development || development administration and development project: a study of the international sea...

DEVELOPMENT ADMINISTRATION AND DEVELOPMENT PROJECT: A STUDY OF THEINTERNATIONAL SEA FOODS LIMITEDAuthor(s): JAMAL KHANSource: Caribbean Quarterly, Vol. 23, No. 4, DEVELOPMENT (December,1977), pp. 71-89Published by: University of the West Indies and Caribbean QuarterlyStable URL: http://www.jstor.org/stable/40653343 .

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DEVELOPMENT ADMINISTRATION AND DEVELOPMENT PROJECT: A STUDY OF THE INTERNATIONAL SEA FOODS LIMITED

The purpose of this paper is to apply the concept of development project to development administration, either within the context of overall development planning or within the context of specific development efforts. We have selected the International Sea Foods Limited in Barbados as an empirical referent. Emphasis is placed on the eight phases of a development project, and its administrative aspects have been especially focused. This paper is part of the search for a better tool of administration for development.

Barbados is the most easterly of the Commonwealth Caribbean Countries. Since independence in 1966, Barbados has been striving to achieve twin development goals of industrial productivity-diversification and agricultural production. Three most important industries are sugar, tourism and fishing.

Barbados is a small island nation with 166 square miles and about 250,000 population. Natural resources are negligible and the scale of economy is limited. During colonial times the government had restricted its operations to law and order maintenance, revenue collection, administration of justice, and minimum social services. Since 1966, the government has intensified its development programme and expanded its scale of operation. But the smallness of land-size and population-size, scarcity of resources, heavy import bill for importing ever-increasing consumer goods from abroad, a large number of competing public sector priorities, relative paucity of public funds are, in the main, responsible for the government's inability to set up large-scale, production-directed, public-sector programme in such areas as irrigation, farm mechanization, heavy capital goods industry, large-scale consumer goods industry, and other infrastructural programmes.

Objective situations in Barbados have coincided with the current public policy which is that the government,, in addition to planning, executing and directing ongoing public- sector programmes, extends all the necessary assistance to private entrepreneurs to establish and promote a host of development projects in the country with a view to increasing productivity and accelerating growth. Governmental assistance to private entrepreneurs for the promotion of overall development objective is in the form of favourable legislation, tax policy, lending policy, financial incentives, availability of plant land, availability of industrial labour, and administrative assistance.

In Barbados, development project includes not only public-sector programmes but also government-assisted private industrial enterprises which are partially owned by the Government of Barbados. The government knows that along with public programmes, private enterprises are also contributing to the nation's productivity and growth, and



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then the government is committed to ensure that such enterprises are encouraged and stimulated. Consequently, the government regards its role as one of adviser, stimulator, promoter, evaluator, sponsor, facilitator, participator and catalyst. Some of the development project which the Government of Barbados has assisted in implementating are Barbados Feeds Limited, Towels Limited, Husbands Manufacturing Company Limited, International Sea Foods Limited, Koves Limited, General Dynamics (Barbados) Limited, International Playtex Corporation, etc.

Phases of a Development Project In this section we describe the phases of a development project and then apply them

to our empirical referent, International Sea Foods Limited.

Development can be seen as a process of change affecting any aggregation of people. This process can be conveniently reified in relation to any particular set of actions by regarding any specific undertaking as a project. Riggs (1971: 73-75) speaks of development administration as involving increased administrative capacity and resources and administration of development plans, programmes and projects. We assume that the administration of development projects can be empirically understood in terms of project administration, since administration of development is almost wholly concerned with the administration of development projects.

Improvement in project administration can make a significant contribution to the process of national development. This is applicable to projects included in comprehensive development planning as well as to specific purpose projects. Public sector projects occupy pivotal position in development agenda of the developing world. Although they are more common in such fields as construction, transport, industry and resources development, they are increasingly being used in other sectors. A project may be large or small, local or national, limited or comprehensive, capital or labour-intensive, production or problem-oriented, private or public or joint, sectoral or cross-sectoral etc.

Common to all projects, however, are the following characteristics (United Nations, 1969: 384-402). First, a project emphasizes more immediate, rather than very remote goals. It is designed for the marshalling of resources and the devising of methods to achieve these specific goals. In other words, a project, by definition, is action-oriented. Second, the substance of a project is non-repetitive. A project is undertaken in other than routine operations of an agency of organization, for purposes of special emphasis and action. Third, although a project may suggest specificity in its objectives and operational procedures, in virtue projects frequently entail a certain degree of uncertainty and unpre- dictability. In the course of project implementation, it may be found that the preliminary technical, economic and administrative analyses are not apposite and have to be revised to assure optimization of project outcome.

