ENGLISH ESSAY ‘Economic
planning’ FROM 650 TO 700 WORDS
The
meaning of economic planning differs from country to country and person to
person. Keeping in view various definitions we can say that aim of all the
plans is to utilize the available resources more effectively achieving the well
defined objectives during a given period of time.
Today
planning is considered essential for economic development. The objective of the
planning is to utilize the resources of the country in such a manner that it
should increase the size of the national income. In the less developed
countries like Pakistan, Planning is very useful for increasing the production
of the country.
The
decisions of planning authority are more superior as compared to individual’s
decisions. Economic planning considers what and how much is to be produced and
to whom it is to be allocated. While making these decisions, planning authority
keeps in view the interest of the whole nation. It prepares the plan according
the economic conditions of the country.
In
the less development countries and in advanced countries the objectives of the
planning are to achieve full employment.
Pakistan is also trying to reduce the unemployment through effective
planning. The objective of the each five year plan was to create more jobs for
the people.
In the capitalistic countries the gap between
wealthy and poor is increasing. It creates social evils. Through planning we
can reduce the inequalities of wealth.
Balanced
growth strategy can be adopted through planning. It will improve the condition
of all the sectors of the economy.
Planning
also provides the solution of over population. If the size of population is
greater than the size of natural resources, it can be adjusted through
planning. In various countries family planning programme has controlled the
birth rate.
Today
without industrialization no country can improve its economic condition. For
the establishment of new industries and projects planning is essential. Many
countries of the world are facing the food shortage problem. This problem can
be solved by the mobilization of resource through planning.
The
provision of social services is also the main aim of the planning. For example
in Pakistan during the seventy five tears plan various facilities like housing,
transport and water were provided to the people. The balance of payment of the
less developed countries like Pakistan remains deficit. It adversely affects
the rate of economic growth. Through coming up with government will scale back imports
and may increase the exports.
In
the less development countries people have low per capital income. Having low
income, their rate of saving is very low. While savings are small in a country,
Investment will also cause low productivity. When production will be low income
is bound to be low. So a financially poor country is trapped in his own
poverty. A poor country can get rid of poverty, if its rate of capital
formation increases than the rate of population growth. So capital formation is
that the key to economic development. Through planning, we can increase the
rate of savings and investment in the country. In this way national income will
rise and poverty will be removed.
There
are certain factors which inhibit the effective planning. For example there is
a need of accurate statistical date about the various sectors of economy. In
Pakistan available statistical data is incorrect, so planning in ineffective in
the less developed countries people are also not ready to provide various
information’s about their income and expenditures. It becomes the cause of
failure of plan. Effective planning also requires the political stability. But
Pakistan is facing political unrest since 1948.
Certain
measures should be taken to make the planning successful. For example, only
technical persons should be appointed in drawing up and execution of the plans.
Accurate information about the economy should be provided to the planners. The
strategy of self reliance should be adopted and dependence on foreign aid
should be reduced. For the successful planning competent and honest administration
is essential if we remove the obstacles in the way of economic planning? We can
improve our economic condition. Economic planning has proved helpful for under
developed countries.
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