>J?

ASSIGNMENTS [ _ @I> ASSIGNMENTSC

TO GET Pdf / HAND WRITTEN ASSlGNMENTs Call or Msg 0321-5455195 / 0333-5455195 (Whatsapp #)
Code:- 810 Course: Economic Planning: Techniques and Applications
Level: MSc Semester: Autumn, 2019
ASSIGNMENT No. 1 ’g
Question No.1:-
Discuss in detail various problems faced by a developing country like Pakistan in economic plan
implementation.
w Answer:-
Economic growth and development depend upon the short term and long term planning and strategies. J'•
However, the later one is used to get sustainable and consistent economic growth in this competitive 'z:i),•
world. To some extent, both economic planning have their own merits and demerits. As far as
developing economies are concerned, solution for their economic disparities is to invest in long term
economic proj ects. Nevertheless, it is not an easy task to plan and invest scarce resources in long-term
planning specially for developing and underdeveloped economies. As a result, it is a dilemma for
developing economies to go for shortterm planning and projects to meet the current account deficit or
c even run the economy.
” There is no doubt that financial constraints is one of the major factors for the developing economies to
go for short-term planning rather to develop or build a structure to support the economy in the long-run.
g In other words, in order to mn the economy, developing economies have to use their scarce financial
resources on short-term projects to mn the economy. Globalisation has changed the behaviour of
international trading and business outlook. Now, every country strives to acco lish its competitive
advantage over others especially in their traded sectors to strengthen their economic ition in the
international market (Buckley and Ghauri 2004). Here, it is very important to note that s -term planning
and strategy is not an unfavourable option for the under developed or deve g e om tead,
they have to make stmctural and technological change in quest of having consisten d tainab nomic
growth in this competitive world. It is also a fact that short-term projects jot be efi e economies
especially developing and under- developed in the long run. Susta‘ able econo owth i dermined by
focusing on short-term planning and investment. It is also ve mpo ant to no that ortterm plan in
developing economies is indirectly in the favour of de oped onomies. po tion of t
strengthen the industry at developed economies.
As mo of the loped no s are ‘n ase nd one step ahead in technological
advance In is way, velo d ec o ‘e d is fav e when developing
economies make short-t plan and be ome a cust th r tech products. In case of
Pakistan, social, e mi i ncia d security barrier rted th tt of the policy makers
to use the resources i ort-te la g rather than 1 Anoth spect in this chaos is that
the short term planning Pakista ectly favour th oped ‘es rather than itself. As a result,
international don rs i tt a i ’s go to fo u term planning to meet their
own goals.
-ą› In the developing t e Pakis e option omic is not being done in the spirit because
there are many impe nd e its w
'L Let us explain these prob ems in j..
1. Planning is the Urg
Nobody can deny that pl g is ore necessary but more difficult to implement in
underdeveloped economies.
The reason is that planning requires strong, efficient and honest administration.
But such a strong, efficient and hones administration does not exist in underdeveloped countries. In
these economies the task of planning should be undertaken by the creation of a highly trained and
disciplined class.
2. Objectives before Planners:
The first objective of planners in UDCs should be to create an administrative machinery. The planners
should see that the quantity and form of planning should be strictly in accordance with the
administrative machinery. Moreover, the Government has to break much ground in doing normal
expected functions before it can indulge in controversial subject which planning may involve.
3. Backward Agriculture:
 ‹ - »’“ - ASSIGNMENTS @[ @/ ASSIGNMENTS
TO GET Pdf / HAND WRITT EN ASSlGNMENTs Call or Msg 0321 -5455195 / 0333-5455195 (Whatsapp #)
It has been noticed that in an underdeveloped country, depressed agriculture is the crux of the problem. As
agriculturists are illiterate and backward, rapid economic progi ess may riot be possible. But once the
farmers are filled up with the desire to make progress, perhaps many difficulties may be overcome.
4. Tritditional agriculture vs. Modern Agriculture:
Another problem faced by agricultural economies is the small size of holdings. Agricultural progress is not y"
possible unless the country goes through an agrarian revolution which contains work on large holdings
with machinery. The success depends on how popular Government can awaken sufficient enthusiasm
among masses to carry through such a revolution by consent. Unfortunately, intensive and large-scale
farming requires fewer people per acre than the small hot di rigs.
5. Investment and Borrowing or Deficit Financing: )'-
-v Unemployment is an other problem which an developed country faces. The problem cannot be solved by the
creation of money alone, but large-scale Government activity is requi red. But the control of foreign
exchange in itself may not solve the problem because the new money that is created will force the
prices up In an industrial country, an increase in quantity of money is li kely to increase employment and
output which may not be the case in an underdeveloped or agricultural country, even where there is
unemployment An increase in the quantity of money as experienced in an underdeveloped country is
generally likely to reduce output.

Question No.2:-
Discuss in details the economic planning under centrally pl ned economy end mixed economy.
Answer:-
The fundamental purpose of economic life is the satisfaction an wants which are basically unlimited.
All the economic activities of any modern society ar ect ow ti sfying human needs with
limited (scarce) resources.
The limitation of resources forces society to e clio e allocation Economic resources are scarce in
relation to the demands for their ternative usMT e pri economic problem is the allocation of scarce
resources to satisfy human want an anner that ings xiinum satisf’
And economic planning, write C. T on, “mea arra einent of" c which are scarce in relation
to the needs for their alternativ see in s a way t th atisfa ti d by em is maintained at an
optimum level. It thus i ves element choi bet en c i ns of a g a pre-
é determined end. It is a carefully tho out r nal arra cement of e re urces” ins says: “To plan
is to act with a purpo o c o , and oice is the essenc ic act’
The tern planning such a nt has been defin e tly by i ent writers like W A Lewis,
Jan Tinberdin, Radn Nurkse hers. Briefly e econ i ning is a conscious and
carefully thought- out proc ss, ed t for t ent titil's e country’s
available resources to realise some basi bjectiv
In the words of H, . Dik’ on, “Econoi inning i g of major economic decisions— by
the conscious decision inate a “ty, n the bas comprehensive survey of a country’s existi
ng and potential resources car t f the e people.”
'L On the basis of the available u and tl e the people, development plans for a definite period
are prepared beforehand by n ral pl n t ority. And then the economic activities of the country
are dii ected towards the iin plei tation ns.
Economic planning under central d economy
Central planning is also referred to as ommand economy’ or Communist economy.'
Wlth Central planning, the theory is that the government will take ownership of the means of production
and run the economy in the interest of workers. The theoretical basis of a planned economy steins from the
work of Karl Marx
“To my mind, the so-called socialist society’ is not anything immutable .. It’s crucial difference front the
present order consists naturally in production organized on the basis of common ownership by the nation
of all means of production.”
In theory, a Centrally planned economy can overcome market failui’e and achieve equality of distribution.
Supporters of centrally planned economy argue that when economic decisions are left to the free market —
Thank you for using www.freepdfconvert.com service!

Only two pages are converted. Please Sign Up to convert all pages.

https://www.freepdfconvert.com/membership