ppt for eco

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FISCAL POLICY Group 2



FISCAL POLICY - is the manipulation ofgovernment spending and

imposition of taxes



2 TYPES OF FICAL POLICY

Expansionary Fiscal policy- this is !ommonl"

as %pump priming& the e!onom" !hara!teri'ed de!rease in tax rate and in!rease in governmenspending to spur gro$th and emplo"ment

Contractionary Fiscal Policy- !auses an in!rtaxes and de!rease in government spending toin)ationar" pressures in the e!onom"



ECONOMIC PLANNINGAND DEVELOPMENT

A *!onomi! Planning A !entrali'ed national planning

+he responsi(ilit" for *!onomi! Planning

Important !on!epts in development planning *!onomi! Planning

*!onomi! Plan



2 MAJO PATS OF DEVELOPMENPLANNING IN MI!ED ECONOMIES

a .eli(erate spending (" the government of domsavings and foreign /nan!e for pu(li! investmethe use of limited resour!es to implement pro1eprograms that $ill !ontri(ute to the e!onomi!

( Government regulations regarding the e!onomto !ontrol private investments to ensure !ompa(et$een the private (usinesses and the o(1e!tthe government for the general pu(li!



C"AACTEISTICS OF T"EPLANNING POCESS

A +he" !onsist of ideas0 regulations and o(1e!tives +he pro!esses to a!hieve the government o(1e!tiv

enumerated step (" step

C A !entrali'ed order and !ompati(le prin!iples andpoli!ies are in!luded as an e3e!tive strateg" in

a!hieving the e!onomi! target. +he" in!lude all aspe!ts of the e!onom"

* +he" use the formal e!onomi! models

F +he" use time frames su!h as medium-term plan aannual plan



EASON #"Y DEVELOPMENTPLANNING IS IMPOTANT TODEVELOPING NATIONS

4A56*+ FAIL75*

+he mar#et developing !ountries is not perfe!t and is full of fa!tors and unexpe!tma" a3e!t the )o$ of e!onomi! elements

5*SO75C* 4OILI8A+IO9 and ALLOCA+IO9

.eveloping !ountries must use its limited /nan!ial resour!es and human

sparingl" and $isel" Pu(li! se!tor pro1e!ts need to (e sele!ted meti!ulousl"resour!es do not go to $aste

A++I+7.I9AL and PSYC:OLOGICAL I4PAC+

.evelopmental plans outline the government o(1e!tives that $ill satisf" re;uirements of its !iti'enr"

FO5*IG9 AI.

:aving a detailed plan that spe!i/es the priorit" pu(li! $or#s is an importan

the !ountr" to o(tain foreign grants and assistan!e



.*<*LOP4*9+

= *t"molog" and de/nition

*!onomi! development is the up$ardmovement of so!iet" to$ards the dire!tof moderni'ation ideals

.evelopment as a multidimensional pro

involving the reorgani'ation andreorientation of entire e!onomi! and sos"stem



2 .evelopment *!onomi!s As a pro!ess development is long term0 multidim

rational pro!ess

Common !hara!teristi!s of developing nation a lo$ levels of living

( lo$ level of produ!tivit"

! high rates of population gro$th and dependen!" (u

d high and rising levels of unemplo"ment and under

emplo"ment e signi/!ant dependen!e on agri!ultural produ!tion a

produ!t

f dominan!e0 dependen!e and vulnera(ilit" in internarelations



$% MEAS&ES OF DEVELOPMENT

4ost popular indi!ator of e!onomi!

development is per !apita gross nationain!ome >G9I or per !apita Gross domesprodu!t >G.P

Other indi!ators of development A Ph"si!al ?ualit" of Life Index >P?LI

:uman .evelopment Index

CCapa(ili" Povert" 4easure >CP4

.*!onomi! Freedom Index



'% LEADING T"EOIES OFECONOMIC DEVELOPMENT

A% Gro(t) Sta*+ T)+ori+s It represent an e3ort to s"stemati'e the

pro!ess of e!onomi! gro$th $ithin aframe$or# of a se;uen!e of stages

appli!a(le a!ross national and !ultural(oundaries

=@th !entur" German gro$th stage literahas t$o ma1or traditions



,% FIEDIC" LIST AND T"EGEMAN "ISTOICAL SC"OOL

List (ased his gro$th stage !lassi/!ation oshifts on o!!upational distri(ution A!!ordinlist the /ve stages of gro$th are the 3 , Savage

Pastoral Agri!ulture

Agri!ultural manufa!turing

Agri!ultural manufa!turing !ommer!ial



2% -AL MA! AND T"EMA!IST%

4arxs !riteria of stage !lassi/!ation in!lude t"pe

te!hnolog" used0 s"stem of propert" rights0 andideolog" (ehind the te!hnolog" Stages of gro$th the follo$ing, Primitive !ommunist

ChattelBan!ient slaver"

Stages of empire

4edieval feudalism

Industrial !apitalism

Imperialism

Pure !ommunism-so!ialism



#ALT #"ITMAN OSTO#S

:e $rote his famous (oo# %+he Stages of *!on

Gro$th a 9on-!ommunist 4anifesto&>=@DE0represents the modern gro$th stage theor" A!!ording to 5osto$0 all the developing !ountries h

linear progress from the transitional e!onomies to me!onomies +he follo$ing stages are,

+raditional stages

Pre!ondition to ta#e o3

+a#e o3 into self-sustaining gro$th

.rive to maturit"

Age of high mass !onsumption



*9. OF 5*PO5+

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