Define planning and discuss the role and importance of planning in the less developed or developing countries

The meaning of economic planning differ from country to country and person to person. Keeping in view the various definitions we can say that aim of all the plans is to utilize the available resources more effectively achieving the well defined objectives during given period of time.

Importance or Objectives or Advantages of Planning

1. In crease in National Income :-
The objective of planning is to utilize the resources of the country in such a manner that it should increase the size of national income. In the developing countries planning is very useful for increasing the production of the country.

2. Superior Decisions :-
The decision of planning authority are more superior as compared to the individuals. Planning authority keeps in view the interest of the whole nation. It prepares the plan keeping in view the economic condition of the country.

3. Achievement of Full Employment :-
In the less developed countries and in the advanced countries the objectives of planning is to achieve the full employment.The main objectives of the planning to create jobs for the people of the country.

4. Equal Distribution Of Wealth :-
In the capitalistic countries the gap between rich and poor is increasing. It creates social evils. Through planning we can reduce the inequalities in income.

5. Elimination or Regional Disparity :-
Through planning the regional economic disparities can be removed. In the plan special fund can be allocated for the development of backward areas. It is the one of main objective of planning that there will be reduction in the regional disparity.

6. Improvement in The Balance Of Payment :-
The balance of payment of developing countries remains deficit. It adversely affects the rate of economic growth. Through planning government can reduce the imports and can increase the exports.

7. Balanced Economy :-
If one sector of the economy is developed the country will not achieve maximum rate of development. Through planning resources of the country can be allocated in such a manner that it provides balance to the economy.

8. Control of Economic Crises :-
Due to economic crises, economy faces many problems. Through planning depression can be controlled and production can be increased.

9. Solution of Over Population :-
When the size of population is greater than the size of natural resources it can be adjusted through effective planning.

10. Self Sufficiency In Food :-
Each country wants to become self sufficient in food. So this objective is also achieved through planning. In the each development the target was proposed for the agriculture sector.

11. Industrial Development :-
Today without industrialization no any country can improve its economic condition. For the establishment of new industries, planning is very effective.

12. Increase In welfare Program :-
The provision of social services is main aim of the planning. For example some developing countries plan various facilities like housing, schooling, transport and water provided to the people.

13. Increase In Capital Formation :-
Without increasing the rate of capital formation, we can not increase the rate of development. In the less developed countries rate of saving is very low and due to this rate of investment is low. Through effective planning we can increase the rate of savings in the country.

14. Elimination of Poverty :-
Through planning we can increase the rate of economic development in the country. National income and per capita income will rise and poverty will remove.