TYPES OF PLANNING Economic planning is a process under which attempts are made to achieve given targets of economic development within a specified period of time.

TYPES OF PLANNING TABLE

General or Comprehensive Planning 1.General Planning:- IT refers to planning of all activities in an economy. All sectors economy, namely, agriculture ,social service etc. are brought under its scope. 2.Partial Planning:- It refers to the planning of a particular sector of the economy. If planning a country is confined only to agricultural sector it is called partial planning.

Centralized and Decentralized Planning 1.Centralized Planning:-Under it plan is formulated , directed and controlled by a center planning authority. on the basis policies and targets of planning are determined by the central planning authority. it is also called planning for above. 2.Decentralized Planning:-It refers to such plans as are framed by local, regional and individual organizations. It is also called planning for below.

Functional and Structural Planning 1.Functional Planning:- It refers to that planning which seeks to remove economic difficulties by directing all the planning activities within the existing economic and social structure. 2. Structural Planning:- It refers to planning causes goods deal of changes in the social economic frame work of the country. Planning adopted in under developed countries is mostly structural in character.

Physical and Financial Planning 1.Physical Planning:- It refers to that planning under which targets of plan are fixed in terms of Real Physical Resources and the plans are also Prepared while taking the real resources into account for instance, fixing the targets of production of food grains, cloth, sugar, steel etc. 2. Financial Planning:- It refers the planning is meant the allocation of resources in terms of money. Rate of growth of national income is decided under this kind of planning.

Planning by inducement and Planning by Direction 1.Planning by Inducement:- In planning by inducement the government tries to achieve its objectives by influencing investment decisions of the entrepreneurs by offering the necessary incentives. LIMTATIONS:- 1.Disequilibrium 2. inadequate incentives 3.Low Rate of Capital Formation

2.Planning by Direction IT refers to that type of planning where in government directly intervenes in economic affairs. Planning by direction implies a system where planning is carried out through commands, direct orders and instructions. LIMITATIONS:- Lack of consumer’s sovereignty Inelastic Expensive

Conclusion in Planning by inducement and Planning by Direction In reality both these types are complementary to each other. Both are put to practise under mixed economy. Government has full control over certain sectors. In certain other sectors like agricultural small scale and cottage industries etc. producers are given many incentives. In fact planning by inducement is more relevant to democratic countries. On the contrary, communist countries like Russia, China etc.rely more on planning by direction.

Prospective and Perspective Planning Prospective Planning:-Prospective Planning refers to short-term planning. Perspective Planning:-It refers to long term planning based on the existing and short term economics requirements. LIMITATIONS:- Administrative Difficulties Psychological difficulty

Democratic and Planning and Features Democratic Planning:- Democratic Planning refers to that which is prepared by the consent of the people’s representatives. Such a planning enjoys full support and co-operation of the people. Features:- As a consequence of democratic planning. Central planning Authority in the national interest through fiscal and monetary measures. People enjoy economic social and religious freedom. People ‘s co-operation is sought in the preparation of the plan. One of the aims of planning is to co-ordinate the activites of Public and private sectors.

Totalitarian or Communist planning and Features. Totalitarian Planning:- IT refers in communist planning all economic activities are conducted by the government. Main means of production are controlled by the state. Features:- Public sector alone functions in this type of planning, Government has full and direct control. Central Planning Authority formulates a comprehensive plan for the entire economy. There is no economic freedom and all economic decisions are taken by the government. People’s welfare can be sacrificed at the altar of rapid economic development of the country.

Conclusion Between Democratic and Totalitarian Many economics prefer totalitarian planning and democratic planning. According to Nobel laureate Prof.Myrdal there is hardly any instance in history to prove that democracy has suffered because of totalitarian planning. Rather there are many instances contrary to it. There is no dearth of such critics who regard democratic planning imaginary. According to them democracy and planning cannot go side by side. Even under democratic planning government interference is inevitable to a large extent. According to Prof.Bhattacharya democratic planning is a mid way between free market economy and planning by direction. It contains disadvantages of both but advantages of none.