1. Development Planning: Approaches, and Techniques
Pushpa Lal Shakya

2. Presentation Outline Introduction Concept of Development Planning
Contains of Development Plan
Relevance of Planning
Planning Process
Basis of the Plan Formulation
New Dimensions in Planning
Tools and Techniques Used in the Planning Process
Issues and Challenges of Project Management in Nepal
Conclusion and Suggestions

3. 1. Introduction Begins since 1928 from the then Soviet Union.
Adopted and spread after Second World War in the developing world.
Most of these economies adopted mixed economy.
Nepal introduced economic plan more than 6 decade ago.
13 periodic plans has been implemented so far.
The 14th Plan, a three year plan, is in the final year of its implementation .

4. Since 1990: adoption of market or liberal economic policy in the context of globalisation.
The form of the plan has changed from planning by direction to more indicative or inducement type of plan.
The role of the government has been changed significantly.
The government: a catalyst, motivator, regulator and facilitator role
The private sector: a lead role in the economy.
Now after establishment of new federal democratic governance system:
adoption of three pillar economy viz. public, private and cooperative sector

5. More participatory approaches has been followed than before.
Both “top down” and bottom up” approach has been followed.
Started to formulate more strategic and result-based planning
Prioritization of projects and programs has been started since the Tenth Plan.
Annual plan has been linked with periodic plan through MTEF since the Tenth Plan (PRSP)

6. 2. Development Planning
Development planning is the systematic management of resources for the purpose of achieving definite targets or objectives within specific period of time.
Development planning is:
a deliberate effort of the government to influence in the major socio-economic variables like GDP, consumption, savings, investment, prices and employment etc, of a country for a specific period of time to achieve its desired objectives.

7. It is the instrument to define a country’s future direction or destination.
A plan must be based on a long term vision /goal of a country set to achieve in a time period of say 15 to 20 years.
A medium term plan provides medium-term vision of the country.
The annual plan is important because it translate the periodic plan into action.

8. What is Planning ?
In planning, we try to respond the three basic questions:
i. Where are we now? – The present socio-economic status of the country.
(it requires to analyze the country’s social and economic situation based on reliable data and information.)

9. What is Planning ? (Contd..)
ii. Where do we want to go? What do we want to achieve ? (The medium term goals/objectives, a clear goal and objectives of the government needs to be spelled out , based on the long term vision of the country.) iii. How can we get there? The strategy to achieve including policies and programs. (It requires analysis of the options available to achieve the objectives and choosing the most appropriate and efficient option. ) Moreover, it also requires to identify the policies and programs that best suits to carry out the strategy.)

10. Planning is more direction-oriented in command economy and more indicative in liberalized economy.
Considering the time duration it is of three types.
Perspective or long term plan (15 to 20 years period)
Medium term plan (3 to 7 years period)
Annual Plan (1 year period)

11. 3. Contains of Development Plan
Statement Vision
Statement Goals
Statement of the objectives.
Macro-economic Framework
(Targeted growth rates of various economic sectors, Investment requirements and source of funds to achieve the targeted growth rates.
Strategies
Priorities

12. Quantitative Targets
Sectoral objectives, strategies, policies
Programs/Projects of various sectors
Allocation of resources.
Implementation Mechanisms
Monitoring and Evaluation Mechanism, and
Expected Output/Outcomes.

13. Success of a Development Plan depends upon:
Total knowledge of the economy including grass roots level realities.
Setting of the objectives.
Appropriateness of policies and strategies.
Adequacy of data and information.
Realistic targets and projections.
Adequate consultations with the stakeholders
Proper understanding of needs, resources and values
Provision of resources
Inter-sector consistency

14. Planning modality and approach.
Human and institutional resources.
Appropriate organizational set up and administrative arrangement.
Public participation.
Coordination among the stakeholders.
Good quality projects/programs.
Effective Implementation.
Effective monitoring and evaluation mechanism.

15. 4. Why Planning? Relevance of Planning
State knows the best.
State accords priority to the real needs.
Best use of resources.
Focus and perspective.
Better distribution of resources and outputs.
Efficient resource mobilization.

16. Development in all areas including input management to outputs and impacts.
Saves time, energy and resources.
Poverty reduction.
Inclusive development.
Private sector development
Market development.
Coordination.
Foreign aid mobilisation.
Development of remote and deprived areas.

17. 5. Planning Process Traditional Approach: 2. New Approach:
Basically “top down”- little involvement of stakeholders and beneficiaries.
2. New Approach:
A participatory and more “bottom up”
Local, Provincial and National Level Consultations
More inclusive participations:
gender, ethnic groups, Dalits, Madhesis, disabled, youth, political parties, development partners, NGOs/INGOs etc.

