Project Selection and the Equity Objective.The Use of Social Analysis

John Weiss
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John Weiss: University of Bradford,Bradford (U.K.)

The Pakistan Development Review, 1979, vol. 18, issue 2, 147-163

Abstract: Recent developments in the methodology of socialcost -benefit analysis(SCBA) have centred on the use of weights to revalue the income flows created by projects. These developments reflect the increased concern expressed by many governmentsin the less developed countries (IDCs) about the problems of the lowest income groups, and are an attempt to show how the objective of greater equity in income distribution can be incorporated, in addition to other more conventional objectives, in the appraisal of projects. This paper discusses the use of income weights in the light of the results of a more detailed study on SCBAin Pakistan by the author [1] . The paper is divided into three sections: the first analyses the different ways in which a weighting system can be incorporated into the appraisal of projects; the second discusses the problem of obtaining values for these weights and suggests a relatively simple approach which can be applied in Pakistan; and , finally, the third section discussesthe practical significance of such procedures for decision-taking in the IDCs.

Date: 1979
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