Economics » Economic Growth and Development » Development Planning in Nigeria

Objectives of Development Planning

Objectives of Development Planning

  • To Maximize the Utilization of Economic Resources: The resources of any nation are not always enough for her use. So, resources must be allocated in such a way that they achieve maximum utilization of them. It is through the proper allocation of their resources that nations can accelerate their pace of economic development.
  • To Correct the Imperfection of the Market System: The market system, in reality, is not perfect and therefore, allocation of resources which occur under perfect competition model does not happen. There is therefore, the need for the government to interfere to ensure efficient allocation of resources.
  • To Ensure Balanced Growth: Planning may be used to ensure balanced growth for all sectors of the economy. By this there will be uniform growth and provision of complementary services and intra sectoral linkages.
  • To Attract Foreign Investment: Development Plans are used as a means of attracting foreign investment or foreign aid. Foreign government and international organizations giving grants and loans need to be satisfied that the finance they provide will be put to good use. Private investment will also be encouraged by realistic plans showing the extent of economic growth that is expected to be attained. Donor countries are therefore interested in well-coordinated plans to direct investment funds.
  • To Match the Available Resources with the Desired Goals: The complementary nature of some investment decisions make for planning. The viability of one project may be conditioned upon another project. For example, the development of the agriculture sector may require setting up of irrigation projects and a special transport facility for carrying fresh vegetables, fish etc. between the farms and the market places. In this case, planning may be used to coordinate these activities.

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