Development Paradigms and Planning

Definition and Concept: Development paradigms and planning are deeply interconnected,
influencing each other significantly. A development paradigm is a dominant framework guiding
how we understand and approach development, encompassing beliefs, values, methods, and
goals. It answers the "why" and "what" of development. Development planning is the process
of formulating strategies, policies, and actions to put a development paradigm into practice,
answering the "how" of development.

Evolution of Development Paradigms:

1. Growth-Oriented Development (Post-WWII Era – 1940-1960s):

o Modernization Theory: Emphasized economic growth, industrialization, and
Western values.
o Centralized Planning: Top-down approach with strong state involvement.
2. Beyond Economic Growth (1970s):
o Dependency Theory: Focused on breaking free from dependence on developed
nations.
o Basic Needs Approach: Prioritized essential services for the poorest populations.

o Integrated Development Planning: Addressed social and economic dimensions

simultaneously.
3. Neoliberalism (1980s-1990s):
o Neoliberalism: Advocated market liberalization, deregulation, and privatization.
o Market-Based Planning: Focused on private sector investment and
entrepreneurship.
4. Sustainable Development and Human-Centered Approaches (Late 20th & 21st
Centuries):
o Sustainable Development: Balances economic growth with environmental
protection and social equity.
o Human Development: Expands people's capabilities and choices, introducing the
Human Development Index (HDI).
o Integrated and Participatory Planning: Involves multiple stakeholders and
considers economic, social, and environmental dimensions.

Sustainable Development Goals (SDGs) (2015-2030): The SDGs represent a universal call to
action to end poverty, protect the planet, and ensure peace and prosperity by 2030. They
include 17 goals addressing various dimensions of sustainable development, such as ending
poverty, ensuring quality education, achieving gender equality, and combating climate change.

Development Planning Process:

1. Analyze Opportunities
2. Formulate Objectives
 3. Develop Premises
4. Determine Alternative Actions
5. Evaluate Alternatives
6. Select a Course of Action
7. Formulate Derivative Plans
8. Numberize Plans by Budgeting
9. Adoption
10. Implement the Plan
11. Monitor and Evaluate Results

Need for Development Planning in Ethiopia: Ethiopia's development landscape necessitates

robust planning due to structural economic challenges, reliance on climate-vulnerable
agriculture, and infrastructure deficits. Development planning allows for economic
diversification, enhancement of agricultural productivity, and development of critical
infrastructure. Social development imperatives, such as poverty reduction and human capital
development, also demand meticulous planning. The "Ten Years Development Plan" (2021-
2030) exemplifies Ethiopia's commitment to strategic planning for sustainable and inclusive
prosperity.

Key Components of Development Planning:

1. Statement of Vision:
o Provides the overarching, long-term aspiration for the development effort,
setting direction and inspiring stakeholders.
2. Statement of Goals:
o Defines broader, general targets that support the vision, outlining key areas of
focus.
3. Statement of Objectives:
o Specifies measurable, achievable, relevant, and time-bound (SMART) targets that
contribute to the goals.
4. Macro-economic Framework:
o Outlines the overall economic context, including projections for GDP growth,
inflation, and other key indicators.
5. Sectoral Objectives, Strategies, Policies:
o Breaks down the development plan into specific sectors (e.g., education, health,
agriculture), outlining tailored strategies and policies.
6. Programs/Projects of Various Sectors:
o Details concrete actions to implement the strategies and achieve the objectives.
7. Allocation of Resources:
o Addresses how financial, human, and other resources will be distributed to
support the programs and projects.
8. Implementation Mechanisms:
o Defines the processes and structures used to carry out the plan.
9. Monitoring and Evaluation Mechanism:
 o Ensures progress tracking and assessment of the plan's effectiveness, allowing
for adjustments as needed.
10. Expected Output/Outcomes:
o Describes what success looks like and provides a basis for measuring progress,
representing broader, longer-term impacts on individuals, communities, or the
environment.

Limitations of Development Planning:

1. Neglect of Social and Environmental Dimensions:

o Early development plans often focused primarily on economic growth,
overlooking social equity and environmental sustainability.
2. Increased Inequality and Marginalization:
o Some development strategies led to increased inequality and marginalization of
certain groups, failing to address local needs and lacking community
participation.
3. Dependency on Foreign Aid and Loans:
o Reliance on external financial support created vulnerabilities and sometimes
imposed harsh conditions on developing countries.
4. Implementation Challenges:
o Plans like the Basic Needs approach struggled with practical implementation and
lacked a strong focus on environmental sustainability and economic viability.
5. Overemphasis on External Factors:
o The Dependency Theory sometimes overemphasized external factors,
underplaying the role of internal dynamics in development.
6. Social Polarization and Environmental Degradation:
o Neoliberal policies often led to increased social unrest and environmental
degradation, prioritizing short-term economic gains over long-term sustainable
development goals.
7. Rigid and Top-Down Approaches:
o Centralized planning often assumed a top-down approach, with limited flexibility
and responsiveness to local contexts and needs.
8. Lack of Effective Monitoring and Evaluation:
o Inadequate mechanisms for tracking progress and assessing the effectiveness of
plans, leading to difficulties in making necessary adjustments.

These limitations highlight the need for more inclusive, participatory, and sustainable
approaches to development planning that consider economic, social, and environmental
dimensions.