Consequently, a project normally needs special administrative organization for the achievement of its specific objectives. Such organization may demand the formulation of novel authority structure, new combination of existing organizations and substantive alteration of existing organization and administration. Often, a project involves separate, but interrelated and interdependent, activities which must be completed to achieve the



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objectives for which the project was set up. This effort requires coordination of a large number of elements, which may necessitate the establishment of a new level of management or, at least, the designation of a clear locus of management responsibility within the existing organization for the realization of project goals.

The use of the project concept in development gives rise to certain administrative dimensions and problems which cannot be dealt with in a routine manner for several reasons. First, we frequently confuse normal government operations with project administration, and are not quite familiar with the distinction that lies between the two. Also, we are not always aware of what a development project involves, how it proceeds, how it gets off the ground, how it achieves its objects, and so on. Second, a large number of public works and industrial projects take longer in construction and in reaching full production than originally estimated. Third, the cost generally turns out to be much in excess of initial estimates. Fourth, some projects are slowed down and never make the antici- pated contribution to national development. Fifth, development project in socioeconomic or administrative fields frequently bog down, peter out or run into difficulties.

In any event, a development project has several phases (United Nations 1971: 73): 1 . Conception 2. Formulation 3. Analysis and Evaluation 4. Approval 5. Implementation 6. Reporting and Feedback 7. Transition to Normal Administration 8. Evaluation of Results

A schematic representation of the circular interdependence of a development project is given in Figure 1 .

The octagonal figure that presents different phases of a project is not necessarily sequential. Two or more of the phases may be underway simultaneously and may influence each other. Moreover, the completion of one phase, for instance conception, leads naturally to the second phase, formulation. Normally, the flow of action is linear, that is, progressively from one phase to the other; but, the flow may also be reversive, that is, from formulation back to conception because of negative feedback or inadequate completion of one phase. Let us now examine what the different phases entail.

1 . Conception: Project conception involves an idea with rough estimates or preliminary studies of its desirability in terms of national needs, as well as its possible cost and likely benefits. In most cases the projects are floated by existing agencies or organizations. Even when a new project is suggested by external sources, normally an agency undertakes it. The impetus for new projects from agency-external sources may come in as general or specific ideas; they may come from legislatures, political parties, political leaders, specialized institutions, or from citizen associations.

Before and shortly after independence, a Shrimping industry used to operate in Barbados. Several factors make Barbados a logical base for the establishment of an export-



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oriented shrimp processing industry. They are: the favourable location of Barbados in relation to the prolific fishing/shrimping banks off the Guyanas and Brazil and proximity to the lucrative U.S. market; the existence of adequate port facilities and transportation links with the U.S. market. Further-, although considerable headway has been made in increasing exports of manufactured foods, performance in this sector has not been able to keep pace with the rise in imports, and as a result it has been necessary to seek alterna- tive sources of foreign exchange earnings. In the absence of extractive industries, fishing and shrimping in particular, become a natural choice. The high import bill for fish products in the area also suggested that there was a considerable scope for the promotion of a fish processing industry to serve the needs of the local and CARIFTA (Caribbean Free Trade Association) markets.

The first project Barbados Sea Foods made efforts to tap the potential of the shrimp industry with the establishment of a shrimp processing plant. Exports of shrimp reached a height of Bds. $8 million. But it started experiencing management problems in 1963. In 1964, the project was reorganized, before a combination of non-economic factors forced the industry to collapse. Among other things, Brazil came out with a 200-mile fishing rights limit on international water in 1969. Around the early 70's, government be- gan negotiations for the re-establishment of the shrimp industry and these efforts have culminated in the setting up of the present project, International Sea Foods Limited. Three private entrepreneurs took the initiative to undertake the project and sought active governmental assistance, cooperation and participation. The new initiators conceived that apart from its obvious employment benefits, the project would also have favourable effects on the balance of payments by virtue of the substantial hard currency which would accrue to the economy. The project would also have beneficial effect of widening the basis for economic development in Barbados.

2. Formulation: After the conception phase is over, it is important that the project receives detailed formulation. At this stage the project is spelt out in greater detail and in more specific terms, so that the decision-makers can evaluate it and to approve, postpone or reject it. Normally the formulation phase lays the foundation and provides the blue prints for all other phases of project execution. Comprehensive project formulation includes preparation of a detailed prospectus or proposal of the project, rendering its economic, technical, financial, organizational, managerial and other administrative aspects. Such a prospectus includes elaboration of different activities required to be carried out for the execution of the project and the time dimensions, which in turn requires identification of temporal interdependencies and providing for them (Industrial Development Corporation Files, 1972) .

The I.S.F.L. sent its prospectus to the Barbados Industrial Development Corporation (I.D.C.) which normally assists in the implementation of development projects of the nation. The prospectus contained such information as registration, management, market survey, investment data, and production data.

The top management of the project consisted of one chairman/managing director (M.D.), one general manager (G.M.)/director, three directors, one representative of the Barbados Development Bank, another representative of the Barbados Marketing Corpora-



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tíon (B.M.C.) and one secretary. The project planned to concentrate on the following operations: shrimp and fish food processing, fish and bone meal manufacturing, and

processing salted fish. The length of development stages, i.e. until planned production level was reached, was fixed at 3 years.

