Why is it necessary to carry out development planning in your country?
- Regulation of Market and Private Sector by the State in order direct resources according to plan priorities.
- To correct market imperfection and price mechanism because they may not reflect the true opportunity cost of the entire country. For instance, a government may have to regulate the prices of goods, especially those of essential products such as drugs, milk, soaps, washing powder, cement, steel, petroleum products such as petrol, diesel, LPG etc.
- To allocate resources according to countries priorities.
- To reduce income inequality in most economies especially in LDCs.
- To create jobs and expand employment.
- Carefully prepared development plans are necessary to attract foreign aid and international loans for funding.
- To promote exports.
- To prepare for present and future county’s human capital development to increased productivity.
- To plan for infrastructures such as road, schools and health facilities to cope with population growth rate.
- To protect citizens against consumption of substandard and dangerous products. It ensures that goods produced by private sector and those imported are of good quality.
- To justify government involvement in risky, large and expensive programs like dams and irrigation schemes which need a lot of capital to convince the parliament pass their budget
- To encourage citizens to participate in national development. Good plans make it easy for the government to mobilize across the country.
- To ensure a rapid institutional transformation of the economy. From traditional agriculture to modern monetary industrialization and self-sufficient economy.
- To attain price stability so that there is no inflation or deflation.
- Foster population management.
- To ensure women and gender equity.
- Encourage citizens to be active in their own development, in strengthening democracy and in holding their government accountable
- Accelerating Capital Formation and Economic Growth:
CATEGORIES Economics
TAGS Dr. Bbosa Science
