SSE 67| DR. ROMEO CLEMENTE, PH.

D
BACHELOR OF SECONDARY EDUCATION MAJOR IN SOCIAL STUDIES 2A

COURSE DESCRIPTION
 As per CMO (CHED MEMORANDUM ORDER) No .75 s 2017, this course explores the contemporary field of
comparative economic planning that has evolved from traditional to modern economics, encompassing transition
from a purely quantitative to mixed and behavioral economics. To provide the perspective teachers with academic
opportunity to: (a) assimilate functional knowledge pertaining the rudiments of comparable economic development
planning; (b) judge the applicability of strategies that are meritoriously fitted to the economic planning and conform to
the success indicators of economic development.

WHAT IS COMPARATIVE ECONOMIC PLANNING?

It is an exceptional planning with scientific basis, references and lot more bases.

TOPIC 1| DEFINITION AND IMPORTANCE OF ECONOMIC DEVELOPMENT PLANNING

“BEHIND THE ECONOMIC PLANNING IS DEVELOPMENT.” -UNKNOWN

1. 1 COMPARATIVE ECONOMIC DEVELOPMENT PLANNING

Is an area of interest in field of Economics that introduces students the:
A. Theories and conceptual skills, processes, and policies across various scales (e.g., local, national, regional, and
global)
B. Concepts of shaping local conditions with respect to ongoing urban transition; and importance of local knowledge,
cultural orientations of local political, social, and economic structures and forces, and their consequences to
socio-economic change and development.

1.2 WHAT IS ECONOMIC DEVELOPMENT ?

According to Feliciano Fajardo (1985)
 A progressive and dynamic process of improving human conditions, such as the reduction or elimination
of poverty, unemployment, illiteracy, inequality, diseases and exploitation.
 The structural transformation qualitatively measured through low poverty rate, high literacy rate, low
mortality rate, zero or low crime rate, low brain drain, low unemployment and/or underemployment.
 A sustained economic growth will bring about development or modernization.

1.3 ECONOMIC DEVELOPMENT PLANNING ACROSS IDEOLOGIES

 Democratic or capitalist nations adopt most like the laissez faire (let alone policy) approach. Planning
process is comparatively influenced by the “bottom-up” process.
 Government-led or communist countries are dominantly prone to prescriptive “top-down” approach.
 Mixed economies or socialist nations draw best practices from both capitalist and communist economic
systems as a way to politically prevail a “classless society”.
CAPITALIST= BOTTOM UP
COMMUNIST= TOP DOWN
SOCIALIST= CLASSLESS SOC.
1.4 COMPARATIVE ECONOMIC DEV. PLANNING AS CURRICULAR AREA
 Covers the range of factors (e.g., elites, politics), forces (e.g., agency, capitals, modes of accumulation) and
institutions (e.g., states, markets, communities, organizations) whose origin lie beyond the local.
 Considers the various levels of governance, multilateral & bilateral development agencies, philanthropic
foundations, volunteer-based orgs, socio-economic enterprises, non-profits/non-gov’t & orporate orgs working in
the fields of local, national, regional, and international levels.

1.5 WHAT IS DEV. PLANNING?

The conscious and deliberate attempt of a gov’t to qualitatively influence or direct and control changes in
income and expenditures, production and consumption, saving and investment, as well as export and import
(foreign trade) over a certain period of time.
1.6 WHAT IS ECONOMIC DEV. PLANNING?
A deliberate governmental attempt to coordinate economic decision making over the long run and to influence,
direct and some cases even control the level and growth of a nation’s principal economic variables (income,
consumption, employment, investment, saving, exports, imports, etc.) to achieve a predetermined level of growth
and set of development objectives.

