Indicative planning
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Indicative planning is a form of
In practice
Indicative planning is coordinated information that guides the choices of separate state and private entities in a market economy or mixed economy.[3]
India
Eighth Five Year Plan (1992 - 1997) adopted Indicative Planning in India. Eighth Five Year Plan (1992 - 1997) was for managing the transition from a centrally planned economy to market led economy through indicative planning.
France
Indicative planning originated in
People's Republic of China
Since the 1978 economic reforms in China, the state reduced its role to directing economic activity rather than managing it through directive plans. By the early 21st century, the Chinese government had limited the role of directive mandatory planning to goods of national importance and large-scale construction, while increasing the scope of indicative planning and market forces in all other sectors of the economy.[5] The current Chinese socialist market economy is largely based on market forces for consumer goods and indicative planning for heavy industry in the public sector.
Union of Soviet Socialist Republics
The
Japan
The Japanese government practiced indicative planning through the Japanese Economic Planning Agency.
National economic planning
The term National Economic Planning is associated with government's effort to coordinate the working of both the public sector and the private sector through a structured mechanism. Although, during the 20th century, the term was more associated with the communist and eastern economies, through the 1970s, theorists and practitioners documented the growth of this practice amongst western economies too [1][2][3][4][permanent dead link]. In the latter part of the 20th century and till date, economists have demanded that underdeveloped and developing countries — especially in continents like Africa — should embrace National Economic Planning to a large extent [5][6]. Famous proponents and practitioners of National Economic Planning have been Nobel Prize–winning Russian politician Leonid Kantorovich, John M Hartwick [7], Carl Landauer (who, in 1947, wrote one of the first western books on the subject, titled Theory of National Economic Planning),[citation needed] American Republican politician Alf Landon, the Russian born Canadian politician David Lewis, Chinese politician Zhang Baoshun and German sociologist Adolph Lowe.
See also
- Market economy
- Mixed economy
- Dirigisme
- Socialist economics
- State capitalism
- State-sponsored capitalism
- Economic planning
- New Economic Policy
References
- New Palgrave Dictionary of Economics. Palgrave Macmillan, London. "Indicative planning aims to coordinate private and public investment and output plans through forecasts or targets. Compliance is voluntary. The underlying logic is that the plan can supply economically valuable information which, as a public good, the market mechanism cannot disseminate efficiently. It may be perceived as a substitute for non-existing forward markets. However, indicative planning takes into account only endogenous market uncertainty, not exogenous uncertainty (technology, foreign trade and so on). Indicative planning has been most consistently and continuously implemented in France and Japan but has been used in many other countries, although decreasingly so since the 1970s."
- The New Palgrave: A Dictionary of Economics, v. 3, p. 879.
- ^ "Indicative Planning | Encyclopedia.com".
- ^ "Archived copy". Archived from the original on 2020-05-15. Retrieved 2022-07-10.
{{cite web}}
: CS1 maint: archived copy as title (link) - ^ "China | Culture, History, Maps, & People". 23 February 2024.
- ^ "Indicative Planning | Encyclopedia.com".
Literature
- Carl Landauer: Planwirtschaft und Verkehrswirtschaft Duncker & Humblodt, München und Leipzig 1931.
- Carl Landauer: Theory of national economic planning, Berkeley, California: University of California Press, 1944 first edition; 1947 2. edition.