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1. Development Planning: Approaches, and Techniques
Pushpa Lal Shakya
2 Presentation Outline Introduction Concept of Development Planning
6 2. Development Planning
Development planning is the systematic management of resources for the purpose of achieving
definite targets or objectives within specific period of time.
Development planning is:a deliberate effort of the government to influence in the major socio-
economic variables like GDP, consumption, savings, investment, prices and employment etc, of a
country for a specific period of time to achieve its desired objectives.
7 It is the instrument to define a country’s future direction or destination.
A plan must be based on a long term vision /goal of a country set to achieve in a time period of say
15 to 20 years.A medium term plan provides medium-term vision of the country.The annual plan is
important because it translate the periodic plan into action.
8 What is Planning ?In planning, we try to respond the three basic questions:i. Where are we now?
– The present socio-economic status of the country.(it requires to analyze the country’s social and
economic situation based on reliable data and information.)
9 What is Planning ? (Contd..)
ii. Where do we want to go? What do we want to achieve ? (The medium term goals/objectives, a
clear goal and objectives of the government needs to be spelled out , based on the long term vision
of the country.) iii. How can we get there? The strategy to achieve including policies and programs.
(It requires analysis of the options available to achieve the objectives and choosing the most
appropriate and efficient option. ) Moreover, it also requires to identify the policies and programs that
best suits to carry out the strategy.)
10 Planning is more direction-oriented in command economy and more indicative in
liberalized economy.
Considering the time duration it is of three types.Perspective or long term plan (15 to 20 years
period)Medium term plan (3 to 7 years period)Annual Plan (1 year period)
11 3. Contains of Development Plan
Statement VisionStatement GoalsStatement of the objectives.Macro-economic Framework(Targeted
growth rates of various economic sectors, Investment requirements and source of funds to achieve
the targeted growth rates.StrategiesPriorities
12 Quantitative TargetsSectoral objectives, strategies, policiesPrograms/Projects of various
sectorsAllocation of resources.Implementation MechanismsMonitoring and Evaluation Mechanism,
andExpected Output/Outcomes.
13 Success of a Development Plan depends upon:
Total knowledge of the economy including grass roots level realities.Setting of the
objectives.Appropriateness of policies and strategies.Adequacy of data and information.Realistic

2. targets and projections.Adequate consultations with the stakeholdersProper understanding of needs,
resources and valuesProvision of resourcesInter-sector consistency
14 Planning modality and approach.
Human and institutional resources.Appropriate organizational set up and administrative
arrangement.Public participation.Coordination among the stakeholders.Good quality
projects/programs.Effective Implementation.Effective monitoring and evaluation mechanism.
15 4. Why Planning? Relevance of Planning
State knows the best.State accords priority to the real needs.Best use of resources.Focus and
perspective.Better distribution of resources and outputs.Efficient resource mobilization.
16 Development in all areas including input management to outputs and impacts.
Saves time, energy and resources.Poverty reduction.Inclusive development.Private sector
developmentMarket development.Coordination.Foreign aid mobilisation.Development of remote and
deprived areas.
17 5. Planning Process Traditional Approach: 2. New Approach:
Basically “top down”- little involvement of stakeholders and beneficiaries.2. New Approach:A
participatory and more “bottom up”Local, Provincial and National Level ConsultationsMore inclusive
participations:gender, ethnic groups, Dalits, Madhesis, disabled, youth, political parties, development
partners, NGOs/INGOs etc.
18 The Planning Process in the Plan Formulation:
Steering Committee:Chair -VC NPCMembers of NPC andSecretaries of LMSectoral
Committees:Chair –member of NPCJoint Secretaries/ Under Secretaries/Section Officers of LM and
NPC,Experts, advisors, and invitees.
19 3. Sectoral Technical Committees:
Chair-Joint Secretary of NPC,Joint Secretaries/Under Secretaries of LM,Program Directors/Planning
Officers of NPC,Experts, advisors4. Task Force: Line MinistriesChair –Secretary of respective
LMs,Department heads,Joint Secretaries / Under Secretaries / Section Officers of LM
20 Tasks:Review of previous plan.Current status in various sectors.Sending guidelines to
LMs.Setting long term visionSetting macro objective, strategies, policies and priorities.Formulation of
macroeconomic framework.
