Economic Planning History

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Girne American University
History of Economics
(Importance) Economic Planning History, Focusing some countries

Globalisation and Economic Integration

Lecturer: Ercan GÜNDOĞAN



Definition and History of Economics_______________________5

Quick Skip Economic Planning History_____________________8

History of Some Proactive Countries Economic Planning______10


United Kingdom________________________________________12

United States___________________________________________26

Soviet Union___________________________________________27




In this research i try to analyze Economic History and briefly Economic planning history of the worlds important (in word) countries.. In the economic planning research we must know the way to do it. Refers to any directing or planning of economic activity outside the mechanisms of the market. Planning is an economic mechanism for resource allocation and decision-making held in contrast with the market mechanism. Most economies are mixed economies, incorporating elements of market mechanisms and planning for distributing inputs and outputs. The level of centralization of decision-making ultimately depends on the type of planning mechanism employed; as such planning may be based on either centralized or decentralized decision-making.

Economic planning can apply to production, investment, distribution or all three of these functions. Planning may take the form of directive planning or indicative planning. An economy primarily based on central planning is a planned economy; in a planned economy the allocation of resources is determined by a comprehensive plan of production which specifies output requirements.

Objectives of Economic Planning

Planning is adopted only in Socialistic and Communist countries and also in Mixed Economy 1. Planning decides in which direction the Country should go. 2. How much resources should be allotted to each sectors

3. How much to be produced for the present and future periods. 4. Planning helps the country to achieve what it can achieve in decades if it is left to natural transformation. 5. Planning helps to use the maximum utility of the scarce resources 6. Planning is headed by central committee and it decides the periods to be adopted for planning 7. Even in capital countries where such strict formalities is not adopted they still decide plan ahead for the country

1. Increase in the Rate of Economic Development
One of the most important objectives of Economic Planning is to increase the rate of economic development. Capital formation should be carried out. Infrastructure facilities should be extended and social overhead such as education, technical training and health facilities should be increased. Planning in Pakistan should be done keeping in mind that country is populous and there are too many people looking for jobs, hence labor intensive projects should be given priority, which will absorb labor force and employment opportunities will increase. Increase in employment will increase national income and per capital income. Standard of living of people will raise and rate of domestic savings will increase.

2. Diversification of Economy
All sectors of economy should be given proper importance. No sector of economy should be neglected. Pakistan is an agrarian country, the development of industry of Pakistan depends upon agriculture, therefore more emphasis should be given to agriculture. Since population is too much and it is further increasing at a fast rate, therefore production of food grains should be increased.

3. Price Stability
Increase in price level hits the poor and fixed income people very much, whereas...
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