TheImprovement ofTropical and Subtropical Rangelands

62 IMPROVEMENT OF TROPICAL AND SUBTROPIOAL RANGELANDS
in substance and in timing of flows. For example, the returns on
a rehabilitation project may take several years to realize depending
on the starting conditions and project management. These returns,
however, may be in the form of higher stocking rates, which may
have caused the problem in the first place.
An alternative approach is to examine potential losses that are
avoided through rehabilitation. This approach is similar to determining
the benefits of flood control projects. If degradation is not
halted, then adjacent agricultural land may be placed at risk.
Gittinger also distinguishes between a project that may be relatively
small, or perhaps quite large, but is of a nature that it can
be analyzed, evaluated, developed, and administered as a unit. A
"program" would typically be larger than a single project, and encompass
multiple projects or aspects ofdevelopment that are beyond
the project definition and boundaries.
A project should contain relatively homogeneous resources 80
that investment requirements, costs, and returns from different parts
within the project can be accurately represented. Ifa project becomes
large enough to become heterogeneous, then a part of the projectwhich
may in fact be uneconomical or unfeasible-may be hidden
or masked and carried by other parts of the project that are worthy
of development. When dealing with scarce resources, the concept
of homogeneity within a project is important. Past experience has
shown that in many instances projects have failed because of lack of
social homogeneity; that is, within the target group of pastoralists,
subgroups with contrary interests existed (see, for example, Sanford,
1983).
Eecmomlc and Plnanclal AnaJy8el
By definition, the economic analysis compares all returns and
costs associated with a project during its useful life. Costs include
initial and recurring annual expenditures, whereas the revenues include
returns as a result of the project over and above what they
would have been without it.
Financial or cash flow analysis is the determination ofthe project's
cash flow positions over the period of the project. This shows whether
the project is self-supporting or whether deficits are likely to develop.
It is simply to compare revenues and expenditures, including debt
service on an annual cash basis. The objective of financial analysis is
to consider and make estimates of the effects the flow of project costs