Development Managemnt: Traditional Economic Meaning of Development

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05/02/2020

Traditional Economic Meaning of


Development
• Development is the capacity of the national economy,
whose initial economic condition has been more or less
static for a long time generate and sustain annual
DEVELOPMENT MANAGEMNT increase in the Gross National Product at the rates of 5
to 7%.
• There is a emphasis on industrialisation often at the
expense of agriculture and rural development.
• Development is seen as an economic phenomena in
HSDH 3106 which rapid gains in overall growth would either trickle
January, 2020 down to the masses in form of jobs and other
economic opportunities.

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The New Economic view of


Development
• Development is the reduction or elimination of • Consequently, development is a dimensional
poverty , inequality and unemployment within process involving changes in social structures,
the context of a growing economy.
popular attitudes, and national institutions, as
• It is the development of people target/focus than
well as acceleration of economic growth, the
things.
reduction of inequality, and eradication of
• The challenge of development is improved
quality of life. poverty(Todaro & Smith, 2006).
• Thus development means less poverty, cleaner • Development is thus both a physical reality
environment, more equal opportunity, greater and a state of mind for attaining a better life.
individual freedom, and richer cultural life.
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“Capabilities” Approach(Sen, 1985)


Meaning of Development - Todaro & Smith(2006)

• Development is not purely an economic • Economic growth is not an end in itself and has to enhance
phenomenon but rather a multi-dimensional the lives people lead and the freedoms that they enjoy.
process involving reorganization and reorientation • Capability to function is what matters for status as a
of entire economic and social system poor/non-poor person and it goes beyond availability of
commodities.
• Thus, “Development” is process of improving the
quality of all human lives with three objectives: • Capabilities: freedom that a person has in terms of the
choice of his functionings,…
– Raising peoples’ living levels, i.e. incomes and consumption, levels of
food, medical services, education through relevant growth processes • Functioning is what a person does with commodities of
– Creating conditions conducive to the growth of peoples’ self-esteem given characteristics that they come to possess/control.
through the establishment of social, political and economic systems • The concept of functioning reflects the various things a
and institutions which promote human dignity and respect
person may value doing.
– Increasing peoples’ freedom to choose by enlarging the range of their
choice variables, e.g. varieties of goods and services

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Alternative Interpretations of Development


(Mabogunje, 1999)

• Views development from three perspectives. • Development as Modernization- emphasizes


• Development as Economic Growth- too often process of social change which is required to
produce economic advancement; examines
commodity output as opposed to people is changes in social, psychological and political
emphasized-measures of growth in GNP. processes;
– Note here the persistence of a dual economy • How to develop wealth oriented behavior and values in
where the export sector contains small number of individuals; profit seeking rather than subsistence and
workers but draws technology as opposed to self sufficiency
• Shift from commodity to human approach with
traditional sector where most people work and is investment in education and skill training
dominated by inefficient technology.

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How then do you measure Development?

• Development as Distributive Justice- view


development as improving basic needs
– Interest in social justice which has raised three
issues:
• Nature of goods and services provided by governments
• Matter of access of these public goods to different
social classes
• How burden of development can be shared among
these classes
– Target groups include small farmers, landless,
urban under-employed and unemployed

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Measurement based on Development


Measurement using Economic Growth Indicators
Indicators
• Economic growth - the value of output of goods and services within a • Development incorporates the notion of a measure of welfare of human
year. beings in society – as such it is a normative concept of development, open
• Indicators: to interpretation and subjectivity
– GDP : The value of output produced within a country during a time period • It incorporates measures such as :
– GNP : The value of output produced within a country plus net property – Poverty
income from abroad – Inequality
– GDP/GNP per head/per capital: Takes account of the size of the population – Progress
– Real GDP/GNP: Accounts for differences in price levels in different countries – Sustenance
– PPP[Purchasing Power Parity] Measure: the number of units of a country’s – Self esteem
currency required to purchase the same basket of goods and services in the – Freedom
local market that a US $1 would buy in the USA.
– Sustainability
• Disadvantages of growth indicators: – Others
– Reliability of data? • national product per person,
– Distribution of income? • energy consumption per person,
• productivity per worker,
– Quality of life? • literacy, caloric intake,
– Black/informal economy? • % income spent on food,
• savings per person, etc.

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Measurement by Human Development


Index (HDI)
Other measures of Development
• Longevity – life expectancy • Number of Doctors per head
• Knowledge – access to education, literacy • Number of fridges/TV per head
rates • Number of cars per household
• Standard of living – GDP per capita; • Economic activity per sector
purchasing power parity(PPP)- comparison of
• Stress levels
different countries currencies through a
basket of goods approach. • Crime levels
• Health care data.

