indicative planning

a method of controlling the economy that involves the setting of long-term objectives and the mapping out of programmes of action designed to fulfil these objectives, using techniques such as INPUT-OUTPUT ANALYSIS. Unlike a CENTRALLY PLANNED ECONOMY, indicative planning works through the market (PRICE SYSTEM) rather than replaces it. To this end, the planning process specifically brings together both sides of industry (the trade unions and management) and the government.

The only occasion when indicative planning was attempted in the UK was in 1965 when a NATIONAL PLAN was formulated (which set a target economic growth for the UK economy of 3.8% over the period 1964–70) and employed a variety of planning agencies (the NATIONAL ECONOMIC DEVELOPMENT COUNCIL and Economic Development Committees (EDCs) for individual industries) to provide national as well as industry-by-industry coordination. The National Plan itself, however, was abandoned in 1966 after being overtaken by events (a balance-of-payments crisis resulting in a deflationary package of measures) but the NEDC and the EDCs have continued to function on a less formal basis. By contrast, the French and Japanese have used indicative planning continuously since the 1950s. See INDUSTRIAL POLICY.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

Mentioned in

References in periodicals archive

Under indicative planning, governments signal a clear vision for the economy and provide incentives through subsidies and taxes to nudge the market in the indicated direction.

Lessons from China

The total needs of energy, the needs of certain types of energy, as well as the possibilities for their satisfaction from domestic production and export are determined with the energy balance as an indicative planning document for a five year period.

2014-2018 draft energy balance presented

In the early 1960s there were half-hearted attempts to import the indicative planning used by the French government to direct its economy from the centre, leading to the creation of the tripartite National Economic Development Council in 1962.

UK's Economic Woes

The plans, officially titled the Multi-Annual Indicative Planning Documents, outlined a revised strategy for funding under the EU's preaccession instrument.

Ankara's shifts: on almost all fronts, Turkey faces foreign policy complications

The plans, called Multi-Annual Indicative Planning Documents (MIPDs), outline a revised strategy for funding under the EU's Instrument for Pre-Accession assistance (IPA).

EC to Pour EUR 5.5 B for Reforms in Western Balkans, Turkey

The Minister indicated to the steps and measures which were taken by the parties concerned towards improving the agricultural situation in terms of moving to indicative planning, developing infrastructure in the rural areas, using scientific research and modern technology to increase productivity and continuing to market the crops of wheat, cotton, sugar beet and tobacco with subsidized prices.

Agriculture Ministry Draws up Future Plans to Improve Agricultural Situation

It also, followed indicative planning to rationalize the economic path and maximize the social return of growth and improve the quality of life of its citizens.

Sultanate's Achievements in Forty Years/ Statement ,C*,C*,C*,C*,C*Part 2,

Failing that we could copy the French system of indicative planning.

We need to know who we are to make progress; Frank FIELD Outspoken and informed, Birkenhead's MP writes for you

The rise and fall of Eichengreen's coordinated capitalism surely includes more than what the advocates of indicative planning assert and more than what public-choice explanations of bad policymaking offer.

The European Economy since 1945: Coordinated Capitalism and Beyond

Japanese-style indicative planning via industrial policy had its dark side.

Evolution of the Economic System in Japan