Development Planning

Business studies study module

This is the process through which the country establishes their objectives to be achieved, identify the resources that will be required and put in place the strategies or methods of acquiring the resources and achieving their pre-determined objectives.

In most cases their objectives or goals are the goals of economic development

The plan will prioritize the objectives to be achieved and even brake it down in to targets that if achieved with the planned strategy and resources, the objective shall have been achieved.

Need for economic planning

It enhances the following

  1. Appropriate resource allocation, where resources are allocated according to the need of the objective and in a most productive way
  2. Stimulation of effort of people in the desired direction. The plan outlines including the possible outcomes which persuade people to move to that direction
  3. Support foreign aid bargain. Since it shows including the objective that the country seeks to achieve, it is capable of convincing the donor to finance it in the country
  4. Project evaluation, assisting on checking whether the predetermined targets or objectives are being achieved
  5. Long term decision making, as it will show what each and every sector of the economy will require in the future to make it stable.
  6. Avoiding duplication of industries in different parts of the country, for it will show the ones that have been set in those parts and even enhance balancing
  7. Promote balancing in regional development ensuring that they are not concentrated in only one region, ignoring other regions

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