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Core Values of Development


• Three basic core values as a practical guideline for • Self-esteem: to be a Person. Self-Esteem is having
understanding development are: a sense of worth and self-respect, of not being
used as a tool by others for their own ends.
• Sustenance - the ability to meet basic needs.
– Development is legitimized as a goal because it is an
When life sustaining basic human needs like food, important perhaps even indispensable, way of gaining
shelter, health and protection are absent esteem.
underdevelopment exists. • Freedom from servitude/dependence - to be
– Purpose of Development is to create an environment able to choose. Freedom is to be understood in
in which all people can expand their capabilities and the sense of emancipation from alienating
opportunities can be enlarged for both the present material conditions of life and from social
and future generations. servitude to nature, ignorance, other people,
misery, institutions and dogmatic beliefs.
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Objectives of Development The level of Development


Three Objectives of Development: Terms to explain the level of development
• To increase the availability and widen the distribution of basic • Developed/Developing or Underdeveloped
life-sustaining goods such as food, shelter, health and LDC/MDC/NIC
protection.
• North/South (vs. East/West)
• To raise levels of living including in addition to higher incomes,
• First/Second/Third/Fourth World
the provision of more jobs, better education and greater
attention to cultural and humanistic values , all of which will • Transition economies
serve not only to enhance material well-being but also to • Emerging economies (The Brandt Line)
generate greater individual and national self-esteem. • The distribution of MDC and LDC.
• To expand the range of economic and social choices available
to individuals and nations by freeing them from servitude and
dependence not only in relation to other people and nation
states but also to the forcesDr. Wamalwa
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What is Development Management


• What is distinctive about development management? • Development management may be characterised as
• What is management? management in the context of development as a
• Management is a problem-solving process of effectively achieving
organizational objectives through the efficient use of scarce long‐term historical process
resources in a changing environment. • It is therefore management of deliberate efforts at
• The roots of the word ‘management’ can be traced back to the Latin word progress by means of intervention in the social change
‘manu agree’, which means ‘to lead by hand’.
• According to F.W. Taylor, ‘ Management is an art of knowing what process on the part of a variety of agencies.
to do, when to do and see that it is done in the best and cheapest • Thus development management should be thought of
way.
• While Harold Koontz views ‘Management as an art of getting things in terms of process and is distinctive in aiming at social
done through and with the people in formally organized groups. goals external to any particular organization in the
– It is an art of creating an environment in which people can perform context of value‐based conflicts.
and individuals and can co-operate towards attainment of group
goals.‘

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Justification for Development Management

• We have all seen, heard, worked under or been • In other words, effective development
part of a management one time or other. management involves directing and organizing
– But have you ever wondered what makes people or resources under one’s influence, to
management such an fundamental part of any ensure better co-ordination, productivity and
development activity? best possible positive output in the development
• Effective development management guides the field.
employee onto a path of efficient and productive • Whether it is a singular person managing at a
development work. small development activities or multiple persons
– A good Manager of development will not ask involved in large scale development organisation,
employees to do something that he/she may not do the overall impact of good management is always
himself/herself. the same, that of high impact.

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Importance of Development Management

• It helps in achieving development goals • Reduces Costs


– It assembles and organizes the resources, integrates the resources in effective manner to
achieve goals. – It gets maximum results through minimum input by proper planning
– It directs group efforts towards achievement of pre-determined goals. and by using minimum input & getting maximum output.
– By defining objective of development clearly there would be no wastage of time, money and – Management uses physical, human and financial resources in such a
effort. manner which results in best combination - this helps in cost
– Management converts disorganized resources of men, machines, money etc. into useful
organisation. reduction.
– These resources are coordinated, directed and controlled in such a manner that organisation • Establishes Sound Organization
work towards attainment of goals.
• Optimum Utilization of Resources
– No overlapping of efforts (smooth and coordinated functions).
– Management utilizes all the physical & human resources productively - this leads to efficacy in – To establish sound organizational structure is one of the objective of
management. management which is in tune with objective of organization and for
– Management provides maximum utilization of scarce resources by selecting its best possible fulfilment of this, it establishes effective authority & responsibility
alternate use in industry from out of various uses. relationship i.e. who is accountable to whom, who can give
– It makes use of experts, professional and these services leads to use of their skills, knowledge, instructions to whom, who are superiors & who are subordinates.
and proper utilization and avoids wastage.
– If employees and machines are producing its maximum there is no under employment of any – Management fills up various positions with right persons, having right
resources. skills, training and qualification.
– All jobs should be clear to everyone.

