Explain the rationale for centralized planning in an economy

• • To minimize wastage of resources/efficient allocation of resources
  • To ensure proper co-ordination in sectoral development since the private sector is still weak.
  • To ensure equitable distribution of resources/to fight income inequality.
  • For proper sequencing of operations in the economy
  • To solve the problem of shortage of manpower of local/lower levels/district levels.
  • To protect national interests.
  • To ensure consistency of plans since centralized planning is done in line with the available resources.
  • To ensure proportionality and compatibility of plans.
  • For easy mobilization of resources.
  • To allow regional specialization and thus avoid duplication of development projects.
  • For political support.
  • To ensure economic stability e.g. price stability.
  • To solve unemployment problem.
  • To promote self- reliance.
  • To achieve a pre-determined rate of economic growth.
  • To identify areas suitable for public and private investment.
  • To relate present and future trends and targets
  • To reduce strain on the local people in terms of mobilization of resource

To correct deficiencies of price mechanism especially during situations of rapid structural changes.