Deck 28: Planning and Appraising Development Projects

Question 1

In the context of development, what is associated with the concept of a project?

A) A governmental agency
B) An investment
C) A group of concerned citizens
D) All of the above
E) None of the above

Answer 1

B

Question 2

What should development projects make a contribution towards?

A) Civil society building
B) Structural adjustment
C) Institutional capacity
D) Human security
E) Poverty reduction

Answer 2

E

Question 3

In the 1960s and 1970s there was growing discontent with what form of planning?

A) Macroeconomic
B) Microeconomic
C) Capacity building
D) Institution building
E) Decentralized building

Answer 3

A

Question 4

Which of the following encouraged recipient states to reduce the role of the state in the 1980s?

A) Pressure from regional partners
B) Declining external competition in trade
C) The declining influence of the Soviet Union
D) Western hegemony
E) The end of the Bretton Woods system

Question 5

How did the percentage of World Bank spending on social projects shift between 1975-79 and 2003-07?

A) Increased
B) Decreased
C) Remained the same
D) Increased and then decreased
E) Decreased and then increased

Question 6

What did the 2005 Paris Declaration recommend?

A) Individual donor-planned projects
B) Greater grassroots accountability for project approval and implementation
C) Co-ordinated programmes which align with national development strategies
D) Stand-alone development projects led by institutional actors
E) A 50/50 funding model

Question 7

What are SWAPs?

A) Syndicated Women Approved Partnerships
B) Sector Wide Approaches
C) Seasonal Worker Applications
D) Southern Water Appendices
E) Special Work Approvals

Question 8

Which of the following is a criticism of the World Bank's project cycle?

A) Restriction on the number of agents involved
B) Linear in orientation
C) No option for "abandonment"
D) No accounting of external influences
E) An under appreciation of policy evaluation

Question 9

Which of the following is an alternative visualization of the "project cycle"?

A) Iterated Project Cycle
B) Project Oval
C) Inverted Project Cycle
D) Three-Dimensional Project Analysis
E) Project Spiral

Question 10

What is the first step of policy planning?

A) Feasibility studies
B) Agenda setting
C) Stakeholder assessment
D) Project identification
E) Issue assessment

Question 11

What is the proper basis of a project?

A) A problem
B) Funding availability
C) Institutional support
D) An opportunity
E) A donor proposal

Question 12

What planning tool can visualize the cause and effect of proposed projects?

A) A mind map
B) A brainstorm tree
C) A timeline
D) A project map
E) A problem tree

Question 13

What is the first stage in objective oriented project planning?

A) Problem analysis
B) Identification of relevant stakeholders
C) Objectives analysis
D) Assessment of strategies
E) Project development

Question 14

What term expresses the replacement of negative situations with positive outcomes in project planning?

A) Objectives analysis
B) Inverting the decision matrix
C) Logic model
D) ZOOG
E) Linear association

Question 15

What planning tool is composed of four columns and four rows?

A) Policy matrix
B) If this/then that
C) Objective orientated project planning
D) Logical framework
E) Policy objective analysis

Question 16

What does the "means of verification" column represent in the logical framework of project planning?

A) Location of important information
B) Underlying assumptions
C) Funding sources
D) Guidance on reporting system
E) Obstacles to project completion

Question 17

What is an important criticism of the logical framework of project planning?

A) It is too complicated
B) It is too simple
C) It does not account for vested interests
D) It creates too much paperwork
E) It restricts creative thinking

Question 18

What is an important consideration not taken into account in the logical framework of project planning?

A) Whether it is logical
B) Whether it is the best option
C) Whether it is the most cost-effective option
D) Whether it is the most efficient option
E) Whether it is the least disruptive option

Question 19

What tool is often used in financial and economic analysis?

A) Cost-benefit analysis
B) Regression analysis
C) Inverted cost analysis
D) ZOOP
E) Quantitative back analysis

Question 20

What two types of cost can be associated with running a project?

A) Present and future
B) Fixed and variable
C) Direct and indirect
D) Economic and distributional
E) Actual and adjusted

Question 21

What is the most reliable indicator of the value of a project?

A) Cost-benefit analysis
B) Social utility measurements
C) Double ledger accounting
D) Net present value
E) Quantitative depreciation

Question 22

Which of the following is necessary for a financial analysis?

A) Cost-benefit analysis
B) Depreciation schedule
C) Net present value
D) Internal rate of return
E) Funding requests

Question 23

How are things like negative environmental impacts accounted for in a project proposal?

A) Mark downs
B) Regulatory accounting
C) Process tracing
D) Externalities
E) Depreciation schedule

Question 24

Adjusting all foreign exchange costs and benefits upward to take account of the relative scarcity of foreign exchange is an example of what?

A) Redundancy planning
B) Shadow pricing
C) Internal rate of return
D) Measuring project stability
E) External benefit analysis

Question 25

What type of analysis is most appropriate for sectors such as health care?

A) Cost-benefit analysis
B) Internal external differential analysis
C) Sensitivity analysis
D) Efficiency quotients
E) Cost-effectiveness analysis

Question 26

Why should development projects be planned carefully?

A) To overcome poverty
B) To end a cycle and start a new one
C) To utilize scarce resources effectively
D) To report benefits to stakeholders
E) To be appraised in the short term

Question 27

Why should development projects have specific boundaries?

