Cost-Benefit Analysis

Abstract

It was stressed in earlier chapters that planning is a multi-level process. The broad strategy of planning has necessarily to be worked out at the macro level. Within the pattern set by this strategy, consistent growth for different sectors has to be ensured: this is where input-output analysis is useful. But the achievement of sectoral targets in turn requires the efficient planning of individual projects within each sector. Techniques of project appraisal such as cost-benefit analysis are directly concerned with the third level, i.e. microplanning. However, a meaningful interaction with higher levels of planning is crucial to their success. Hence cost-benefit analysis must always be viewed in the broader perspective of planning for development.