PLANNING PROCESS IN BANGLADESH
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PROEJCT
MANAGEMENT
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1. DEVELOPMENT:
2
DEVELOPMENT AND PLANNING: CONCEPT AND RELATIONSHIP
3. DEVELOPMENT
PLANNING:
4. RELATIONSHIP BETWEEN DEVELOPMENT AND PLANNING:
5. AIMS OF DEVELOPMENT PLANNING:
6 TYPES OF DEVELOPMENT PLANNING:
7. DEVELOPMENT:
8. PLANNING
MACHINERY:
9. PLANNING PROCESS:
10. PLANS AND
PROJECT:
11. CONCLUSION:
1. DEVELOPMENT:
Development may
be defined as a process where by the entire social system of a country moves upward.
It is a process of a cumulative change resulting from positive forces that
raises the standard of living of the common mass.
Though growth
rate is an important parameter of development; there are some other parameters
of development. These are as follows: a) pattern of production; b) pattern of trade; c) use of energy; d) consumption pattern; e)
degree of urbanization; f) demography; g) health level and health input; h)
education; i) gender equality etc.
PLANNING: (DEFINISIONS)
Ø
Deliberate direction and control of the economic
resources for the purpose of attaining certain goals & objectives within a
specific period of time
Ø
A deliberate conscious effort of attaining
certain pre-set goals with the use of limited resources over period of time for
a particular geographical area.
Ø
An exercise to make best use of resources
available, to attain maximum possible development.
2. DEVELOPMENT AND PLANNING : CONCEPT
AND RELATIONSHIP
Planning and development are generally integral components of
a single concept. As such, the two are intertwined into an integrated
phenomenon. However, it may be worthwhile to address two leading components of
the given topic (planning & development) discretely and then attempt to
synthesize them into one whole concept in the following manner:
i.
Try to understand the concept of development
ii.
Try to understand the concept of planning
iii.
Build up wholesome concept and their interface.
2. Approaches
to Planning
In order to
stimulate thinking, to create options and to
assist planning consider the following questions;
Ø
What is to be done?
Ø
When it is to be done?
Ø
How it is to be done?
Ø
Who is to do it?
Ø
What resources are required?
Ø
Who should know about it?
4. DEVELOPMENT PLANNING:
Planning is the process of consciously
developing a sequence of future actions to achieve specified goals.
Ø
Process
Ø
Consciously
Ø
Sequence of future actions
Ø
Specified goals
FUNCTIONAL CLASSIFICATION OF PLANNING
Ø
Macro Economic Planning/National Planning
Ø
Micro Economic Planning/Project Planning
Ø
Sectoral Planning
5 RELATIONSHIP
BETWEEN DEVELOPMENT AND PLANNING:
Having
discussed the concept of development and planning, we may now address the
relationship between the two. We may notice that development can take place
either suo-moto through natural phenomenon or/and through deliberate conscious
efforts in orderly fashion within an accepted framework.
Two
processes of growth and development of a waterway may illustrate this
comparative scenario. In the natural process a sea, river or channel may
provide a natural waterway for use. Clearly no prior planning is involved in
its creation.
In the
other process, systematic conscious human effort is resorted to plan creation
of a new waterway. Similarly, we may observe such comparative scenario between
a natural forest and a planning forestation, natural flood protection and
planned flood protection etc.
In terms of timeframe, development plan may be categorized into the
following:
i)
Short term
ii)
Medium term
iii)
Long term
This classification is illustrated in the following diagram
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Again,
in terms of nature/approach development plan may be divided into two broad
categories viz. Directive Plan and Indicative Plan.
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Under
the directive plan, the central authority viz.; the government determines all
targets, allocations and investment programs. This applies in the socialistic
economy or to some extent in an economy that is predominately dependent on the
public sector, i.e. the private sector plays the second fiddle.
Indicative
planning is in vague in market economy when private sector is the prime mover.
The plan articulates the development targets along with the projection of
required investment programme. It endeavors to achieve the desired goal through
adoption of appropriate policy package, infrastructure support, reform
programme, and monitoring and regulatory measures.
6 AIMS OF
DEVELOPMENT PLANNING:
We may
note that development planning primarily aims at achieving the agreed social goals of a country over a
predetermined time period through optimum use of the given resource endowment.
The
common expression of the social goal is to
attain improved living standard of the people through sustained
increases in the per capita availability of goods and services.
The
concern for sustainability of improving living standard implies that growth in absolute terms is not
sufficient to achieve the social goal because, such growth could be
obtained by disproportionate use of factor inputs with diminishing returns
prevailing, such that output per capita might actually fall in the long run.
