2. An economic development plan helps you realize
your community's economic vision and take
control of your economic future. It can help bring
together community residents with private and
public sectors. Together, you can choose
economic development goals and outline how to
accomplish those goals.
Development
Planning
4. Economic Planning
It may be described as a deliberate
governmental attempt to coordinate economic
decision making over the long run and to
influence, direct, and in some cases even control
the level and growth of a nation’s principal
economic variables.
5. Economic Plan
It is simply a specific set of quantitative
economic targets to be reached in a given
period of time, with a stated strategy for
achieving those targets.
6. Planning Process
It is the procedure for
drawing up and carrying
out a formal economic
plan.
7. Development Planning in Mixed
Developing Economies
The government’s
deliberate use of
domestic saving
and foreign finance
to carry out public
investment
projects.
Governmental
economic
policy
1 2
11. Project Appraisal
The quantitative analysis of the
relative desirability (profitability) of
investing a given sum of public or
private funds in alternative projects.
12. Distinguishing Market Failure
and Government Failure
Market Failure Govt. Failure
A phenomenon that
results from the existence
of market imperfections
that weaken the
functioning of a market
economy.
A situation in which
government
intervention in an
economy worsens
outcomes.
13. Conclusion
The process of formulating a comprehensive, detailed
development plan is obviously a more complicated
process than that described by our three-stage
approach. It involves a constant dialogue and feedback
mechanism between national leaders who set priorities
and planners, statisticians, research workers, and
departmental or ministry officials.
14. Policy making refers to the process by which
governments and other authorities make
decisions and implement actions to manage and
influence their country's economy. It involves a
range of activities, including setting goals,
formulating strategies, and implementing specific
measures to achieve desired economic outcomes.
Policy Making
15. Steps in Policy Making
Recognizing the Problem
Agenda Setting
Formulating the Policy
Adopting the Policy
Implementing the Policy
16. Recognizing the Problem
People have to recognize that
government can and should do
something about them. For example,
most citizens probably do not expect
government to prevent hurricanes.
17. Agenda Setting
An agenda is a set of problems that
government wants to solve. Usually
there are so many of them that they
must be prioritized, with some
problems getting earlier and more
attention than others.
18. Formulating the Policy
At this stage, usually several
conflicting plans from
various political interests
take shape.
19. Adopting the Policy
Once various plans are presented,
one policy is accepted by the
decision-makers. In many cases, a
policy is adopted when Congress
passes a law.
20. Implementing the Policy
Most public policies are carried out by
administrative agencies in the
executive branch, although
sometimes the courts get involved in
implementing decisions they make.
21. Goals of Economic Policy
Stable prices
1.
2.
3.
Full employment
Economic growth
22. Stable prices
1.
When prices for goods and
services increase sharply, the
value of money is reduced,
and it costs more to buy the
same things. This condition is
called inflation.
23. Absolute full employment is
impossible to achieve; at any
given time, people are quitting
their jobs or are unable to
work for a variety of reasons.
2. Full employment
24. Refers to an increase
in the size of a
country's economy
over a period of time.
3. Economic growth
25. Conclusion
In conclusion, economic policy making is a
fundamental aspect of governance with far-
reaching implications for the well-being and
development of societies. The complexity of modern
economies necessitates thoughtful, evidence-based,
and adaptive policies to address challenges and
seize opportunities.
