Development Planning and Its Critics PIA 2501 Development Policy and Management

Foreign Aid: A Contemporary View  Hillary Clinton, January 10, 2010 Hillary Clinton, January 10, 2010  The Official View  VIDEO

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

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

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

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

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

Question  Is this an oxymoron?

An Illustrative Image of the Dilemma

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

Command Economy

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

Structural Adjustment 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?

Rational Choice?

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

The Problematic Goal

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 Concern for Risk Management

Risk Management

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)

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

Haryana Community Forestry Institution Building Project (India)

Development Planning The Blue Print Approach Still With US?

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

Blue Prints- Six Perspectives  Blueprint Planning Requires Broad Consensus within Society

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

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

OOPS!

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

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

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

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

Location- Central to Project

Or The Concept of the Pork BarrelOr The Concept of the Pork Barrel (In and Politians and Projects) VIDEO

Intermission  Ten Minute Break

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

Which is which: U.K. vs. India

Development Planning GOALS

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

John Maynard Keynes, ( )

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

Symbols of Industrialization

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

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

Definitions of Development Planning  Development planning is the setting of priorities for the use of scarce resources

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

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

Social Capital?

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

Russian Five Year Plan

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, district administrations and contractors for service delivery (Note the Use of Grants)  Integrated Rural Development Schemes

Rural Planning in Bangladesh

Development Planning: Local Level In regions and districts, planner has a coordination responsibility that includes in some cases social mobilization (Forced or Underpaid Labor?) 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

Forced Labour Convention ILO Poster

Controversy over the nature of planning  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

Governance Book Discussion

Kurban Said- The Controversy over Ali and Nino Lev Nussimbaum (Baku, (Positano, 1942) was a prolific writer, journalist and orientalist, an Azerbaijani Jew from Baku, who successfully reinvented himself as a Muslim prince.

Kushwant SinghKushwant Singh VIDEO  1950s  Contemporary

Books of the Week Kushwant Singh, Train to Pakistan Kurban Said, Ali and Nino Stephen Kinzer, Overthrow 1. What do these books warn us about? 2. What are the strengths and weaknesses? 3. What do they tell us about development issues?