Smooth and flexible:
This type of planning is democratic in nature and it is mostly applicable in the market and mixed economies like Us, Canada, UK and a chain of underdeveloped countries. After the collapse of the concept of fully centralized economies in Russia and Eastern European countries, this method of planning has got a lot of attraction amongst socialist countries to attain certain objectives. This method of planning is accorded flexible and smooth in the sense that it often helps in elimination or reduction in imbalances. With certain incentives as well as disincentives the shortages and surpluses can be washed out.
Planning by inducement is superior in the sense that it enables to incorporate the changes in resources, technology and taste etc even after the finalization and implementation of the plan.
Democratic in nature:
Under this method, the implementation of the plan is based upon the material or market incentives; it does not require an army of bureaucrats to carry out of plan; it is free from autocracy of bureaucracy. In this method, the labor, consumers and producers are capable enough to express their preferences for goods, profession and production. Accordingly this method of planning is democratic. But its democratic ness is conditional to the distributional aspects of incomes of the masses.
This type of planning is democratic in nature and it is mostly applicable in the market and mixed economies like Us, Canada, UK and a chain of underdeveloped countries. After the collapse of the concept of fully centralized economies in Russia and Eastern European countries, this method of planning has got a lot of attraction amongst socialist countries to attain certain objectives. This method of planning is accorded flexible and smooth in the sense that it often helps in elimination or reduction in imbalances. With certain incentives as well as disincentives the shortages and surpluses can be washed out.
Planning by inducement is superior in the sense that it enables to incorporate the changes in resources, technology and taste etc even after the finalization and implementation of the plan.
Democratic in nature:
Under this method, the implementation of the plan is based upon the material or market incentives; it does not require an army of bureaucrats to carry out of plan; it is free from autocracy of bureaucracy. In this method, the labor, consumers and producers are capable enough to express their preferences for goods, profession and production. Accordingly this method of planning is democratic. But its democratic ness is conditional to the distributional aspects of incomes of the masses.