18. The Planning Process in the Plan Formulation:
Steering Committee:
Chair -VC NPC
Members of NPC and
Secretaries of LM
Sectoral Committees:
Chair –member of NPC
Joint Secretaries/ Under Secretaries/Section Officers of LM and NPC,
Experts, advisors, and invitees.

19. 3. Sectoral Technical Committees:
Chair-Joint Secretary of NPC,
Joint Secretaries/Under Secretaries of LM,
Program Directors/Planning Officers of NPC,
Experts, advisors
4. Task Force: Line Ministries
Chair –Secretary of respective LMs,
Department heads,
Joint Secretaries / Under Secretaries / Section Officers of LM

20. Tasks:
Review of previous plan.
Current status in various sectors.
Sending guidelines to LMs.
Setting long term vision
Setting macro objective, strategies, policies and priorities.
Formulation of macroeconomic framework.

21. Macroeconomic Framework Formulation
Projections of:
GDP Targets
Total investment requirements : public and private
Estimate of required resources
Revenue
Public expenditures
External sources : grants and loan
Domestic borrowings

22. Setting sectoral objectives, strategies, policies and targets
Programs/projects to achieve these targets
Preparation of logical framework.
Consultations with various stakeholders.
Interaction at the central level
Interactions at the regional/provincial Level
Seeking experts' suggestions
Involvement of the ministries and other public agencies

23. Preparation of Draft Approach Paper
- Presented to National Development Council (NDC) meeting - Finalization of Approach Paper incorporating suggestions and guidance of NDC - Submission of Approach Paper for the approval by the Cabinet - Based on the Approach Paper detail Periodic plan is formulated

24. 6. Basis of the Plan Formulation
Directive Principles and Policies of the Constitution
Manifesto of winning political party in the general election or Common Minimum Programme of the Coalition Government.
Perspective/ long-term plan and other sectoral perspective plans.
SDGs and other global, regional commitments of the Government,
Domestic issues (e.g. inflation, low economic growth, unemployment, and governance etc), and
Contemporary Challenges of the development (e.g. climate change and global economic issues etc.)

25. 7. New Dimensions in Planning
Top down and Bottom up Planning
Participative Planning
Market based Planning
Planning by Inducement or Indicative Planning
Result Based Planning (RBP)/ Strategic Planning
Sustainable development
Inclusion
Good governance
Growth with equity
Public Private Partnership (PPP)

26. 8. Tools and Techniques Used in the Planning Process
There are various tools used in the planning process
Macroeconomic Model: formulation of macroeconomic Framework, Incremental capital output ratio
The macro economic framework presents the whole pictures of the economy which includes:
The real sector
The fiscal sector
The monetary sector, and
The external sector
Macro models can be used to forecast the macro economic variables to ensure consistent macro economic framework this is based on: -

27. Forecasts and assumptions about domestic and international economic performance.
Government's macro-economic policy stance reflected in:
Monetary and exchange rate policy,
Real sector growth targets
Projections of domestic and donor inflow including:
Domestic revenues
Foreign grants and loans
Levels of government domestic borrowing

28. Result Based Planning

29. Concept of Managing for Development Results (MfDR)
Set of concept, principles and tools for:
Improved development effectiveness
Improved performance management
MfDR (output, outcome and impact) in different levels through result-based.
Strategic planning
Budgeting, and
M & E

30. Five Principles of MfDR
MfDR follows the following five principles:
1. Focusing the dialogue on results at all phases of the development process.
2. Aligning programming, monitoring, and evaluation with result.
3. Keeping measurement and reporting simple.
4. Managing for, not by, results, and
5. Using results information for learning and decision making.
It is recommended for consideration at every phase of a development initiative.

31. MfDR Practice in Nepal Level Planning Budgeting Monitoring Results
National
Periodic plan (result frame based0
MTEF
Plan progress report
Sectoral
Business plans (sectoral strategies)
MTEF (sectoral papers)
Sectoral Progress report
Project
Log frame mandatory
Result based budget
Performance indicators
Provincial/Local
periodic plan (log frame based)
PDMTEF/LDMTEF
Provincial/LocalPlan progress report

32. Result Based Management (RBM)
Assess: What is the current situation?
Think: What caused it? Who are involved?
Envision: What are we going to achieve?
Plan: How are we going to do it? When? With whom? With what resources?
Do: Get it done. How is it going? Do we need to adapt?
Review: What went well/wrong? What can we learn for future?

