Publication: Relationship Between Financial and Economic Evaluations for Different Types of Project
Date
2005-01
ISSN
Published
2005-01
Author(s)
World Bank
Abstract
Appraisal can be undertaken from
different perspectives, depending on the objectives of the
commissioning body. The key choices are: Business case -
requires a commercial perspective; and, Appraisal for
Government - usually considers both the social perspective,
and the fiscal perspective. A commercial or financial
appraisal focuses on the gains and losses to one
organization, typically a firm or an agency of government.
Social appraisal is the broadest, and can be used to show
how the (narrower) appraisals for business, government and
citizens aggregate up to the social level. The fiscal
perspective focuses on the project's impacts on
government expenditure and receipts. It can be thought of as
a commercial appraisal from the perspective of Government.
The items in a financial appraisal are money flows to, and
from the organization concerned. In contrast to the social
cost-benefit analysis, external costs and benefits are
omitted. The principle of 'comprehensiveness' does
not apply; it is replaced by a commercial focus on matters
which concern the organization itself, and not the wider world.
Citation
“World Bank. 2005. Relationship Between Financial and Economic Evaluations for Different Types of Project. Transport Notes Series; No. TRN 10. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/535eaff2-650e-5266-809a-22392fb3c2d3 License: CC BY 3.0 IGO.”