Policy Sciences

, Volume 10, Issue 1, pp 45-74

First online:

National Investment Planning and equity policy in developing countries: The challenge of decentralized administration

  • Dennis A. RondinelliAffiliated withGraduate Planning Program, The Maxwell School of Citizenship and Public Affairs, Syracuse University

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The impact of national economic planning in developing countries over the past three decades has been severely limited. Little evidence supports the contention that it has either directly improved investment decisions for stimulating economic growth or significantly affected development policymaking. Constraints on implementing national planning in Asia include weaknesses of political and administrative support for national plans, deficiencies in their content, difficulties of relating plan priorities to investment decisionmaking, ineffectiveness or inappropriateness of comprehensive planning methods and techniques, and inadequate administrative capacity to implement and evaluate multisectoral investment strategies. Changes in Asian development policy toward growth with equity imply the need for more decentralized methods and arrangements for planning, creation of a stronger relationship between policy planning and program implementation, and diffusion of administrative capacity among a wide variety of public and private institutions to generate, formulate and implement investment policies and projects.