GROUP 6 economy, increasing investment, and breaking

bottlenecks in production.
Members:
4. Addressing environmental issues
Fabillar, Redjien L.
Environmental planning is an important part of
Bagis, Jenisa
development projects, and it weighs the costs and
Gudio, Mae Ann benefits to both the environment and human society.

Mancineros, Wennalyn A. 5. Mobilizing resources

Zerna, Anthony B. Planning can help ensure that resources are optimally
utilized. In an unplanned economy, private investors may
Romeral, Liemar A. only invest in sectors that yield profits, which may not
be consistent.

Nature of Development Planning and Related 6. Addressing social issues

Concepts Planning can help address social issues such as income
distribution inequality, the need for social justice, and
the need for heavy investment in social sectors and
OBJECTIVES: infrastructure.
1. identify the necessity for development
planning;
B. Planning in Mixed Developing Economies
2. discuss important aspects of planning
Mixed Economies System
3. explain the rationale and process of planning A mixed economy is one in which there are substantial
and; amounts of both private and public ownership
4. explain the factors that gave rise to the crisis (Grossman, 1974).
in planning. Characteristics of Mixed Economy

The following are the features of a mixed economy:

A. The Need for Planning  It safeguards private property

 It permits prices to be determined by the free

Economic Plan market and the principles of supply and demand
Is a specific set of quantitative economic targets  It is motivated by the self-interest of people
to be reached in each period of time, with a stated
strategy for achieving those targets. Economic plans may  It enables the government to protect both the
be comprehensive or partial. people and the market

Partial plan is a plan drawn and sets its targets to  The government plays a significant part in the
cover only part of the economy e.g. agriculture only, military, foreign trade, and domestic
industry only, etc. transportation.

Comprehensive plan is a plan that sets its targets to

cover all major sectors of the economy e.g. private and Planning in Mixed Developing or Less Developed
public sectors, economic and social sectors. Economies

Reasons why Planning is Needed 1. Strengthen the market mechanism

2. The Necessity of Removing Unemployment
1. Overcoming market imperfections 3. The development of agricultural and industrial
Planning can help address structural rigidities and sectors
market imperfections in less developed economies. 4. The Necessity of Removing Nation’s Poverty
2. Setting a vision Advantages and Disadvantages of Mixed Economy
A development plan provides a roadmap for how to
achieve a desired vision for the country's future. Advantages of Mixed Economy:

3. Promoting economic development  They promote innovation and creativity in order

to meet customer needs in the most cost-
A development plan can help promote economic effective way.
development by assessing the current state of the
  They allow the most efficient and innovative it transforms a mere proposal into a well- supported
producers to make the largest profits, which can argument demonstrating that the plan is not arbitrary but
then be reinvested in their own or other the result of a carefully considered and well-reasoned
businesses. decision-making process.

 Mixed economies provide a balance between • Implication and risk

individual freedom and social responsibility.
it demonstrates that the planners have carefully
 They ensure that basic needs such as healthcare, considered both the positive and negative aspects of the
education, and housing are met for all citizens. plan and have developed.

 Mixed economies also provide social safety nets Types of Rationales

for those who are unable to work or in need of
• Strategic (mission-driven)
assistance.
It justifies a plan based on its contribution to achieving
Disadvantages of a Mixed Economy:
broader organizational or strategic goal. It connects the
 Excessive Taxation plan to the overall vision and mission of the
organization.
 Government Monopolies
• Operational (efficiency-focused)
 Ineffective Regulation
It focuses on the plan’s practical implementation and
 There may be a tendency for government to
efficiency. It justifies the plan based on its effectiveness
overextend its role in a mixed economy, leading
in achieving specific operational objectives.
to crowding out of the private sector and a
decrease in efficiency. • Tactical (short-term objective driven)

 Political pressure may lead to inefficient It focuses on the specific actions and method used to
allocation of resources in a mixed economy, as achieve operational objectives. It’s the ‘how’ of the plan
government decision-making may be influenced detailing the practical steps and strategies to be
by non-economic factors. employed.

Which Countries Have a Mixed Economy?

