ABSTRACT
Project analysis and the comparing of present value of incremental net benefits of alternative development projects are the most widely used analytical tools in development planning for the Third World. Methods of project analysis in comparing alternative projects for achieving policy objectives have advanced significantly during the last two decades. Policy objectives no longer are limited to choosing development projects which maximize economic growth but objectives may also include income distribution and the consumption benefits of projects. Although project analysis is still a partial equilibrium solution, holding many other things constant, the methods of analysis have been extended to include indirect or downstream effects, shadow pricing of resource use, and determining foreign exchange costs. International development agencies have formulated extensive procedures and training programs for project analysis. The advent of the microcomputer has now put the use of these procedures and analytical methodologies at the disposal of field personnel in their day to day operations of gathering and managing project data, designing project alternatives, and evaluating projects for achieving stated policy objectives.
