Economic planning Essay Example | Topics and Well Written Essays - 2250 words

Economic planning - Essay Example 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 models3. 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. ... Technology and Poverty: Technological up gradation has a direct impact on the employment and poverty of the country. In a developing economy goods are produced by the skilled and unskilled labour. The unskilled labours are the poor population of the country who are uneducated. Any technological progress increases the demand for skilled or educated labour and thus generates unemployment for the poor/uneducated people. Government has to take care of such advancements and efforts are required for the utilization of unskilled labours and the subsequent rise in their wages proportionate to those of skilled labours. (Maurizio Bussolo, John Whalley, OECD 2003) Public Health: The developing economies are facing the problem of widening the gap between rich and poor. The economic development has caused to rise the economic extremities. Out of the top ten poor countries of the developing economies, which are situated in Sub Saharan Africa (SSA), most of them have average GNI per capita of US$ 251. An average life expectancy of these nations is 43.9. The further health problems due to epidemics of HIV/AIDS may lower down the average life expectancy. Insufficient education level, low quality and insufficient food, inability to afford better healthcare services can produce weaker human resource. The weaker human resource has negative effect on the productivity of the country. Though the governments of the developing economies are making efforts to provide better health services and implementing projects to improve the quality of life of all sections of society, the results are not encouraging. (Inderscience) Climate Change: The Clean Development Mechanism (CDM) proposed the participation of Developed