21 Macroeconomic Framework Formulation
Projections of:GDP TargetsTotal investment requirements : public and privateEstimate of required
resourcesRevenuePublic expendituresExternal sources : grants and loanDomestic borrowings
22 Setting sectoral objectives, strategies, policies and targets
Programs/projects to achieve these targetsPreparation of logical framework.Consultations with
various stakeholders.Interaction at the central levelInteractions at the regional/provincial
LevelSeeking experts' suggestionsInvolvement of the ministries and other public agencies
23 Preparation of Draft Approach Paper
- Presented to National Development Council (NDC) meeting - Finalization of Approach Paper
incorporating suggestions and guidance of NDC - Submission of Approach Paper for the approval by
the Cabinet - Based on the Approach Paper detail Periodic plan is formulated

3. 24 6. Basis of the Plan Formulation
Directive Principles and Policies of the ConstitutionManifesto of winning political party in the general
election or Common Minimum Programme of the Coalition Government.Perspective/ long-term plan
and other sectoral perspective plans.SDGs and other global, regional commitments of the
Government,Domestic issues (e.g. inflation, low economic growth, unemployment, and governance
etc), andContemporary Challenges of the development (e.g. climate change and global economic
issues etc.)
25 7. New Dimensions in Planning
Top down and Bottom up PlanningParticipative PlanningMarket based PlanningPlanning by
Inducement or Indicative PlanningResult Based Planning (RBP)/ Strategic PlanningSustainable
developmentInclusionGood governanceGrowth with equityPublic Private Partnership (PPP)
26 8. Tools and Techniques Used in the Planning Process
There are various tools used in the planning processMacroeconomic Model: formulation of
macroeconomic Framework, Incremental capital output ratioThe macro economic framework
presents the whole pictures of the economy which includes:The real sectorThe fiscal sectorThe
monetary sector, andThe external sectorMacro models can be used to forecast the macro economic
variables to ensure consistent macro economic framework this is based on: -
27 Forecasts and assumptions about domestic and international economic performance.
Government's macro-economic policy stance reflected in:Monetary and exchange rate policy,Real
sector growth targetsProjections of domestic and donor inflow including:Domestic revenuesForeign
grants and loansLevels of government domestic borrowing
28 Result Based Planning
29 Concept of Managing for Development Results (MfDR)
Set of concept, principles and tools for:Improved development effectivenessImproved performance
managementMfDR (output, outcome and impact) in different levels through result-based.Strategic
planningBudgeting, andM & E
30 Five Principles of MfDR
MfDR follows the following five principles:1. Focusing the dialogue on results at all phases of the
development process.2. Aligning programming, monitoring, and evaluation with result.3. Keeping
measurement and reporting simple.4. Managing for, not by, results, and5. Using results information
for learning and decision making.It is recommended for consideration at every phase of a
development initiative.
31 MfDR Practice in Nepal Level Planning Budgeting Monitoring Results
NationalPeriodic plan (result frame based0MTEFPlan progress reportSectoralBusiness plans
(sectoral strategies)MTEF (sectoral papers)Sectoral Progress reportProjectLog frame
mandatoryResult based budgetPerformance indicatorsProvincial/Localperiodic plan (log frame
based)PDMTEF/LDMTEFProvincial/LocalPlan progress report
32 Result Based Management (RBM)
Assess: What is the current situation?Think: What caused it? Who are involved?Envision: What are
we going to achieve?Plan: How are we going to do it? When? With whom? With what resources?Do:
Get it done. How is it going? Do we need to adapt?Review: What went well/wrong? What can we
learn for future?

4. 33 Concept of Result Based Planning (RBP)
RBP focuses more on the results in terms of outcome and impact of the plan.It tries to ensures
whether the outcome and impact of the plan is in line with the set medium term goals and long term
vision or not?.2. RBP gives importance to strategy as to how it could be realized by looking at
different options it have and develop policies and programs to realize the goals and targets.3. It is
more a strategic planning as against the traditional medium term periodic planning. In the old
approach of planning more focus is given on the material balance than the result.
34 Result Based Planning (Contd..)
4. It must be derived from a clear vision of the future:RBP gives importance to “Where do we want to
go?” what we want to achieve?– a medium to long term goal/vision, at least for the medium term,
and must propose a combination of objectives that have been prioritized by rigorous analysis of the
political, social and economic environment.The long-term vision, however, should be based on a
good assessment of the country’s socio-economic situation and include goals to be achieved in each
of the strategic areas. 5. It focuses on goals:Plans containing of numerous goals will not be strategic.
