Economic Development And Planning


In the field of economics, the concept of economic development plays a crucial role in understanding the growth and progress of nations. Economic development encompasses a broad range of factors that contribute to the overall improvement in the standard of living and economic well-being of a society. It goes beyond mere economic growth by focusing on sustainable development, poverty reduction, and social progress.

Understanding Economic Development:

Economic development involves the continuous transformation of the structure of an economy to enhance the standard of living of its citizens. It encompasses various aspects such as income generation, employment opportunities, social welfare programs, infrastructure development, and environmental sustainability. By promoting economic development, countries aim to achieve greater equity, inclusivity, and overall prosperity.

Distinction between Economic Growth and Economic Development:

While economic growth refers to the increase in the production and consumption of goods and services within an economy, economic development goes further to address the improvement in the quality of life, human capital development, and the reduction of inequality. Economic growth is a necessary but insufficient condition for economic development as it does not always lead to positive social outcomes.

Characteristics of Developing Countries:

Developing countries exhibit several common characteristics such as limited access to healthcare, education, and basic infrastructure, high levels of poverty and unemployment, low per capita income, and dependence on primary sectors like agriculture. These countries often face challenges in achieving sustainable development due to various economic, social, and political factors.

Problems Faced by Developing Countries:

Developing countries encounter a myriad of challenges including inadequate infrastructure, lack of access to capital, high levels of corruption, political instability, income inequality, and environmental degradation. These problems hinder the progress of these nations and pose significant obstacles to achieving sustained economic development.

Elements of Development Planning:

Development planning involves the systematic process of setting goals, formulating policies, and implementing strategies to promote economic growth and social progress. The key elements of development planning include identifying development objectives, allocating resources efficiently, monitoring progress, evaluating outcomes, and making necessary adjustments to achieve desired development goals.

Objectives of Development Planning:

The primary objectives of development planning are to accelerate economic growth, reduce poverty, improve social welfare, enhance infrastructure development, promote environmental sustainability, and increase overall human development indices. Development planning aims to create a conducive environment for sustainable and inclusive growth that benefits all segments of society.

Types of Development Plans:

Development plans can be categorized into various types such as short-term plans, medium-term plans, long-term plans, and rolling plans. Each type of plan serves specific purposes and timeframes, with the goal of guiding national policies and strategies towards achieving sustainable economic development and social progress.

By understanding the concepts of economic development and planning, individuals can develop a holistic view of the challenges and opportunities facing developing countries. Through effective development planning, nations can chart a course towards sustainable growth, poverty reduction, and improved standards of living for their citizens.


  1. Understand the concept of economic development
  2. Discuss the elements of development planning
  3. Explore the objectives of development planning
  4. Critically assess the types of development plans
  5. Examine the problems faced by developing countries
  6. Analyze the distinction between economic growth and economic development
  7. Identify the characteristics of developing countries

Lesson Note

Not Available

Lesson Evaluation

Congratulations on completing the lesson on Economic Development And Planning. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.

You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.

Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.

  1. What are the elements of development planning? A. Objectives of planning B. Methods of planning C. Problems of planning D. All of the above Answer: D. All of the above
  2. Which of the following is a characteristic of developing countries? A. High level of industrialization B. High per capita income C. High human development index D. High poverty levels Answer: D. High poverty levels
  3. What is the distinction between economic growth and economic development? A. Economic growth focuses on quantitative changes, while economic development focuses on qualitative changes B. Economic growth is only applicable to developed countries, while economic development is for developing countries C. Economic growth is a short-term phenomenon, while economic development is a long-term process D. Economic growth refers to an increase in GDP, while economic development refers to an increase in GNP Answer: A. Economic growth focuses on quantitative changes, while economic development focuses on qualitative changes
  4. Which of the following is an objective of development planning? A. Achieving environmental degradation B. Increasing income inequality C. Promoting sustainable development D. Exploiting natural resources excessively Answer: C. Promoting sustainable development

Recommended Books

Past Questions

Wondering what past questions for this topic looks like? Here are a number of questions about Economic Development And Planning from previous years

Question 1 Report

Development planning focuses mainly on

Question 1 Report

The following are the objectives of economic planning EXCEPT

Question 1 Report

X 2 3 4 5
F 2 5 2 1


What is the median of the distribution?


Practice a number of Economic Development And Planning past questions