Planning and Resource Allocation in Developing Countries

Abstract

In this part of the book we turn to major issues of development strategy concerning the use of investment criteria (and particularly social cost—benefit analysis) for the allocation of resources; the concept of sustainable development; the choice of techniques, and the use of the techniques of input—output analysis and linear programming. There will be separate chapters devoted to each of these subjects. In this preliminary chapter, we shall review the debate over the market mechanism versus planning as the means of resource allocation in developing countries, and discuss some of the broader policy issues confronting decision-makers, including some of the early investment criteria for resource allocation suggested by development economists.