Economic planning is a vital part of social development. Underdeveloped countries are generally poor in financial planning capacity. The ability to manage finances and to model future outcomes demands a high level of skill which is often in short supply. A lack of financial planning inevitably produces waste and poor outcomes. It leaves budgets available to deliberate siphoning of funds and also loss through incompetent management.
Every government in a developed country provides large numbers of officials whose sole task is financial planning. In every section from health to education, from agriculture and fisheries, to transport and industry there are financial planners at your workplace.
Poor countries simply do not have the number of skilled people to fulfill all these tasks. Even if the education system of a poor country can produce enough graduates they may be tempted abroad by higher salaries plus better prospects. It is extremely difficult for an underdeveloped country to create this human infrastructure of skilled financial managers.
International bodies such as the UN as well as its many agencies, the IMF as well as the World Bank can help. They can supply trained personnel or they can pay the salaries of local administrators. Non Government Organizations often provide skilled people to work as volunteers teaching locals in the techniques of monetary planning.
Developing countries may even lack the technical means to carry out financial planning. There may be too few computers accessible. Economic and social figures are often out of date. Up to date figures are essential to plot trends and plan forward.
We hear more about medical and academic experts volunteering to help underdeveloped countries but people skilled in financial planning can be just as useful. Where long term development projects are concerned financial preparing expertise can be even more important. They ensure that services can be delivered in the long term and not just as on an emergency time frame. To achieve real, sustainable development financial planning must be established in underdeveloped countries.
There are important democratic problems involved. Emergency aid is essential in the drought, a famine or a battle, but it is seldom controlled simply by local people. Once local people have the necessary skills to undertake financial planning they are able to take decisions about where cash should be spent.
Financial planning also makes transparency possible. If the funds of a government or agency are usually chaotic it is impossible to tell in case its resources are being used nicely or honestly. Clear planning implies that decisions can be reviewed. A program can be assessed for its effectiveness. Wastage can be eliminated.
If all the money can be accounted for there is no danger of money being utilized as bribes or disappearing into the offshore bank accounts of powerful individuals.
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Vast amounts of the money intended because aid to developing countries has been lost in this way. There is not enough community scrutiny of funds to prevent it. Good financial planning can encourage the society to control the government plus enhance the democratic process.