1. Economic growth 2.self reliance 3.removal of unemployment 4.reduction of income inequalities 5.elimination of poverty 6.modernisation of the economy
give me the explaination of the above point in simple language.
Planning starts with purpose until objectives are defined; there can be no sense of direction, no standard of measuring the adequacy to efforts or acceptability of results. But the planning objectives differ from country to country and they many change in the same country as it gradually begin to achieve higher growth rates consequent upon rapid industrialization.
To increase per capita and NI: To increase in per capita and NI of a country is regarded as an indicator of eco, development. The increase in income represents higher standard of living as well as increase in income of Pakistan is around $480 per annum. While the per capita of US is more than $25000. Such gap is widening day by day.
Higher level of employment: The objective of planning in DCs is this that they want to maintain full employment without inflation and deflation. In case of DCs if population is growing it will necessities an increase in real income for marinating per capita income. If labor is expanding, output must also expand to ensure full employment. If net investment takes place, income should also grow to avoid idle capacity of the economy. Therefore, the problem of DCs is to maintain full employment.
The main objectives of economic planning include the attainment of objectives which are determined by the central bank or government to achieve growth and economic stability. One objective of economic planning is to determine the amount of money to be circulated in the economy i.e determining the money supply in an economy. This objective is directly related to monetary policy of the country which affects inflation, cost of borrowing, business opportunities, employment, purchase or liquidation of foreign assets, imports and exports etc. Another objective of economic planning is to formulate policies which can create overall welfare of the economic agents within a society such as government , households and businesses. To determine how much to export and how much to import, tracking the government spending and inflows of cash in an economy is also a very important objective of an economic planning. Thus economic planning overall helps to allocate and forecast the demand of funds needed in the economy to make progress in the short run as well as in the long run.
Wider opportunities:In market system, the decision making attitude of an individual remains handicapped because of two reasons;The limited life span of an individual; the limited resources at the disposal of an individual, Because of these problems in the market economy individuals undertake those projects which require small amount of resources and the fruits of these projects could be reaped small amount of resources and the fruits of these projects could be reaped within the life span of an individual.
In this way the individuals would hardly be prepared to launch big projects like construction of highways, power- stations, land reclamation, anti water logging and salinity schemes, and rail- roads etc. because such projects are beneficial even for those individuals which are yet to born in distant future. On the other hand, these problems do not exist in case of planning.
Public oriented goals: In the market economy only those goods are produced whose demands are backed by money offers. As a result the production of public goods like education, health services, park, old age institutes, orphan houses and shelters for homeless person etc. will not be made, or they will be produced sub optimally. Thus in capitalism when all the allocative and distributional activities move around the money vote, resources will hardly be allocated for the socialization of the society.
