• ╫. • •. Economic planning. • ╫
Economic planning
Is to define general objectives in the areas of production, consumption, distribution and investment, and aims to mobilize the material and moral energies
To the community in a scientific and humane manner, in order to use them optimally to satisfy the material and moral needs.
Definition of planning
The definition of planning varied according to the different economic schools and political systems. Most of the bourgeois school thinkers confined the concept of planning to an artistic process independent of the nature of the political system, and saw that the intervention of the state was indirect, ie, a direct intervention of the private sector and its interests.
The general concept of planning is to carry out logical processes and procedures to deal with a future issue, or to achieve future goals according to justified priorities and according to the available means. Jean Tennergen discusses the concept of planning. He sees that planning becomes desirable whenever its effects are desired. These effects will increase:
1 The greater the need to predict 2 and the greater the need to commit to a goal. 3 and the greater the need to coordinate the work.
The need for each of the three elements depends on the type of economic structure of the State and on its overall conditions.
Perspective history
The first attempt at economic planning took place in the Soviet Union since 1920, and its long-term goal was to complete the industrialization process
Of an agricultural economy primarily under a strict order of orders led by the national economy.
The success of the planning practice in the Soviet Union has had the greatest impact on planning as a tool and method to overcome the economic difficulties of many non-communist countries, especially the difficulties that prevailed after the thirties and the period between the First and Second World Wars. The fifties of the last century All States took the view that the State should make a significant contribution to economic affairs and that some would exercise some form of programming, planning and directing economic activity to achieve desirable economic and social objectives. This trend continued in the 1960s and 1970s, with different planning and guidance methods in different economic and political systems.
In the group of socialist countries, the central planning method and the detailed planning of all branches of material and service production were adopted within the framework of public ownership of the means of production and central management of national resources. Central and detailed decisions were required on what to produce, prices and wages, and level of investment and foreign and domestic trade. The theoretical justification was that market forces did not assess and could not assess social values and principles. They are primarily for the benefit of freaks and primarily for their interests, in addition to the fact that these market forces are unable to achieve the full operation and efficient use of the elements of production.
The fact of the matter is that the 1970s did not come until all Arab and developing countries were practicing some form of programming and planning and had ministries or planning departments.
With the collapse of the Soviet Union and the group of European socialist countries, the planning practice of these countries ended, and they were replaced by procedures for a rapid transition to a market mechanism and attempts to exclude the State from interfering in economic life.
In the face of these changes in the international arena and the rise of neo-liberal trends, other socialist countries have begun to try to restructure their economy so that they can attract foreign capital while maintaining the State's influence in managing the national economy and directing its activities.
Types of planning
Are comprehensive, partial, sectoral and regional planning.
Comprehensive planning
It covers all the economic activities of the country and requires precise identification of the objectives to be achieved at all stages of the extended re-procurement process. The success of this planning is linked to the extent to which it ensures the objectives and ambitions of the society and the availability of its basic pillars of realism, inclusiveness, flexibility and continuity.
Sectoral planning
It is one of the forms of partial planning and is concerned with achieving coverage in one aspect of economic activity covering the different aspects of a particular sector, including the planning of production processes, labor, capital and productivity, organization of the sector, the services needed for it and its marketing and financing problems,
It is also interested in projects to expand the sector in the future.
Partial planning
It is focused on some key processes and projects or one of the selected economic sectors. State control over employment,
Or government sector planning are examples of this type.
Regional planning
Is the planning applied at the level of the region, and the region here represents an economic area of the country is characterized by other regions of the nature of economic structure and the level of development of productive forces and the characteristics of their resources and wealth. However, each region is part of the entire economy. The proper application of regional planning would contribute to better investment of the region's resources and would contribute to reducing regional disparities.
Economic Plan
Time-based planning
It notes the long, medium and short-term planning:
Long-term planning
Which covers long time horizons between 10 and 20 years, and includes a long-term development strategy that is concerned with the profound changes and transformations in the country's economic and social structure.
Medium-term planning
It has a duration of five to seven years and its task is to adapt the long-term development strategy to changing circumstances and to divide key long-term planning objectives into specific five-year and annual targets.
Short-term planning
It includes the current plan, which is limited to one year. In which the objectives of the medium plans are broken down into detailed indicators of the productive units. Accordingly, the current plans represent a tool for making the necessary adjustments to the annual components of the medium-term plans.
Indicative planning
It is defined as the development of an economic plan that shows the role of each of the social sectors in achieving the goals that the society aspires to prepare the work of the private sector based on the use of economic policy tools such as incentives, prices, taxes and lending policies and exemptions, which will affect the movement of economic activity in the country according to the desired objectives In the future.
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