What is Development Planning?
Development planning refers to intentional or voluntary state intervention aimed at achieving pre-defined objectives within a given time period through the efficient mobilization of available resources.
A development plan is a document that outlines specific development goals, the time frame for achieving these objectives, and the resources to be mobilized to achieve them.
Traditionally, development planning was said to be the state intervention exercised by the communist/socialist country to control the economy. The USSR was the first to introduce development planning, a hallmark of its communist system. However, in recent periods, development planning has become a common practice used by all types of economies, from capitalist to socialist, and from small to large.
Nature of Development Planning
Development planning is a conscious and deliberate effort of the government in order to guide the development activities of the country. There are various types of development planning, and they may be difficult in terms of the time frame, coverage, approach, etc. However, the development plan has some common nature and characteristics. They are
- Goal-Oriented: Every development plan has specific objectives that are predetermined. For example, the objective may be economic growth, poverty reduction, social inclusion, etc.
- Time Bound: A development plan is prepared for a fixed period. For example, it may be for a year, 5 years, or 10 years.
- Resource-Based: Development planning is based on the available resources and their efficient utilization. Since the resources are limited, a development plan has estimated the fixed resources in order to achieve the goal of the development plan.
- Systematic and Process-based: Any development planning follows a sequential set of steps, such as objective setting, resource assessment, policy formation and implementation, monitoring, and evaluation.
- Government-led: The development planning is the intentional intervention of the government to guide the economy. So, the development planning is led by the government.
- Policy and Strategy-based: The development planning uses the policies and strategies to achieve the objective from the given resources. The policies and strategies are so designed and executed for the best utilization of resources.
- Guides the economy: Every development planning is led by the government, and it has a specific perspective and vision to guide and drive the economy.
- Social welfare-based: Any development intervention makes some people better off and some worse off. So, the development planning tries to maximize the social welfare by addressing the issues of the majority.
- Comprehensive in Nature: The development planning details the goal of the development planning period. It has also assessed the risk and assumption, and these are specific policies, strategies, and programs that make the development planning comprehensive.
- Justice and Equity-based: Since the development planning is the exercise by the government to maximize social welfare, it is related to promoting social justice and equity.
Types of Development Planning
1. Time-Based:
- Short range (1 year or less, e.g., Budget)
- Medium range ( 3 – 5 years, e.g., periodic plan)
- Long range ( more than 10 years, e.g., Agriculture development strategy)
2. Approach-based:
- Macro approach or comprehensive
- Sectoral planning (tourism, agriculture…)
3, Control-based:
- Centralized planning
- Decentralized planning
4. Direction-based:
- Indirective planning – broad guidelines and direction
- Directive planning – details of every program, project, and target.
5. Nature of target:
- Physical planning
- Financial planning
Rationale/Importance of Development Planning
- Efficient utilization of the available resources.
- Accelerating economic growth and development.
- Completion of the programs and projects in time.
- Balanced and inclusive development.
- Correction of market failure.
- Improve coordination among the policies, programs, and stakeholders of development.
- Development of strategic infrastructure.
- Human capital development to meet the needs of the market.
- Maximize the risk and uncertainty from any internal or external shocks.
- Develop the perspective and guide the economy.
- Poverty, inequality, and unemployment reduction.
- Improvement in the productive capacity and completeness of the economy.
Factors required/Responsible for a successful development planning
For the success of any development plan, there are several prerequisites. They are related to setting the target, data, political commitment, and ownership, among many others. The major factors required for successful development planning are
- Clear and realistic objectives/goals.
- Adequate and reliable data.
- Political stability and commitment of the major political parties, including the government.
- Proper coordination among the stakeholders.
- Adequate financial, technical, and human resource capacity.
- Favorable and supportive external environment.
- Effective monitoring and evaluation mechanism.
- An efficient bureaucratic and administrative system.
- A dedicated and specialized body of development planning with full authority.