Economic Development Planning – SS3 Economics Lesson Note (Second Term)

Economic development planning is the set of policies a government makes to bring about rapid economic development across all sectors of an economy. It involves sharing economic resources among every sector. Plans may cover the whole economy or one sector, and may be authoritarian, democratic or financial. Poor data, inadequate capital and political instability are common problems.

Behavioural objectives

By the end of the lesson, students should be able to:

1. Define economic development planning.
2. State and explain the types of economic development planning.
3. Give reasons for economic development planning.
4. Highlight the problems of economic planning and their solutions.

Instructional techniques and materials

Instructional techniques

• Identification
• Explanation
• Questions and answers
• Demonstration
• Videos from source

Instructional materials

• Videos
• Loudspeaker
• Textbook
• Pictures

What is economic development planning?

Economic development planning has to do with the policies made by the government of a country to ensure rapid economic development across all the sectors of an economy. In other words, it typically entails the holistic distribution of economic resources to every sector of an economy.

What are the types of economic planning?

1. Comprehensive economic planning: This entails economic planning for virtually all the sectors of an economy. The aim is to ensure holistic economic development, so that no sector of the economy is left unattended. This recognises that every sector contributes to the overall wellbeing of an economy. It is therefore perhaps the best economic planning approach there is.
2. Partial/sectoral economic planning: This type of planning takes care of only a particular sector. Every economy is made up of different sectors, for example the agro-allied sector, the industrial sector, the financial services sector and the entertainment sector.
3. Authoritarian economic planning: This is the type of planning that takes place in socialist economies such as the former USSR.
4. Democratic economic planning: This is the direct opposite of authoritarian economic planning. It is the type of planning that takes place in a free market/capitalist economy.
5. Financial economic planning: This is the type of planning in which the allocation of resources is done in monetary terms.

Why is economic planning needed?

1. Diversification of the economy
2. To increase the Gross National Product
3. To create more employment
4. To ensure equitable allocation of resources
5. To achieve economic growth

What are the problems of economic planning?

1. Insufficient and inaccurate statistical data: In countries like Nigeria, there is often not enough data on which economic planning can be based. Even the available data are often prone to errors, which makes projections inaccurate. This is a serious problem.
2. Inadequate capital: Capital is needed for the execution of any economic plan. If the available capital is not adequate, it will be difficult to carry out the plan.
3. Political instability: Changes in government (especially in countries like Nigeria) most often lead to a change of plans. The plans of the previous administration are dropped, whether or not they are good.
4. Rapid population growth: Every economic plan is based on the projected or estimated population of a country. When the population grows faster than expected (as often happens in Nigeria), economic plans tend to fail.
5. Lack of political will: If leaders are not committed to making the economic plan succeed, it will not succeed.

What are the solutions to the problems of economic development planning?

1. Build trust through increased transparency and accountability.
2. Strengthen capacity in the public and private sectors.
3. Catalyse and de-risk private investment, especially pioneer investments.
4. Take a broad, systemic approach to engagement.

Evaluation

1. Define economic development planning.
2. State and explain the types of economic development planning.
3. Give four reasons for economic development planning.
4. List three problems of economic development planning.
5. List three solutions to the problems of economic development planning.

Classwork: As in the evaluation.

Assignment

Explain any three problems of economic development planning in Nigeria. Suggest one solution to each problem.

Closing the lesson

The teacher commends the students positively.