Why is it necessary for your country to prepare national development plans.

Instead of relying on market  and price mechanism, it is necessary for the State to prepare national economic development plan to coordinate all factors of production and make optimum allocation of resources to create economic growth and development that is to say:

• to regulate Market and Private Sector 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 attain favorable balance of payment by promoting exports and minimizing imports.
• 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.
• to facilitate employment and job creation
• to foster population management
• To ensure women and gender equity
• to encourage citizens to be active in their own development, in strengthening democracy and in holding their government accountable
• to accelerate Capital Formation and Economic Growth: