What Is Centralised Versus Decentralised Planning?

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What Is Centralised Versus Decentralised Planning?

2 Answers

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Answer 1

Centralized planning refers to management or organization of an economy by a centralized authority or agency. It is in sharp contrast to localized planning or root level planning more commonly known as decentralized planning in which plans are made by those who are going to be directly affected by them and not by absentee bureaucracy sitting in posh offices of the federal capital.

In view of the obvious merits of decentralized planning, planning process is being increasingly decentralized. In china, this has given rise to the concept of bare foot planner which is conversant with economic conditions and needs of people for whom the whole planning exercise is undertaken. Local and regional and individual plans are then added up to draw a comprehensive or macro level plan.

Thus plans are not imposed from above and the concerns groups or localities are actively associated with the whole planning process. Decentralized planning thus is more in turn with the democratic aspirations of the people. The distinguishing point about the two types is the level at which the planning process starts.

Each plan involves three essential components. It is composed of a capital budget and concerns financing and execution of projects in the public sector. Then component is recurrent budget or a budget of government expenditures also known as human investment budget. At last it is a package of rules and regulations for direction and guidance of the private sector.

Answer 2

Decentralisation canbe defined as the transfer of responsibility for planning, management and resource raising and allocation from the central government and its agencies to the lower levels of government. It bring decision making closer to the people and therefore yield programmes and services that better address the local needs. Decentralisation of planning is a logical step for a democracy.It permits wider involment of people in the process of planning.Poeple are not merely beneficiaries but also participants in the formulation and execution of the plans which assumes their benefits from such plans and gradually make them self reliant. This creates a sense of belonging among the people which is very necessary for the endurance of healthy democratic environment with in the state.
The main objective od decentralised planning is to utilize scarce resources for optimum development, ie.,getting maximum benefits out of the available resources. It enables a better perception of the needs of local area,makes better informed decision making possible and also gives people a greater voice in decisions concerning their development and welfareThe decentralised planning serves to achieve better cordination and integration among programmes that enables the felt needs of the people to be taken in to account, ensures effective participation of the people.It serves to build up a measure of self reliance by mobilising better exploitation of local resources of the community and growth potentials of the local areas for improving productivity and increasing production.
Democracy becomes meaningful only when the governance achieves a human face.The immediate manifestations of the governance are felt through the activities of the governance in and around us, basically in the service sector like health, education,drinking water supply etc.There will be some felt necessities and needs having a priority as far as the public of the locality is concerned.When the public gets an opportunity to decide on their priority,they can plan accordingly.The relevance of decentralised planning lies here.