Download Golden Oldies

Development Planning
“We are all planners now “
- Arthur Lewis, Principles of Economic Planning
Jonathan Jeong
Colin Clarke
Ida Bastiaens
Golden Oldies
Hirschman, Ch1-3
Development Projects Observed
• Hiding Hand: unforeseen errors lead to new ideas and
innovations
• Offsetting Potential developments: unsuspected threats and
unsuspected remedial actions
▫ Underestimate our creativity and underestimate difficulties of
task= offset
• Hiding hand increases the rate at which projects undertaken
▫ Makes risk-adverter takes risks
▫ Increase entrepreneurial spirit
▫ Induce action through error
• Developers find ways to undertake projects with difficulties:
psuedo-imitation technique and psuedo-comprehension
Hirschman, cont’d
• Uncertainties
▫ Supply Side
 Technology
 Administration
 Finances
▫ Demand Side
 Excess demand
 shortage
• Risk and Pay-off
• Latitudes & Discipline
▫ Spatial or Locational
Latitude
▫ Temporal Discipline
▫ Latitude for Corruption
▫ Latitude in Substituting
Quantity for Quality
▫ Latitude in Substituting
Private for Public
Funds
Waterston, Ch.1, Introduction
• Gap between theory and practice
• Major unresolved planning problems are
primarily political and administrative instead of
economic
• When a country’s leaders in a stable government
are strongly devoted to development,
inadequacies in planning can be overcome
The Many Meanings of Planning
• An organized, intelligent attempt to select the
best available alternatives to achieve specific
goals
• “Planning is the exercise of intelligence to deal
with facts and situations as they are and find a
way to solve problems” –Nehru
• Used for a variety of purposes
The Many Meanings of Planning
• Despite array of definitions, all planning has
certain common attributes:
• - looking ahead
• - making choices
• - arranging that future actions for attaining objectives
follow fixed paths, or setting limits to the consequences
which may arise
• Examples: wartime and postwar reconstruction,
town and country, full employment and anticyclical, and development
Waterston, Ch3
Spread of Development Planning
• Spread of development planning:
▫ Spreads as much to the developed countries as to the less
developed countries
▫ “A matter of necessity rather than choice (p.43)”
▫ Provides the means to overcome obstacles and to ensure
systematic economic growth
▫ Demonstration effect of Russian planning
▫ “Today is plan minded (p.43)”
• Wide acceptance of planning as a means of achieving national
development objectives
▫ Whether a country should plan?
▫ The question now is how to plan.
Waterston, Ch3
Spread of Development Planning
• Historical overview
▫ Early planning
 construction of irrigation and flood control system in ancient
civilizations
 public investment plan in colonial territories
▫ Postwar planning
 Europe: France- Monnet Plan of Modernization and
Equipment ,1945-46; Marshall Plan,1948
 Asia and the Middle East: Philippines- Joint PhilippineAmerican Finance Commission, 1947; India- Advisory
Planning Board,1946; Pakistan- Development Board, 1948;
Colombo Plan in South and South East Asia, 1950
▫ Colonial Planning
 United Kingdom: Colonial and Development and Welfare Act,
1940, 1945.
 France: Colonial Development Fund, 1935
 Belgian Congo: Ten-Year Plan; Netherland
Waterston, Ch3
Spread of Development Planning
• Historical overview (Continued)
▫ World Bank
 Accelerated organized national development planning
 Iran’s Planning Committee , 1946; First Seven Year Plan,
1948
▫ Aid and Planning
 Western countries stimulated spread of development
planning
 The Republic of Korea, The Republic of China (Taiwan)
▫ The United States




National Planning Board/ National Resource Board
Kennedy Administration: national economic growth plan
Appalachian Regional Commission: Six-year plan, 1963
Johnson Administration: support for regional development
Waterston, Ch4
Stages of Development Planning
▫ Choice of planning = f (social/economic/political
structure, stage of development)
 Scope of planning
 Limited and piecemeal, project-by-project approach in
mixed economy
 comprehensive and centralized planning in socialized
economy
▫ Focused question
 How much planning?
 What kind of planning?
Waterston, Ch4
Stages of Development Planning (Continued)
▫ Socialized countries
 Evolution of central planning
 The pattern of decentralization
▫ The mixed economies
 Three stages of planning: the Project-by-Project Approach,
Integrated Public Investment Planning, Comprehensive Planning
 Planning experience and staged planning
 Approach of international financing institutions
▫ Difficulties of comprehensive planning
 The capital-output ratio
 Growth models
 Up-and-down procedure
 The problem of projects
 Rationalizing current public investment
Literary Map
Development Planning
Wallis
Martinussen
Practical
-Project/Program
-Process/Implementation
-Selection Criteria
-Evaluation Technique
-Management/Planning
-Public sector reform
Illich
Theoretical
-Synthesis
- Comparative/historical Perspective
-Arguments
-Political/Institutional Context
- Alternative approaches
Critical
Caiden and
Wildavsky
Hirschman
Turner and
Hulme
Staudt
Waterston
Synthesis
Synthesis
• Practical:
Development planning is not just a top-down
approach, it involves a process and varying
techniques; many planners can underestimate
the difficulties. Fortunately, creativity is also
underestimated and projects can overcome their
difficulties.
Synthesis
• Theoretical:
Development planning is embedded in political,
institutional, and historical contexts. So,
effective development planning considers all the
components of society and culture.
