Open AccessPublic Sector Investment Planning for Developing Countries By E. V. K. FitzGerald. London : MacMillan Press Ltd. 1978. xv + 200 pp.Price : £ Stg. 3.50.
Author(s) -
A. R. Kemal
Publication year - 1979
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v18i2pp.187-189
Subject(s) - context (archaeology) , pace , relevance (law) , shadow (psychology) , shadow price , investment (military) , economics , project appraisal , developing country , regional science , finance , economic growth , sociology , political science , politics , law , psychology , paleontology , mathematical optimization , mathematics , geodesy , psychotherapist , biology , geography
While the book under review provides a critical evaluation ofcost-benefit analysis, it mainly focuses on the relevance and utility ofproject evaluation techniques for development planning. It has beenargued in the book that no project can be meaningfully evaluated inisolation because its impact not only is confined to the project itselfbut tends to spill over to other projects as well. Such spill-overeffects become all the more critical when the induced economic effectsof that project are not marginal. In addition to the interdependencebetween projects, the author has drawn attention to an oft-neglected butvery important aspect of cost-benefit analysis: Shadow prices are notvery meaningful in the context of project evaluation exercise in thereal world if they are computed without considering the structure of theeconomy, the pace of development and income distribution.