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What is Economic Planning?

Economic planning is a conscious governmental effort to influence, direct and control changes in the principal economic variables of a country, over time in order to achieve a specific set of objectives. It is a rational and systematic allocation of resources by the government, aimed at increasing the rate of economic development. The essence of…

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Types of Economic Planning

Economic planning can be classified into two categories: Aggregate Economic Planning This is a type of development planning which deals with the entire economy. The whole economic system is seen as a unit. The major macro-economic variables like consumption, production, investment, saving, exports and imports which are critical for the performance of the economy, are…

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Problems of Economic Planning

The problems associated with economic planning include: Political Instability Political instability often leads to change in plans. Sometimes, if the development plans are continued, there are shifts in targets and area of emphasis. The new government in turn will come up with plan review and implementation only to be ousted by another government e.g. in…

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