Types of Planning

Types of Planning Democratic Vs Totalitarian Centralized Vs Decentralized Planning by Direction Vs Inducement Indicative Vs Imperative Short, Medium and Long term Financial Vs Physical Functional Vs Structural Comprehensive Vs Partial are different types of planning which differ in ideology and the procedure in execution. - - Economics of Development and Planning . Democratic Vs Totalitarian: Democratic planning implies planning within democracy. People are associated at every step in the formulation and implementation of the plan. A democratic plan is characterized by the widest possible consultations with the various state governments and private enterprises at the stage of preparation. The plan prepared by the Planning Commission is not accepted as such. It can be accepted, rejected or modified by the Parliament of the country. Under totalitarian planning, there is central control and direction of all economic activities in accordance with a single plan. Consumption, production, exchange, and distribution are all controlled by the central planning authority. In authoritarian planning, the planning authority is the supreme body. It decides about the targets, schemes, allocations, methods and procedures of implementation of the plan. . Centralized Vs Decentralized: Under centralized planning, the entire planning process in a country is under a central A form of rule in which the government attempts to maintain 'total' control over society, including all aspects of the public and private lives of its citizens planning authority. This authority formulates a central plan, fixes objectives, targets and priorities for every sector of the economy. In other words, it is called ‘planning from above’. Under decentralized planning local organizations and institutions formulate, adopt, execute and supervise the plan without interference by the central authorities. In other words, it is called ‘planning from below’. . Planning by Direction Vs Inducement: Under planning by direction, there is a central authority which plans, directs and orders the execution of the plan in accordance with pre-determined targets and priorities. Under planning by inducement, the people are induced to act in a certain way through various monetary and fiscal measures. If the planning authority wishes to encourage the production of a commodity,