To make it strategic the resources must be focused on the most important goals only.
35 Result Based Planning Contd..
Decisions related to where we want to go must consider the opinions of the majority of stakeholders
in the country to ensure that government’s plan acceptable and credible.The higher the degree of
participation by the stakeholders, the greater the possibility the plan to be implemented and its
achievements sustained over time.As results based strategic planning also has an operational
component to respond to the question “How do we want to get there?”, the strategic exercise,
products and processes need to be designed and the necessary inputs calculated.Moreover, the
financial resources required to implement the plan need to be made available and allocated, and
coordinated action must be taken by the institutions and organizations involved.
36 Components of Result Based Planning
1. Understand where we are ?Analysis of the socio-economic situation or status,- GDP, poverty and
inequality and the strength and weaknesses of the economy and the country’s development effort.
Finding gaps and strength.2. Clear vision as to what we want to achieve or where we want to reach
over a medium to long term?Setting up of long term vision and objectives and targets for the medium
term.3. Clear understanding of the path as to how we achieve vision and objectives ?Choosing
options for better strategy to attain the objective/goals and designing policies and programs to
ensure its outcome/output and impact relating to medium term objectives and long term vision.
37 4. Clear understanding of the resources - both human and capital and institutional set up to
achieve set targets?Analysis of resource availability and potential, both domestic and foreign, in
financing policies and programs and assessing institutional set ups to carry out plan
implementation.5. Ensure whether we have accomplished the set targets .Designing M & E system
to check implementation process, output and the quality of work done as envisaged.
38 Basic Tools Used in Result Based Planning
Planning consistency is given top most priority in RBP. Most often a macro planning model is used
for checking the consistency and analysis.Expenditure framework that make consistency in resource
potential and availability in the likely future situation is also used for the purpose.Result Framework
is widely used to check the consistency in the outcome/impact, output and inputs.Result based
monitoring framework is used for M&E of the plan and provide feed back.

5. 39 Focus of RBPRBP is a strategy to increase transparency, and accountability.Therefore, it
recommends to establish a planning process that:increases transparencyensures
accountabilitypromotes proactive management,focuses on performance, andensures results.
40 Results-based Planning Process
Plan for resultsResults definedIndicators, targetsPlanEvaluate resultsHow & whoDissemination,
feedbackBudget for resultsBudget aligned with activitiesEvaluateBudgetGoalsPublic sector
management can be looked at in different dimensions.National/Subnational/sector level/Monitor
resultsLinked to planningHow & whoData, reportingImplement for resultsImplementMonitor40
41 Result ChainIdentify the means-ends chain in the analysis of objectivesSteps in Result
Chain:Start from outcomeIdentify the impact the outcome contributes toDefine outputsPlan for the
activities needed to achieve those activitiesWork on the resources required to implement those
activities
42 Result chain in Result Framework
CategorySignificanceImpactWhat they achieve?OutcomeWhat they do?OutputsWhat we
achieve?ActivitiesWhat we do?InputsWhat we invest?
44 Operational Vs. Developmental results
InputsActivitiesOutputOutcomeImpactOperational resultsDevelopmental resultsThe management
product of agency, its programs or projectsAn actual change in the state of living standard of the
people or human development that is the logical consequence of investment in development
45 The Result Chain Implementation Results Inputs Activities Outputs
OutcomesImpactFinancial human and MaterialsTasks and action taken to Transform Input to
outputsProducts: goods and services producedIntermediate effects on clientsLong-term
Improvement in societyPlanningImplementation
46 Results Chain Reduced infectious diseases Impact Proper Garbage
DisposalAccess toDrinking WaterPersonalCleanlinessOutcomesMunicipalityWaste Mgmt Sys.Health
