INDICATIVE PLANNING IN DEVELOPING-COUNTRIES

While indicative planning was widely practiced in developing countries during the postwar period, it failed to have favorable economic effects while utilizing scarce administrative resources. The lack of success of planning, together with the growing understanding of the importance of incentives and markets, has contributed to the decline of planning in the 1980s. Also, efforts have been made to limit the scope of public enterprises and to reduce the size of governments. However, governments have an important role to play in providing infrastructure to the private sector. Balassa, Bela-Indicative Planning in Developing Countries. © 1990.