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Kerala PSC Indian Economy Book Study Materials Page 79
Book's First Pageonomi lannin 4.3 the economic decision making over a longer we have some goals and objectives left period to influence, direct and in some cases even regarding our lives, the process might to control the level and growth of a nation’s main continue. With the changing nature of economic variables (i.e., income, consumption, our needs, the nature and scope of the employment, saving, investment, exports, planning process might undergo several imports, etc.).4 changes. Planning is not an end in itself. An economic plan is simply a set of specific As processes accelerate and decelerate, economic targets to be achieved in a given change direction and course, so also does period of time with a stated strategy. Economic planning. plans may be either comprehensive or partial. (ii) Planning must have well-defined goals. A comprehensive plan sets targets to cover all After the Second World War, several major aspects of the economy, while a partial countries went for development planning. plan may go for setting such targets for a part of As these nations had enormous socio- the economy (i.e., agriculture, industry, public economic hurdles, they first set some sector, etc.). Taken broadly, the planning process goals and objectives and then started their itself can be described as an exercise in which a process of realising them via planning. government first chooses social objectives, then In due course of time, there emerged a sets various targets (i.e., economic targets), and consensus that planning must have some finally organises a framework for implementing, goals and those goals should be well- coordinating and monitoring the development defined (not vaguely defined)—so that the plan.5 government’s discretionary intervention One very important thing which should in the economic organisation could be be clear to all is that the idea of planning first democratically transparent and justified. emerged in its applied form and after studying and Even in the non-democratic nations (i.e., surveying the experiences of different countries erstwhile USSR, Poland, China, etc.) the which followed it, experts started theorising goals of planning were clearly defined.6 about planning. Thus, in the case of planning, the (iii) Optimum utilisation of the available direction has been from practice to theory. This resources. Here we see two catch concepts. is why the form and the nature of planning kept First, is the way of utilising the resources. changing from country to country and from time Till the idea of sustainability emerged to time. As we will see in the following pages, the (1987) experts tried to ‘maximise’ the types of planning itself evolved through time as resource exploitation. But once experts different countries experimented with it. around the world introspected the As per our working definition, we may say the untenability of such a method of resource following things about planning: utilisation, the sustainable approach (i) Planning is a process. It means planning was included into planning and here in is a process of doing something. Till entered the idea of utilising resources at 4. Michael P. Todaro, Development Planning: Models its ‘possible best’, so that environmental and Methods. oxford University Press, Nairobi, 1971. degradation could be at its minimum and 5. United Nations Department of Economic Affairs, the future generations could also be able Measures for Economic Development of Underdeveloped Countries, UNo, DEA, New York, 6. The Gosplan, First Five Year Plan (1928–33), USSR, 1951, p. 63. 1928.