Economic planning is the process at the economic development organization (EDOs) that decides on what and how they can do to increase the economic development in the region. In general, it is a way of utilizing and organizing resources to maximize high knowledge and paying jobs.
Features of Economic Planning
The features of the economic planning include:
System of Economic Organization
It contains various activities, including production, consumption, distribution, exchange, and finance. These all are planned strategically to attain various goals.
Determining Tasks and Priorities
Under this point, the economic and social targets are defined. Certain priorities are set to attain these tasks.
All the planning is done by the central planning authority known as the planning commission.
Declaration of Period
The approved plans involve the determination of economic plans for a specific period.
Regulations and Control
Economic planning is entirely controlled by the government entity. All the plans are determined, regulated, and controlled by the central government.
Economic and Social Development
The role of the planning department in the EDOs is to promote economic and social developments.
Importance of Economic Planning
The importance of economic planning involves:
The department is highly dependent on the statistical data to better have clear targets and priorities.
Suitable Economic Organization
The primary vision of establishing the economic organization is to look forward to economic stability and social welfare.
The growth is directly associated with a stable and strong government that can provide a sound infrastructure.
Economic progress is only possible if the government looks after maintaining the right balance between agriculture and industry, public and private sector, urban and rural areas, and cotton and heavy industries.
Fixing Targets and Priorities
With economic planning, priorities are set up that help you attain the desired targets.
Economic planning is efficacious if the roots of the administration are clean and tidy.
Types of Economic Planning
The types of economic planning are listed below:
- Capitalist Planning: All the resources are managed, controlled, and regulated by private entrepreneurs or companies.
- Socialist Planning: It is a dedicated way between communists and capitalists planning.
- Communist Planning: The resources are managed, organized, and regulated by the government.
- Fascist Planning: The head entirely manages and takes efficient and important decisions and is regulated, directed, and controlled individually.
- Democratic Planning: It is adopted by both public and private sectors that work under the government and follow their rules and regulations.
- Long Term & Short Term Planning: When the plan is drafted for a long period.
- Permanent & Emergency Plan: Such plans are designed to meet urgent needs.
- General & Partial Planning: Achieving economic planning for a particular part of the economy.
- Regional, National, & International: When the economic plan is drafted for the regional level is regional planning. Similarly, the same concept is followed by the national plan. There are a few complexities that a local government has to deal with the foreign government to extend the hand for development both ways.
- Centralized & Decentralized: The economic plan drafted by a central authority is the centralized plan. Whereas planning done by regional authorities is decentralized planning.
Objectives of Economic Planning
The objectives are categorized in the following:
Economic Objectives: The economic objectives are defined under sub-categories that let the objective satisfy the efficacy. It includes the following:
- Utilization of National Resources
- Appropriate Development
- Minimizing Economic Inequalities
- Increasing Production and Productivity
- Leveraging Standard of Living
- Economic Security and Stability
Social Objectives: Such objectives deal with old age, pensions, unemployment, allowances, accidental insurance, and so on.
- Social Security
- The Social Equality
- Social Welfare
Political Objectives: This objective includes other sub-categories as follows:
- Promoting Defense
- Promoting Internal Peace
- Satisfying Political Ego
After reading through various features of the economic planning, you come across that the economic development organization is doing as much as it can to support the local culture and breed more employment opportunities. If you are an EDO or looking to establish an EDO, you need good web-based software that can serve all technical requirements an EDO needs for analysis, storing and sharing of the data. You can request the demo of My ProTrackPlus, a full-fledged software that is designed to do all the Edos’ work.