

WHY PLANNING IS REQUIRED IN LDC’s
1) To accelerate the pace of economic growth or economic development.
2) For best utilization of natural resources.
3) In order to brake V.S.O.P.
4) To increase output / productivity i.e. GNP, GDP, etc.
5) To improve and strengthen the market mechanism.
6) For mobilization and batter utilization of resources.
7) To determine the amount and composition of investment.
8) To overcome structural rigidity.
9) To remove widespread unemployment and disguised unemployment.
10) In order to build Socio-Economic overheads investment is required and for that matter planning is required.
11) To expand the domestic and foreign trade.
12) To encourage savings.
13) To overcome any mishap in the form of economic crisis in international market.
14) To properly manage the money market.
15) To increase voluntary savings, to decries inflation and to reduce the rate of interest.
16) To improve the market mechanism i.e. (how much to produce, for whom to produce, what to produce, how to produce, etc) planning is required.
17) To manage the efficient distribution of resources among its many alternate usage.
18) To consider the Spillover effect...

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