SectorHealth Edu ProgramOutputsWS SectorNew WS System.InputsResources
47 Why Result Frameworks (RFs)?
It helps in management and M & E in the following ways:Helps focus on specific outcomesHighlights
the key linkages and causalities that underpins the interventionHelps establish an evidence-based
approach in M&EHelps measure progress towards strategic objectivesHelps achieve strategic
objectives
48 Steps to design a RFIdentify problems and specify the theory of change to address them.Set
Goals/objectives address them.Define results (Impact/outcomes/outputs)Identify critical risks and
assumptionsSpecify indicators and data sourcesDesign a M & E plan
49 Risk Analysis and Results
AssumptionsAssumptionsHigh riskAssumptionsModerate riskLow
riskInputsOutputOutcomeImpactDecreasing management control
50 Results Framework- Education
Indicators and MOVResponsible agencyAssumption/RiskIndicatorsBaselineTargetMOVYr 1Yr 2Yr

6. 3Impact; productive HRHDI/HAI0.54Outcome 1 - AccessOutput 1.1Output 1.2Outcome 2-
QualityOutput 2.1Output 2.2Outcome 3- EquityOutcome 4 AccountabilityLiteracy rateNet enrolment
rateDropout rateRepetition rateGender parity in enrolmentScholarship to deprived groupSocial
auditirregularitiesPrograms/ sub-programsSSRP, BEP, EFA
51 Policy/Results Framework used in the Periodic Plan
IndicatorsBaselineTargetMOVResponsible agencyAssumption/RisksImpactOutcome 1Output
1.11.2Outcome 2Output 2.12.2
52 Logical Framework Analysis
It is very useful for planning, monitoring, implementing and evaluating development projects.It helps
to identify the cause and effect relation between the goals, objectives, output/outcomes of the
project.It develops the indicators as well as the external forces and influences that determines the
success of the projects.It provides a logical approach in setting priorities and determining activities
and the intended results of a project.
53 The LFA is a useful tool to:
Establish a causal link between inputs, processes, outputs, outcomes and objectives (vertical
logic);Define the assumptions and the potential risks for achieving objectives and
outcomes;Establish a system for monitoring and evaluating project performance;The LFA can be
described as “a tool to help designers of projects think logically about what the project is trying to
achieve (the purpose), what things the project needs to do to bring that about (the outputs) and what
needs to be done to produce these outputs (the activities)”The log frame is a 4x4 matrix. It has four
rows and four columns.
54 The LFA contains: Narrative Summary (Column 1):
The log frame helps to make logical relationships between activities, results, purpose and
objectives.Verifiable Indicators (Column 2):Indicators used for measurement, or qualitative judgment,
or both for achievements.Means of Verification (Column 3):How, and from what sources of
information, each of the indicators will be quantified .Important Assumptions (Column 4):The
important assumptions on which the success of the project depends, and the risks that have been
considered.
55 Logical FrameworkNarrative SummaryVerifiable IndicatorsMeans of VerificationImportant
AssumptionsGoal(Impact)The quantitative ways of measuring, or qualitative ways of judging,
whether these broad objectives are being achieved? (estimated time)Sources of information ?(Goal
to Super goal):External factors are necessary for sustaining objectives in the long
run?Purpose(Immediate impact)The quantitative measures or qualitative evidence by which
achievement and distribution of impacts and benefits can be judged (estimated time)(Purpose to
Goal):Conditions external to the project are necessary if achievements of the project’s purpose is to
contribute to reaching the project goal?Outputs:Quantity of outputs, and by when will they be
produced? (quantity, quality, time)Sources of information?(Output of Purpose): The factors not within
the control of the project, which, if not present, are liable to restrict progress from outputs to
achievements of project purpose?Activities:InputsWhat sources of information?(Activity to Output):
1) External factors must be realized to obtain planned outputs on schedule?2) What kind of
decisions or actions outside the control of the project are necessary for inception of the project?
56 9. Issues and Challenges in Project Management

7. 57 Presentation FlowMeaning/Definition of a ProjectConcept of Project ManagementBasic Phases
of Project ManagementIssues and Challenges in Project Management in NepalSuggestions for
Improving Project Management in Nepal
58 1. Meaning/Definition of a Project
A project may be defined as a proposal for an investment activity which employs resources with the
aim of generating specific future benefits at certain costs.A project is a proposal for an investment to
create, expand and/or develop certain facilities in order to increase the production of goods and/or
services in a community during a certain period of time.A project is a unique, transient endeavour,
undertaken to achieve planned objectives, which could be defined in terms of outputs, outcomes or
benefits.A project is a set of activities with specific objectives to be completed within given time and
cost.
59 Little & Mirrless says “Project is any scheme or a part of a scheme for investing resources which
can reasonably be analyzed and evaluated as an independent unit.”Harold Kerzner: defines it as “ A
project can be considered to be any series of activities and task that has a specific objective to be
completed within certain specification, defined start and end dates, funding limits, focus into effective
utilisation of limited resources.”Projects are the building blocks of a investment plan.Projects
consume resources and they generate benefits during project operation period.
