[MPA] Development Management: Macro-Meso-Micro Planning

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“So I stumbled on this visitor directed via Bing to my blog, searching with the keyword: Concept of Development Planning (Macro, meso, and micro-planning) and resource base and resource mobilization. Then I thought, since I have prepared the note for this topic of Development Management (in MPA), why not get it up on the web! So here it is.”

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P
lanning is an appropriate development path to improve the life of common people. Planning has been defined in many ways. Planning involves the formulation of a national program of action for achieving development objectives. A. Waterson defines that planning is, in essence, an organized, conscious and continual attempt to select the best available alternatives to achieve specific goals (Waterson 1971, p 26).

Broadly speaking, development planning is of two types: the central planning and the indicative planning: the former is practiced in a centralized economy where the role of the state is dominant in the socio-economic life of the people. Such types of planning were pursued in socialist countries like the then Soviet Union, North Korea and so forth. In mixed economics like Nepal, planning takes the form of indicative in nature. Economics decisions are partly guided by the 'invisible hand' and partly done by the state intervention. The state sector and the private sector both remain active and play their respective roles. The role of the public sector is conceived as that of a facilitator to promote development in the country. The private sector on the other hand is involved in providing goods and services needed for economy to move on the growth path.

The need for planning arises from the inability of the price mechanism to ensure growth, efficiency and equity. Sometimes the political objective of a nation may dictate the necessity of planning and the government may need to intervene in the economic activities of the country.

The more pressings are the development problems, the greater is the need for planning. Hence, the art of planning is to intervene in the economy with sufficient vigor to overcome the major problems without at the same time exceeding the capacity of the civil service and causing a breakdown of development administration. The proper balance between intervention and restrain is likely to be both delicate and changing: delicate because administrative capacity is small and limited, and the problems are immense; changing because the ability of the management to analyze and resolve difficulties should increase. (Griffin and Enos. 1970 pp.3-78).

The country may have different objectives which need to achieve simultaneously such as social, economic, political, cultural etc. Market forces influence primarily only the economic aspects. In less developed economies like Nepal, the market mechanism or the price system does not function with a reasonable degree of efficiency as a mechanism for allocating investment and other resources in accordance with social demand. The reasons are many. There are generally unemployed and underemployed resources. A variety of bottlenecks impede production and distribution. The government machinery is weak. Price responds haphazardly to changes in supply and demand because markets are often rudimentary and fettered by rigidities. There are barriers to the free flow of information. Changes in these circumstances are often a precondition of development. Development planning seeks to break down such structural obstacles and achieve growth. Hence, accelerated economic growth and structural change are the two main aims of development planning.

A development plan contains, among others, the following features (i) a survey of the current economic situation; (ii) objectives, targets, strategies and programs for accelerating economic growth and development (iii) a list of proposed government expenditures (iv) a macroeconomic projection for the whole economy etc.



Development Planning and Development Plan
It is worth pointing out the distinction between development planning and development plan. Development planning as a process helps the formulation of effective development policies. The plan is the product of the planning process while the first is the process itself. The preparation of a plan has advantages because it provides a systematic approach to co-ordinate development decisions. Further, development plans are useful for initiating or stimulating development process. Just as there is more to planning the preparation of a plan so planning does not necessarily require a formal development plan. However, it needs to be said that a development plan is not a sufficient or even a necessary condition for ensuring rapid development.


The Planning Periods
Development plans are prepared for a fixed period. Plans are of three kinds-annual plans are used mostly as an instrument of translating medium-term plan objectives and programs for implementation. Thus, an annual plan deals with current development activities without losing sight of medium-term objectives.

A medium term plan-a five-year plan in the context of Nepal indicates total investment and investment by sectors for the entire plan period and the targets to be achieved at the end of the plan period. Medium term plans are not operational plans. In order for them to become effective guides to action, output and expenditures must be determined for each year of the plan period. This is accomplished by the formulation of the annual plans.

Perspective plans usually covering a period of 10-20 years are less detailed than medium term plans. Such perspective plans are based on longer-term growth prospects with general targets based on only rough approximations of the likely supply of, and the demand for, resources. They provide a good enough idea of priorities to enable planners to concentrate on the most promising sectors in preparing medium-term plans. They also indicate, in advance, in what area reinvestment and other surveys will be required before specific projects/programs can be formulated.

Macro-meso-micro refers to the level of policy and institutions that govern and influence development activities in all sectors.►► Get Full Text HERE.



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