Question

2. Explain what is meant by a “productive” project. Then explain why politicians might undertake an unproductive project that benefits a small group at the expense of a large group

Answer 1

Meaning of a project and a Productive Project

Projects in simple words are is the creation of numerous activities aimed at solving a problem. This could range from designing a new layout of a plant to developing a bridge or a new company all together.

Projects may be big or small in scope and have a time frame for their completion and may also be subdivided into numerous stages which may allow better management respectively.

A project which is called as productive, must achieve its goals in a time bound and cost effective manner ensuring that all stake holders which may be impacted from its existence have some gains which may be social or otherwise.

For example:-

If a bridge is to be built across a river, a project would be said to be productive, if it is achieved in a stipulated time frame, and the costs are as planned and at the same time its impact on the society are much higher than the cost required to build the same.

Thus, the facts that define a productive project are that it must fullfill its core objectives in a time bound manner and be cost effective, while ensuring that the net benefits to the society are much higher than the overall costs.

Then explain why politicians might undertake an unproductive project that benefits a small group at the expense of a large group

Political considerations are often based on more variables than net benefit from a project. They are often aimed at long term views than short term gains which projects are normally targeted at. Business owners on the other hand are more interested in engaging in projects that increase current profits, politicians need to look at the societal overall impacts of such exercises also.

For example a project to build a road or a hospital or a school in a rural area as a project, may only benefit a small amount of people, while the overall tax burden on the population may be much more. However, politicians often tend to still go with such projects, keeping in mind the interest of the small population may lead to long term development which may take significant amount of time to show up any returns respectively.

Thus politicians aim at long term goals while selecting projects, and may still engage in projects which only benefit a small number of people at the expense of a larger group to bring in social equality and benefits for all.

Please feel free to ask your doubts in the comments section if any.