Factors considered in formulating goals and strategies

  

Date Posted: 5/8/2012 6:54:38 AM

Posted By: rodriguez mwalenga  Membership Level: Silver  Total Points: 110

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* Level of development of the economy
In determining goals and strategies, policy makers consider the level of development of the country. They should look at the previous plan and its achievements. In case some goals of the plan have not been achieved, planners should look into the cases of the failure. In a situation where there is no previous plan, adequate research should be carried out to determine the needs of the country and areas of priority.

* Availability of statistical data
For successful planning, adequate information about the various sectors of the economy is necessary: that is, how each of the sectors in the economy is performing and the relative importance of each sector in its contribution to the GDP. It is also important to know about the population, its growth, structure and distribution.

* Availability of resources
Before goals are formulated it is essential to know the availability of capital, labour and natural resources. If the resources available locally are not adequate, it is necessary to consider how these could be acquired from outside the country.

* The available technology
In case of inappropriate technology, more research should be done to come up with what is appropriate. It might also be necessary to import technology from outside, but care should be taken to ensure its appropriateness.

* Political factors
The development of a country is determined by the political set-up within the country. Political systems differ from one country to another. Some systems promote private enterprise while others are socialistic in approach. The political system determines the economic system in a country. Therefore, planners should take into account the prevailing political climate when formulating goals and strategies of development.

* Cultural factors
When formulating goals and strategies planners should not be insensitive to the cultural factors within the country. They should always consider the rules of the society,

the religious beliefs of the people, and the aspirations of the various communities in the country. However, these should not be a drawback to sound planning.

* Infrastructure
Planners should assess the available infrastructure and consider whether it can support the intended development. That is, they should evaluate the existing transport and communications network, power, water and social amenities such as schools and hospitals. They should also look into ancillary services, e. g. banking, insurance and security.

* Natural factors
Planners should always take into account unforeseen problems brought about by natural factors. Such factors include drought, floods, disease, wars, pests and frost. Agriculture is particularly prone to natural hazards. Contingency measures should devised within the plan to cater for these hazards.

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