Development Planning

An Introduction

DEVELOPMENT- combination of the words

“develop” which means improved, progress, changed and , “ment” which means the state of being.

the word DEVELOPMENT can be defined in so many ways depending on the context or matter it is being viewed.

DEVELOPMENT

The process of advancing to a more complete or complex form; to unfold gradually; to advance toward completion; to form by growth; to grow, evolve.

DEVELOPMENTAn extension of the theoretical or practical aspects of a concept, design, discovery, or invention.

The process of economic and social transformation that is based on complex cultural and environmental factors and their interactions.

PLANNING

1. TYPES OF PLANNING2. PLANNING PROCESS3. PRINCIPLES OF PLANNING 4.PLANNING MACHINERY

Fritz Morstein Marx says,

“Planning is preparation for action. It is

the vital first step in any major administrative action. Planning is means to an end. It is the process

of formulating objectives to be realized by administrative

enterprise”.

DEFINITION AND MEANING

John D. Millet says,

“Planning is process of determining the objectives of administrative eff ort and devising the means calculated to achieve them”.

He also says, “Planning is simply-an endeavor to apply foresight to

human activity, planning anticipate desired results and prepared the

steps necessary for their realization”.

Development PlanningEconomic Planning

Administrative Planning

TYPES OF PLANNING

PLANThe process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.

TYPES OF PLANS

TYPE PURPOSE

Strategic

Planning

A Strategic Plan is a framework for strategic thinking that helps an institution stay competitive, live into its core values, ward off threats and take advantage of opportunities.

Tactical Plannin

g

the process of taking the strategic plan and breaking it down into specific, short term actions and plans. The relative length of the planning horizon will vary from one place to another but typically the strategic plan will cover a period greater than three years while the tactical plan covers the period from today through to the end of year three.

Operational Plan

To operationalize the vision and mission through specific work plans that lead to shared responsibility and accountability and fulfillment of specific planning goals.It is the teeth of strategic plans.

There is no one best defined process of planning. Steps involved vary from person

to person and situation to situation. Steps involved in planning are not rigid.

Seckler Hudson steps in planning are :

Problem defi nitionExploration of informationDefi ning possible alternativesExperimenting one or more tentative solutionsEvaluationReconsideration, readjustment or re-decision

PLANNING PROCESS

Unity of planContinuity of planTiming of the planSuppleness of planPrecision in planning

PRINCIPLES OF PLANNING

Most countries of the world have established a planning agency of one kind or another for the planning of economy and administration.

The structure, composition and the internal organization may vary from country to country but the functions they perform are almost similar. It is not the responsibility of a single agency and it requires the consent and advice of the whole representative institutions.

Planning agency is involved throughout in the planning process from formulation to implementation and then post implementation.

Head of planning agency vary in diff erent government systems.

Staff of planning is selected from variety of specialists and generalists.

PLANNING MACHINERY

The Colombo PlanFirst Five-Year PlanSecond Five-Year PlanThird Five-Year PlanFourth Five-Year PlanFifth Five-Year PlanSixth Five-Year PlanSeventh Five-Year PlanEight Five-Year Plan

DEVELOPMENT PLANNING

DEVELOPMENT PLANNING

Planning is a key tool which influences decisions about priorities and resource allocation, and aims to influence the direction, and pace of development. 

 It also often involves linkages between different levels of government, and so is an opportunity to enshrine micro-macro links, as well as to integrate actions of different government and non-government agencies.

COMPONENTS OF A SAMPLE

DEVELOPMENT PLAN

Development Theories

Modernization theoryScholars such as Walt Rostow and A.F.K. Organski postulated stages of development applying to every country.

 Samuel Huntington considered development to be a linear process which every country must go through.

Modernization Theory, in contrast to Classical Liberalism, viewed the state as a central actor in modernizing "backward" or "underdeveloped" societies.

The Action theory of Talcott Parsons 

• Defines it as qualities that distinguished "modern" and "traditional" societies.

Action Theory

Education was viewed as key to creating modern individuals. 