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• Establishes Equilibrium • Simplifies The Organizational Structure


– It enables the organization to survive in changing environment - it keeps in – Management controls effective work division, specialization and resource allocation - this
creates a uniform flow of work and specifies boundaries of responsibilities, authority and
touch with the changing environment. rights, which do not overlap.
– With the change is external environment, the initial co-ordination of – This structure is necessary, as it clarifies to each employee his position and field of influence in
organization must be changed. the organization. In such a scenario, every employee would know his/her basic rights, duties,
– Therefore, management adapts organization to changing demand of market / immediate superiors and subordinates, along with the knowledge of opportunities awaiting
him, as his relation with the company grows.
changing needs of societies - it is responsible for growth and survival of – Effective management also helps to ascertain that no two people are doing the same work and
organization. that right person is allocated for the right job, thus increasing productivity
• Essential for Prosperity of Society • Increases Stability
– Efficient management leads to better economical production which helps in – The company should be maintained in such a fashion that external environment turbulences
turn to increase the welfare of people. do not hamper the organisation's functioning.
– This requires effective changes that need to be made in the organisation, without hurting the
– Good management makes a difficult task easier by avoiding wastage of scarce organisation's stand or its workers too much - without proper management this will not be
resource - it improves standard of living. possible.
– It increases the impact which is beneficial to society – Management also provides increased stability and adaptability to the organisation, helping it
– Organization comes with new development interventions and research that is survive environment conditions and grow with time.
beneficial to society. – Also, the workers would not be apprehensive about losing their job, which would, in turn, help
them work with peace of mind.

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Development Management Methods and Tools

• Reduction In Wastage • Management and planning tools are used to facilitate effective planning
– When resources of an organisation are effectively managed, wastage is reduced, thereby and management of various business/development operations.
lowering overall costs and attaining the state of ‘resource optimization’.
– Proper utilization of resources and reduced wastage prevents both under employment and • They are used to guide in planning, analysis, and decision making
exploitation of resources. processes – they are used to achieve efficiencies in planning and
– Management can identify resources which are scarce and find alternatives for the same, thus management operations.
reducing the cost again.
• Individually, they are used by organisations to make better decisions and
• Achieving Organisation Targets implement new interventions effcet9veely.
– When an organisation begins its operations, specific goals are setup which can only be
achieved if all the parts of the organization function together and efficiently. • Individually, they provide systematic and organised way of assessing ideas
– Proper management makes sure that each part of the organisation works towards achieving a and making decisions.
common goal without disarray.
– Management actually plans, executes and balances the resources of the organisation in such a
• However, when used in combination with each other they provide an
way that there is maximum work output to attain the goals of organization swiftly, while important effective way to systematically solve complex development
retaining work quality. issues in organisations.
– In absence of proper management, different sections go on to attain individual targets. • Common development management and planning tools include but not
However, common goal may not be achieved, which would further lead to delays, losses and
low quality output. limited to: Activity Network Diagram; Process Decision Programme Chart;
Prioritization Matrices; Matrix Diagram; Interrelationship Diagram; Tree
Diagram; Affinity Diagram; LFA; SWOT analysis.

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Activity Network Diagram (AND)


• Also called Arrow diagram, is used to map • How to create an “AND”:
activities and tasks of a project in sequential • List all activities required;
order. • Identify each activity with a box;
• It is generally a graphical depiction of a project • Determine the chronological order of activities;
timeline. • Determine if the tasks will be completed simultaneously;
• The toll shows interdependent relations between • Draw activity boxes in chronological order – if activities are
simultaneous place them parallel to each other; draw
activities, tasks, and groups as they all impact a arrows depicting the sequence of the activities;
project. • If two or more activities need to be completed after a task,
• Boxes and arrows are used to depict this activities have two or more arrows emerging from the activity box;
and the links between them as well as chart the • Continue connecting activity boxes with arrows until the
sequential order of the entire process. entire project sequence has been completed.

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Example using house construction project The Tree Diagram


• Also called systematic diagram, is a systematic method
to outline all the details needed to complete given
objective or process.
• It is sued to break down broad categories or complex
processes into small details allowing you to examine
the finer details.
• It is an orderly structure similar to an organisation
chart of family tree diagram.
• It help underamdidng the process by graphically
breaking down processes to smaller levels of detail.
• The technique encourages you to direct you thinking
from generalities to specifics.