60 Basic Features of a Project
Specific objective or goal.It is an investment activity .Estimates of cost- benefitsUses financial,
labour and materials .It has life cycleIt has start and end dateProvides benefits over the project
period.It has an independent identity and itself completeIt has specific responsibility
61 Project ManagementManagement has been defined as getting results through
people.Management has been defined as getting things done.Project management is the
management of project resources to achieve the objectives.Management is an art to achieve
organizational goal through planning, organizing, controlling, coordinating, budgeting, monitoring and
mobilizing human resources.
62 2. Concept of Project Management
Project management is achieving successful project completion with the resources (time, money,
materials and people) available.Harold Kerzner defines “Project management is the planning,
organising, directing and controlling of company resources for a relatively short term objective that
has been established to complete specific goals and objectives”Project Management Institute (PMI)
defines project management as "the application of knowledge, skills, tools and techniques to a broad
range of activities in order to meet the requirements of a particular project.“
63 Project management includes developing a project plan, which includes defining and confirming
the project goals and objectives, identifying tasks and how goals will be achieved, quantifying the
resources needed, and determining budgets and timelines for completion.Project management
involves scientific application of modern tools and techniques in planning, financing, implementing,
monitoring, controlling and coordinating unique activities or tasks to produce desirable outputs in
accordance with pre-determined objectives within the constraints of time and cost.
64 Hence, project management deals with:
the identification of project opportunities,formulation of profitable project profiles,procurement of
finance for project implementation,scheduling of project activities in such a way to complete the

8. project within the minimum possible time/cost, andevaluation of the project after its implementation
etc.
65 3. Basic Phases of Project Management
Project management consists of the following stages.Project InitiationProject planningProject
implementation,Controlling, andMonitoring/Evaluation
66 There are 5 basic phases of project management:
1. Project conception and initiationFirst, we need to develop an idea for a project and carefully
examine to determine whether or not it give benefits.During this phase, we need to decide whether
the project can realistically be completed or not?.Moreover, we need to be clear on what the project
is intended to achieve, and how that will be achieved.
67 2. Project definition and planning
A project plan, project charter and/or project scope need to be finalise and outline the work to be
performed.During this phase, we need to prioritize the project, estimate the budget requirement and
schedule, and determine what resources are required.3. Project implementation or executionIn this
phase, resources' and tasks are distributed and teams are informed of their
responsibilities.Information related to the project are gathered.Project works are carried out.
68 4. Project performance and control
During this phase the project managers require to get project status and progress .Project managers
may need to adjust schedules to keep the project work on track.5. Project close/completionAfter
project tasks are completed and an evaluation is required to know about project success and/or
learn lessons from project implementation.Projects management processes vary from project to
project depending on nature and scale of the project.
69 4. Issues and Challenges in Project Management in Nepal
Mostly donor driven projects.Selection of unsustainable projectsInadequate budget allocationLack of
result based budging or performance based budgeting systemLack of project bankNo quality at entry
mechanismFrequent transfers of key project personnel especially project managers
70 Poor coordinationImplementation delaysTime and Cost OverrunsLack of good governance
system: less transparency and accountabilityPoor monitoring mechanism
71 5. Suggestions for Improving Project Management in Nepal
Increase country ownership in project formulationImprove project selection or screening
criteria.Reform in budget allocation systemEnd political interferenceEnsuring proper selecting of key
project personnel and their retention over entire the project implementation period
72 Improve coordination between the different agencies.
Introduce result based budging or performance based budgeting systemImprove good governance
systemEstablish corrective and result based monitoring system
73 10. Conclusion and Suggestions
More participatory planning exercise is requiredPlan should be based on more realistic resource
forecastPolitical stability is essential for successful implementation of planPolitical commitment
should be ensured for effective implementation of PlanPlan should be based on national
implementation capacity rather than needs

9. 74 Need to adopt project screening mechanism in NPC and sector specific screening criteria
Project bank should be establishedImplementation mechanism need to be strengthened by
establishing quality-at-entry mechanismM & E need to be strengthened and quality of supervision
should be improvedProvincial and Local level planning mechanism should be
strengthened.Implementation of planning in the federal structure need to be focused.
75 Thank You