SBCA stands for social benefit-cost analysis. The diagram below disaggregates the impacts of a project into four types: benefits and costs to the project owner, and benefits and costs to the rest of society. It adds a bottom column to the usual SBCA diagram for intangible impacts and distinguishes between stakeholders who experience tangible impacts and publics who are interested in a project. The project’s accounting system looks only at the left side. The benefits and costs at the right side are external to the accounting system. The vertical line in the middle represents the accounting boundary as well as the the project or enterprise boundary. The lower right hand pink cell represents social costs.
In the private sector:
In the public sector:
History (if applicable)
In the Philippines in the 1970s, massive local and international opposition was generated because the Chico River Dam project, a big hydroelectric dam project, would submerge large areas of ancestral lands of indigenous peoples. It had gotten to the point of armed resistance by the local people and use of military force by the Philippine Government led to deaths, including a tribal leader. The struggle united the tribes in the mountainous areas and eventually triggered the establishment of the Cordillera Peoples Liberation Army.
The World Bank learned a lesson from many similar projects. It adopted “safeguard policies” to protect third parties from negative impacts of development projects. The Philippine Government also learned a lesson and followed the U.S. Government in enacting a law in 1978 which requires project proponents to submit an acceptable Environmental Impact Statement (EIS) as a condition for approval. The EIS system ensures that projects with unacceptable social costs are not allowed by the government to proceed. Tools like the SBCA diagram can disaggregate the potential social benefits and costs of a project.
When to use
The SBCA diagram combined with stakeholder analysis (SA) can be used in any context and situation for these objectives and uses:
The basic objectives of the SBCA + SA diagram:
Tips and Lessons Learnt
Resources (add your resources)
Dr. Serafin D. Talisayon (email@example.com)