World Economic Planning: An Overview The world is becoming increasingly interconnected, and this has significant implications for global economic planning. The challenges facing the world economy today are complex and multifaceted, and require a coordinated effort from policymakers, businesses, and individuals to address. In this blog post, we will provide an overview of world economic planning and some of the key issues and trends that are shaping the global economy today.
What is World Economic Planning?
World economic planning refers to the process of coordinating economic policies and activities at the global level. This can involve a range of actors, including governments, international organizations, multinational corporations, and civil society groups. The goal of world economic planning is to promote sustainable economic growth, reduce poverty and inequality, and ensure that economic benefits are distributed equitably across countries and populations.
Why is World Economic Planning Important?
There are several reasons why world economic planning is important. First, globalization has led to increased economic interdependence among countries, which means that economic shocks in one part of the world can have ripple effects across the global economy. Second, many of the world’s most pressing challenges, such as climate change, poverty, and inequality, are global in nature and require collective action to address. Finally, the rise of new technologies and the changing nature of work are transforming the global economy, and require coordinated efforts to ensure that everyone can benefit from these changes.
Key Issues in World Economic Planning
There are several key issues that are currently shaping the global economic landscape. These include:
- Sustainable Development: One of the most pressing challenges facing the world today is achieving sustainable development. This involves balancing economic growth with social and environmental considerations, and ensuring that economic benefits are distributed equitably across countries and populations.
- Climate Change: Climate change is a global problem that requires collective action to address. This includes reducing greenhouse gas emissions, adapting to the impacts of climate change, and supporting low-carbon development.
- Globalization: Globalization has led to increased economic interdependence among countries, but it has also created winners and losers. World economic planning must address the challenges of globalization, including job displacement and inequality.
- Technological Change: New technologies are transforming the global economy, but they are also creating new challenges, such as job displacement and the digital divide. World economic planning must address these challenges and ensure that everyone can benefit from technological progress.
- Inequality: Inequality is a major challenge facing the world today, both within and between countries. World economic planning must address the root causes of inequality, including disparities in access to education, healthcare, and economic opportunities.
Trends in World Economic Planning
There are several key trends that are shaping world economic planning today. These include:
- Regionalism: Regional economic integration is becoming increasingly important, as countries seek to strengthen their economic ties with neighbouring countries. This includes initiatives such as the European Union, the African Continental Free Trade Area, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
- Multilateralism: Multilateralism is under threat in many parts of the world, as countries increasingly turn to protectionist policies and unilateral actions. World economic planning must promote multilateralism and collective action to address global challenges.
- Sustainability: Sustainability is becoming an increasingly important consideration in economic planning, as countries seek to balance economic growth with environmental and social considerations. This includes initiatives such as the United Nations’ Sustainable Development Goals and the Paris Agreement on climate change.
- Digitalization: Digitalization is transforming the global economy, and is having a major impact on industries such as manufacturing, finance, and healthcare. World economic planning must address the challenges and opportunities of digitalization, and ensure that everyone can benefit from the digital economy.
World economic planning is an essential process for addressing the complex challenges facing the global economy today. This
- Differentiate between types of economic planning.
- Explain the importance of economic planning in National development.
DEFINITION OF ECONOMIC PLANNING
Economic planning may be defined as the government’s conscious formulation of economic policies for the allocation of resources to all sectors of the economy over a period of time. This brings about sustained growth in the economy.
AIMS AND OBJECTIVES OF ECONOMIC PLANNING OR REASONS WHY COUNTRIES EMBARK ON DEVELOPMENT PLANS
- To increase the level of employment: A good economic plan will ensure an increase in the level of employment in the economy.
- To develop efficient technology: A good economic plan can promote better and more efficient technology.
- To increase the real income of citizens: The real income of the citizens can easily be increased through good economic planning.
- Equitable allocation of resources: The development plan is aimed at equal allocation of the country’s resources to all sectors of the economy.
- Diversification of the economy: Through good development planning, Nigeria’s economy will be diversified to many sectors.
- To bridge the gap between the rich and the poor: Good economic planning ensures the distribution of income more evenly among individuals and socio-economic groups.
- To achieve economic self-sufficiency: Through good development planning offers the essential mechanism for overcoming some obstacles to economic development.
- To ensure economic growth: Development planning offers the essential mechanism for overcoming some obstacles to economic development
- To reduce foreign control of the economy: Good development planning will assist to reduce foreign control or dominance of the nation’s economy.
- To ensure joint business participation: Good development planning will increase the participation, of citizens in the ownership and management of productive enterprises
- To reduce rural-urban migration: Good development planning will also ensure that the movement of people from rural to urban centres is reduced.
TYPES OF ECONOMIC PLANNING
There are different types of economic planning and they are:
his type of economic planning involves the distribution of national income to various sectors of the economy.
Strategic planning: This is the type of planning which is directed to meet certain objective in the economy.
Comprehensive economic planning: This is the type of planning aimed at setting some targets to cover all major aspects of the national economy.
Partial economic planning: This is the type of planning targeted at specific segment of the national economy e.g. plans to boost agricultural production.
