Debre Markos University Bure Campus Department
of Economics
Course Title: Development planning and project analysis I
Course Code: Econ-4131
Target Group: Economics 4th Extension Students
Course Description
In this course students study the evolution of development thinking and planning, types of
development planning, as well as nature and types of development planning models and their
application to economic policy analysis. The topics include evolution of development doctrine
and planning, types of development planning, quantitative development techniques, and
development planning in practice.
Course Objective
Planning is seen as essential for the guiding development path of countries, especially
developing countries like Ethiopia. It is an integral part of their economic systems. The purpose
of this course is to create an understanding of the concept of development planning and the tools
that are used in practice. The substance of development planning would be taken up in different
parts of the course focusing on concepts, principles, tools and practices. The following are the
main topics to be covered in this course.
Contents
1. The Evolution of development paradigms and planning
1.1. Evolution of development thinking and planning
1.2. The meaning of development planning
1.3. The rationale for development planning
1.4. The need for planning in Ethiopia
1.5. Requisites for successful development planning
2. Classification of development planning
2.1. Development planning by direction and inducement
2.2. Short term, Medium-term and long-term development planning
2.3. Fixed and rolling development planning
2.4. Physical and Financial planning
2.5. Perspective planning
3. Strategic Planning and its Application
3.1. Strategic Planning: Definitions Frameworks,
3.2. Strategic planning and management process
3.2.1. External Analysis
3.2.2. Internal Analysis
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3.2.3. SWOT Analysis
3.3. Implementing and Evaluating Strategy
4. Quantitative development planning techniques
4.1. Characteristics of development planning techniques
4.2. Aggregate consistency planning models
4.2.1 The Harrod-Domar growth model
4.2.2 Two-Gap Model
4.3. Disaggregated consistency development planning models
4.3.1 Input-Output planning models
4.3.2 Social Accounting Matrix (SAM)
4.4.3 Linear Programming Model
4.4. Development planning in practice
4.4.1 Experiences from Ethiopia and other Developing countries
4.4.2. South Asian Development Experience
4.4.3. Latin American Development Experience
4.4.4. OECD countries planning experiences
Evaluation:
Assignment 20%
Tests and Quizzes 30%
Final exam 50%
References
Agrawal A.N.(1989) Economics of development and planning, 2nd edition, Vikas, Delhi
Chowdhury, A. and Kirkpatrick, C. (1994) Development policy and planning: An introduction to
models and techniques, Routledge.
Jhingan, M.L. (1997). The Economics of Development and Planning, 35th ed., Vikas Publishing
House, New Delhi.
Lewis, Arthur (1972) Development Planning: The Essentials of Economic Policy, George Allen
and Unwin Ltd.
Pyatt, G. & J. I. Round (1977) Social Accounting Matrices for Development Planning, Review of
Income and Wealth, Series 23, No.4; 339-364.
Pyatt G. & A. R. Roe, with R .M. Lindley, J. I. Round and others (1977) Social Accounting for
Development Planning with Special Reference to Sri Lanka (Cambridge University Press,
Cambridge).
Round, J I (2003) „Constructing SAMs for Development Policy Analysis: Lessons Learned and
Challenges Ahead', Economic Systems Research, 15(2): 161-184.
Sadoulet, E. and de Janvry, A. (1995) Quantitative Development Policy Analysis, the Johns
Hopkins University Press, Baltimore and London.
Todaro, Michel P. (1992), Development Planning: Theory and Practice in Economics for a
Developing World, Longman, London and New York.
Development Plans of Ethiopia
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