Open Access“Analytical Techniques for Development Planning” (A Review Of Tims' Multisector Model For Pakistan'S Third Plan (1965-70))
Author(s) -
Azizur Rahman Khan
Publication year - 1968
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v8i2pp.240-263
Subject(s) - consistency (knowledge bases) , context (archaeology) , plan (archaeology) , incentive , consumption (sociology) , computer science , function (biology) , preference , investment (military) , meaning (existential) , economics , development plan , operations research , microeconomics , mathematics , artificial intelligence , engineering , political science , social science , law , psychotherapist , history , archaeology , sociology , biology , psychology , paleontology , civil engineering , evolutionary biology , politics
In the present decade there has been a great proliferation ofmultisectoral models for planning. Part of the incentive has certainlybeen the potentiality of their application in formulating the actualplans. By now there have been so many different types of multisectoralmodels that it is useful to attempt some kind of classificationaccording as whether or not they embody certain well-known features. Theadvantage of such a classification is that one gets a general idea aboutthe structure of the model simply by knowing where it belongs in thelist of classification. One broad principle of classification is basedon whether the model simply provides a consistent plan or whether italso satisfies some criteria of optimality. A multisectoral consistencymodel provides an allocation of the scarce resources (e.g., investmentand foreign exchange) in such a way that the sectoral output levels areconsistent with some given consumption or income target, consistency inthis context meaning that the supply of each sector's output is matchedby demand generated by intersectoral and final use at base-year relativeprices. To the extent that the targets are flexible, there may be manysuch feasible plans. An optimizing model finds the "best" possibleallocation of resources among sectors, the "best" being understood inthe sense of maximiz¬ing > a given preference function subject to theconstraints that ensure that the plan is also feasible.