Development Planning and Its Critics PIA 2501 Development Policy and Management

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 2

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

Definitions of Development Planning: Overview Planning is the application of rational ordered choice to social and economic affairs. An Oxymoron? 4

Question Is this an oxymoron? 5

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

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

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

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

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

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?

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

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

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

Haryana Community Forestry Institution Building Project (India)

The Blue Print Approach Development Planning The Blue Print Approach

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

Blue Prints Blueprint Planning Requires Broad Consensus within Society

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

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

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

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

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

The Concept of the Pork Barrel

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 31

Symbols of Industrialization

Prologue: Planning (Cont.) Eastern vs. Western Europe after WWII Britain in the 1950s--Labour Party flirts with plans Two varieties: Command vs. Keynesianism 33

John Maynard Keynes, (1883-1946)

Development Planning: An Overview- Four Themes Planning Defined Planning Goals Anti-Planning Post-Planning 35

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 37

Definitions of Development Planning Development planning is the setting of priorities for the use of scarce resources 38

Development Planning GOALS 39

Goals of Development Planning Foster economic growth Strengthen human and organizational capacities Plan and develop physical infrastructure (roads, dams, railways, buildings, etc.) 40

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 42

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 44

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, and district administrations for service delivery Integrated Rural Development Schemes 46

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?) 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 48

Forced Labour Convention ILO Poster

Books of the Week Paul Theroux, The Mosquito Coast V.S. Naipaul, A Bend in the River

Discussion: Case Studies of the Week Carlos Fuentes, “The Cost of Living” Ruth Prawer Jhabvala, “The Interview”

PhD Students: What They Have Been Reading Goran Hyden, No Shortcuts to Progress Jennifer M. Brinkerhof, Partnership for International Development Arturo Escobar, Encountering Development

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?

Question of the Week "What Is To Be Done?" according to Escobar.

Intermission Ten Minute Break

Discussion