Planning can be defined as a
consciously directed activity with predetermined goals and predetermined means
to carry them out. It is an instrument or technique or mechanism whereby the
use pattern of resources is carried out. Two basic elements of planning are (i)
the goals and (ii) the means.
(i)In a plan there may be one
or more goals. In case there are many goals, they need to be placed in order of
their importance to the economy.
(ii)The means are broadly
constituted of two elements: policies and instruments.
The policies describe the
outlines of actions for the fulfillment of plan goals.
The instruments may be
defined as the qualitatively and quantitatively defined means of action by
which it is intended to achieve the plan goals. These instruments are the means
by which planned resources are matched with planned requirements.
The various economic factors
that make it imperative that economic planning be adopted as an instrument of
resource allocation are as follows:
(i)Since resources, whether
natural, material, capital or human, are severely limited, planning provides a
method of rational and considered choice for securing the optimum combination
of inputs.
(ii)Planning help to identify
those deficiencies in the economy and the social structure which demand the
largest attention.
(iii)A plan for mobilizing
resources and savings is a necessary counterpart of the scheme of investment.
(iv)The processes associated
with planning and the implementation of plans enlarges the scope for public
participation and cooperation.
(v)A role for government
planning is thus called for to ensure that potential free-riders play their
part.
(vi)As planning techniques
improve and more precise statistical data become available, the
inter-relationship within the national economy can be seen more clearly and to
that extent the effects of different policies and measures can be traced
systematically.
No comments:
Post a Comment