Today planning is considered essential for economic development. But in various countries these have not been implemented successfully because these countries are unable to create conditions which are necessary to the success of planning.
CONDITIONS :-
Following are preconditions for the effective planning :
1. Statistical Data :-
For a successful economic planning there is need of accurate statistical data about economy. In most of developing countries available statistical data is incorrect so the planning is ineffective.
2. Cooperation of the People :-
A plan which lacks public cooperation can not succeed. People are not ready to provide various information's about the income and expenditure. So it becomes the cause of failure.
3. Lack of Competent Administration :-
For the successful planning competent and in-corrupt administration is essential. While in under developed countries like India, Pakistan planning machinery is weak ineffective and corrupt. So it is the major cause of failure of plans.
4. Political Stability :-
Effective planning requires political stability in the country. But some countries are facing political unrest in these days. It is the major obstacle in the way of effective planning.
5. Objectives of the Plan :-
There should be no contradictions in the objectives of the plan. The people should be clear about the objectives of the plan otherwise planning is fruitless.
6. Dependence on Foreign Aid :-
It is essential that aid should be provided to the poor countries in time for the development plans. Most of underdeveloped countries are also relying on foreign aid. But many times in the past it has been curtailed or stopped. It becomes the cause of failure.
7. Over Population :-
For effective planning optimum size of population is essential. While India and Pakistan are facing the over population problem and it is the main obstacle in the way of effective planning and development.
8. Natural Climates :-
The planning of agriculture sector can be successful in nature is kind. In subcontinent agriculture is the back bone of the economy. If weather is unfavorable it reduces the agriculture production and exports of the country. While the import of food increases. So uncertain situation of agriculture is an obstacle in the way of effective planning.
SOURCES OF THE COUNTRY :-
In subcontinent per capita income rate of savings and investment is low. Due to the limited sources the rate of development is very slow. All these factors are not favorable for effective planning.
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