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Zorluk: ZorDevelopment Planning Strategies and Models

During Nigeria's development planning history, the country shifted from rigid five-year Fixed Medium-Term Plans to three-year Rolling Plans in 1990. Which of the following best explains the primary operational advantage that justified the adoption of a Rolling Plan over a Fixed Plan?

  1. Rolling plans are updated annually to adjust targets dynamically in response to economic fluctuations, whereas fixed plans retain set targets regardless of unforeseen shocks.Cevap
  2. B
    Rolling plans span an unalterable twenty-year perspective horizon, whereas fixed plans are limited to single-year budgetary cycles.
  3. C
    Rolling plans rely entirely on free market price mechanisms for resource allocation, whereas fixed plans function exclusively within socialist command economies.
  4. D
    Rolling plans completely replace annual fiscal budgets, whereas fixed plans operate independently of government expenditure frameworks.

Cevap

Rolling plans are updated annually to adjust targets dynamically in response to economic fluctuations, whereas fixed plans retain set targets regardless of unforeseen shocks.
The correct answer highlights the defining feature of rolling plans: annual revision and extension. Unlike fixed medium-term plans which remain static over a fixed 4- or 5-year period regardless of external economic disruptions, rolling plans are evaluated at the end of every year to adjust targets, re-evaluate capital resources, and extend the timeframe by another year.

Adım Adım Çözüm

1
Analyze the structural characteristics of Fixed Medium-Term Development Plans.
Fixed plans run for a specific duration (e.g., 5 years) with fixed targets established at the beginning that are not systematically revised mid-term.
Understanding the rigidity of fixed plans highlights why economic shocks (like oil price volatility in Nigeria) cause plan failures.
2
Examine the operational mechanism of Rolling Development Plans.
A rolling plan (e.g., 3-year rolling plan) is reviewed at the end of each year; year one is implemented, year two targets are adjusted, and a new third year is added.
This annual roll-over mechanism provides flexibility and ensures continuous alignment with prevailing economic realities.
3
Compare the operational advantage in volatile economic environments.
The continuous evaluation and dynamic flexibility of rolling plans make them superior for absorbing macroeconomic shocks compared to static fixed plans.
Nigeria adopted rolling plans in 1990 specifically to handle economic volatility following the Structural Adjustment Program (SAP).

Anahtar Kavram

Operational differences between Fixed Medium-Term Plans and Rolling Development Plans
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Konular

Development Planning Strategies and Models

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