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Additional info for Economic analysis of agricultural projects
Governments must allocate their available financial and administrative resources among many sectors and many competing programs. Project analysis can help improve this allocation, but it alone cannot be relied upon to achieve the optimal balance of objectives. Within the broad strategy, analysts must identify potential projects that address the policy or production targets and priorities. Further, to make a realistic estimate about the course of a project, some idea must be gained of what other development activities will be taking place and what policies are likely to be pursued.
These include systematic contributions to the preparation and review of the project by a wide range of specialists, carefully specified objectives, systematic consideration of alternatives, year-by-year estimates of cost, and the opportunity to examine carefully the organizational and managerial implications. Limitations of the Project Format Although the project format has many advantages, the results of project analysis must be interpreted with caution. Obviously, the quality of project analysis depends on the quality of the data used and of the forecasts of costs and benefits made.
Are the procurement procedures such that undue delays can be avoided? Are there procedures for competitive bidding to ensure fair prices? Who will draw up the specifications for procurement? Finally, there are the two aspects of project analysis that are the primary concerns of this book, the financial and the economic. Financialaspects The financial aspects of project preparation and analysis encompass the financial effects of a proposed project on each of its various partici- PROJECTS, THE CUTTING EDGE OF DEVELOPMENT 17 pants.
Economic analysis of agricultural projects by Professor J. Price Gittinger