1. PLANNING SRATEGIES Presented by : THELMA L. GESTOPA MS. MARJORIE R. ROLA, Ph.D. Professor/Instructor Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

2. OUTLINE OF PRESENTATION Planning Strategies versus Strategic Planning Historic Growth and Contemporary Development: Lessons and Controversies Sources of Economic Growth Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

3. PLANNING STRATEGIES Used to define the planning steps that a system is to perform and the sequence in which to perform them. Each comprises one or more methods that represent the individual planning steps. Example : Awareness on Reproductive Health Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

4. STRATEGIC PLANNING A process; defining the strategy, direction and making decisions on allocating its resources to pursue this strategy. Understand the current position of the organization: ask “What do we do?” “For whom do we do it?” “How do we excel?” vision, mission Example : 1987 power shortage; 1998 Asian Crisis Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

5. ECONOMIC GROWTH Steady process; productive capacity of the economy increased overtime to bring about rising levels of national output and income. Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

6. Historic Growth and Contemporary Development Sources of Economic Growth Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola Capital Accumulation: physical capital stock, infrastructure, human capital Population and Labor Force Growth: productive workers Technology: new and improved ways of accomplishing production processes

7. Historic Growth and Contemporary Development Production Possibility Curve (for a given amount of capital, labor and technology) maximum attainable output combination of any two bundles of commodities when all resources are fully and efficiently employed. Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

8. Historic Growth and Contemporary Development When does PP curve shift? Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola Parallel Shift: For given technology, both capital and labor double Biased Shift: for given technology, only capital or only labor double

9. Types of Technological Progress Neutral : when higher output levels are achieved with the same quantity and combinations of factor inputs Saving : when a given level of output can be achieved with less quantity of labor or capital (labor saving; capital saving) Augmenting : When the quality of capital or labor is upgraded (embodied technological progress – labor or capital augmenting Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

10. KUZNET’s Six Characteristics of Modern Growth 1.High rates of growth of per capita output and population; 2.High rates of increase in total factor productivity (TFP); 3.High rates of structural transformation in the economy; 4.High rates of social and ideological transformation Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

11. KUZNET’s Six Characteristics of Modern Growth 5. Propensity of developed countries to reach out to the rest of the world for markets and raw materials; 6. Limited spread of economic to only a third of world’s total factor productivity (TFP); Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

12. Modern Growth On average between 1770 and 2000, countries that are now industrialized have: Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola real GNP growth of 3 % per year population growth of 1 % per year Per capita output of 2 % per year The number of years it takes to double: real GNP... 23 yrs population... 70 yrs per capita output... 35 yrs

13. TOTAL FACTOR PRODUCTIVITY (TFP) Why so IMPORTANT? Output per unit of all inputs; Measures efficiency within which all inputs are used; Represents TECHNOLOGY So important it accounts for about 50 % to 75 %of historical growth per capita in industrialized economies Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

14. SOCIAL AND IDEOLOGICAL TRANSFORMATION INVOLVES Rationality - opinions about economic strategies and policies should be logical inferences based on the knowledge of relevant facts. Economic Planning. Search for a rationally coordinated system of policy measures that can bring abut development. Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

15. SOCIAL AND IDEOLOGICAL TRANSFORMATION INVOLVES Social and Economic Equalization - promotion of equality of opportunities. Improved Institutions and Attitudes - enhanced systems of administration and law; finding value in efficiency, integrity, etc. Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

16. COMPARISON : INITIAL CONDITIONS Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola Poor Countries TodayRich Countries Today When they were Poor Different Initial Conditions Physical and human resource endowments Per capita GNP compared to rest of the world Climate Population size, distribution and growth Historical role of migration International trade benefits Basic scientific and R & D Stability of political and social institutions

17. Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola If poor and rich countries had similar initial conditions, then there would be conditional convergence in their income developing countries would be catching up What allows catching up? Leapfrogging /transfer and use of already invented technology Marginal decreasing returns in capital/higher rate of accumulation of physical capital Developing countries are not catching up

18. MALAYSIA’s CONDITION IN 2000 2020 Vision Entry to the Millennium One of the top performing developing country since 1960s GNI per capita $8,360 GNP per capita growth rate 4.5% Agriculture GDP 12% Exports GDP 110% Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

19. MALAYSIA’s CONDITION IN 2000 Female labor force share 37 % Illiteracy rate 13 % Mortality under age 5: 10 per 10,000 live births Child malnutrition 20 % Human Development Index 0.774 (high) Population 23.5 M Annual Population growth rate 2.5% Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

20. MALAYSIA’s CONDITION IN 2000 High diverse ethnicity Malay 50 %, Chinese 33 %, Hindu, etc 17 % POLITICALLY STABLE; FLEXIBLE INSTITUTIONS Econ dev strategy: EduHealthEmp Rich in resources; land Well-educated workforce British colony until 1957 Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

21. CONCLUSION The economic growth of a nation has significant relation with the leaders’ political will, strength and experties and sincere governance. The strategies for which the country is striving and the means it is seeking to get there depends likewise on how the branches of the government are performing. Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

22. CONCLUSION Unity among the leaders and the citizenry will show the determination of all in aiming for true economic development. Copying or replicating strategies of other countries, if feasible, and for as long as it will truly justify and serve the purpose can be a priority or a main option. Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola

23. End of presentation... Graduate School of Management Development Planning Doctor in Public Management Professor /Instructor - Dr. Marjorie Rola