Controlled economic planning: This is also known as authoritarian planning common with socialist economic system in which government formulates and executes plans for the economy.
WAYS OF FINANCING ECONOMIC DEVELOPMENT IN NIGERIA
Internal borrowing, e.g. from banks.
Aids and grants from international economic organisations.
Loans from international financial institutions, e.g. IMF and World Bank.
Government savings and reserve.
Through budget surplus.
Revenue generated from investments.
Privatisation and commercialisation of government-owned business enterprises.
PROBLEMS ASSOCIATED WITH ECONOMIC PLANNING IN WEST AFRICA
Problems facing development planners or associated with economic planning in West Africa include:
- Political instability: Political instability or frequent changes in government often leads to change in plans.
- Inadequate capital: Inadequate capital makes economic planning difficult to achieve.
- Misplacement of priorities: Resources are sometimes diverted to investments that yield no economic benefit to the people.
- Insufficient statistical data and information: Insufficient statistical data and information, which implies that most of the planning is done on wrong projection, is a problem associated with it
- Inadequate skilled personnel: Inadequate skilled labour and experts make plan implementation difficult.
- Rapid population growth: The emergence of rapid population growth destabilises planning.
Reliance on foreign aid: Over-reliance on foreign aid and adherence to their condition lead to plan failures.
Corruption and nepotism: Economic planning is affected by corruption and nepotism. Planned decision may be influenced by selfish and parochial considerations.
Poor implementation plans: Unexpected, sudden increases in the cost of projects compared to original estimates affect planning.
Fluctuation in foreign exchange: Fluctuation in foreign exchange earnings on which plans are based may hinder the implementation of economic plans.
The burden of national debt: This burden of national debt can also affect the implementation of economic plans.
Inadequate harmonization: Inadequate harmonization of the private and public sectors can also affect economic planning.
Under-utilization of labour: The services of skilled labour and experts are under-utilized while making use of unskilled labour. For this reason, projects are inadequately studied and not well implemented.
NIGERIA’S PLANNING EXPERIENCE
The development plan is a document that contains the policy framework and programme for the development of a country within a specific period of time. The plan sets national objectives and priorities in development and outlines the programmes and projects that will achieve such.
Economic planning has been recognized by the government as an instrument of economic development. It has come to be accepted as an essential and pivotal means of guiding and accelerating economic growth within the framework of the economy by improving the functioning of the market and removing all the obstacles to development, which will result in the improvement of the standard of living of the people.
Nigeria has had several development plans since 1962. They are as follows:
- (1962 – 1968): The first national development plan of 1962 – 1968 envisaged a total investment of nearly N2.4 billion and half of this amount was to come from external sources.
- The second national development plan (1970-1974): The second national development plan of 1970 – 1974 envisage a total investment of 62.0 billion by the government. This amount was later revised to 6 3.27 billion.
- The third national development (1975 – 1980): The third national development plan of 1975 – 1980 initially envisage a total investment 6 10.7 billion but this was later revised in 1976 to 643.3 billion.
- The fourth national development plan (1981 -1985): The fourth national development plan of 1981 – 1985 envisages a total investment or capital expenditure of 6 82.0 billion. Of this amount, 6 70.5 billion went to the public sector while 611.5 billion was allocated to the private sector of the Nigerian economy.
Nigeria is a country with a vast amount of natural resources and a population of over 200 million people. Despite this, Nigeria’s economy has struggled to reach its full potential. In this post, we will explore some ways to boost Nigeria’s economic development.
- Diversification of the economy Nigeria’s economy has historically been dependent on oil, which accounts for over 90% of its export revenue. Diversifying the economy to include other sectors such as agriculture, manufacturing, and services can help to reduce the country’s reliance on oil and create a more resilient economy.
- Infrastructure development Investment in infrastructure is critical for economic development. Nigeria needs significant investments in transportation, energy, and telecommunications infrastructure to support business growth and attract foreign investment.
- Education and skills development Investing in education and skills development is essential for building a strong workforce that can drive economic growth. Nigeria needs to improve access to quality education and training opportunities to equip its citizens with the skills needed for the 21st-century economy.
- Support for small and medium-sized enterprises (SMEs) SMEs are the backbone of any economy. Nigeria needs to provide a supportive environment for SMEs to thrive by providing access to finance, business development services, and technology.
- Encouraging foreign investment can play a vital role in boosting economic development. Nigeria needs to create a conducive environment that attracts foreign investors, including improving the ease of doing business, reducing bureaucracy, and providing incentives for foreign investors.
- Strengthening the financial sector A robust financial sector is essential for economic growth. Nigeria needs to strengthen its financial sector by enhancing regulatory frameworks, promoting financial inclusion, and developing innovative financial products and services.
- Promoting good governance and reducing corruption Good governance and reduced corruption are essential
- factors affecting the expansion of industries
- mineral resources and the mining industries
- demand and supply
- types of demand curve and used
- advertising industry
- factors of production
- joint stock company
- RINDER PESTS
148. NEWCASTLE DISEASE
149. BACTERIA DISEASES
153. FUNGAL DISEASES
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