33. Concept of Result Based Planning (RBP)
RBP focuses more on the results in terms of outcome and impact of the plan.
It tries to ensures whether the outcome and impact of the plan is in line with the set medium term goals and long term vision or not?.
2. RBP gives importance to strategy as to how it could be realized by looking at different options it have and develop policies and programs to realize the goals and targets.
3. It is more a strategic planning as against the traditional medium term periodic planning. In the old approach of planning more focus is given on the material balance than the result.

34. Result Based Planning (Contd..)
4. It must be derived from a clear vision of the future:
RBP gives importance to “Where do we want to go?” what we want to achieve?– a medium to long term goal/vision, at least for the medium term, and must propose a combination of objectives that have been prioritized by rigorous analysis of the political, social and economic environment.
The long-term vision, however, should be based on a good assessment of the country’s socio-economic situation and include goals to be achieved in each of the strategic areas. 5. It focuses on goals:
Plans containing of numerous goals will not be strategic. To make it strategic the resources must be focused on the most important goals only.

35. Result Based Planning Contd..
Decisions related to where we want to go must consider the opinions of the majority of stakeholders in the country to ensure that government’s plan acceptable and credible.
The higher the degree of participation by the stakeholders, the greater the possibility the plan to be implemented and its achievements sustained over time.
As results based strategic planning also has an operational component to respond to the question “How do we want to get there?”, the strategic exercise, products and processes need to be designed and the necessary inputs calculated.
Moreover, the financial resources required to implement the plan need to be made available and allocated, and coordinated action must be taken by the institutions and organizations involved.

36. Components of Result Based Planning
1. Understand where we are ?
Analysis of the socio-economic situation or status,- GDP, poverty and inequality and the strength and weaknesses of the economy and the country’s development effort. Finding gaps and strength.
2. Clear vision as to what we want to achieve or where we want to reach over a medium to long term?
Setting up of long term vision and objectives and targets for the medium term.
3. Clear understanding of the path as to how we achieve vision and objectives ?
Choosing options for better strategy to attain the objective/goals and designing policies and programs to ensure its outcome/output and impact relating to medium term objectives and long term vision.

37. 4. Clear understanding of the resources - both human and capital and institutional set up to achieve set targets?
Analysis of resource availability and potential, both domestic and foreign, in financing policies and programs and assessing institutional set ups to carry out plan implementation.
5. Ensure whether we have accomplished the set targets .
Designing M & E system to check implementation process, output and the quality of work done as envisaged.

38. Basic Tools Used in Result Based Planning
Planning consistency is given top most priority in RBP. Most often a macro planning model is used for checking the consistency and analysis.
Expenditure framework that make consistency in resource potential and availability in the likely future situation is also used for the purpose.
Result Framework is widely used to check the consistency in the outcome/impact, output and inputs.
Result based monitoring framework is used for M&E of the plan and provide feed back.

39. Focus of RBP
RBP is a strategy to increase transparency, and accountability.
Therefore, it recommends to establish a planning process that:
increases transparency
ensures accountability
promotes proactive management,
focuses on performance, and
ensures results.

40. Results-based Planning Process
Plan for results
Results defined
Indicators, targets
Plan
Evaluate results
How & who
Dissemination, feedback
Budget for results
Budget aligned with activities
Evaluate
Budget
Goals
Public sector management can be looked at in different dimensions.
National/Subnational/sector level/
Monitor results
Linked to planning
How & who
Data, reporting
Implement for results
Implement
Monitor 40

41. Result Chain
Identify the means-ends chain in the analysis of objectives
Steps in Result Chain:
Start from outcome
Identify the impact the outcome contributes to
Define outputs
Plan for the activities needed to achieve those activities
Work on the resources required to implement those activities

42. Result chain in Result Framework
Category
Significance
Impact
What they achieve?
Outcome
What they do?
Outputs
What we achieve?
Activities
What we do?
Inputs
What we invest?

44. Operational Vs. Developmental results
Inputs
Activities
Output
Outcome
Impact
Operational results
Developmental results
The management product of agency, its programs or projects
An actual change in the state of living standard of the people or human development that is the logical consequence of investment in development

45. The Result Chain Implementation Results Inputs Activities Outputs
Outcomes
Impact
Financial human and Materials
Tasks and action taken to Transform Input to outputs
Products: goods and services produced
Intermediate effects on clients
Long-term Improvement in society
Planning
Implementation

46. Results Chain Reduced infectious diseases Impact Proper Garbage
Disposal
Access to
Drinking Water
Personal
Cleanliness
Outcomes
Municipality
Waste Mgmt Sys.
Health Sector
Health Edu Program
Outputs
WS Sector
New WS System.
Inputs
Resources