A) To be effective geographically
B) To be cost-effective
C) To be able to be evaluated
D) So that we know what is included in the project and what is not
E) So it can go through all the processes and stages of project planning

Question 28

What often happens after a development project ends?

A) New projects are planned
B) Poverty lines are newly estimated
C) They become part of the routine operation of the organization responsible for the project
D) A new basis for future debate in terms of development project planning is determined
E) The economic viability of productive-sector projects is estimated

Question 29

What is one of the methods used to appraise development projects?

A) Logical framework
B) Cost-benefit analysis
C) Cost-effectiveness analysis
D) OOPP
E) ZOPP

Question 30

What is a cost-benefit analysis characterized by?

A) Project benefits can be measured fairly easily
B) Project benefits cannot be measured easily
C) It is extremely difficult to project costs
D) It is extremely difficult to project net costs
E) It is extremely difficult to project net benefits

Question 31

What is a cost-effectiveness analysis characterized by?

A) Benefits in the health and education sectors
B) Costs in the health and education sectors
C) Valuation of net benefits is more difficult, particularly in the private sectors of the economy
D) Valuation of cost is more difficult, particularly in the health and education sectors
E) Valuation of benefits is more difficult, particularly in the health and education sectors

Question 32

What does the concept of development imply?

A) The improvement of economic growth on a sustainable basis
B) The success of a capitalist way to understand the world
C) The reduction of extreme poverty
D) The improvement of the level and distribution of income and the physical and human resource basis
E) The redistribution of resources in a sustainable way

Question 33

What is the most important schedule for financial analysis?

A) Resource statement
B) Net present value (NPV)
C) Internal rate of return (IRR)
D) Depreciation schedule
E) Cash flow

Question 34

It is important to disassociate projects from investments.

Question 35

The role of projects in development has been an issue for over 50 years.

Question 36

In the 1970s and 1980s, it became standard for agricultural and industrial projects to be funded by the private sector.

Question 37

The OECD's Paris Declaration suggested opting for individual donor-planned projects.

Question 38

The "Project Cycle" can account for all eventualities.

Question 39

The logical framework approach (LFA) to project planning combines the logical framework with the objective oriented project planning (OOPP).

Question 40

The first step in planning a project is "problem analysis."

Question 41

A problem tree attempts to account for the cause and effect implications of a project.

Question 42

If the problem analysis identifies a need for specific investments, a project approach is appropriate.

Question 43

Project activities lead to project results which lead to development outcomes and development impact.

Question 44

There is some controversy as to whether a logical framework should have only one objective.

Question 45

The logical framework accounts for both the logic and relative strength of a project.

Question 46

A basic principal of cost-benefit analysis is that costs should be larger than benefits.

Question 47

Pareto optimality stipulates a welfare improvement is only certain if everybody is better off.

Question 48

The Hicks-Kaldor criterion posits welfare improvement occurs if gainers always compensate losers.

Question 49

It is useful to distinguish between three categories of costs, namely, investment costs, operating costs, and working capital when doing a cost-benefit analysis.

Question 50

Net present value is the sum of the net benefits in each year multiplied by the costs of externalities.

Question 51

The internal rate of return is where the net present value is above zero.

Question 52

The most important schedule for a financial analysis is the cash flow.

Question 53

The use of family labour represents an opportunity cost.

Question 54

Financial analysis of projects is concerned with the overall impact of the project on the national economy.

Question 55

Environmental externalities are of particular importance to the resource sector.

Question 56

The shadow wage rate is based on the black-market economy.

Question 57

Cost-effectiveness analysis is particularly important for the resource sector.

Question 58

The two main approaches of cost-benefit analysis are the "efficiency approach" and the "economy approach."

Question 59

A development project must be financially sustainable, or it will not work.

Question 60

Project planning for development uses resources to prioritize enhancement of the profitability of those groups that execute them.

Question 61

Development projects should contribute to poverty reduction.

Question 62

The design of development projects includes determining objectives and the means to achieve them.

Question 63

The appraisal of the value of development projects should ensure that benefits are not greater than costs for the economy as a whole.

Question 64

In the 1990s, development funding from aid donors and development banks placed greater emphasis on ensuring the viability of specific projects rather than their contribution to wider programs.

Question 65

By the late 1980s, the legitimacy of donor influence on recipient country policies was more widely accepted by those countries, partly because they had little alternative.

Question 66

The most widely known model of project development is the "Project Cycle," originally developed by Baum.

Question 67

In a project cycle, a project goes through the processes of identification, preparation, appraisal, implementation, and evaluation.

Question 68

What is a project?

Question 69

What is specific about "development" projects compared to those undertaken by other types of organizations?

Question 70

In the 1980s, what was the impact of the changing orientation of the US/UK and the decline of the USSR?

Question 71

What was the recommendation of the OECD Paris Declaration regarding "project" versus "sector wide" approaches to development?

Question 72

What two reasons explain the decline in the use of cost-benefit analysis at the World Bank?

Question 73

Why are sector strategies important in project planning?

Question 74

Why does the objective oriented project planning (OOPP) model make stakeholder identification the first step?

Question 75

According to the OOPP model, after the project tree has been constructed, what is the next step?

Question 76

Under what circumstances might a project not be the best way to solve a problem?

Question 77

In project planning, how can the logical framework be constructed as a matrix?

Question 78

What is an important limitation of the logical framework in project planning?

Question 79

What are the four considerations to be evaluated in the project appraisal stage?

Question 80

Why are time and cost two key considerations in doing a cost-benefit analysis?