1. Comprehensive Economic Planning: This entails economic planning for virtually all the sectors of an economy. The aim is to ensure a holistic economic development whereby no sector of the economy is left unattended to. This is in recognition of the fact that every sector contributes to the overall wellness of an economy. This is therefore [perhaps] the best economic planning approach there is.
2. Partial/Sectoral Economic Planning: This type of economic planning only takes care of a particular sector. Please bear in mind that every economy is made up of different sectors. For example, there are the agro-allied sector, the industrial sector, the financial services sector and the entertainment sector etc.
3. Authoritarian Economic Planning: This is the types of planning that takes place in socialist economies such as the former USSR.
4. Democratic Economic Planning: This [of course] is the direct opposite of the Authoritarian Economic Planning approach. It is the type of planning that takes place in a free market/capitalist economy.
5. Financial Economic Planning: This is the type of planning in which allocation of resources are done in monetary terms.

Reason for Economic Planning

1. Diversification of the Economy
2. To increase the Gross National Product
3. To create more employment
4. To ensure equitable allocation of resources
5. To achieve economic growth
6. To encourage

Problems of Economic Planning

1. Insufficient and inaccurate statistical data:In countries like Nigeria, there is often the problem of insufficient data on which economic planning can be based. Even the avaiable data are often prone to errors, thereby making any projections inaccurate. This poses itself as a serious problem.
2. Inadequate Capital:Capital is needed for the execution of any economic plan. If the available capitals are not adequate, it will be difficult to execute any plans.
3. Political Instability:Changes in government (especially in countries like Nigeria) in most often leads to change of plans even as the plan of the previous administration are jettisoned; whether or not they are good.
4. Rapid Population Growth:Every economic plan is always based on a projected/estimated population of a country. In situations whereby a country’s population grows faster than anticipated (as it so often happens in Nigeria), economic plans tend to fail.
5. Lack of Political Will:If leaders are not committed to making sure the economic plan is successful, it won’t be successful.

Nigeria Planning Experience

ASSESSMENT (POST THE QUESTION TITLE AND YOUR ANSWER IN THE BOX BELOW FOR DISCUSSION AND EVALUATION)

1. Measurement of economic development is based on:
   (a) Monetary income
   (b) Real income
   (c) Future income
   (d) Permanent income
2. When a country develops:
   (a) Per capita income rises
   (b) Specialization increase
   (c) Urbanization rises
   (d) All of the above
3. When economic development takes place:
   (a) Market imperfections increase
   (b) Population increases
   (c) Capital stock increases
   (d) (b) and (c) of the above
4. When economic development takes place:
   (a) Exports increase
   (b) Imports increase
   (c) Capital stock increases
   (d) All of the above
5. When economic development takes place:
   (a) Specialization increases
   (b) Commercialization decreases
   (c) Market imperfections increase
   (d) None of the above