47. Why Result Frameworks (RFs)?
It helps in management and M & E in the following ways:
Helps focus on specific outcomes
Highlights the key linkages and causalities that underpins the intervention
Helps establish an evidence-based approach in M&E
Helps measure progress towards strategic objectives
Helps achieve strategic objectives

48. Steps to design a RF
Identify problems and specify the theory of change to address them.
Set Goals/objectives address them.
Define results (Impact/outcomes/outputs)
Identify critical risks and assumptions
Specify indicators and data sources
Design a M & E plan

49. Risk Analysis and Results
Assumptions
Assumptions
High risk
Assumptions
Moderate risk
Low risk
Inputs
Output
Outcome
Impact
Decreasing management control

50. Results Framework- Education
Indicators and MOV
Responsible agency
Assumption/Risk
Indicators
Baseline
Target
MOV
Yr 1
Yr 2
Yr 3
Impact; productive HR
HDI/HAI
0.54
Outcome 1 - Access
Output 1.1
Output 1.2
Outcome 2- Quality
Output 2.1
Output 2.2
Outcome 3- Equity
Outcome 4 Accountability
Literacy rate
Net enrolment rate
Dropout rate
Repetition rate
Gender parity in enrolment
Scholarship to deprived group
Social audit
irregularities
Programs/ sub-programs
SSRP, BEP, EFA

51. Policy/Results Framework used in the Periodic Plan
Indicators
Baseline
Target
MOV
Responsible agency
Assumption/Risks
Impact
Outcome 1
Output 1.1
1.2
Outcome 2
Output 2.1
2.2

52. Logical Framework Analysis
It is very useful for planning, monitoring, implementing and evaluating development projects.
It helps to identify the cause and effect relation between the goals, objectives, output/outcomes of the project.
It develops the indicators as well as the external forces and influences that determines the success of the projects.
It provides a logical approach in setting priorities and determining activities and the intended results of a project.

53. The LFA is a useful tool to:
Establish a causal link between inputs, processes, outputs, outcomes and objectives (vertical logic);
Define the assumptions and the potential risks for achieving objectives and outcomes;
Establish a system for monitoring and evaluating project performance;
The LFA can be described as “a tool to help designers of projects think logically about what the project is trying to achieve (the purpose), what things the project needs to do to bring that about (the outputs) and what needs to be done to produce these outputs (the activities)”
The log frame is a 4x4 matrix. It has four rows and four columns.

54. The LFA contains: Narrative Summary (Column 1):
The log frame helps to make logical relationships between activities, results, purpose and objectives.
Verifiable Indicators (Column 2):
Indicators used for measurement, or qualitative judgment, or both for achievements.
Means of Verification (Column 3):
How, and from what sources of information, each of the indicators will be quantified .
Important Assumptions (Column 4):
The important assumptions on which the success of the project depends, and the risks that have been considered.

55. Logical Framework
Narrative Summary
Verifiable Indicators
Means of Verification
Important Assumptions
Goal(Impact)
The quantitative ways of measuring, or qualitative ways of judging, whether these broad objectives are being achieved? (estimated time)
Sources of information ?
(Goal to Super goal):
External factors are necessary for sustaining objectives in the long run?
Purpose(Immediate impact)
The quantitative measures or qualitative evidence by which achievement and distribution of impacts and benefits can be judged (estimated time)
(Purpose to Goal):
Conditions external to the project are necessary if achievements of the project’s purpose is to contribute to reaching the project goal?
Outputs:
Quantity of outputs, and by when will they be produced? (quantity, quality, time)
Sources of information?
(Output of Purpose): The factors not within the control of the project, which, if not present, are liable to restrict progress from outputs to achievements of project purpose?
Activities:
Inputs
What sources of information?
(Activity to Output): 1) External factors must be realized to obtain planned outputs on schedule?
2) What kind of decisions or actions outside the control of the project are necessary for inception of the project?

56. 9. Issues and Challenges in Project Management

57. Presentation Flow
Meaning/Definition of a Project
Concept of Project Management
Basic Phases of Project Management
Issues and Challenges in Project Management in Nepal
Suggestions for Improving Project Management in Nepal

58. 1. Meaning/Definition of a Project
A project may be defined as a proposal for an investment activity which employs resources with the aim of generating specific future benefits at certain costs.
A project is a proposal for an investment to create, expand and/or develop certain facilities in order to increase the production of goods and/or services in a community during a certain period of time.
A project is a unique, transient endeavour, undertaken to achieve planned objectives, which could be defined in terms of outputs, outcomes or benefits.
A project is a set of activities with specific objectives to be completed within given time and cost.

