Why did economic planning become an important part of public administration after the 1930s?

Economic planning became a vital component of public administration after the 1930s primarily as a pragmatic response to the severe economic crises of that era, most notably the Great Depression.12

The shift was driven by several key factors:

• Crisis Management: The devastating impact of the Great Depression forced governments to move beyond their traditional roles as mere providers of basic services and keepers of the peace. Policymakers increasingly viewed the state as a necessary innovator and a determinant of economic priorities to mitigate recessions and unemployment.342
• Keynesian Influence: The economic theories of John Maynard Keynes provided a framework for this activism, suggesting that government spending and monetary policy could be used to counteract economic downturns.45
• Administrative Evolution: It became evident that policy formation was an inherent part of administrative work. As governments took on more complex tasks, administrators required new tools—such as national income accounting and the monitoring of gross national product—to manage and coordinate national economic health.2
• Post-War Reconstruction: Following World War II, the urgent need to modernize and reconstruct economies, particularly in Europe, solidified the role of the state in guiding economic affairs through formal planning.12