ABSTRACT
This chapter shows what happens when the severe restrictions on the range of projects to be appraised are relaxed. It considers the case for large projects, public goods projects or projects with relevant environmental effects as well as for investments financed out of fixed expenditure allocations. Since all these departures from manuals involve a different view of the relation between project and plans, the chapter addresses the links between appraisals and economic planning or between shadow prices and decentralized prices. The range of projects whose appraisal is considered by the manuals of the 1970s is limited by a simplified version of the planning procedures. The departures from the Little and Mirrlees, UNIDO, Mishan, and Squire and Van der Tak manuals seem to correspond to the desire to avoid this neglect of relevant areas of public intervention. The large project, public goods, non-optimal financing and private investments appraisal issues show the objective complications of such departures from the current guidelines.