59. Little & Mirrless says “Project is any scheme or a part of a scheme for investing resources which can reasonably be analyzed and evaluated as an independent unit.”
Harold Kerzner: defines it as “ A project can be considered to be any series of activities and task that has a specific objective to be completed within certain specification, defined start and end dates, funding limits, focus into effective utilisation of limited resources.”
Projects are the building blocks of a investment plan.
Projects consume resources and they generate benefits during project operation period.

60. Basic Features of a Project
Specific objective or goal.
It is an investment activity .
Estimates of cost- benefits
Uses financial, labour and materials .
It has life cycle
It has start and end date
Provides benefits over the project period.
It has an independent identity and itself complete
It has specific responsibility 

61. Project Management
Management has been defined as getting results through people.
Management has been defined as getting things done.
Project management is the management of project resources to achieve the objectives.
Management is an art to achieve organizational goal through planning, organizing, controlling, coordinating, budgeting, monitoring and mobilizing human resources.

62. 2. Concept of Project Management
Project management is achieving successful project completion with the resources (time, money, materials and people) available.
Harold Kerzner defines “Project management is the planning, organising, directing and controlling of company resources for a relatively short term objective that has been established to complete specific goals and objectives”
Project Management Institute (PMI) defines project management as "the application of knowledge, skills, tools and techniques to a broad range of activities in order to meet the requirements of a particular project.“

63. Project management includes developing a project plan, which includes defining and confirming the project goals and objectives, identifying tasks and how goals will be achieved, quantifying the resources needed, and determining budgets and timelines for completion.
Project management involves scientific application of modern tools and techniques in planning, financing, implementing, monitoring, controlling and coordinating unique activities or tasks to produce desirable outputs in accordance with pre-determined objectives within the constraints of time and cost.

64. Hence, project management deals with:
the identification of project opportunities,
formulation of profitable project profiles,
procurement of finance for project implementation,
scheduling of project activities in such a way to complete the project within the minimum possible time/cost, and
evaluation of the project after its implementation etc.

65. 3. Basic Phases of Project Management
Project management consists of the following stages.
Project Initiation
Project planning
Project implementation,
Controlling, and
Monitoring/Evaluation

66. There are 5 basic phases of project management:
1. Project conception and initiation
First, we need to develop an idea for a project and carefully examine to determine whether or not it give benefits.
During this phase, we need to decide whether the project can realistically be completed or not?.
Moreover, we need to be clear on what the project is intended to achieve, and how that will be achieved.

67. 2. Project definition and planning
A project plan, project charter and/or project scope need to be finalise and outline the work to be performed.
During this phase, we need to prioritize the project, estimate the budget requirement and schedule, and determine what resources are required.
3. Project implementation or execution
In this phase, resources' and tasks are distributed and teams are informed of their responsibilities.
Information related to the project are gathered.
Project works are carried out.

68. 4. Project performance and control
During this phase the project managers require to get project status and progress .
Project managers may need to adjust schedules to keep the project work on track.
5. Project close/completion
After project tasks are completed and an evaluation is required to know about project success and/or learn lessons from project implementation.
Projects management processes vary from project to project depending on nature and scale of the project.

69. 4. Issues and Challenges in Project Management in Nepal
Mostly donor driven projects.
Selection of unsustainable projects
Inadequate budget allocation
Lack of result based budging or performance based budgeting system
Lack of project bank
No quality at entry mechanism
Frequent transfers of key project personnel especially project managers

70. Poor coordination
Implementation delays
Time and Cost Overruns
Lack of good governance system: less transparency and accountability
Poor monitoring mechanism

71. 5. Suggestions for Improving Project Management in Nepal
Increase country ownership in project formulation
Improve project selection or screening criteria.
Reform in budget allocation system
End political interference
Ensuring proper selecting of key project personnel and their retention over entire the project implementation period

72. Improve coordination between the different agencies.
Introduce result based budging or performance based budgeting system
Improve good governance system
Establish corrective and result based monitoring system

73. 10. Conclusion and Suggestions
More participatory planning exercise is required
Plan should be based on more realistic resource forecast
Political stability is essential for successful implementation of plan
Political commitment should be ensured for effective implementation of Plan
Plan should be based on national implementation capacity rather than needs

74. Need to adopt project screening mechanism in NPC and sector specific screening criteria
Project bank should be established
Implementation mechanism need to be strengthened by establishing quality-at-entry mechanism
M & E need to be strengthened and quality of supervision should be improved
Provincial and Local level planning mechanism should be strengthened.
Implementation of planning in the federal structure need to be focused.

75. Thank You