Download Development Policy and Planning: An Introduction to Models by Anis Chowdhury PDF

By Anis Chowdhury

Reorientation from financial controls to a market-based procedure resulted in major alterations within the monetary coverage of constructing international locations within the Nineteen Eighties. but, with governments carrying on with to workout fiscal administration on the way to speed up development past that completed via industry forces, innovations and versions of improvement making plans are nonetheless an critical function of improvement coverage administration. "Development coverage and making plans" offers a non-technical rationalization of the most thoughts and types used for fiscal coverage formula. every one process is illustrated in software via useful examples.

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Example text

That is, growth should ultimately mean an increased provision of consumption goods. Therefore, at the second stage of the planning exercise, the planners can divide the economy into an investment goods sector and a consumption goods sector. This will enable the planner to evaluate the trade-offs between present and future consumption. If for simplicity we assume that there is no intermediate transaction between the two sectors and that they only purchase final goods from each other then the output of the two sectors will add up to the GDP.

There are numerous uses of the input-output technique and it is the most widely used planning tool. The most common uses of it for planning purposes can be summarized as follows. 1 Being a consistency model, the input-output technique can be used for projecting and forecasting sectoral production or supply requirements to meet the sectoral demands implied by alternative targets for GDP. g. skilled labour, (b) sectoral capacity expansion and investment and (c) non-competitive imports. 3 Since the input-output table contains information on intermediate transactions between the producing sectors, it can be used to identify the ‘key’ sectors with maximum interdependence.

In fact, by relaxing the assumption that domestic and foreign resources are not substitutable, the two-gap model can be converted into a two-sector model with one sector for domestic consumption and the second for exports. As the experience of the East Asian newly industrializing countries shows, foreign revenues can be used to buy capital goods from abroad and the capacity of the domestic capital goods sector no longer remains a constraint. This extension brings out the importance of current investment and foreign borrowing to develop industries that will ‘produce’ dollars via exports for future use.

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