1.7 WHAT IS THE IMPORTANCE OF ECONOMIC DEVELOPMENT?

According to Poole (1999):
 It improves the productivity of local resources, encourages business profitability and promotes
community sustainability and quality of life.
 It fosters a community’s capacity to generate wealth for its residents by focusing on job creation and
income through strategic planning.
In the context as an input to decision making of government leaders and key economic players, EDP would
provide adequate understanding on :
 How the country’s gov’t mobilize and allocate resources (both local and foreign aid) e.g., return of
investment (ROI) on training & on education subsidies (e.g., scholarship and fund assistance) to public schools;
 The impact of attitudinal and psychological or cultural orientations of stakeholders since it is also a case that
government leaders are good at planning but not efficient in implementation and not affective in
coming up with intervention due to poor monitoring and evaluation;
 The requirements of economic policy legislation if there is policy bias that currently exists;
 Why the economy fails (causes of economic recession, depression, budget projection, and the like)
 The concepts, ideas, and strategies employed in the pursuit of economic development influenced by
foreign policies and partnership programs and projects; and
 Goals and objectives of economic development and basis principles in critically examining alternative
development policies and programs that eventually may generate strategies or options as forms of
intervention and cascading the realization of desirable end results.

TOPIC 2| KEY AREAS OF ECONOMIV DEV. PLANNING AND STRATEGIES

With the belief that citizens can directly shape the economy and the country will benefit in numerous ways, the following
can be planned and strategized:
1. INCREASED TAX BASE- (An increase collection through greater coverage) Additional revenue to support,
maintain, and improve local services such as roads, parks, libraries, and emergency medical services. It should
observe the canon laws of taxation.
2. JOB DEVELOPMENT- (human resource development through career road map) To provide better wages,
benefits, and opportunities for advancement. Training may mean efficiency, promotion and increase in income of
employees.
3. BUSINESS RETENTION- (Business Survival) A continuous patronization and growth in business income done
with continuous introduction of innovations.
4. ECONOMIC DIVERSIFICATION- (Economic Expansion)
 Increase in the level of economic activity and availability of the varied goods and services in the
market for domestic use and export.
 Relates to an upturn in production and utilization of resources.
 Strategy to reduce a community’s vulnerability to a single business sector.
5. SELF- SUFFICIENCY- Being independent or less dependent from foreign political external influence; being
self governing as way to replenish or augment the program or project’s financial need.
6. PRODUCTIVE USE OF PROPERTY- an optimum conservation, preservation, utilization and maintenance of
resources according to their highest productivity or current and future benefits.
7. QUALITY OF LIFE- Greater tax imposed should be about more of job opportunities and higher standard of living or
lower cost of living of the people.
 More jobs and greater income of the people mean greater revenues of the gov’t.
8. RECOGNITION OF LOCAL PRODUCTS- High patronization of people to local products means greater
confidence and competitiveness of the local producers and domestic business community.
 High marketability is done through.
 TOPIC 3| TYPES OF PLAN FOE ECONOMIC DEVELOPMENT

3.1 TWO TYPES OF PLAN FOR ECONOMIC DEVELOPMENT

COMPREHENSIVE PLAN- Sets it targets to cover all major aspects of the national economy
PARTIAL PLAN- covers only a part of the national economy like industry, agriculture, the public sector, and the foreign
sector.

3.2 CONCEPT OF NATIONAL DEVELOPMENT

AGRICULTRE, FISHERY & FORESTRY
+ INDUSTRY
MINING
MANUFACTURING
CONSTRUCTION
ELECTRICITY, GAS & WATER
NAT’L & +SERVICE SECTOR
HEALTH DEV. MORE TRANPORTATION
TRADE
FINANCE
SERVICES

3.3 PUBLIC SECTOR PLANNING

 A planning accomplished by the government which may encompass government enterprises which are run
on a self-sustaining basis or as they receive budgetary support from the government. Planning should be
coordinated to avoid dismal effect.

3.4 TARGET PLANNING FOR PUBLIC AND PRIVATE SECTORS

A planning which require comprehensive targets set by the public sector. It includes a more detailed setting of production
targets or investment goals participated both by the public and private sectors to accomplish.

3.5 DECENTRALIZED PLANNING IN THE PRIVATE ORGOVERNMENT SECTOR

 A planning geared towards setting means of accomplishing goal at a desired direction heavily influenced by
concerned sectors (lead gov’t agencies / concern private entities). The preferred investment areas for example are
influenced more by private sector. The government helps the private undertakes the project by way of specific
incentives such as tax exemptions, tax moratorium & preferential financing. It is a bottom-up planning.

3.6 CENTRALIZED PLANNING

It is an autocratic planning that covers all areas of economy. Targets may be sets specifically for all the sectors. The
system may begin with national goals covering production and investment. From national plans these are broken up into
regional plans, assigning to particular regions, and later to various sectors. Up-down planning.

3.7 TYPES OF PLAN ACCORDING TO ECONOMIC MODELS AND THEIR DISTINCT USE AND CHARACTERISTICS
AGGREGATE PLAN- This plan applies to the whole economy. Deals with investment, production, and consumption and
similar economic activities as single aggregate. Also called Macro-Planning. E.g., Medium Term Philippine Development
Plan.
AGGREGATE MODEL DETERMINES:
1. Possible growth rates in the national income of a country.
2. Allocation of the national product among public and private consumption, investment and exports.
3. The required volume of domestic savings, exports and foreign financial assistance for the implementation of a given
program.
4. The relationship of consumption and income; production function capital assets and labor; import function and level of
national income; and the like.
SECTORIAL MODEL. This refers to the plan of individual sectors like construction of roads, irrigation system, school
facilities, etc., – partial Example: Regional Development Plan Reforestation, Infrastructure Development, Housing
Projects, Energy Generation Programs.
SECTORAL MODEL DETERMINES:
1. Levels of consumption and production by economic sectors.
2. Alternative production possibilities within individual production and branches.
3. It is by project approach but on the basis of their contribution to the economy or in relation to social and economic
problems requiring top priority.
4. Example, projects which involved food production, employment or energy development are more weights in planning
and implementation. Money allocated in agriculture.
INTER INDUSTRY MODEL
 This is concerned with the relationship of productive factors of the economy with one another.
 This is also called multi-sectoral planning. Decisions are made on an industry and firm-by-firm basis. Joint
Research Program of Universities and Industries or between and among agencies.
INTER INDUSTRY DETERMINES
1. The demand for intermediate products and capital goods including imports; and their solution which provide a
mutually consistent set of production levels by economic sectors and for the whole economy.
2. This ranges from simple output to matrices to more complicated linear programming models. This model
evaluate the relationship among the different sectors of the economy.

TOPIC 4| PRINCIPLES AND STEP IN ECONOMIC DEVELOPMENT PLANNING

4.1 PRINCIPLES OF PLANNING
1. PLANNING MUST BE REALISTIC
 This men that the project/programs must be implemented with existing available resources. Program is
usually the general plan or the blue print of the development plan. This plan may compose of several tangible
and intangible projects, while Project is the specific undertaking drawn from a development plan.
Furthermore, Program is more comprehensive while project is under the umbrella of program.
Projects is a certain undertaking over the program, i.e., under the Agrarian program, projects are the water supply,
land redistribution and such.
The requirement to be realistic is the resources are available. This means that resources sought to have a vital role in
this principle. Philippines should plan for realistic programs given that we are in the agricultural programs- supported
with agricultural resources.
2. PLANNING MUST BE BASED ON THE FELT NEEDS OF THE MASSES
 This is a real development. The fruits of economic development must benefit the people.
 The demand for intermediate products and capital goods including imports; and their solution which provide a
mutually consistent set of production levels by economic sectors and imports for the whole economy.
These are the real situation or condition of the people to be planned for development.
3. PLANNING MUST COME FROM BELOW
 The people and leaders in the communities know best their needs and problems and prevailing local
conditions. They should therefore be involved in planning for their own interests.
Government leader should be one in meeting the objectives with the people. It answers the question, What are the
support that the leaders can give? Those in authorities should be in the process of resolving the problem.
4. PLANNING MUST BE MULTI-SECTORAL
 No single problem is independent and isolated. It is affected by several factors,,e.g., an economic problem is
influenced by social and political factors.
 Thus, in planning, aside from the economic factors, the others are to be considered in solving the
economic problems.
When the government don’t have enough resources they tap private sectors to do the work and pay it later. That is
how multi-sectoral work
5. PLANNING MUST BE FLEXIBLE
 Conditions and existing resources change.
 Therefore, adjustments have to be properly made.
Plans should have plan A to D. There should be predetermined interventions listed in planning.
6. PLANNING MUST INTEGRATE THE VARIOUS PROJECTS/PROGRAMS
 Economic activities are interlinked with one another, I.e., in stimulating rice productivity, it is not enough to plan
a more efficient method of production. E.g., magat dam
 It has ti be integrated with financing, processing and marketing processes or schemes.
Planning must integrate the project needed in a certain community
7. PLANNING MUST START WITH SIMPLE PROJECTS
 This require simple technology, simple skills, simple organization and little financial resources. Simple projects
can also provide a training experience for those who are involved.
Planning should be simple to achieve easily. Start the prosperity concept with a simple project to spark people’s
interest. E.g., the tourist spot’s souvenir made out of simple things.
4.2 STEPS OF ECONOMIC DEVELOPMENT PLANNING
1. IDENTIFY STAKEHOLDERS
 Identify the stakeholders and get them to participate in the planning process.
 Creating a workable economic strategy usually requires support from the broader public on whose behalf the plan
is being prepared.
Identify the people involve and if they are knowledgeable, get them participate in the planning process.
2. CREATE A PROFILE
 Determine the community’s current conditions. This section includes information on community setting,
trends, issues and factors affecting economic development.
 Categorize businesses by industry sector, these businesses that make up the economic base, and by types of
public revenue they generate.
The planner should make a Demographic Profile- A profile based on the resources available in the community.
3. CREATE AN INVENTORY
 Identify and map the businesses that currently make up the economy.
 Categorize businesses by industry sector, those businesses that make up the economic base, and by types of
public revenue they generate.
List down how many resources available in the community. Identify and map the business resided.
Know the geographic condition. It is important that before you plan, know what are the scares resources as well as the
excessive resources.
4. EVALUATE THE PROFILE AND INVENTORY
 Provide a framework from which to define economic development options and documents the analysis
conducted in determining how to manage future economic development efforts.
Evaluate the weather, culture of the people. After that create a document or paper about it.
5. IDENTIFY APPROACH
 The approach provides the basis for local economic policy and defines the roles of various stakeholders in
sustaining and strengthening the local economy.
 Identify community concerns and goals for economic development, and describe how to address those concerns
and how to reach the goals.
 Components include the community vision, the market economy, community values, factors that influence
economic development, and economic options
Proper identification of who is the responsible for the role to be performed. As well as their accountabilities. So that
they know the level of commitment to the said plan. If the project will fail they must held accountable for it.
6. DEELOP POLICIES
 Policies translate community concerns and goals into clear statements of public intent. These policies will
guide public and private investment in local economic development activities and further define the riles and
expectation of key stakeholders.
7. IMPLEMENT
 Implement measures convert the goals and policies for the economy into specific actions. These
measure also clearly define how public investment will be made in your local economic development activities.
Create a measure of control of activities and processes to be fulfilled.
SAMPLE QUESTIONS
1. In order to increase growth, the government should not promote ____.ANS: FREE TRADE
2. This is not likely to be a benefit of economic growth. ANS: An improving environmental quality that results from
increased industrialization
3. Classical Economics promote the theory that___. ANS: In the short run, all markets are in equilibrium
4. Suppose that the Nation of Bayan has a comparative Disadvantage in the production of Cocoa. Bayan should______.
ANS: Import Cocoa
5. Expansion of country’s production possibilities frontier is___. ANS: Economic Growth
6. Economically speaking, which is the glorious period? ANS: Boom
7. The value of all goods and and services produce by a country in a given period refers to___-? ANS: GNP
8. When the government to spending or increase taxes or both it engages in_____________? ANS: Concretionary Fiscal
Policy
9. Innovation is a key to growth is done through various means EXCEPT_____. ANS: Keeping Organizational Structure
10. What is needed to build confidence among employers and protect the rights of the employee?ANS: Quality assurance
of qualifications