IMPORTANCIA DE LA GESTIÓN EDUCATIVA
4.4. Los valores y la educación
1.0 Introduction 2.0 Objectives 3.0 Main Content
3.1 Meaning of Project
3.2 Aspects of Project Preparation and Analysis 3.2.1 Social Aspects
3.2.2 Economic Aspects 3.2.3 Financial Aspects 3.2.4 Technical Aspects 3.2.5 Commercial Aspects
3.2.6 Institutional-Organizational/Managerial Aspects 4.0 Conclusion
5.0 Summary
6.0 Tutor-Marked Assignment 7.0 References/Further Reading
1.0 INTRODUCTION
A project refers to the series of activities for investing resources which will be analyzed and evaluated. Every project has to be planed properly, implemented faithfully and evaluated to ensure it meets the standards of its owners. Many rural development projects can be analyzed and evaluated to ensure that they remain useful to the communities in which they are located.
2.0 OBJECTIVES
At the end of the unit the learner should be able to:
define a project
describe aspects of project preparation and analysis.
3.0 MAIN CONTENT 3.1 Meaning of a Project
A project is a scheme of activities for investing resources which can be reasonably analyzed and evaluated as an independent unit. They are the building blocks of investment.
115 A project refers to the entire complex of activities using resources to gain benefits. It is an activity on which money is spent in expectation of returns.
Agricultural projects include those of rural credit, tree crops, agricultural education and extension, communication of innovations, livestock, agricultural machinery, irrigation and various agro-related rural development projects.
In agricultural project, financial resources are invested to create capital assets which would yield benefits either quickly or over time. There can be investments in tractor, farm building or a breeding herd. A project involves planning, financing, implementation, use of resources, costs and returns.
It is advisable to have projects that are economically, technically and administratively feasible (Gittinger, 1981). A project can be planned financed, implemented and evaluated. A project, therefore, has a definite beginning and an end. It has a specific location, a well-defined sequence of investment activities, specific intended beneficiaries (clientele group), and a specified group to benefits. There is, also, an administrative structure. It is important to analyze the financial results and economic justification of any project. For any agricultural project to succeed there should be sound planning. If one wishes to obtain financial or technical assistance, the project should be well-analyzed.
Project analysis will help a Government to allocate available administrative and financial resources among many competing programmes and sectors. The basic aim of analyzing a project is to determine if an existing project or a proposal is worthwhile investing in terms of satisfying the objective of its sponsors (Tyokevere, 2007).
3.2 Aspects of Project Preparation and Analysis
Good analysis requires that all aspects of the project be thoroughly considered. There are six aspects that every project analyst should examine. These are social, economic, financial, technical, commercial, and institutional-organizational-managerial.
3.2.1 Social Aspects
Every project will surely have implications for the community and its people. The implications can be understood as presented below:
Consideration in project design should be given to the issue of creating employment opportunities in the area in order to reduce idleness, restiveness and poverty.
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It is equally important that the project should be responsive to national objectives. For instance, when the national goals emphasize job creation, the preparation must provide for young men and women to be gainfully employed in order to help create wealth and reduce poverty.
In a related manner, such a proposed project should benefit the lower income groups as well as those of higher income in the community.
One other key element is the need to carefully note the likely adverse impacts of a project on the people and their livelihood patterns. Efforts must be made to reduce such negative effects in project planning.
Government may put in place a policy that would help reduce expected negative impact on the people.
Quality of life is an essential component in a project design. It should consider educational opportunities, improved health facilities, good water supplies and decent housing. Accessibility of these would raise quality of life.
The environmental impact of a project should be taken into consideration, e.g. provision, should be made to avoid air and water pollution. Pollution causes health hazards to man.
3.2.2 Economic Aspects
Consideration is given to the possible contribution of a project to the development of the total economy (society). Taxes and subsidies are treated as transfer payments. The taxes generated (as benefits) by a project are transferred to the government which acts on behalf of the society. A subsidy is a cost to the society because it is an expenditure of resources which the society incurs to operate the project. Another feature is that some market prices may be changed (adjusted) so that they reflect more accurately social or economic values. These prices are often termed “shadow” or “accounting” prices. Thus, projected prices are used in panning.
Economic analysis tends to estimate the total return, including interest.
Interest on capital is not separated and deducted from the gross return since it is part of the total return to the capital available to the society as a whole. Cost of resources flowing into the project and the prices of project output will not always reflect their true or scarcity values or their opportunity costs due to Government intervention in the marketing process, e.g. Government subsidy policy.
One important economic consideration in project analysis is the best source of scarce capital resources to maximize the contribution of a
117 project investment to the people. Projects which maximize return to capitals are selected for implementation.
3.2.3 Financial Aspects (Private Analysis)
The financial analysis considers the individual participants (the economic analysis takes the viewpoint of the society). The financial impact of a proposed project on every individual is considered. The participants include the farmers, project agencies, public corporations and the private sector firms. Financial analysis of farms is intended to judge how much participating farm families in the project would have to live on. It considers what remains to compensate the family for its labour, capital and managerial skills, after credit repayments and expenditures.
The project administration also requires financial analysis. This includes the investment funds needed and operating expenses. Every investor is interested in the return to equity capital invested in the project.
Another financial aspect to consider is the fiscal impact of the project, e.g. effect of increased output on tax revenues, subsidies needed, etc.
3.2.4 Technical Aspects
A clear technical analysis is needed to consider the inputs and outputs of real goods and services. The project planning officials should ensure that good technical staff are engaged and that adequate cooperation is given to them.
Components of technical analysis in agriculture that should examine are:
a) physical inputs – quantity available;
b) water availability- source, regularity c) soil-nature and properties
d) livestock species- improved, types e) crop varieties improved, types,
f) marketing , processing and storage facilities required
A detailed analysis of these features will help to determine the information gaps to be filled potential, project yields and gains as well as the coefficients of production (Gittinger, 1981). It is advisable to ensure that technical estimates and projections are realistic and appropriate.
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3.2.5 Commercial Aspects
Commercial aspects of a project include arrangements for:
a) marketing the output produced by the project –market channels, facilities for handling output, quality of output, financing plans, as well as input availability.
b) Supply of materials and services needed to operate the project c) The procurement of equipment and supplies.
3.1.6 Institutional-Organizational-Managerial Aspects
These relate to the following issues:a. Friendly policies and appropriate institutional setting e.g. land tenure system; administrative set up; collaborating agencies; clear line of authority; administrative acumen of staff; managerial skills of the farmers who would participate.
b. Existing communication systems to give farmers access to information and teach improved skills.
c. Customs and culture of the farmers who would be involved in the project.
d. Effective and early project implementation.
4.0 CONCLUSION
Detailed planning is crucial to the success of any rural development project. If any government, agency or group is to implement a project t in the rural areas the project analyst must examine various issues and components.
5.0 SUMMARY
A rural development project should be economically, socially, technically and administratively feasible. It is important to analyze a potential project before implementation. Project analysis covers many aspects which are social, economic, financial, technical, commercial, and institutional-organizational managerial.
6.0 TUTOR-MARKED ASSIGNMENT
1. List the aspects of project analysis2. Describe any two aspects, giving examples.
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7.0 REFERENCES/FURTHER READING
Gittinger, J.P. (1981). Economic Analysis of Agricultural Projects, (Revised Edition). CN-32, EDI Training materials, Internationals Bank for Reconstruction and Development.
Tyokever, M.E. (2007). An Introduction to Agricultural Economics.
Eddison Computers, Katsina-Ala, Benue State.
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