ECONOMIC PLANNING Meaning and
Definition
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Economic planning refers to a systematic process through which a government or an organization formulates and implements strategies to guide the allocation of resources and coordination of economic activities within a specified jurisdiction or sector. It involves setting objectives, identifying priorities, and determining the most effective means to achieve desired outcomes.
In the context of a national economy, economic planning aims to promote sustainable growth, enhance productivity, and address socio-economic inequities. It typically involves various aspects such as creating fiscal policies, regulating monetary supply, setting production quotas, and imposing regulations to stimulate economic activity and address market failures. Governments often play a central role in economic planning, setting macroeconomic goals, providing incentives, and establishing regulatory frameworks to guide private enterprises and sectors.
Economic planning can also extend to localized or sector-specific planning, such as urban planning or industrial planning, aimed at optimizing resource allocation and spatial development. It may involve setting land use policies, determining transport infrastructure investments, and allocating resources to support specific industries or regions.
The effectiveness of economic planning depends on the availability and accuracy of data, the expertise of planners, and the ability to adapt to changing economic conditions. While it can provide a framework for growth and development, economic planning needs to strike a balance between guiding economic activities and allowing for market forces to operate efficiently.
Etymology of ECONOMIC PLANNING
The word "economic" originates from the Greek word "oikonomia", meaning "management of a household". It comes from the combination of "oikos", meaning "house", and "nomos", meaning "law" or "management". The term "economic" refers to the principles and systems governing the production, distribution, and consumption of goods and services in an organized manner within a society.
The word "planning" comes from the Old French word "plan", meaning "ground plot" or "map". It, in turn, derives from the Latin word "plannum", meaning "flat surface" or "level ground". The term "planning" refers to the process of creating a detailed scheme or strategy to achieve specific goals or objectives.