📢 Key Takeaway on Development Planning: Development planning is a strategic process that

integrates economic, social, and environmental goals to achieve sustainable progress. It
involves setting a vision, defining goals, allocating resources, and implementing actionable
programs while ensuring effective monitoring and evaluation. Over time, development
 paradigms have evolved from growth-focused models to more inclusive and sustainable
approaches, such as the SDGs. Despite its benefits, challenges like inequality, environmental
neglect, and implementation gaps highlight the need for participatory and adaptive planning.
🌍✨

Here are the main points from the document, presented as a brief note:

Economic Planning Characteristics:

 Economic planning should have well-defined objectives, such as growth, stability, and full
employment.
 A central planning authority is essential for preparing development schemes and coordinating
activities.
 Economic planning should be democratic, allowing for public participation.
 A planning commission may serve in an advisory role, providing guidance and coordination.
 Planning needs to be comprehensive, covering the entire economy.
 Planning should include not only production but also distribution and consumption.
 It involves the rational allocation of scarce resources to maximize social welfare and promote
economic development.
 Effective planning is based on the country's resources and aims to achieve feasible goals and
policies.

Classification of Economic Planning:

 Planningの種類は、経済システム、利用可能なリソース、期間、関係者など、さまざま
な要因によって異なります。
 Planning by Direction vs. Planning by Inducement:
o Planning by direction is associated with socialist societies and involves a central authority that
directs the execution of the plan.
o Planning by inducement is democratic and uses monetary and fiscal measures to influence
economic behavior.
 Perspective Planning vs. Annual Planning:
o Perspective planning is long-term planning with targets set for 15-25 years, divided into shorter-
term plans.
o Annual plans are short-term operational plans that fit into a broader framework.
 Fixed Planning vs. Rolling Planning:
o Fixed plans have definite aims and objectives to be achieved within a set period.
o Rolling plans are revised annually to incorporate new information and analysis.
 Democratic vs. Totalitarian (Authoritarian) Planning:
o Democratic planning involves people in the formulation and implementation of the plan, with
consultation between the government and private enterprises.
o Totalitarian planning features central control and direction of all economic activities by a
supreme planning authority.
 Corrective (Anti-Cyclical) Planning vs. Development Planning:
o Corrective planning addresses maladjustments in a capitalist economy through fiscal, monetary,
and direct control measures.
o Development planning aims to develop the economy as a whole, particularly in underdeveloped
countries, using incentives rather than force.
 Financial Planning vs. Physical Planning:
o Financial planning allocates resources in terms of money.
o Physical planning allocates resources in terms of men, materials, and machinery.
o Both are needed for effective development planning.
 Centralized vs. Decentralized Planning:
o Centralized planning places the entire planning process under a central authority.
o Decentralized planning involves consultation with different administrative units.
 Indicative vs. Imperative Planning:
o Indicative planning is flexible and used in mixed economies, with the state providing facilities
but not direct control.
o Imperative planning involves complete state control over production factors, prices, and
products.
 Short-Term, Medium-Term, and Long-Term Planning:
o Short-term plans (annual plans) focus on financial aspects.
o Medium-term plans typically span 3-7 years and address both financial and physical resources.
o Long-term plans (perspective plans) aim for structural changes in the economy.
 Regional, National, and International Planning:
o Regional planning involves decentralized control over a specific area.
o National planning applies to the nation as a whole.
o International planning involves resources from multiple countries.
 Capitalist, Socialist, and Mixed Planning:
o Capitalist planning, historically limited to tax collection and defense, has evolved to include
economic and social development functions.
o Socialist planning features a central planning board with extensive control over the economy.
o Mixed economies combine elements of both, with public and private sectors, consumer
sovereignty, and government intervention to address social needs and prevent exploitation.
 General and Partial Planning:
o General planning covers all sectors of the economy.
o Partial planning focuses on a specific sector.

Okay, here's a clearer, more concise summary of the document:

 I. Characteristics of Economic Planning

Economic planning has several key features:

 Clear Goals: It must have specific objectives like economic growth and full employment.
 Central Authority: A central body is needed to create and manage development plans.
 Democratic Involvement: It should involve public participation.
 Advisory Role: A planning commission may guide and coordinate.
 Comprehensive Scope: It must cover the entire economy.
 Focus on Consumption: It includes how goods are distributed, not just production.
 Efficient Resource Use: It allocates resources to maximize social benefit.
 Realistic Policies: It should be based on the country's resources and aim for achievable targets.

II. Types of Economic Planning

Economic planning can be classified in several ways:

 Direction vs. Inducement:

o Direction: The government controls the economy (socialist).
o Inducement: The government uses incentives to guide the economy (democratic).
 Perspective vs. Annual:
o Perspective: Long-term (15-25 years).
o Annual: Short-term (1 year).
 Fixed vs. Rolling:
o Fixed: Plans with set goals over a period.
o Rolling: Plans that are revised yearly.
 Democratic vs. Totalitarian:
o Democratic: Involves public and private sector input.
o Totalitarian: Centralized government control.
 Corrective vs. Development:
o Corrective: Addresses economic problems (e.g., inflation) in developed economies.
o Development: Focuses on growth in underdeveloped economies.
 Financial vs. Physical:
o Financial: Resource allocation in terms of money.
o Physical: Resource allocation in terms of materials, labor, etc.
 Centralized vs. Decentralized:
o Centralized: Planning controlled by a central authority.
o Decentralized: Planning with input from different regions.
 Indicative vs. Imperative:
o Indicative: Guides the private sector (mixed economies).
o Imperative: Strict state control (e.g., socialist economies).
 Short-term, Medium-term, and Long-term:
o Short-term: Up to one year.
o Medium-term: 3-7 years (often 5 years).
o Long-term: 10-30 years.
 Regional, National, and International:
o Regional: Planning for a specific area.
o National: Planning for the entire country.
o International: Planning involving multiple countries.
 Capitalist, Socialist, and Mixed:
o Capitalist: Historically, limited government intervention; now includes more economic
management.
o Socialist: Government controls the economy.
o Mixed: Combines elements of both capitalism and socialism.
 General and Partial:
o General: Planning across all economic sectors.
o Partial: Planning for a specific economic sector.