development planning jonathan jeong colin clarke ida bastiaens “we are all planners now “ -...
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Development Planning
Jonathan JeongColin ClarkeIda Bastiaens
“We are all planners now “- Arthur Lewis, Principles of Economic Planning
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Golden Oldies
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Hirschman, Ch1-3Development 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
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Hirschman, cont’d
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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
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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
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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 anti-cyclical, and development
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Waterston, Ch3Spread 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.
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Waterston, Ch3Spread 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 Philippine-American 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
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Waterston, Ch3Spread 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
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Waterston, Ch4Stages 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?
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Waterston, Ch4Stages 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
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Literary Map
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Development Planning
Practical-Project/Program-Process/Implementation-Selection Criteria-Evaluation Technique-Management/Planning-Public sector reform
Theoretical-Synthesis- Comparative/historical Perspective-Arguments-Political/Institutional Context- Alternative approaches
Critical
Wallis
Hirschman
Turner and Hulme
Staudt Waterston
Illich
Caiden and Wildavsky
Martinussen
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Synthesis
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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.
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Synthesis
•Theoretical:Development planning is embedded in political, institutional, and historical contexts. So, effective development planning considers all the components of society and culture.
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Synthesis
•Critical:Development planning is criticized as being both too packaged and overextended. Solutions suggested are greater research into alternatives, including incrementalism.
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Martinussen, Ch. 22The Political Economy of Civil SocietyFocus 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. Subsistence agriculture, fishing, etc2. Informal sector, illegal activities3. Household production4. Environmental destruction
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Martinussen, Ch. 22I. Household and Whole Economy Model(Friedmann and Polanyi)a. Economics embedded in social relations,
household unit of organizationb. Diagram:
Household econ econ relations mkt econ (formal and informal)Allocation of time social-cultural relations civil
society (communal and domestic)
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Martinussen, Ch. 22I. 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 ResistanceBailey and ScottMicro level perspectives
III. Politics as Discoursepower relations, mentalities, histories, ideologiesInsight into political culture and social grouping
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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)
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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
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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)
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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
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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)
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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
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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
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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
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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 Post-Development Reader. (London: Zed Books, 1994).
•Martinussen, Chapter 22
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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).