As told earlier that the CBA as a technique of evaluation of public investment got importance in 1930's; with the American new deal public works programme, the US crops of engineers devised a methodology to justify dam projects to the congress. It was thought that this step will raise the incomes of farmers as well as profits earned thought that this step will raise the incomes of the farmers as well as profits earned through electricity generation. However, project appraisal as a technique of planning in the developing countries got importance through the workings of international agencies like World Bank and United Nations.
The first recognizable manual was produced by UN commission for Latin America in 1958, but this was mainly concerned with the forecasting method, while little attention was given on externalities, shadow pricing, and investment criterion.
Afterwards, his project appraisal technique was attached with the principles of discounted flows. This methodology is best set out in OECD and UNIDO and has also been adopted by bodies such as World Bank etc. but now a days this technique scheme of national planning. Accordingly, the government guides the pattern of investment either by direct investment in the public sector or by controls on private investment.
The first recognizable manual was produced by UN commission for Latin America in 1958, but this was mainly concerned with the forecasting method, while little attention was given on externalities, shadow pricing, and investment criterion.
Afterwards, his project appraisal technique was attached with the principles of discounted flows. This methodology is best set out in OECD and UNIDO and has also been adopted by bodies such as World Bank etc. but now a days this technique scheme of national planning. Accordingly, the government guides the pattern of investment either by direct investment in the public sector or by controls on private investment.
