Master Plan Will Not Be Wasted

Abstract

This finely woven case takes place in Marinesia and depicts the joint efforts of an overseas cooperation agency and a government aid agency to investigate the pollution of the Manzana River, which is linked to a recent outbreak of cholera. After finding that 90% of the roughly 3000 factories in the capital do not possess wastewater facilities, and 45% of the population discharges their house drains without any treatment, the aid organizations worked to create a comprehensive master plan to accommodate both the area's ecology and the local economy. As the government of Marinesia had privatized a part of the water and sanitation service in the capital city, however, one of the important tasks for the survey is to assess the impact of these measures in relationship to local development. Some of the factors they must consider are: the weakened power of the central ministry, a mixed situation of a strong private company and weak public corporations in the same sector and the impact of foreign capital when introduced to the economy.

The objective of this case is to illustrate a typical situation in a developing country where privatization or commercialization of public authority has taken place. Students are given the opportunity to think about how bilateral cooperation might work for the development of infrastructure after a substantial part of the service has been privatized. This exercise also emphasizes the importance of a balanced set of policies that will both harness the efficiency of market forces and allow for comprehensive planning by the governments of developing countries.

This case is recommended for students who have a basic knowledge of bilateral technical cooperation, such as a master plan, technical cooperation loans, etc. This is a superb structure for encouraging students to develop positive and creative approaches to planning.

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