DIFFERENCE BETWEEN COST BENEFIT AND COST EFFECTIVE ANALYSIS- UMAR LAWAN
UMAR LAWAN Is on of the strongest loyalist and a political gladiator of Senator Abbo . He used abstractive examples to explain the difference between cost benefit and cost effective Analysis.
A man brought 2 trailers of rice then shared it for about 30,000 people.
After sharing it, some got one mudu, others two tins, others half bags and others were wounded without getting a grain.
In administrative parlance, this is often equated in the cost benefit analysis.
On the other hand, another man took care of the medical bills of hundreds of people in critical and dire need of medical assistance and attention.
Those bills run into hundreds of thousands of Naira. The beneficiaries are well and happy. They live healthy and productive life afterwards.
This is what can be equated in the cost effective analysis where projects or programmes are appraised based on their effectiveness.
While C.B.A is centred on equality, C.E.A is centred on equity.
Both have thier advantages and disadvantages. As administrators however, emphasis is often placed on effectiveness of programmes and policies.
Some programmes have wider reach but less impact.
Instructively, more emphasis should be on placing a robust feedback mechanism to gauge and get input from target beneficiaries and flexibility, giving room for human dynamism and change.
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