nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2017‒04‒09
six papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Urban development projects: A case study of the Greater Port Harcourt city development project in Rivers State, Nigeria By Jack, Molly; Coles, Anne-Marie; Piterou, Athena
  2. Empowerment through Enhancing Agency:Bridging Practice and Theory through Crystallizing Wisdom of a Third-Country Expert By Sato, Mine
  3. Ex-Post Optimal Knapsack Procurement By Jarman, Felix; Meisner, Vincent
  4. AIIB Development: Forecast and Implications By Lee, Hyun-Tai; Kim , Junyoung
  5. Frugal innovation in Germany: A qualitative analysis of potential socio-economic impacts By Tiwari, Rajnish; Fischer, Luise; Kalogerakis, Katharina
  6. Does a Rural Road Improvement Project Contribute to Inclusive Growth??A Case Study from Bangladesh By Fujita, Yasuo

  1. By: Jack, Molly; Coles, Anne-Marie; Piterou, Athena
    Keywords: Sustainable development; Emerging economies; Urban regeneration; Project management
    JEL: R0
    Date: 2017–01–30
  2. By: Sato, Mine
    Abstract: This paper tries to identify factors and understand dynamics on enhancing agency (will and ability to pursuit for personal or social goals), commonly understood also as empowerment. Specifically, the question asked is if the ‘black boxes’ existing in current theoretical explanations in the field of empowerment and agency development can be opened up by connecting practice and research, with clarifying context specific factors. For this purpose, the author first reviews the literature relating to empowerment and agency development to reach a common understanding and to identify the discrepancies between the two schools, as well as to extract a theoretical model of agency development. Second, the paper identifies two dimensions and three factors for analyzing a case study to understand what is unclear from theory can be understood in reality. These are the initial context for developing the project, the actual development of an agency development project, and possible mechanisms of agency development for community members. Subsequently, a case study of the development of a training program called MMO (Metodologia de Motivacion y Organizacion) in Nicaragua is reported on, and the processes of its inspiration, development, execution and diffusion are documented in detail. Finally, the possible dynamics of each process of agency development, which are black boxes of the reviewed theories, are to be extracted through analyzing the case. The author also clarifies context specific factors which may have influenced the agency development process as described in the case study. The major findings are as follows: first, the context specific factors that influence the whole process of agency development of people (both community members as well as support members), such as the upbringing and experiences of the key person and the socio-cultural and economic features of Nicaragua are identified; second, the process of agency development experienced by the aid providers/supporters (core facilitators and village level facilitators), which can be explained by self-determination theory as well as by explanatory frameworks related to social communication such as concientizacion (a Brazilian consciousness-raising methodologies and movement) and storytelling, is outlined; and, finally, the plausible mechanisms of agency development perhaps experienced by the community members is explained. This final outcome is divided into four categories relating to discussions on agency development, to promote the understanding of what is actually done on the ground beyond theoretical explanations. In other words, what is actually done in practice to foster the four types of power in relation to agency: “power from within,” “power with,” “power to” and “power over.”
    Keywords: agency development,empowerment,third-country expert,process documentation,Nicaragua
    Date: 2016–04–11
  3. By: Jarman, Felix (German Ministry of Finance); Meisner, Vincent (TU Berlin)
    Abstract: We consider a budget-constrained mechanism designer who selects an optimal set of projects to maximize her utility. Projects may differ in their value for the designer, and their cost is private information. In this allocation problem, the quantity of procured projects is endogenously determined by the mechanism. The designer faces ex-post constraints: The participation and budget constraints must hold for each possible outcome, while the mechanism must be strategyproof. We identify settings in which the class of optimal mechanisms has a deferred acceptance auction representation which allows an implementation with a descending-clock auction. Only in the case of symmetric projects do price clocks descend synchronously such that the cheapest projects are implemented. The case in which values or costs are asymmetrically distributed features a novel tradeoff between quantity and quality. The reason is that guaranteeing allocation to the most favorable projects under strategyproofness comes at the cost of a diminished expected number of conducted projects.