Technology also played a key role in this development theory because it was believed that as technology was introduced to lesser-developed countries it would spur economic growth. 

Dependency theoryWhile Modernization Theory understood development and underdevelopment as a result from internal conditions that differ between economies, dependency theory understood development and underdevelopment as relational.

It saw the world's nations as divided into a core of wealthy nations which dominate a periphery of poor nations whose main function in the system is to provide cheap labour and raw materials to the core.

It held that the benefits of this system accrue almost entirely to the rich nations, which become progressively richer and more developed, while the poor nations, which continually have their surplusses drained away to the core, do not advance.

World Systems Theory

One distinguishing feature of this theory is a distrust for the state and a view in which the state is seen as a group of elites and that industrialization cannot be equated with development.

Out of this theory stem anti-systemic movements which attempt to reverse the terms of the system's inequality through social democratic and labor movements.

State theorybased upon the view that the economy is intertwined with politics and therefore the take-off period in development is unique to each country.

emphasized the effects of class relations and the strength and autonomy of the state on historical outcomes.

Thus, development involves interactions between the state and social relations because class relations and the nature of the state impact the ability of the state to function. Development is dependent upon state stability and influence externally as well as internally.

Economic Development Theories

The three building blocks of most growth models are:

the production functionthe saving functionthe labor supply function (related to population growth)

Harrod-Domar Model

An example in the Asian context is to ascertain the relationship between high growth rates and high saving rates in the cases of Japan and China. In the long run, growth rate is constrained by population growth and also by the rate of technological change.

Exogenous Growth Model

The Exogenous Growth theory (or Neoclassical Growth Model) of Robert Solow and others places emphasis on the role of technological change. Unlike the Harrod-Domar model, the saving rate will only determine the level of income but not the rate of growth.

Stages of Economic DevelopmentThe ability of a nation to compete and its priorities for development change as it passes through different stages of economic development. These can be categorized into three stages:

Factor-driven economiesEconomies primarily compete on low prices and natural resources

Enterprises are mainly involved in primary production and occupy a small part of the value chain

The economy is particularly susceptible to fluctuations in the world economic cycle, commodity prices, and exchange rates

Investment-driven stageCompanies produce standard products

and servicesProductivity is improved through

increased investment in infrastructure and a business-friendly environment

Enterprises move up the value chain beyond basic manufacturing towards product design, distribution, and marketing

Financial crises and external, sector-specific demand shocks can still impact the economy

Innovation-driven stageEconomies produce unique goods and services for the global market, driving advances in technology and business methods

Service industries play an increasingly important role and contribute significantly to GDP

Economies at this stage of development are more resilient in a volatile global economy

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“A PARABLE”

T2

In ancient literature, there is a whole body of stories arising out of the

experiences of early Christian hermits in the deserts of Egypt.

In one such story, a young man aspiring for holiness visits a pious old man who had lived like a hermit in the

desert for many years.

The young man asks the wise, old hermit: “Why is it that some men

come into the desert, pray zealously, and yet leave after a

short time, while others like yourself, remain on their spiritual

journey for a lifetime?”

T2

The old man smiles and says, “Let me tell you a story. One

day as I was sitting here quietly with my dog, a large rabbit

suddenly ran past us. My dog immediately jumped up, barking

loudly, and gave chase to the rabbit.

He chased the rabbit over the sand dunes with much determination. Some other dogs, attracted by his barkings, joined him.

What a sight it was as the pack of dogs gave chase to the rabbit. Slowly, however, they began to drop out, one by one, until only my dog persevered to the end.

T2

“In this story is the answer to your question, “says the wise hermit. The young man sits in confused silence. “Sir, I do not understand,” he asked. “What is the connection between the rabbit chase and the pursuit of holiness?”

To which the old man replies: “Those dogs dropped out of the chase did so because they had not seen the rabbit! Only my dog has seen the rabbit.”

IF YOU DO NOT KNOW WHERE YOU ARE GOING, ANY ROAD WILL TAKE YOU THERE.

Alice in Wonderland

“He who fails to plan is planning to fail.”

- Winston Churchill

Good Luck!