7 TYPES OF
DEVELOPMENT PLANNING:
It could be of following types:
1. INDICATIVE
PLANNING:
In case of
indicative Planning, the government only indicates areas where further
development is desired. The government does this through adoption of certain
economic policies in the monetary and fiscal areas.
This type of
Planning has been taken up mainly in Japan , the U.K and the U.S.A
MAIN OBJECTIVES:
Ø
Keeping the economy in the right track so that
it does not go off into a path of unstable growth.
Ø
It always maintains an economic stability
through full employment / wider employment level/Balance of payment (BOP)
viable/and Control of Inflation.
2. COMMAND PLANNING/CENTRALISED PLANNING:
In command
planning every single economic decision is controlled, directed and undertaken
by the government i.e. by centrally controlled planning machinery.
They not only
draw up a specific set of targets representing a desired course of economic
progress but also attempt to implement its plan by controlling directly the
activities of practically all productive units in the entire national economy.
3. PLANNING IN A MIXED ECONOMY:
Mixed economies
of the most of the third world economies are characterized by the existence of
an institutional setting in which a part of the productive resources is
privately owned and operated while the other part is controlled by the public
sector.
Two
principal components of development planning in such economy can be identified.
i.
The government’s deliberate utilization of domestic
saving and foreign finance to carry out public investment project and to
mobilize and channel scarce resources into certain areas that can be executed
to make the greatest contribution towards realization of long-term economic
objectives (e.g. the construction of railways, school hydro-electric projects
and other components of economic infrastructure, as well as the creation of
import-substituting industries).
ii.
Governmental economic policy (e.g. taxation, licensing,
import quotas wage and price policy) is to stimulate, direct and in some cases,
even control private economic activity in order to ensure a harmonious
relationship between the desires of private businessmen and the social objectives
of the central government.
4. SECTORAL PLANNING PROGRAMME/REGIONAL
PLANNING:
Sectoral
planning is prepared within the overall framework of the National plan keeping
view of the national objectives, goals and priorities. Within a sector emphasis
is given on those programmes which are related to:
(i)
Increase in production,
(ii)
Quick yielding programme,
The General Economics Division of the planning supplies the
macro-framework of the plan indicating national objectives, strategies and
sectional allocation.
4. REGIONAL
PLANNING:
The nation is to
be divided into meaningful economic regions and sub-regions on the basis of
economic & physical characteristics of its various components. The
characteristics of production, marketing and distribution channels, transport
modes, river system, physical features etc, influence the formation of these
viable economic regions.
Each region will
have to undertake planning for its socio-economic development. Regional
planning has been essential for comprehensive rural development as well as
balance regional growth with meaningful dispersion of industries, cash crops
and other economic activities. The national plan provides allocation to
regional boards to undertake programme of their own.
5. PLANNING IN A MARKET ECONOMY:
Govt. has a
stake in shaping the economy. It must provide direction to formulate policies,
initiate reform process, mobilize public support in favor of wide range of
change, in order to build up confidence of the private sectors to act and
operate freely. It must not be a competition to the private sector and should
not be involved in production of goods & services that private sector can
provide.
Characteristics of market economy
1.
Competitive Price
2.
No barrier to entry
3.
Consumer is the king
There are four important factors in
market
1.
Product
2.
Price
3.
Promotion
4.
Placement
Role of govt. In a market economy
1.
Investment Liberalization/Privatization
2.
Trade Liberalization
3.
Exchange Rate regulation
4.
Public Administration Reform
5.
Financial Sector Reform
Types on the Basis of Duration:
Durational classification of planning
1.
Long-term/perspective planning (15/20years).
2.
Medium-term planning (five-year plan).
3.
Short-term planning/annual development plan (one-year).
8. DEVELOPMENT:
Development is omnipresent in day-to-day real life phenomenon
in a society or a nation. Yet, its definition is neither very straightforward
nor universally unique. Some of the common and conventional definitions of
development are as under:
i.
Development is what induces sustained growth of income
(Facilitating improved standard of living)
ii.
Development is increase, over time volume of a
country’s per capita gross national product (GNP) on a systematic and
sustainable basis.
iii.
Development is growth plus change involving the society
as a whole.
iv.
Development is transition (transformation) from a given
condition to an improved over time.
Against the above perspective of development, we may now focus
on the essential elements of the above definition of development in the
following way:
(i)
Growth is neither the most essential concern of
development, though not necessarily sufficient, nor the end by itself. We can
easily observe that growth over time on a sustainable basis is for achieving
increased income over time, which is again for attaining improved living
standard of the people through sustained increase in the per capita
availability of goods and services.
