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Objectives of Development
Objectives of Development Planning
- To Maximize
the Utilization of Economic Resources: The resources of any nation
are not always enough for her use. So, resources must be allocated in such
a way that they achieve maximum utilization of them. It is through the
proper allocation of their resources that nations can accelerate their
pace of economic development.
- To Correct
the Imperfection of the Market System: The market system, in
reality, is not perfect and therefore, allocation of resources which occur
under perfect competition model does not happen. There is therefore, the
need for the government to interfere to ensure efficient allocation of
resources.
- To Ensure
Balanced Growth: Planning
may be used to ensure balanced growth for all sectors of the economy. By
this there will be uniform growth and provision of complementary services
and intra sectoral linkages.
- To Attract
Foreign Investment: Development Plans are used as a means of
attracting foreign investment or foreign aid. Foreign government and
international organizations giving grants and loans need to be satisfied
that the finance they provide will be put to good use. Private investment
will also be encouraged by realistic plans showing the extent of economic
growth that is expected to be attained. Donor countries are therefore
interested in well-coordinated plans to direct investment funds.
- To Match the
Available Resources with the Desired Goals: The
complementary nature of some investment decisions make for planning. The
viability of one project may be conditioned upon another project. For
example, the development of the agriculture sector may require setting up
of irrigation projects and a special transport facility for carrying fresh
vegetables, fish etc. between the farms and the market places. In this
case, planning may be used to coordinate these activities.
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