Meaning and Forms of Planning

Meaning and Forms of Planning No accurate and generally adequate explanation can be presented. One of the most popular definitions is the one given by Dickinson, the making of key economic pronouncements—how much and what is to be created, how

Meaning and Forms of Planning

No accurate and generally adequate explanation can be presented. One of the most popular definitions is the one given by Dickinson, the making of key economic pronouncements—how much and what is to be created, how, where and when it is to be manufactured, to whom it is to be distributed—by the cognizant resolution of a determinate power on the base of a complete examination of the financial structure as a whole.

Several types of planning are now known to the students of Economics which have been discussed briefly below:

There is wide-ranging planning in which a complete and incorporated plan is visualized, instigated and implemented by a central power. The plan covers all features of the financial system and the vital power completely manages the investment and exploitation of reserves in indirect method. There is personal venture right through the country.

As in opposition to common planning there is fractional planning, a kind of bit by bit planning in which the plan covers merely some significant features of the financial system.

Then another time, planning might be endeavored within the subsisting socio-economic structure or it may look for to transforming the present order fundamentally. The earlier is recognized as functional planning and the later structural planning. Functional planning presumes that planning is achievable even in a capitalistic financial system, while supporters of structural planning believe that planning and capitalism are unable to coexist.

Planning by Inducement

Sometimes the States try to achieve objectives of planning in an indirect manner. There is private enterprise throughout the economy and market mechanism is in full operation. The state just offers certain inducements and incentives. This is called planning by inducement and it is to be met within the predominantly capitalistic economies like the American and the French economies.

As against such induced planning, there is compulsory planning or planning by direction under a central directing authority.

We have in the world today the above main types of planning or their permutations and combinations. In Soviet Union and China, there is general, structural and directional planning. In Nazi Germany and Fascist Italy, planning was general and directional. In the U.S.A., and U.K., whatever planning is there, it is partial, functional and by inducement. In India it is general and partly structural and a combination of planning by inducement and planning by direction.

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Ioana Moldovan
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Posted on Feb 24, 2012