Economic planning

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Complete 9 pages APA formatted article: Economic planning. In many of the developing nations, economic planning has become necessary tool for development strategy. It helps the government to initiate corrective measures about market failures and other decisions. In short economic planning is a governmental method to tackle the economic decision-making and economic outcomes. The aim of economic planning is also to rearrange the financial and manpower resources.The popular models of planning are:Input-Output models

2.Applied macroeconomic growth models

3.Project appraisal in context with shadow prices and decision criteria.The development planning in practice does not prove fruitful in reality. This is because of the facts that the objectives are not well defined. the plans are over ambitious and the relevant data are insufficient or incorrect. The undesired circumstances may hamper the desired results of the plan. There are several factors, which affect the role of Government in the development. Some of them are: Requirement of education and employment issues, migration for employment between rural and urban areas, choice of techniques and creation of employment, structure of economy. In view of these issues, market liberalization has an upper edge over the administrative planning in the economic development. There has been an attempt to reduce the role of public sector and encourage the growth in private sector. (Michael P. Todaro)Development in a broad sense is an ambiguous concept and it is highly subjective, specific and widely debatable.

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