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Glossary of terms for Development Management
E
Note: Within each definition, terms for which there are definitions elsewhere are highlighted.
Economic
analysis
Economic analysis
is a type of economic appraisal showing whether and to which degree, a
certain investment or activity is advantageous compared to zero investment
or compared to other fields of investment. The relevant terms of analysis
are: benefits and costs.
see also
Financial analysis,
Micro-economic analysis,
Macro-economic analysis,
Cost benefit analysis,
Break-even point analysis,
Gross margin calculation
Economic growth
Economic growth is
an expansion in the output of a nation's economy, and is measured by the
annual growth of the gross domestic product (GDP) or of the national
income. In order to determine the actual growth of the goods and services
produced, values must be adjusted to allow for inflation. The value of
the GDP is determined - not at the prices of the current year, but - at
the prices (held constant) of a certain baseline year, and uses values
which have been adjusted to take account of inflation.
Economic growth is considered desirable because it is seen as resulting
in higher standards of living. However, this purely economic measure has
been criticised as it does not include quality of life factors, environmental
degradation, and the exploitation of natural resources. The United Nations'
Human Development Index (introduced 1990) takes social and demographic
factors into account as well.
Economies
of scale
The term refers to
advantages in efficiency resulting from mass production. Understanding
the concepts (economies and diseconomies of scale) assists in making
decisions between small-scale and large scale production units (farming,
processing etc.): small units cannot make use of the advantages of certain
technologies and very big units tend to become inflexible and less innovative.
Factors influencing economies of scale are: (1) type of technology (hand-made
products: low economies of scale vs. products which require expensive
equipment: high economies of scale), (2) requirements of production process
with regard to flexibility, staff motivation and feeling of ownership,
(3) relative prices for labour and capital, (4) means of communication,
and (5) entrepreneurial potential (the higher this is, the greater are
the comparative advantages of small units).
See also Diseconomies
of scale.
Empirical inventory
A scan of reality
with qualitative or quantitative data/information.
Empowerment
Empowerment refers
to a process of gaining power or control, for example in the case
of people taking control of their own lives and circumstances by freeing
themselves from dependency on others. Crucial here is the concept of power,
and in the context of development, empowering people through development
interventions demands an understanding of power relations and the dynamics
of power and control, and stimulating people to help themselves out of
dependency. Empowerment involves a process of conscientisation
as much as it does interventions around poverty-related issues. It follows
that no-one can be empowered if s/he does not empower her-/himself.
Entrepreneurial
capital
The money used by
an entrepreneur himself (or shareholders) in a company. Unlike the concept
of capital of bourgeois national economy, this business economic concept
of capital contains not only the money intended for the purchase
of the means of production. The opposite of entrepreneurial capital is
the (borrowed) outside capital and both together form the total capital
of the business on the basis of which the total capital profitability
can be determined.
Environmental Impact Assessment
(EIA)
EIA is a systematic
method to identify the impact of actual or envisaged intervention measures
(alternatives) on relevant elements of an ecological system. EIA is used
in development as a tool to assess the impact of identified development
interventions; it is also used to assess the impact of industrial or commercial
installations. It applies both in the rural and urban contexts.
Evaluation
An event
designed to systematically examine and assess the planning,
implementation and impact of a development project or -programme,
in relation to each other and to development policy guidelines.
Its aim is not to judge. The term typically refers to an external
evaluation conducted by a facilitator and subject specialists
with no involvement in the project or programme.
Generally, the following steps are taken: (1) a systematic examination
of the relevance and efficiency of the planning, the efficiency of implementation
as well as the nature, extent and coverage of the intended and unintended
impact of a project or programme, (2) careful assessment of the extent
to which a project/ programme has promoted the relevant aspects of development
policy, such as poverty alleviation, sustainable use of natural resources,
women's empowerment, people's participation, etc., (3) with the
aim of ensuring the effectiveness of future project work through operational
recommendations which are based on hands-on experiences; Evaluation conducted
internally refers to the analysis of observations and measurements made
in the course of monitoring (of impact, frame conditions,
performance), and drawing conclusions from these in relation to project
objectives and policies. This is conducted by project or programme
staff. Internal evaluation is often referred to in the context of the
acronyms MEA (Monitoring, Evaluation and Adjustment) or M&E (Monitoring
and Evaluation).
Export base concept
The export base concept
was developed in the USA in the early 1950s (modernisation and growth
theories) to explain growth of (urban) regions. It was only later
that the concept was applied to the question of finding possibilities
for promotion of growth in less developed regions. The core factor for
regional economic growth is seen as impulses from external demand. Incomes
obtained by export sectors are deemed to be necessary (and sufficient)
to stimulate an increased demand on internal markets and respective internal
market-oriented activities (via so called income multiplicators). The
demand impulses, which are spread out in an undulating way, can lead to
additional income which may add up to triple the income gained in the
export sector. The hypothesis was empirically verified by the example
of American towns. |
