Development Planning and Its Critics

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Development Planning and Its Critics

• PIA 2501 Development Policy and Management

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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

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Overview

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

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Definitions of Development Planning Overview

• Planning is the application of rational ordered
  choice to social and economic affairs.
• An Oxymoron?

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Question

• Is this an oxymoron?

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Review of the Debate

• Neo-Orthodox View of Planning
• The Oxymoron Theory

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Review 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

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Review 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

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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

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Extreme Planning Command Economies

• Soviet Union Under Stalin
• Maos China
• Albania before 1989
• Cuba
• North Korea

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Structural Reforms- Review

• 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?

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Contemporary Themes of Development- Review

• 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

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The Problematic Goal
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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

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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)

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Contemporary Themes of Development

• Institution building is a pre-requisite
• Development Policy is environmentally bound
• Importance of micro-macro linkages (Kathleen
  Staudt)

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Haryana Community Forestry Institution Building
Project (India)
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Development Planning

• The Blue Print Approach

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Triumph of the Donor

• Need for the "Blueprint" approach
• Donors vs. the Learning Process
• The Blue Print problem and Project Management

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Blue Prints

• Blueprint Planning Requires Broad Consensus
  within Society

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The Blueprint Approach

• Defined by a series of steps
• 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

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The Blueprint Approach

• Defined by a series of steps
• Identification of or selection of appropriate
  means (Funding)
• Formulation of specific activities
• Provision for plan's implementation

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Blue Print

• Secure coordinated action and cooperation
• especially in problem of communications
• Seek funding for projects
• Make Go/No Go Decision
• Implementation
• Monitoring and Evaluation

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Location, Location, Location

• Location of planning Center Manager of the
  Blueprints
• Ultimately a political question- Central Control
• President or Prime Ministers Office
• Ministry of Finance and Development Planning

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Location, Location, Location

• 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

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Location, Location, Location

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

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Controversy over the nature of planner

• Cadre of Economists, budget specialists and
  project analysts
• Informal ties with planner/economists in other
  ministries and Departments
• Special issue of foreign international expatriate
  planners
• Planning as shopping list for donors (pork barrel
  projects)
• Politicos emphasis on physical planning
  infrastructure--problem of maintenance

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The Concept of the Pork Barrel
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Development Planning

• 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

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Symbols of Industrialization
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Prologue Planning (Cont.)

• Eastern vs. Western Europe after WWII
• Britain in the 1950s--Labour Party flirts with
  plans
• Two varieties Command vs. Keynesianism

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John Maynard Keynes, (1883-1946)
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Development Planning An Overview- Four Themes

• Planning Defined
• Planning Goals
• Anti-Planning
• Post-Planning

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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

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Definitions of Development Planning

• Development planning is the setting of priorities
  for the use of scarce resources

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Development Planning

• GOALS

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Goals of Development Planning

• Foster economic growth
• Strengthen human and organizational capacities
• Plan and develop physical infrastructure (roads,
  dams, railways, buildings, etc.)

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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

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Social Capital?
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Development Planning as a Process

• Goal is to change societal behavior
• At the center original goal planning the
  National Plan
• monitoring and managing the economy
• includes setting targets and achievement of goals

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Russian FiveYear Plan
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Development Planning and Organization

• At the center, overall goals are set through
  National Plan (the wish list) and through
  monitoring and managing the economy
• planners set targets and measure goals
• Key emphasis placed on local government
  authorities, extension services, and district
  administrations for service delivery
• Integrated Rural Development Schemes

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Rural Planning in Bangladesh
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Development Planning Local Level

• In regions and districts, planner has a
  coordination responsibility that includes in some
  cases social mobilization (Forced?)
• At regional and local level, goals are regional
  planning, coordination and mobilization
• Overall--government agents or their contractors
  act as change agents, and provide stimulus to
  society

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Forced Labour Convention ILO Poster
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Books of the Week

• Paul Theroux, The Mosquito Coast
• V.S. Naipaul, A Bend in the River

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Discussion Case Studies of the Week

• Carlos Fuentes, The Cost of Living
• Ruth Prawer Jhabvala, The Interview

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PhD Students What They Have Been Reading

• Goran Hyden, No Shortcuts to Progress
• Jennifer M. Brinkerhof, Partnership for
  International Development
• Arturo Escobar, Encountering Development

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Author of the Week Arturo Escobar

• What Does Escobar say about the concepts
  Development Economics and Planning?
• How does he "Deconstruct" development?
• What does that mean?

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Question of the Week

• "What Is To Be Done?" according to Escobar.

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Intermission

• Ten Minute Break

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• Discussion