Development Planning

Subject: Economics

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Development planning is the act of making plans related to socio-economic activities to meet certain objectives of a person or a household or an institution or the country as a whole. the concept of development planning was introduced in 1917 A.D. by the former Soviet Union. According to Dalton "Economic planning in the widest sense is the deliberate direction by persons in charge of large resources of economic activity towards chosen ends." There are several importance and need of Development Planning : -Poverty alleviation -Human Resource Development -Economic Growth -Reducing Regional Imbalance
Development Planning

A plan is a set of things to operate in a systematic order to achieve the definite target. Planning is the process of making decisions to achieve the goals or target.

Development planning is defined deliberate government attempt to implement, monitor, supervise as well as co-ordinate economic decisions made on economic issues of a nation. It is also known as economic planning of a nation. The concept of development planning was first introduced in 1917 A.D. in the former Soviet union.

Dalton says, "Economic planning in the widest sense is the deliberate direction by persons in charge of large resources of economic activity towards chosen ends."

The basic objective of development planning is to achieve sustainable economic development in primary, secondary and tertiary sectors of the nation.

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Importance / Need of Development Planning

  • Poverty alleviation
Poverty Allevation (

Development planning helps in the of poverty alleviation through the creation of employment opportunities and social opportunities like education, health, etc.

  • Human Resource Development

Human development resource is the most important factor in implementing the plans and policies successfully. It states various effective programs to get benefits for those people directly or indirectly.

  • Economic Growth

One important aim of planning is to increase economic condition of a country. Without the growth of economic condition, it is not possible to attain and maintain economic prosperity.

  • Reducing Regional Imbalance

There is a vast economic imbalance between regions of a country and also between rural and urban areas. So the main importance of planning is to reduce this imbalance by implementing effective plans and programs.

Besides the above-mentioned importance, development planning provides the following benefits to the country

  • Diversification of Agricultural Sector
  • Manpower Training
  • Population control
  • Industrial development
  • Promotion of Tourism Sector
  • Employment Opportunities
  • Monitoring and Evaluating, etc.

An Approach Paper to the 13th Plan (2013/14 - 2015/16)


In Nepal, planned development started in 1956. The nation has seen the implementation of nine five-year plans and three three-year plans. This plan was a contribution to the economic and social development of the country, problems such as poverty, economic disparity, and social exclusion still needs to be addressed. Nepal is considered a least developed country but if development efforts are accelerated and political environmental commitment is for the coming, Nepal may be upgraded to a developing country.

Long-term Vision

The vision of this plan is to upgrade Nepal as a developed country from least developed by 2022.

Goal and Objective

The main goal is to decrease the proportion of the population living below the poverty line by triggering broad-based, employment-oriented, inclusive and equitable economic growth that would help alleviate poverty and establish a sustainable peace. Its objective is to bring about a direct positive change in the living standards by reducing the economic and human poverty prevalent in the nation.


The major strategies of 13th plan are as follows:

  1. Achieve inclusive, broad-based and sustainable economic growth by enhancing the contribution of the private, government and the co-operative sectors to the development process.
  2. Develop physical infrastructure.
  3. Enhance the use and quality of services.
  4. Enhance good governance to the public and other sectors.
  5. Empower targeted groups and sectors both socially and economically.
  6. Implement development programs which support climate change adaption.

Prioritized Areas

The major prioritized areas of 13th plan are as follows:

  1. Developing hydropower and other energies.
  2. Increasing the productivity, diversification and commercialization of agriculture sector.
  3. Develop the basic education, health, drinking water and sanitation sectors.
  4. Promoting good governance.
  5. Developing roads and other physical infrastructure.

Process of Plan Formulation

Plan formulation is a process of making new plan with reference to the previous evaluation of plans including evaluation and monitoring of existing plan. A good plan formulation requires following steps:

  1. Evaluation of past plans and estimation of new plan
    The planning authority should evaluate previous plans. In the process of evaluation success and failure of current and the past plans are evaluated.

  2. Collection and presentation of new project proposals
    The planning authority should collect project proposals from District Development Committee of each district of the country. Similarly, district level authority may also send their programs to the national planning commission.

  3. Discussion
    The most important step in plan formulation is the discussion on the current plan as well as on the proposed plan. The discussion program takes place among National Development Council, National Planning Commission Ministries, etc.

  4. Determination of Objectives, Targets, and Priorities
    A complete development plan should determine its objectives to be achieved during the proposed plan period. It also should determine targets and growth rate in the major field of the economy.

  5. Authorization and Implementation of Plan
    The final document of development plan prepared by planning authority is presented to National Development Council for authorization. After authorization of new plan, it is implemented in association with Government of Nepal, National planning commission, private sector.

  6. Monitoring and Evaluation
    The National Planning Commission monitors the implementation of the plan during the planning period and helps in achieving the goals.


Adhikari, Ramesh Prasad, Economics-XI, Asmita Pustak Prakashan, Kathmandu

Kanel, Navaraj, Principles of Economics-XI, Buddha Prakashan, Kathmandu

Kharel, Khom Raj, Economics In English Medium-XI, Sukunda Pustak Bhawan, Kathmandu

Things to remember
  1. Planning is the systematic, conscious and deliberate choice of economic priorities by some public authorities.
  2. The systematic planning was started in Nepal in 2013 BS.
  3. The main objective of 3-year interim plan is to reduce the poverty and unemployment.

Importance / Need of Development Planning

  1. Poverty alleviation
  2. Human Resource Development
  3. Economic Growth
  4. Reducing Regional Imbalance
  5. Diversification of Agricultural Sector
  6. Manpower Training
  7. Population control
  8. Industrial development
  9. Promotion of Tourism Sector
  10. Employment Opportunities
  11. Monitoring and Evaluating

Process of Plan formulation

  1. Evaluation of past plans and estimation of new plan 
  2. Collection and presentation of new project proposals 
  3. Discussion 
  4. Determination of Objectives, Targets, and Priorities 
  5. Authorization, and Implementation of Plan 
  • It includes every relationship which established among the people.
  • There can be more than one community in a society. Community smaller than society.
  • It is a network of social relationships which cannot see or touched.
  • common interests and common objectives are not necessary for society.

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