Theory question 112
Economic Growth and DevelopmentSection B (answer four questions only from this section)
(a) What is economic planning?
(b) Outline the problems associated with economic planning in West Africa.
Show the model answer
(a) Economic planning is a deliberate effort by government to set economic targets for a given period and to direct the allocation of resources to achieve them, e.g. a development plan.
(b) Inadequate capital/finance.
Inadequate and unreliable statistical data.
Shortage of skilled manpower and experts.
Political instability and frequent changes of government.
Corruption, nepotism and mismanagement.
Over-dependence on foreign aid and fluctuating export earnings.
Unrealistic targets and wrong priorities.
Rapid population growth.
Inflation raising project costs.
Poor implementation and lack of monitoring.
Several clear problems, each briefly explained.