Cost Benefit Analysis - A Tool to Optimize Project Cycle Management
Cost Benefit Analysis - A Tool to Optimize Project Cycle Management

Summary/Abstract: Developing a sustainable economy requires increasing the competitiveness of public and private activity sectors, in order to attract internal and international financial resources needed to finance the growth of economic entities. Given the limited public resources and diversity of competitive sectors that require funding by public funds, a comprehensive analysis of social costs and social benefits of a project must be achieved, in order to optimize decision-making on carrying out different types of investment projects. In this sense, cost-benefit analysis demonstrates its usefulness by highlighting the social effects of a project, compared with the investment costs, so that social benefits obtained through the project’s implementation determine its opportunity and its need. The purpose of this paper is to highlight the importance of using different project management techniques which, correlated, lead to a higher quality of the results and information, allowing the public decision-maker to establish the destinations of resources allocation to those types of investments that meet at a higher degree the national, regional or local socio-economic objectives.

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