Economic Planning in Bangladesh

��Planning��

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-Anticipatory Decision Making Process

-Process of Making Plans for Something.

-Identify What the Organization Wants to Do

-Prepares a Sequence of Action Steps to Achieve Some Specific Goal.

Set Goal

Gather Data

Analyze Data

Alternative Strategies

Implement Plan

Monitor Plan

Forecast

Select Suitable Strategy from Alternatives

Authority

Planning Process

Planning in Bangladesh

• Planning Commission is the Central Planning Organization of the Country.
• Planning Commission Prepares Perspective Plan , Five Years Plan, ADP.
• Planning Commission Mainly Works Through NEC, ECNEC.
• Planning Division Works as the Secretariat of the Planning Commission

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Development Strategy

Five Years Planning

(8^th(2020-25)

Perspective Plan

(2021-2041)

Annual

Development

Programme

(ADP)

Perspective Planning Refers to Long-Term Planning in which Long Range Targets are set in Advance for a period of 10,15, or 25 Years.

Perspective Plan

• Operationalized Through Several Short-Period Plans of 4, 5 or 6 Years.
• World’s First Perspective was in Soviet Union (1945-55)
• Bangladesh First Perspective Plan is Vision-2021

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The Plan will be Implemented Through the Sixth Five Year Plan(2011-2015) and the Seventh Five Year Plan (2016-2020).

Perspective Plan in Bangladesh(Vision-2021)

Objective:

• Raising Per Capital Income to US $ 2000
• Become a Middle Income Country
• Reduction of Unemployment Rate to 15 Percent.
• Decrease in the Number of People Below Poverty Line to 25 Million.
• Increase GDP Growth Rate to 8%
• Extreme Poverty will be Around 8.9%
• Create 3.0 Million Surplus Jobs

Five Years Plan

-A Government Plan for Economic Development over a Period of Five Years.

-Word “Five Years Plan” first Used by Plato in his Book “Republic”.

-Introduced by Joseph Stalin in Russia (1928-32)

-Introduced by China in Asia

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Five Years Planning in Bangladesh

• Introduced by Bangabondhu Sheikh Mujibur Rahman in Bangladesh
• Established Planning Commission in 1972
• First Five Years Plan (1973-78)
• Eighth Five Years Planning is Running

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Five Years Planning Process

Evaluation of Past Plan Performance by GED

GED Prepares of Technical/ Policy Framework Indicating Desirable and Realistic Growth Rate

Reconciliation of Sectoral Plans with the Macro Framework of FYP

Resource Forecast in Co-operation with IRD, FD, ERD

Reconciliation Resources/Demands

Sector Divisions Prepare Sectoral Plans/Programmes

Demand of Resource by Ministries/Agencies

Place before NEC for Approval

Annual Development Programme

An organized list of projects in various sectors for a year out of a five-year plan period for implementation of the government's development policies, programmes and investments in the plan

Planning Commission

Pakistan Planning Commission.

1953

1956

1971

1972

1975

1977

Planning Board (was renamed as East Pakistan Planning Department.)

Planning Cell

Bangladesh Planning Commission

Planning Cells in Different Ministries/ Divisions

External Resource Mobilization. (Later it was placed under M/O Finance)

Chairperson

Prime Minister

Vice Chairman

Minister of Planning

Member Secretary

Secretary,

Planning Division

Member, Socio-Economic Infrastructure Division

Member, Programming Division

Member, Industries and Energy Division

Member, Agriculture, Water Resources and Rural Institution Division

Member, Physical Infrastructure Division

Member, General Economics Division

Structure of Planning Commission

Functions

• Formulates Policy
• Prepare Short, Mid-term and Long-term Plan
• Perspective Plan
• Five years Plan
• Preparation of ADP
• Poverty Reduction Strategy Paper
• Evaluation of plans & their impact on the economic development

Linkages with other Ministries/Divisions/Organizations

Planning�Commission

NEC/ECNEC

Economic Relations Divisions(ERD)

Finance Division

Ministries/ Divisions

Implementation Monitoring and Evaluation Division (IMED)

National Planning & Development Academy (NPDA)

Internal Resources Divisions(IRD)

Bangladesh Institute of Development Studies (BIDS)

Statistics Division (BBS)

Objective:

• Economic Rehabilitation of War Damaged Economy
• Reduce Poverty
• Agriculture & Industrial Development
• Increase the Rate of Growth of GDP
• Create Employment
• Increase Per Capital Income

First Five Years Planning

(1973-1978)

Objective:

• Economic Development
• Control Population Growth
• Rural Development
• Increase the Rate of Growth of GDP
• Create Employment
• Self-Sufficiency in Food

two Years Planning

(1978-80)

Objective:

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• Equitable Growth
• Rural Development
• Expansion Employment
• Reducing Population Growth Rate
• Achieve Self-Sufficiency in Food

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Second Five Years Planning

(1980-1985)

Objective:

• Creating Large Number of Employment
• Control Inflation
• Increase GDP Growth Rate
• Reduce Poverty Rate & Ultra Poverty
• Increase Per Capital Income

Seventh Five Years Planning

(2016-2020)

goals of Seventh Five Years Planning

• Higher Income Employment Opportunities
• Increase GDP Growth Rate
• Becoming a Middle Income Country on the Basis of Per-Capital Income
• To Ensure Equity and Social Justice for all
• Achieve Sustainable Development Goals
• Higher Standard of Living
• Decrease Population Growth Rate

Macroeconomics Scenario of Seventh Five Years Planning

Center of Attention of Five Years Plans

First Five Years Plan (73-78)

Fifth Five Years Plan

Third Five Years Plan

Second Five Years Plan (80-85)

Fourth Five Years Plan

Seventh Five Years Plan (16-20)

Sixth Five Years Plan

Economic Rehabilitation of War Damaged Economy

Self-Sufficiency in Food

Ensure Enough Supply of Basic Needs

Reduce Poverty

Food Production & Electricity

Increase Gross Domestic Investment

• Creating Large Number of Employment
• Power & Gas

Barriers of Five Years Plan

• Natural Disaster
• Failure of Foreign Aid & Investment
• Political Instability
• Lack of Appropriate Statistical Data & Information
• Lack of Skilled Manpower
• Inflation
• Red-Tapism
• Lack of Capital
• Lack of Specialists

Recommendation

• Create Sustainable Environmental Plan & Infrastructure
• To Ensure of Foreign Aid & Investment
• Political Stability
• Co-Ordination of Different Statistical Report
• Provide Situational Training
• Skilled Manpower
• Monetary Policy Must be Planned According Five Years Plan