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• Tree Diagram procedure


• Develop a statement of the goal or project objective
• Written the main goal or objective at the top9for vertical
tree ) or far left (horizontal tree) of your flip chart, white
board or paper
• Think of the key activities that must be completed in order
to achieve the objective or project goal
• Branch these activities of the main goal. Your diagram should
progress from the general to more specifics with each level
• Think of Additional tasks that must be done in order for the
objective to be achieved
• Branch these activities off the main activities
• Continue to create increasingly specific levels of the tree
until all possibilities are exhausted.

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Matrix Diagram
• This is a tool that shows the connection between ideas or variables
in a table format.
• It enables you to analyse relatively complex issues but revealing
interactions and dependencies between different elements or
variables.
• MD graphically establishes relationship between tow or more items
in such a way as to provide logical connecting points between each
item.
• The diagram displays the strength of relationships using grid of rows
and columns.
• A relationship is indicated at each intersection of rows and columns
as either present or absent
• Therefore, the tool allows you to identify the presence and
strengths of relations between or more items.

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The Process Decision Programme


Chart (PDPC)
• Steps of creating a PDPC
• A PDPC is a tool for identifying and documenting • Develop a Tree Diagram for the proposed Process or Plan
the steps required to complete a process. –

Write a statement of the goal of project objective on the first level
Write the main activities on the second level
• It is meant to assist you prepare contingency –

List the associated tasks needed to accomplish the main activities on the third level
Ensure all activities and tasks have been considered
plans by mapping out every conceivable event • Brainstorm what could go wrong
– For each bottom level activity, identify possible problems that could occur while performing
that can occur when moving from problem to the task
– For ach activity, ask “what if questions”
possible solutions. – List possible problems that could occur
– Review the list of potential problems and eliminate the ones that are improbable or whose
• The technique allows you to systematically consequences would be insignificant
• Add Potential Problems to the Tree
identify what might go wrong with the plan. – Select possible problems based on combination or probability of the risk occurring and the
potential impact should the problem occur
• Hence, you can create appropriate contingency – Connect the remaining potential problems to the Tree Diagram as a fourth level linked to the
activities or tasks. Theses are represented as “what if” items.
plans to limit risks.
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• Identify Countermeasures
– For each “what –if "questions (potential problems), identify
possible counter measures that you could take to minimise the
effect of the risk
– Put countermeasures as a fifth level
– Connect the countermeasures to the tasks/activities to
complete the chart.
• Evaluate Each Counter measure
– Review each countermeasure to decide how practical each one
is. Consider how easily it can be implemented, its cost, time
required, and effectiveness.
– Designate practical and effective countermeasures with “0”, and
impractical and difficult countermeasures with “X”.

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Affinity Diagram
• Is a tool used for organising a large amount of
disorganised information into group based on
their natural relationships and affinity(similarity
of characteristics).
• It is often used to solve problems with issues that
seem to be very complex and difficult to manage.
• It is type of brainstorming technique that allows
you to generate, organise, and consolidate
information concerning complex processes,
issues, or problems.

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• Constructing an Affinity Diagram – Sort the cards/notes into groups until all cards/ideas have
– Write down each idea (generated from a brainstorming been assigned a group.
session) on a separate index card or post-it note. – After the ideas are grouped, select the meaningful affinity
– After you have written all the ideas down, place the heading to categorise each group or theme.
cards/post-its randomly on a board or table. At this point, – Write the heading on a card and place the heading cards at
don't worry about organising the information. the top of each groupings.
– Review the ideas to see possible relationships between – Analyse the affinity diagram with all participants. This will
ideas - participants should discuss patterns or relationships help the group reach a decision or come to a better
that are identified. understanding of the key issues to be addressed.
– Move the cards/post-its notes that are similar/related
ideas together on the table or wall.

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Interrelationship Diagram (ID)


• This tool, also called, relations diagram, identifies and displays all
interrelated cause-and - effect relationships among different
concepts or ideas.
• Basically, it established links between ideas or concepts, and shows
that they can be logically linked with more than one other idea or
concept at a time.
• The process of creating ID allows you to systematically identify and
analyse the cause – and – effect relationship that exists among all
critical issues.
• The process therefore helps one to understand the natural links
between different aspects of a complex development issues that
you are able to develop an effective solution.
• The technique enables one to think in multiple directions(lateral
thinking) rather than linear thinking.

