Current Issues In Project Analysis For Development

For over fifty years project analysis techniques have been applied in the assessment of development projects where poorly designed and appraised projects can waste scarce resources. This study examines the continued relevance of this approach, assesses methodological developments over this period and investigates current practical problems in the application of these techniques. This major work brings together authors with experience of both academic and operational project work to focus on issues such as the shadow exchange rate, the shadow wage, the discount rate and assessment of poverty impact and risk, as well as problems relating to specific sectors covering environmental projects, transport, education and health. There are also general chapters on the experience of semi-input–output-based estimation of shadow prices and the relevance of shadow pricing techniques to the context of developed economies in the EU. An overview by the editors sets out the evolution of the literature and highlights current issues. The general conclusion is that project analysis techniques remain relevant, albeit within a very different development context to that in which they were originally envisaged to be applied. With new perspectives on key economic parameters, this book will appeal to academics working on development, officials involved with project aid programmes, postgraduate students of development and professional economists working on development projects.

This updated new edition explores the techniques used to assess the economic impact of projects in developing countries. Blending an academic understanding of economics and development with an accessible style and practical advice, the costs and benefits of investment projects, an important mechanism for economic development, are assessed to ensure that resource allocation is as productive as possible. New material has been added, particularly on the environmental impact of projects, the role of the discount rate in decision-taking, the application of techniques to estimate willingness to pay for benefit estimation and the quantification of health impacts. Although the basic techniques of project analysis were developed many decades ago, they remain highly relevant to address current concerns, such as population growth, urbanisation, pressure on physical infrastructure, inequality, and the climate crisis. This book aims to provide an accessible overview, drawn from extensive practical experience, of project analysis in developing countries. It will be relevant to students, researchers, and practitioners interested in development economics.

This guide provides a brief outline of the neoclassical theory of the public sector to put into context the reason for deriving shadow prices and to help the reader understand what it is that a government should be trying to do when it "intervenes" in the economy by planning a project. It describes experiences of the World Bank and other organizations in applying project economic analysis in developing countries. Developments in the use and interpretation of "willingness to pay" analysis and "foreign exchange numeraires" are discussed in some detail. It also discusses cost-benefit analysis in terms of the strategic planning model. The problems caused by inflation - both domestic and foreign - are reviewed in some detail, and suggestions are made for dealing with its impacts. Additional recommendations on setting up project accounts are presented. Exchange rate forecasting is addressed in terms of the "purchasing power parity" model of trade theory - the most widely used model for forecasting exchange rates in project appraisals. The issue of the discount rate for project economic analysis is also taken up. Finally, this guide presents many concrete examples of economic valuation problems faced by World Bank analysis in recent years. The examples cover a wide range of countries and valuation issues.

A project comprises a series of activities (investments) that aim to solve problems within a given time frame with a clear set of objectives for man’s benefits. It is an undertaking that involves the commitment of scarce resources in the expectation of future benefits. Before achieving the objectives, a project goes through several stages of a project cycle. In this study, the author discusses and analyses concepts of project planning and management. On the one hand, he refers to the project in general, and on the other hand, he represents the different stages of project planning and project management.

The techniques and methods of project appraisal in developing countries have been considerably expanded and refined since they were first introduced in the late 1960s. This up-to-date and authoritative survey volume demonstrates the ways in which cost-benefit analysis has developed in response to changes in economic circumstances and conditions over the past three decades. An international group of academic and professional economists covers areas including problems in the practical application of cost-benefit techniques by international agencies, the treatment of income distribution, discounting, the effects method, the logical framework as a complement to project appraisal, aid tying, risk criteria in decision making, benefit valuation in the water sector, the appraisal of technical assistance projects, privatization in transition economies and shadow pricing in transition economies. Professor Kirkpatrick and Professor Weiss have prepared an insightful overview essay introducing the broad selection of work presented in this volume.

Investment projects are an important mechanism for economic development. However, their costs and benefits must be assessed to ensure that the resources committed are being used as productively as possible. This book explains the techniques available to assess the economic impact of projects in developing countries. It draws on the authors experience in teaching and applying these techniques and combines relevant economic theory with a clear understanding of what can be done in practice. The book aims to make existing techniques readily accessible to both students and practitioners.

In this comprehensive, practical guide to project planning and appraisal in developing countries, David Potts focuses on economic and financial analysis, but also gives serious weight to such key factors as sustainability and social impact. Part 1 of the book considers a range of approaches to project identification and design and introduces basic techniques for determining costs and benefits. Part 2 provides an outline for the financial analysis of commercial projects, incorporating the issue of possible noncommercial objectives; here, Potts includes a discussion of methods for assessing projects that involve small-scale producers. Part 3 explores the economic and social analysis of projects. The final section of the book addresses the practicalities of dealing with risk and uncertainty in project planning, including ways to account for the realities of inflation and exchange-rate fluctuations.

Project economic analysis is a tool used by the Asian Development Bank (ADB) to ensure that ADB operations comply with its Charter. The guidelines in this publication are a revised version of the 1997 edition. The revision responds to the changing development context and ADB operational priorities, and aims to address the recommendations of the ADB Quality-at-Entry Assessments for more methodological work on project economic analysis. The revised guidelines provide general principles for the conduct of project economic analysis, and should be read together with handbooks, technical reports, and other reference materials published by ADB dealing with sector-specific project economic analysis in detail.