“Analytical Techniques for Development Planning” (A Review Of Tims' Multisector Model For Pakistan'S Third Plan (1965-70))

Azizur Rahman Khan


In the present decade there has been a great proliferation of
multisectoral models for planning. Part of the incentive has certainly
been the potentiality of their application in formulating the actual
plans. By now there have been so many different types of multisectoral
models that it is useful to attempt some kind of classification
according as whether or not they embody certain well-known features. The
advantage of such a classification is that one gets a general idea about
the structure of the model simply by knowing where it belongs in the
list of classification. One broad principle of classification is based
on whether the model simply provides a consistent plan or whether it
also satisfies some criteria of optimality. A multisectoral consistency
model provides an allocation of the scarce resources (e.g., investment
and foreign exchange) in such a way that the sectoral output levels are
consistent with some given consumption or income target, consistency in
this context meaning that the supply of each sector's output is matched
by demand generated by intersectoral and final use at base-year relative
prices. To the extent that the targets are flexible, there may be many
such feasible plans. An optimizing model finds the "best" possible
allocation of resources among sectors, the "best" being understood in
the sense of maximiz¬ing > a given preference function subject to the
constraints that ensure that the plan is also feasible.

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DOI: https://doi.org/10.30541/v8i2pp.240-263


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