Simulation of planning economic development plan of the "cocoaland"

Abstract

It is an exercise in the planning methodology as outlined during several discussions held at the seminars on planning under the guidance of Professor M. Kalecki. The task consisted in working out a set of tables comprising "basic aggregate magnitudes which show the state and trends of development of a “model " underdeveloped economy displaying some specific natural characteristics. the authors have introduced into, this, exercise several " difficulties", mainly with regard to the availability of foreign exchange, both in the form of inflow of private and public capital, as well ,as with respect to trends in prices for most important export item in the given country under considerations, i.e., cocoa. These constrains, had-, of course their bearing upon the volume of planned, investment and its structure. Final results of this exercise are, moreover, largely influenced by rigorous assumptions for maintaining the market equilibrium and achieving relatively quick rate of growth of consumption.