Development Planning and Its Critics

1. Development Planning and Its Critics PIA 2501 Development Policy and Management

3. Development Planning Under the Microscope Next Two Weeks “Going Operational- What that means” The “What is to be Done Syndrome” Theory vs. Policy vs. Management

5. Overview • Review of Themes • Limitations of Planning • Review of Structural Changes • Planning Assumptions • The Blue Print Model Problem • The History and Logic of Planning

7. Definitions of Development Planning: Overview Planning is the application of rational ordered choice to social and economic affairs. An Oxymoron?

8. Question Is this an oxymoron?

9. Review of the Debate- 5 Perspectives Neo-Orthodox View of Planning The Oxymoron Theory

10. Review-1: To what extent is the state planning approach necessary? • Expanded government meant specialized planning organizations and the rise of development economics as a discipline • Physical and Social Changes Require Strategic Planning • Remains Mandated by technical assistance and Donors

11. Review-2: To what extent is the state planning approach necessary? • There was rhetoric of a command economy as opposed to a market economy with two extremes and the soft state in-between • The issue of grass roots participation was raised • The Reality is in-between: Public Private Partnerships

12. Review 3: Limitations of Planning • To what extent is the state planning approach possible? • Issue of growth vs. distribution • Issue of planning vs. ways in which budget priorities are set • Debate about the coordination of planning voluntary vs. hierarchical authority

14. Structural Reforms- Review- 4: • The Change: Overemphasized the Anti-State theme • Result • Since 1985, privatization, public sector reform and structural adjustment • New Theories • Neo-orthodoxy based upon Public and Social (Rational Choice) ideas • What was “Developmental” in the 1990s?

15. Rational Choice?

16. Contemporary Themes of Development- Review 5: • Except for the Newly Industrializing Countries(NICs), the failure of Development Management as a method • Question: does failure occur as a result of state collapse? (Goran Hyden) • What is the future of Development Planning

17. The Problematic Goal

18. Level of Analysis Issue & Planning • Public Policy • Overall decisions to take action • Programs • Ongoing areas of activity within a policy area, a nucleus to carry out program • Projects • Discrete time-bound, often sector or spatially based activity

19. Contemporary Themes of Development • Problem of government as a negative; a state centric vs. society centric view • How does that translate into public private partnerships? (Robert Bates, Elinor Ostrom) • Issue of "implementation," the neglected component of development policy (Pressman)

21. Contemporary Themes of Development • Conflict Mediation • Institution building is a pre-requisite • Development Policy is environmentally bound; • Importance of micro-macro linkages (Kathleen Staudt) • Gender

22. Haryana Community Forestry Institution Building Project (India)

23. Development Planning The Blue Print Approach

24. Triumph of the Donor • Need for the "Blueprint" approach- Donors • Donors vs. the Learning Process • The Blue Print problem and Project Management

25. Blue Prints- Six Perspectives • Blueprint Planning Requires Broad Consensus within Society

26. The Blueprint Approach-1 Identification of available resources and setting of financial priorities • Need to distinguish incremental budgeting from capital or development budgets • Capital or Development Budgets are one time investments • Key: Built-in (sunken) costs and problem of maintenance and recurrent implications

28. The Blueprint Approach-2 • Defined by a series of steps: • Identification of or selection of appropriate means (Funding) • Formulation of specific activities • Provision for plan's implementation

29. Blue Print-3 • Secure coordinated action and cooperation • especially in problem of communications • Seek funding for projects • Make Go/No Go Decision • Implementation: • Monitoring and Evaluation

31. Location, Location, Location-4 Location of planning Center: Manager of the Blueprints • Ultimately a political question- Central Control • President or Prime Minister’s Office • Ministry of Finance and Development Planning

32. Location, Location, Location-5 • Location of planning Center: Manager of the Blueprints • Separate Departments or Commissions for Development and Planning Exercises • Depends upon International Technical Assistance • Private or NGO Contractor • Regional and local government • Social Funds

34. Location, Location, Location-6 • Location of planning Center: Manager of the Blueprint • Use and overuse of inter-departmental committees Afghanistan, 2005- Office of President

35. Central to Project

36. Or The Concept of the Pork Barrel

37. Intermission Ten Minute Break

38. Development Planning: Origins Prologue: The European and Colonial Origins of Planning Soviet Union--New Economic Period in the 1920s and the use of the five-year plan British India--1930s. National planning and industrialization

39. Development Planning GOALS

40. Prologue: Planning (Cont.) Eastern vs. Western Europe after WWII Britain in the 1950s--Labour Party flirts with plans Two varieties: Command vs. Keynesianism

41. John Maynard Keynes, (1883-1946)

42. Extreme Planning: Command Economies Soviet Union Under Stalin Mao’s China Albania before 1989 Cuba North Korea

43. Symbols of Industrialization

44. Development Planning: An Overview- Four Themes Planning Defined Planning Goals Anti-Planning Post-Planning

46. Definitions of Development Planning: Government Function Development planners and development administrators are action-oriented and goal-oriented civil servants striving to promote economic and social development

47. Definitions of Development Planning • Development planning is the setting of priorities for the use of scarce resources

48. Goals of Development Planning Foster economic growth Strengthen human and organizational capacities Plan and develop physical infrastructure (roads, dams, railways, buildings, etc.)

50. Goals of Development Planning, continued Promotion of greater equality in distribution of opportunities Provide framework for wider participation in the economic system Support social capital development in the form of stronger families, communities, interest associations and grass-root institutions