Compare methods

	Social Cost-Benefit Analysis for Development	Value Chain Analysis for Development
Field	Development Studies	Development Studies
Family	Process / pipeline	Process / pipeline
Year of origin	1974	2001
Originator	Ian Little & James Mirrlees (OECD/UNIDO appraisal traditions)	Raphael Kaplinsky & Mike Morris; Gary Gereffi, John Humphrey & Timothy Sturgeon
Type	Economic project appraisal method	Systemic market and sectoral analysis framework
Seminal source	Little, I. M. D., & Mirrlees, J. A. (1974). Project Appraisal and Planning for Developing Countries. London: Heinemann / New York: Basic Books. ISBN: 9780465064106	Kaplinsky, R., & Morris, M. (2001). A Handbook for Value Chain Research. Institute of Development Studies / IDRC, Brighton.
Aliases	Social CBA, Economic Cost-Benefit Analysis, Project Economic Appraisal, Shadow-Price Cost-Benefit Analysis	Pro-Poor Value Chain Analysis, Inclusive Value Chain Analysis, Global Value Chain Analysis, Value Chain Development
Related	4	4
Summary	Social cost-benefit analysis (social CBA) is the economic appraisal of development projects from the standpoint of society as a whole rather than the private investor. It values every input and output at its shadow (economic) price — the true opportunity cost or social worth, which in distorted developing-country markets diverges from observed market prices — then discounts the resulting net benefit stream at a social discount rate to compute an economic net present value (ENPV) and economic internal rate of return (EIRR). The method was systematised for developing countries by Ian Little and James Mirrlees and by the parallel UNIDO guidelines.	Value Chain Analysis examines the full sequence of activities required to bring a product or service from conception through production to final consumers and beyond, asking who does what, who governs the chain, and how the value created is distributed among participants. In its development and pro-poor variant, codified in Kaplinsky and Morris's IDS handbook and grounded in Gereffi's global-value-chain theory, the method is used to identify how poor producers and workers can capture a larger or more secure share of value through upgrading and inclusion.