TYPES OF

ECONOMIC
PLANNING
CUERDO,HAZEL L.
BSBA - 2B
ECONOMIC
PLANNING
refers to the process of setting goals, formulating
strategies, and implementing policies to guide and
coordinate economic activities within a country or region.
It involves a deliberate and systematic approach to
managing and directing economic resources to achieve
specific economic objectives.
 TYPES OF ECONOMIC
PLANNING
1. Planning by Inducements
is a type of planning where the
government controls and directs the
allocation of resources and the
production of goods and services.
2. PLANNING BY
DIRECTIONS
an integral part of a socialist society. It
entails complete absence of laissez-faire.
There is one central authority which
plans, directs, and orders the execution
of the plan in accordance with pre-
determined targets and priorities.
3. PHYSICAL ANG
FINANCIAL PLANNING
is concerned with the physical
allocation of resources, while financial
planning establishes equilibrium
between demand and supply to avoid
inflation and bring economic stability.
4. CENTRALIZED AND
DECENTRALIZED PLANNING
Centralized planning involves the central government
taking the lead in the planning and implementation
process, while decentralized planning involves
devolving the planning and implementation
responsibilities to lower levels of government such as
states, districts, and local bodies.
 5. STRUCTURAL AND FUNCTIONAL
PLANNING
Structural planning refers to a good deal of changes
in the socio-economic framework of the country,
while Functional planning refers to that planning
which seeks to remove economic difficulties by
directing all the planning activities within the existing
economic and social structure.
6. INDICATIVE AND
IMPERATIVE PLANNING
Indicative planning provides guidelines
and targets for the private sector and
market forces to follow,while
imperative planning is where the
formulation and implementation of the
plan is made by the central planning
7. DEMOCRATIC AND
TOTALITARIAN PLANNING
Democratic planning follows the
philosophy of democracy, while
totalitarian planning involves central
control of all economic activities.
8. FIXED AND ROLLING
PLAN
In a fixed plan, the contents of
the plan are fixed in relation to a
fixed time period. A rolling plan,
on the other hand, refers to the
rolling of a plan at intervals,
usually one year.
9. SHORT-TERM, MEDIUM, AND
LONG-TERM PLANNING
plans vary in duration, with
short-term plans usually lasting
one year, medium-term plans
lasting 3 to 7 years, and long-
term plans lasting 10 to 30
years.
10. CORRECTIVE AND
DEVELOPMENTAL PLANNING
Corrective planning involves fiscal and
monetary measures to remove economic
imbalances, while developmental
planning aims at developing the whole
economy.
11. CAPITALIST AND SOCIALIST
PLANNING
Capitalist planning involves the private
sector controlling all economic
activities, while socialist planning
involves the state controlling all
economic activities.
12. PLANNING UNDER MIXED
ECONOMY
This involves a combination of both
public and private sectors, ensuring
consumer sovereignty, private property
ownership, and operation of price
mechanism source.
 Several Reasons Why Types of
Economic Planning are Important

01 TAILORED EFFICIENCY
04 AND
APPROACH
EFFECTIVENES
RISK
02 FLEXIBILITY 05 S
MANAGEMEN
T
INNOVATION
DIVERSIFICATI
03 ON OF 06 AND
STRATEGIES PROGRESS
ADAPTATION
07 TO CHANGE
TAILORED APPROACH
types of economic planning allow
governments to tailor their strategies to
the specific needs and circumstances
of their economies.
 FLEXIBILITY
Having a variety of economic planning models
provides flexibility for governments to adapt
their strategies based on changing economic
conditions, policy goals, and societal
preferences. This adaptability is crucial for
addressing evolving challenges and
opportunities.
DIVERSIFICATION OF
STRATEGIES
types of economic planning offer a range of strategies
and approaches to achieving economic development
goals. By having diverse planning models to choose
from, governments can experiment with different
methods and learn from the successes and failures of
each approach.
 EFFICIENCY AND EFFECTIVENESS
Understanding and utilizing various types of
economic planning can lead to more efficient and
effective resource allocation, policy
implementation, and goal achievement. Each
type of planning may excel in certain areas,
allowing for a more targeted and strategic
approach to economic management.
RISK MANAGEMENT
governments can better manage risks
and uncertainties in the economy.
Diversifying planning strategies can help
mitigate potential drawbacks or limitations
of a single planning model.
 INNOVATION AND
PROGRESS
types of economic planning encourage
innovation and progress by fostering competition,
creativity, and experimentation in economic
policy-making. This diversity can lead to the
development of new ideas and approaches that
drive economic growth and prosperity.
 ADAPTATION TO CHANGE
Economic planning models that are diverse
and adaptable enable governments to
respond effectively to changes in the global
economic landscape, technological
advancements, demographic shifts, and other
external factors that impact economic
development.
 THANKS
FOR LISTENING!