(ii)
Development is
not confined within the contour of growth per se. As already discussed,
development implies growth plus change, involving the society as a whole. Such
growth-plus change ought to be positive in the context of social objective.
Development also refers to the underlying structural changes, the creation of
new institutions and new industries and the application of modern technology
and skills to old ones, e.g. agriculture that cause growth in output per factor
unit.
(iii)
Positive change through development is infinite and
dynamic. Hence, there is no terminal point of development for a society.
Furthermore, prevalence of a complete utopian world of absolutely, is even
defined by some as transition from one set of problems to another set of
problems. This reflects absence of absolute satisfaction of all segments of a
society at any given stage. This is partly because of the prevalence of host of
conflicting ends, where satisfaction of some may normally exclude fulfillment
of some other ends e.g. maximizing national saving would inevitably decrease
current consumptions and vice-versa or increasing allocation for a sector would
cause reduction in some other sectors.
We may also observe that the underlying concept, or at least
thrust of development itself, saw significant transformation over time. During
the fifties and sixties the primary thrust of development was growth and more
often than not, the two used to stand for the same in a synonymous way. The
proponents of the high growth strategy argued that high growth would ensure
benefits of development to all in the society through the “trickle-down”
process of development.
However, the fallacy of this approach was adequately exposed
by the early seventies, through the empirical evidence, that a high growth by
itself can not inevitably induce coveted social changes, where the benefits of
growth or development is shared by various sections of the society on an
equitable way.
Rather, prevailing economic and welfare disparity may get
further accentuated with growth unless; effective rational policies/measures
are incorporated in tandem with growth focused development planning. The annals
of development planning is replete with instances where in spite of high growth
the overall development of a society degraded, with smaller section of the
society enjoying greater proportion of the fruits of development at the cost of
deprivation of the larger section of the society. In such situations, not only
the gap between the rich and the poor segments of the society widened, but also
even the absolute number of poor increased.
9. PLANNING MACHINERY:
The Government
of Bangladesh felt the need for setting up planning machinery just after
independence in 1971. The Planning Commission with a Deputy Chairman and three
members established; in 1972 in the following objectives:
1.
To prepare national plans, annual, five-year and
perspective, for the economic and social development of the country in
accordance with the socio-economic objectives of the Government of the People’s
Republic of Bangladesh .
2.
To prepare annual development programmes within the
framework of the national plan, and to formulate policies for the
implementation of the plans.
3.
To evaluate plan performance and watch the progress of
plan implementation on a continuous basis in order to prepare evaluation of
national plans.
4.
To study important economic issues and formulate
policies and measures.
5.
To determine external aid requirements and negotiate
the total quantum and composition of aid required from foreign countries.
6.
To evaluate external debts and submit report thereon
along with evaluation of national plans.
7.
To undertake and promote economic research and to
initiate survey and investigations needed to support effective planning and
development.
8.
To advise on the nature of the machinery for securing
efficient execution of the national plan, annual programmes and economic
policies.
9.
To stimulate and where necessary, initiate project
formulation to examine and advise on programmed and projects with a view to
determine their consistency with the national objectives.
10.
To review the progress of implementation of approved
projects. Particularly of aided projects, to identify the cause of delays and
difficulties in the implementation of projects and to prepare solutions
thereof.
10. Planning Process in Bangladesh
Bangladesh
Planning Commission is the Central Planning organization, primarily responsible
for preparation, review and evaluation of the development planning. However, it
would be naive to assume that the Planning Commission carries out this
responsibility of highest national import in isolation. In fact, while playing
the pivotal role in the planning process. Planning Commission engages itself to
the rigorous of mutli-tier interaction, consultation, dialogue, review, parley
etc. with all the development ministries divisions, agencies, people’s
representatives, academics, research bodies, practitioners, private sector
institution NGO’s etc.
Socio-economic
policy and commitment of the government of the day provides the foundation
plank of development planning in Bangladesh , as indeed in other
countries, where development planning is formally practiced.
A macro
framework of development plan is built in the light of agreed social goals so
as to address the aggregate key element like growth, outlay; saving etc. with a
view to guiding the economic growth in a manner that ensures achieving pre-defined
social goals. Apart from defining social goals of economic planning,
prioritizing the goals, fixing growth gargets, spelling out strategies are
integral part of the planning exercise.
Sectors
For
consistent and balance development planning, the economy is delineated into
identifiable distinct sectors. The overall macro objectives, targets,
allocations are consistently disaggregated into sectoral and sub-sectoral
layouts.
The Sectors relating to the total
development activities in Bangladesh
1.
Agriculture;
2.
