Economic planning is a mechanism for economic coordination contrasted with the market mechanism.the economic plan refers to the development plan which targets to promote economic advancement.There are various ways that a nation can organize its economy. The basic layout of economic planning include:
Advantages of economic planning
In Nepal planned development began with the implementation of the first 5-year plan in 2013 BS. The second and last plan was only limited to three-year plan. So far eleven different plans have been carried out. Generally, these plans were highly ambitious but implementation was not efficient so many of their targets could not be met.
The government of less developed country has the responsibility of planning and controlling the economic development of the country. One way of doing this is a 5-year plan. The National Planning Commission is responsible for these. They must set their aims, what it is hoped to achieve in the following 5 years, and they must decide how the aims can be achieved. The tenth plan completed in 2007 AD. Then, was running the 3-year Interim Plan.
Participatory economic planning
If you are very poor, it is very difficult to start being productive, because tools and raw materials need to be bought. Also, working alone, there is not enough labor. Traditionally, Nepali people have formed small groups to help each other, and now all over the developing world small groups of 5-25 people are joining together and borrowing micro-credit. The actual details were varying from place to place but the basic method is similar.
The economic planning implemented so for are given below :
Long term vision)
To upgrade Nepal from a least developed to a developing country by 2022 A.D
To let people directly positive change in the living standard by reducing the existing economic and human poverty prevalent in our country.
The company from country 'X' build a factory in country 'Y' to make the country 'Y' more stable and make a friendly relation with the country. Building a factory also benefits the country 'X' as investor will have full control over the company. The advantages and disadvantages are as follows.Advantages:
The advantages of economic planning are:
Economic planning is the making of major economic decisions- what and how much is to be produced and to whom it is to be allocated being based on the comprehensive economic survey.
Till the 5th plan, the construction of infrastructure was given special priority. The 6th and 7th plans had emphasis on the minimum basis needs of the people. Though much work has to be done to raise the living standard of the people, remarkable progress has been achieved in education health, development, extension of foreign trade and industries based on agriculture, etc. But the most serious concern for us is that more than 40%of Nepalese still live below the poverty line.
The planners should consider the following points for successful economic planning
Yes, each five year plan of Nepal has failed to achieve its goals because of: