What Can You Tell Me About Indicative Planning And Its Critical Appreciation?

Indicative planning conceives a system of economy where producers decide about the important economic problems such as what to produce, how to produce or what techniques to be employed and how much to be produced.
Indicative planning has some flaws too. Firstly success depends upon be available. In underdeveloped countries where problems of abject poverty, structural imbalances, inequalities of income and opportunity and feudalistic character of society, stare in the face, willing cooperation by the vested interest will be a remote possibility. That is why indicative planning is nowhere operative in its true form. Practical steps are taken ensuring that private sector does toe the official line. It is in fact a policy package which combines both incentives as well as penalties.
Secondly, indicative planning, with its absence of central shortages and surpluses leading to price control and food rationing which negate the very spirit of indicative is planning. Thirdly, indicative planning is dependent on availability of precise, detailed and accurate information or depends on successful psychological and sociological campaigns aimed at arousing public enthusiasm or public self discipline are not usually found especially in the UDCs. Indicative planning is also condemned for its oligarchy character. The big business, bureaucrats, the formation of plans and interests of weaker sections of society are overlooked.

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