Rural development & Institutions;
3.
Water resource;
4.
Industries;
5.
Power;
6.
Oil, Gas and Natural Resources;
7.
Transport;
8.
Communication;
9.
Physical planning, water supply and housing;
10. Education;
11. Sport
and Culture;
12. Health,
population and family welfare;
13. Mass
Media;
14. Social
Welfare, Women & Children affairs and youth development;
15. Public
administrative;
16. Science,
Information & Communication Technology; and
17. Labor
and manpower.
Preparation of Development Plans:
Following
steps feature regularly in the process of preparation of the development plan
in Bangladesh :
i.
Survey of the existing socio-economic scenario and
gauging the benchmark;
ii.
Evaluation of the previous plans in general and the
immediate preceding plan in particular;
iii.
Identification of existing constraints and potentials;
iv.
Addressing of policies having direct bearing on
development and spelling out necessary policies;
v.
Projection of macro economic indicators during the plan
period.
vi.
Estimating resource requirements for achieving given
growth target and working out feasible way of resource mobilization;
vii.
Sector wise proposal for incorporation in the plan;
viii.
Spelling out plan implementation mechanism.
ADP & RADP:
ADP is a short-term version of the development plan what is popularly
known as the Annual Development Programme. This is an integral component of the
country’s annual budget for a financial year, which commences from the month of
July. In the ADP allocation is given to different projects of different
sectors/ministries. The government tries to achieve physical and financial
target of the fiscal year through proper utilization of the ADP budget. The
development process is enhanced through the implementation of ADP.
However, unlike the medium-term Plan, ADP is confined to the public
sector only and essentially it is a project wise annual resource allocation for
various development sectors/sub-sectors in the public sector.
RADP:
RADP stands for Revised Annual Development Programme. It is the revised
version of ADP. In the RADP the allocation given in ADP is revised on the basis
of actual necessity. For some projects allocation is increased while allocation
is decreased for some projects. Besides this some important projects under
different sectors/ministries while some of less important/useless projects are
excluded based on the actual necessity/priority of the nation.
11. PLANS AND PROJECT:
Plans and
projects are the two most important instruments of achieving development goals
in Bangladesh .
Systematic planning for development has been carried on in Bangladesh
since the early sixties, although systematic project planning analysis in
particular social cost-benefit approach is a relative new phenomenon.
The Government
of Bangladesh desires to achieve simultaneously a number of economic and social
objectives, e.g.
Ø
Raising standard of living,
Ø
Raising per capita income,
Ø
Improving distribution of income and wealth,
Ø
Self-sufficiency,
Ø
Self-reliance,
Ø
Rapid industrialization, creating employment
opportunity and for higher
foreign exchange earnings, etc.
These objectives
are final as well as intermediaries to attain other objectives and not all are
necessarily compatible with one or other, free market system, especially in a
developing country like Bangladesh
cannot always guarantee achievement of this objective and therefore, it needs
some kind of planning in order to achieve these desired objectives.
In Bangladesh
according to time factor, plans are divided into perspective plan. Medium term
plans and short-term plan.
Ø
Perspective plans consist of long-term
development programmes covering the period from 15 to 20 years.
Ø
Medium terms plans are normally spread over five
years.
Ø Short
term plans are mostly the one-year plans. One-year plans have the task of
setting out how the government’s policy should be carried into effect. These
are drawn up in conjunction with the estimates of the budget and both form an
obligation for the government.
It is obvious
that plans require a great deal of research. The pre-investment studies provide
the basis for the project formulation in a planned economy. The perspective
plan ultimately boils down to disaggregated projects. In fact, “a sound plan
requires great deal of knowledge about existing and potential projects”.
According to Tinbergen, “projects provide a more concrete subject for planning
than sectors if they are well prepared and data available are more accurate and
detailed”. Simply, good plans always require good projects, just as projects
require plans, the two are interdependent. Good plan rests on the availability
of a wide range of information about existing and potential investments and
their likely effects of growth and other national objectives. It is project
analysis that provides this information and the projects selected for
implementation then become the vehicle for using resources to create new
income.
The interaction
between plans and projects is circular in nature in Bangladesh . The Plans prepared
according to time factor require specific projects and conversely projects
equally depend upon the plans.
12. CONCLUSION:
There
is no denying fact that our resource is limited and its best or optimum
utilization and extraction of benefits entirely depends how best we could
manage them. There are reasons to believe that only availability of abounding
resources could not change the lot of poor millions but it did change when
those resources were best managed and utilized.
So, the
commitment of the government has to be in general for implementation of all the
development projects in the country and thereby the development process has to
be enhanced
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