Sectoral planning is strategic planning for defined sectors or industries of the economy. ‘Sector’ in terms of ‘sectorial planning’ means the spatial planning under consideration of only one planning criteria (e.g. traffic, environmental heritage etc.). Sector planning focuses on a manageable area and considers the land use, transportation, environmental, and infrastructure needs unique to that portion of the community. Sectors are groupings of economic, social, and administrative activities based on the type of goods or services produced.
A Sector plan is a long range plan for a specific geographic area of at least 15,000 acres in one or more local governmental jurisdictions. Sectors for planning are
- Health
- Education
- Electricity
- Transport
- Tourism
- Agriculture
These sectors can be grouped under the three broad sectoral headings as follows, with the corresponding national accounts categories shown in brackets.
Economic Sectors
- Agriculture (Agriculture, fisheries and forestry)
- Manufacturing (Food and beverages manufacturing and other manufacturing)
- Tourism (Hotels and restaurants, wholesale and retail trade and transport)
- Commerce (Wholesale and retail trade and personal and other services)
- Finance (Financial and business services)
- Public administration (Public administration)
Social Sectors
- Education (Component of public administration and including two sub sectors of primary and secondary and post-secondary)
- Health (Component of public administration)
- Welfare and Social Services (Component of public administration)
Infrastructure Sectors
- Construction (Construction)
- Electricity (Electricity and water)
- Water (Electricity and water)
- Transport (Transport and communications)
- Communications (Transport and communications)
Sectoral planning is deeply based on various sectors of economic activities such as primary, secondary, tertiary and quaternary economic sectors. It is concerned with linear planning and certain infrastructural facilities in various sectors in the economy in particular and in the society in general. It promotes economic development in major sectors of the economy. This will include the promotion of rural economic development (agricultural sector) and the development of industrial policy frameworks for sectors, in order to support various industrial policies.
Sectoral planning is divided into supra-local and local sectoral planning. On the one hand, it deals with linear, cross-community infrastructures, generally at state levels (E.g., highways, railways, tramways, magnetic levitation railways, airports, mining, waterways, protection areas, tipping sites and waste incineration plants) and on the other, with the local level (E.g. roads), where local authorities are responsible for sectoral planning. Sectoral Planning promotes policies in a number of key sectors, chosen for their labour absorbing capacity, technological contribution to the economy or earning of foreign exchange.
Sectoral planning is directed at addressing both weak economic performance and large scale job losses (distressed sectors) as well as regeneration of economic activity in particular regions and areas. The main characteristics include
- Sectoral Planning focuses on the planning and development of particular sector of economy
- It is rather systematic approach
- Sectoral planning helps in developing certain sector of economy as a result overall development of a region is not possible in this planning
- It is more subjective
- It is much useful in developed nations
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