Synthesis
• Critical:
Development planning is criticized as being both
too packaged and overextended. Solutions
suggested are greater research into alternatives,
including incrementalism.
Martinussen, Ch. 22
The Political Economy of Civil Society
Focus on household and local community
Critical Points:
1.National Income measures do not show income
distribution (socially or territorially)
2.Macroeconomic figures can be misleading because
they do not account for:
1.
2.
3.
4.
Subsistence agriculture, fishing, etc
Informal sector, illegal activities
Household production
Environmental destruction
Martinussen, Ch. 22
I. Household and Whole Economy Model
(Friedmann and Polanyi)
a. Economics embedded in social relations,
household unit of organization
b. Diagram:
Household econ
econ relations
mkt econ
(formal and informal)
Allocation of time
social-cultural relations
civil
society (communal and domestic)
Martinussen, Ch. 22
I.
Informal Sector and Jobless Growth
▫
▫
Informal: growth of labor and employment,
networking theory
Jobless growth: OECD population growth,
technological development, military R&D, income
distribution
II. Citizen Resistance
Bailey and Scott
Micro level perspectives
III. Politics as Discourse
power relations, mentalities, histories, ideologies
Insight into political culture and social grouping
Illich “Dev as Planned Poverty”
• Focus on overconsumption, commodification in
OECD and now LDCs
• Packaged Deals and Reification (Marx, Freud)
▫ “trained in consumption of packaged goods and
services… (become) less effective … in shaping his
environment.”
• Underdevelopment as a state of mind
▫ “occurs when mass needs are converted to the demand
for new brands of packaged solutions that are forever
beyond the reach of the majority.”
▫ Change perception of real needs into demand for a
mass produced product (example thirst as needing a
coke)
Illich “Dev as Planned Poverty”
• Schools creating inferiority
▫ Condemn people to margin because they all can’t
achieve levels of schooling internationally
demanded
• Answer to underdevelopment:
▫ Finding alternatives and setting priorities
▫ Examples are clean water instead of surgery,
medical workers instead of doctors
• A Call for research into fundamental alternatives
▫ Account for lack of capital in LDCs
Staudt (1991). Ch.5-6
• Main theme:
▫ Although techniques attempt to obtain “clarification and insight,”
they are vulnerable to “manipulation.” (114)
▫ Selection and evaluation of project and program work properly
only with an understanding of “context” (114)
• Outlining project and proposal preparation in a political
context
▫ Text book sequence: problem definition, comparison of solutions,
selection of solutions
▫ Project/program preparation in institutional context
• Selection criteria
▫ Cost-Benefit Analysis
▫ Cost-Effectiveness Analysis
▫ Integrated Political Analysis Technique
• Evaluation Technique
▫ Logical Framework: the goals, purposes, outputs, and indicators
in a project
▫ EOPS (End-of-Project Status)
Turner and Hulme (1997). Ch.6
• Main theme:
▫ Planning, devised for solving social problem, can
be another source of problems in the real world
• The nature of development problems
▫ Poor data; uncertainty; separation of planning
from management; lack of beneficiary
participation, and project and politics
• Alternative approaches to project planning
▫ Adaptive administration
▫ Participatory rural appraisal
Turner and Hulme (1997). Ch.8
• Main theme:
▫ The organizational structure of public enterprises
is characterized as bureaucratic. As a
consequence, there has been much effort to
employ strategies for public sector reform.
• Strategies for public enterprise reform
▫ Establishing a policy framework
▫ Focusing on improvement through management
reform
▫ Employing various types of privatization.
• Politics and feasibility
▫ Successful reform should be, “politically desirable,
feasible, and credible” (194)
Wallis (1989). Ch.3-4
• Main theme:
▫ Planning has been considered as one of the basic
function of organization; it has revealed an array
of challenges.
• Difficulties of Planning
▫
▫
▫
▫
Lack of political commitment
The isolation of planners
Administrative obstacles
Over-centralized planning
• Alternatives of planning
▫ Changing the level of direct state intervention
▫ Attempting greater decentralization of planning
Caiden & Widalvsky, Ch.9
•
•
•
•
•
Resource allocation & management
Planning is multi-faceted:
- planning as adaptation
- planning as intention
- planning as rationality
• Formal planning: Costs & Benefits
• - Budgets as plans
• - Levels of rationality
Caiden & Widalvsky, Ch.10
• Planning plays a role in, and is influenced by
myriad factors, some of which are competing
and others which are complementary
• Involved with other development issues such as
bureaucracy, foreign aid, and budgeting
• Hirschman and uncertainty
References
• Caiden, Naomi and Aaron Wildavsky, Planning
and Budgeting in Poor Countries (New
Brunswick: Transaction Books, 1980).
• Hirschman, Albert O. Development Projects
Observed. Chapter 1-3.
• Illich, Ivan. “Development as Planned Poverty”
in Rahnema and Bawtree, The PostDevelopment Reader. (London: Zed Books,
1994).
• Martinussen, Chapter 22
References
• Staudt, Kathleen. Managing Development:
State, Society, and International Contexts.
(Newbury Park: SAGE Publication, 1991).
Chapter 5-6.
• Turner, Mark and David Hulme. Governance,
Administration & Development. (West Hartford:
Kumarian Press, 1997). Chapter 6 and 8.
• Wallis, Malcolm. Bureaucracy. (London and
Basingstoke: The Macmillan Press, 1989).
Chapter 3-4.
• Waterson, Albert. Development Planning:
Lessons of Experience (Baltimore: Johns
Hopkins University Press, 1965).