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How to create an ID • Identify cause-and-effect relationships


• Gather supplies • At this stage, you determine the relationships between
– Gather sticky notes, flip chart paper(or white board) and ideas.
markers.
• Develop the problem statement – Place one idea at a time on the white board or flip
– Write a statement defining the issues at the top of a white chart.
board or flip chart.
– Analyse if the idea is related to any others. Ask, “Does
• Brainstorm issues related to the problem
– Brainstorm ideas about the issue and write them on individual this idea cause influence or influence any other idea?”
sticky notes or note cards. – Place ideas that are related together.
– Some of these ideas may be the result of a previous activity
such as the affinity diagram, or tree diagram. – Leave space between the notes or cards to allow for
– Use those ideas to brainstorm additional ideas. drawing arrows.

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• Draw arrows to identic ate directions of influence


• Use an arrow to connect related factors:
– Draw arrows from an idea or factor to the ones it cause or influences. The
arrows should be drawn from the factor that influences to the one influenced.
– For strong correlations, use solid line. For weaker correlations, draw the arrow
in that direction.
– Never draw two-headed arrows. Determine which one has the stronger
influence and draw the arrow in that direction.
– Repeat until all relationships are linked.
• Analyse the Diagram to identify Drivers and Outcomes
– Count the ideas or factors that have outgoing(from) arrows.
– Record the counts at the bottom of each box. The ones with the most
outgoing arrows will be the key root causes or drivers.
– Count the ideas or factors have incoming (to) arrows.
– Record the counts at the bottom of each box. The ones with the most
incoming arrows will be key outcomes or results.

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Prioritization Matrices
• It is a tool that sorts and ranks various options into
order of importance using weighted criteria.
• This technique helps identify which problems are most
important to work on solving first.
• It displays options and criteria in row and column
format.
• Weights are assigned to each criteria.
• The matrix allows you to identify an item’s relative
importance by deriving a numerical values for its
priority.
• This allows you to select and prioritize some options
over others.
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Log Frame Analysis


• Logframe is another name for Logical • The logical framework approach was
Framework(LF) or Logical Frame Work
Approach(LFA) developed in the late 1960s to assist the US
• LF is a planning tool consisting of a matrix which Agency of International Development (USAID)
provides an overview of a project’s goal, activities with project planning.
and anticipated results.
• Now most large international donor agencies
• It provides a structure to help specify the
components of a project and its activities and for use some type of logical or results framework
relating them to one another. to guide project design.
• It also identifies the measures by which the
project’s anticipated results will be monitored.
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Logical Framework Structure


A Logical Framework (or LogFrame) consists of a matrix with four columns • The second and third columns summarize how the project’s
and four or more rows which summarize the key elements of the project plan achievements will be monitored and consists of the following:
including: – Indicators
• The project's hierarchy of objectives. • a quantitative or qualitative measurement which provides a reliable way to
– The first column captures the project’s development pathway or intervention measure changes connected to an intervention. In essence “a description of
logic. the project’s objectives in terms of quantity, quality, target group(s), time and
– Basically, how an objective or result will be achieved. Each objective or result place”
should be explained by the objective or result immediately below. – Sources of verification
– Although different donors use different terminology, a LogFrame typically • Describes the information sources necessary for data compilation that would
summarizes the following in its first column: allow the calculation of indicators.
• The GOAL / OVERALL OBJECTIVE/ DEVELOPMENT OBJECTIVE • Lastly, the final column lists the following:
• The PURPOSE / IMMEDIATE OBJECTIVE
• The OUTPUTS – Assumptions
• The ACTIVITIES • the external factors or condition outside of the project’s direct control that are
necessary to ensure the project’s success.
• In developing a logframe, it is very important to pay attention to how the
objectives and results are formulated. • In the next slide components of logframe are summarised.

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LFA Components

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Strengths of the Logical Framework


Approach
• Logical Frameworks can look very different • It draws together all key components of a
from one another depending on a donors planned activity into a clear set of statements
requirements and the design team. to provide a convenient overview of a project.
• The terminology used also differs between • It sets up a framework for monitoring and
donors. evaluation where planned and actual results
• Other similar tools include the Logic Model can be compared.
which is also an overall summary of a project • It anticipates project implementation and
plan and anticipated results or outcomes. helps plan out development activities.

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Weaknesses of the Logical Framework


Approach
• It may cause rigidity in program management.
• It is not a substitute for other technical,
economic, social and environmental analyses.
• LogFrames are often developed after the
activity has been designed rather than used as
the basis for design.
• It can stifle innovative thinking and adaptive
management.

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