    Keywords: Mechanism Design; Knapsack; Budget; Procurement; Auction; Deferred Acceptance Auctions;
    JEL: D02 D44 D45 D82 H57
    Date: 2017–03–29
  4. By: Lee, Hyun-Tai (Korea Institute for International Economic Policy); Kim , Junyoung (Korea Institute for International Economic Policy)
    Abstract: Update: On June 24-26, 2016, the Asian Infrastructure Investment Bank (AIIB) held a board of directors meeting and its first annual meeting in Beijing, China. USD 509 million worth of loans will finance four projects approved by the AIIB The projects can be defined by the following characteristics: 1) infrastructure investment in countries situated on the path connecting the Belt and Road Initiative, 2) proposals by recipient country governments, 3) co-financing with other MDBs, and 4) small loans. Short-term Forecast: The AIIB's projects are predicted to involve joint collaboration via co-financing with other MDBs. As for joint ventures, other MDBs and recipient governments will propose AIIB participation in existing projects, and the AIIB will do due diligence before making a final investment decision. The reason behind this operational structure is that the AIIB is yet a newly-formed MDB and has a staff of only around 40 people in the working group. Consequently, it lacks the internal capacity to pursue a large-scale, stand-alone venture. Also, by setting its initial projects as collaborations with other MDBs, the AIIB can expect lower risk, seek to acquire business operation know-how, and build international public confidence. Above all, the AIIB will seek collaboration with international financial organizations including other MDBs, and strive to settle itself in the international financial system (in a bid to alleviate concerns that China will have undue influence on AIIB projects, or that it will challenge the existing international financial order). Mid to Long-term Forecast: The AIIB will possibly lead a greater share of stand-alone projects and support the Belt and Road Initiative financially, on the back of accumulated experience and better project financing capabilities. Projects related to the Belt and Road Initiative are expected to dominate, and economic corridor implementation projects that strengthen linkage among regions and countries will likely be considered a priority. There is also the possibility of collaboration with other new financial organizations founded under Chinese leadership (the BRICS-led New Development Bank (NDB), the Silk Road Fund, the Shanghai Cooperation Organization (SCO)). These China-led organizations will provide funds for the Belt and Road Initiative's implementation and pursue the internationalization of the renminbi, which will help increase China's financial influence globally. Implications: In the case of co-financing projects, strong contenders are likely to be infrastructure projects related to the Belt and Road Initiative that have been developed and screened by other MDBs. Therefore, Korean companies will stand to gain by seeking participation in such ventures. Meanwhile, for stand-alone projects the AIIB will assess the feasibility of infrastructure projects proposed by member governments and companies. This would call for a proactive approach, identifying in advance the infrastructure demands of recipient countries and then cooperating with local institutions. Financial institutions should also respond appropriately to the AIIB's initial moves to pursue extensive cooperation with other MDBs, state-run financial institutions and global financial companies.
    Keywords: AIIB
    Date: 2016–08–30
  5. By: Tiwari, Rajnish; Fischer, Luise; Kalogerakis, Katharina
    Abstract: Frugal innovation is gaining traction globally, not only in emerging economies, but also in the industrialized world. The root causes of frugality's acceptance as a societal value may however differ according to the social context, especially between the developing and the developed world. In this paper we present the results of a trend analysis in Germany that has been conducted as a part of a BMBF-supported project aiming to investigate "Potentials, Challenges and Societal Relevance of Frugal Innovations in the Context of Global Innovation Competition". The research was conducted in two steps. In a first step preliminary insights were generated by an extensive literature review and 3 focus groups with 30 experts discussing the relevance of frugal innovation for Germany. These insights were then verified in 20 semi-structured interviews with additional experts from cross-sections of the German society. The experts opined that frugal products and services (should) focus on the customers' core needs and reduce unnecessary complexity while adhering to high quality standards. They predicted a trend towards frugal solutions in Germany due to a complex interplay of various factors. One notable factor was a growing appreciation of moderation and voluntary simplicity by parts of the German society leading to "frugal choices". The second widespread consensus was that frugal innovations are necessary to secure long-term competitiveness of German companies in fast-growing, unsaturated markets in the emerging economies. Several challenges were pointed out concerning the actual implementation of frugal concepts in the product development process. An overwhelming reliance on high tech-driven and complexity-embracing innovation pathways by engineers in German firms was characterized as a powerful obstacle in implementing frugality.
    Keywords: Frugal Innovation,Germany,Affordability,Moderation,Emerging Markets,Voluntary Simplicity,Affordable Excellence,Frugality 3.0
    Date: 2017
  6. By: Fujita, Yasuo
    Abstract: The concept of “Inclusive growth,” which has increasingly been used in the international arena, is concerned with both the pace and pattern of growth (i.e., the income growth of both poor and non-poor, non-income poverty and inequality). Developing countries and donors have often considered rural roads to have a positive impact on the growth of the rural economy and poverty reduction, through the promotion of better connectivity. This paper analyzes the impact of a rural road improvement project on inclusive growth in Bangladesh using a difference-in-difference method based on panel data from a large household survey. The results show that the project did contribute to the growth of the average income in the project area, and therefore to the inclusive growth at the national level. However this was mainly because of the income growth of households other than the poorest. In particular, the poor households with inferior initial resource endowments in landholding and househol d occupation did not benefit from the project. Thus, rural road projects are not necessarily inclusive at household level, though project specific factors should carefully be considered. A policy implication is that a rural road project in a poor rural area does not always benefit the poorest; hence complimentary interventions for these poorest households are needed.
    Keywords: inclusive growth,impact analysis,rural infrastructure,Bangladesh
    Date: 2017–02

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