D. The Planning Process
Countries that have a mixed economy include
the United States, the United Kingdom, Sweden, Planning process
Canada, and India.
is a process used to develop objectives, develop tasks to
meet objectives, determine needed resources, create a
timeline, and determine tracking and assessment.
C. Rationale of Planning

Rationale of planning
Steps in Planning Process
The rationale of planning is the reasoning or
Step 1: Develop Objectives
justification for a plan, which often focuses on the "why"
of a choice or action. It can include a set of statements The first step in the planning process is to determine
that address a need or gap and explain the purpose and what you want to accomplish during the planning period.
significance of the plan.
Step 2: Develop Tasks to Meet Those Objectives
Key components of Rationale Planning:
The next step is to come up with a list of required tasks
 Problem definition to meet the objectives defined.

clear and concise statement of the issue or challenge Step 3: Determine Resources Needed to Implement
that the plan aims to address. Tasks

 Goals and objectives Next, resources to implement the objectives need to be

determined. In this case, 'resources' includes both the
these are the building blocks that support the
people needed to implement the plan and the supplies or
achievement of goals.
other resources needed to support those people.
 Option evaluation
Step 4: Create a Timeline
demonstrates that the plan is not just a single idea but the
The timing of resources now needs to be determined.
results of are careful and considered decision making
process. Step 5: Determine Tracking and Assessment Method

• Justification
In this stage, you need to monitor progress, measure 3. Unanticipated events- Economic disturbances
performance, and evaluate the effectiveness of the plan. that are not anticipated can cause problems.

Philippines — The planning process in the Philippines

is a function performed by two national agencies and
THEORY VERSUS PRACTICE
shared by some government entities and private
institution. Kerlinger and Lee define theory as a set of
interrelated constructs, and propositions that present a
Japan — The Japan Family Planning Association
systematic view of phenomena by specifying relations
(JFPA) is an incorporated association established in
among variables, with the purpose of explaining or
1954. JFPA believes in the life-cycle approach when
predicting phenomena.
addressing and delivering sexual and reproductive
health services that includes family planning and Practice is a multifaceted term that encompasses both
maternal and child health services. the act of doing something repeatedly and the process of
developing skills through that repetition.
Thailand — The Planned Parenthood Association of
Thailand (PPAT) is the only agency in Thailand that is a
member of the International Planned Parenthood
Federation (IPPF) providing sexual and reproductive DIFFERENCES BETWEEN THEORY AND
health and rights services and information with the aim PRACTICE
to improve quality of life of populations. THEORY

• In theory, planning is a systematic process of

D. The Crisis in Planning establishing and subjective and creating strategies to
achieve them.
Crisis - is an unexpected event which not only causes
harm to the organization but also triggers a feeling of • Theoretical planning models tend to be rational and
fear and insecurity among the individuals. logical

Crisis Management - It is a process that involves • In theory, planning is a proactive approach to managing
identifying a threat /negative event and monitoring, and shaping the future.
planning and implementing strategies design to help PRACTICE
solve them.
• In practice, planning involves dealing with real-world
Crisis Management plan - it refers to a detailed plan constraints such as budget, resources, and legal
which describes the various that an organization or a requirements.
business need to take during critical situation or crisis.
• Practical planning involves working with stakeholders
5 TYPES OF CRISIS who have different perspectives, interests, and goals.
1. Natural Crisis - Is one that is often caused due • In practice, planning is often reactive and driven by
to natural disasters. immediate needs and crises.
2. Financial Crisis – Happens when there is a loss
of value in the assets of a business which can Most Influential Crisis Management Theories
often lead to debt. Although the two terms are often used interchangeably, a
3. Technological Crisis - Often included issues or crisis management theory is distinct from a crisis
problems brought on by the technology. management model, as models seek to represent the
4. Confrontational Crisis - Fight among structure or application of crisis management, while
employees or there is a public outcry caused due theories are more abstract concepts.
to disconnect.
5. Crisis of Malevolence -uses illegal or criminal 1. Structural Functional Theory
methods for personal gains or for the Purpose of
Structural functionalism comes from sociology and
destroying or harming a company's reputation.
looks at society as a structure made up of institutions
PROBLEMS OF IMPLEMENTATION AND PLAN that function together to keep the whole running, like
FAILURES organs that work together to keep the body functioning.

1. Lack of connection between plan and

implementation - Plans often lack the policies and
measures needed to achieve their targets, making them
more like forecasts than plans. 2. Stakeholder Theory

2. Insufficient or unreliable data - Poor quality or In 2009, Alpaslan, Mitroff, and Sandy Green published a
insufficient data can contribute to planning failures. theory that focused on the role of stakeholders in crisis
management. They argued for including stakeholders in
crisis preparations and responses — not because of their
power or influence on financial value, but due to factors
such as potential for injury.

3. Contingency Theory

Contingency theory asserts there is no single best

method to organize or lead a company, and that
decisions should be made contingent on circumstances.

4. Diffusion of Innovation Theory

- The diffusion of innovation theory describes how new

ideas spread and become accepted. According to Evertt
Rogers, who pioneered the theory in his 1962 book
Diffusions of Innovations.

- The diffusion of innovation theory can identify

behaviors that might be most easily changed, the people
who might adopt new practices (and influence others),
and the most effective ways to spread new ideas.

5. Theory of Human Capital

The theory of human capital comes from economics, and

frames individual characteristics such as education,
health, and birthplace as factors that contribute to a
person’s productivity and income.