Planning in developing countries
In this chapter a selected number of problems related to development planning models and methods are discussed. Among the various problems which can be dealt with in this context only those have been selected which are of particular relevance to the subject matter of this study. The first part of this chapter is meant to illustrate to what extent a rather complicated planning process can be simplified, so that corresponding planning models will remain manageable and therefore more useful for practical purposes. Special attention is paid to the alleged interdependence between the distribution of income between savings and consumption and the choice of techniques (section 2.2), and to the question of accounting price determination under different policy constraints (section 2.3). In the second part an important aspect of planning models is dealt with: the assumed degree of substitutability between factors and commodities (sections 2.4–2.6). A section on incremental planning concludes this chapter. Other aspects of development planning models have been sufficiently surveyed elsewhere (see, e.g., Manne 1974, Blitzer, Clark and Taylor 1975).
KeywordsPrice Elasticity Planning Model Saving Rate Substitution Possibility Project Appraisal
Unable to display preview. Download preview PDF.