Economic development and development planning : a short note

The role of government has also evolved. Initially, the central government was seen as the only agent that could effectively achieve broad development objectives; however, policy failures led to a more pessimistic view of this model and even of government objectives. Although a more neutral view of government now seems to be evolving, effective government strategy, at whatever level, requires improved understanding and careful analysis if inappropriate interventions are to be avoided. The goals of development have also changed from a focus on income, to income adjusted by income distribution/poverty, to a larger set of welfare indicators. This area is still controversial. One side argues that development (or economic development) is sufficiently captured by income adjusted for distribution, while the other claims the need for more extensive indicators. Changes in planning have evolved with these changing conceptions of economic development. Economic plans are now shorter, tighter, more issue-oriented, and subject to performance indicators. The Indonesian government"s recent national development plan (Propenas) is in line with this trend. (Author abstract, modified)