Annual output expected by the end of development stage for each proposed approved product was 2.5 million pounds of processed packaged shrimp, 500 thousand pounds of packaged fish and bone meal, and 100 thousand pounds of salted fish. Annual turnover value of approved operations expected by the end of development stage was fixed at Bds. $7 million (U.S. $3.15 million and Bds. $700,000, total Bds. $7 million). It was also formulated that 10% of the approved product would be exported by the end of development stage to CARIFTA (including Barbados) while 90% would be exported to the U.S.A.

Amount of capital invested or to be invested in the proposed approved operations by end of development stage was on land, building and leasehold improvements, machinery and equipment, net working capital, and other fixed assets. Total investment was Bds. $6.8 million. The project's nominal or authorized capital was estimated at Bds. $250,000; another Bds. $250,000 was to be issued by the end of development stage.

At a Board meeting of the B.M.C., a public-sector development corporation, on August 29, 1972, the policy was formulated that the people of Barbados, through the B.M.C, needed to have shares in the equity of the proposed project. The Government of Barbados through the B.M.C. held 20% of issued share capital; others were held by the private Barbadian entrepreneurs. In this sense, the project under study was a joint project. The prospectus also mentioned the project's authorized limit of loan capital, borrowing plan by the end of development stage, and the sources of borrowing.

Materials, annual value and sources of raw materials to be used in the operations of the

project were planned (I.D.C. Files, 1972).

TABLE 1

PRODUCTION PLANNING

Materials Annual Value Sources of Raw Materials

Fuel oil $370,000 Venezuela/Trinidad

Fishing gear $392,000 U.S.A.

Repairs/parts $234,000 Barbados7U.S.A.

Cartons $ 86,000 Barbados

Plant maintenance $ 30,000 Barbados

Sundries $ 5,000 Barbados



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Technical details of the manufacturing processes of the project were spelled out. A fleet of shrimp trawlers equipped with the most modern and sophisticated electronic equipment would be opened by the project. After the shrimp and the fish have been brought on board, sorting of the fish and shrimp would be carried out on board the boats and they would be packed in onion-type bags and the fish and shrimp would then be immed- iately stored and frozen separately. The fish and shrimp would later be shipped to the processing plant where the shrimp would be washed and chemically purified and treated.

The shrimp would then be conveyed through a series of grading machines where they would be graded and weighed and later conveyed through a peeling, deveining process and then carefully, hygienically and attractively packaged. These packages would later be put in boxes and in turn these boxes would be crated for shipment. The crates would then be put in blast freezers where they would be rapidly frozen and later transferred to normal freezing chambers and held for shipment to the various overseas markets.

The I.S.F.L. outlined the source of technical expertise on the manufacturing process. A sea food consultant on a three year contract was proposed to be brought to the management. It was proposed that fish and bone meal were to be handled by local expertise, and that salted fish was not to be handled during the first year of the operation. One or two expatriate captains were to be retained until a full complement of local captains was trained. The project formulators indicated their attitude towards the right to organize on the part of the employees.

On October 5, 1972, an application was received from the I.S.F.L. by the I.D.C. which sought approved enterprise status under the Industrial Incentive Act, 1963, for the production of processed shrimp and fish, fish and bone meal and salted fish.

The project was scheduled for production in January, 1973. 3. Analysis and Evaluation: Analysis and evaluation of projects are carried out on

economic, technical, social, financial, administrative and other aspects. They form a specialized job, particularly as concerns industrial projects, investment projects, resources development projects, and major public works projects. Analysis and evaluation of such projects involve use of highly competent skills in various academic disciplines and often demand interdisciplinary approaches.

Analysis and evaluation phase of a development project rest upon, among other things, the comparative merit of the specific project in competition with other possible alternatives. The acid test that a project has to meet is that it must emerge from the process of choice among alternatives as offering the best claim upon scarce resources. Analysis and evaluation provide for a rational choice between sound alternatives which are often competing with each other.

A number of benefits were identified with regard to the project. First, the project was a very high-risk investment industry and it was only with the full support and cooperation of the government that the project might succeed. The project was to obtain 21 new and ultra-modern refrigerated shrimp trawlers which would make possible the establishment of the very important shrimping industry in Barbados. Second, the following categories of workmen were expected to benefit from the project: dry dock workers, painters, carpenters, shipwrights, net repair men, mechanical and diesel engineers and tradesmen,



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drivers, machine lathe operators, etc. The project would have to purchase fuel, grocery, marine supply, hardware and lumber and these purchases helped these industries. Third, an indirect benefit would accrue to the country's economy with saving in hard currency by the reduction in the importation of the finished product from the U.S.A. and other hard currency areas. Fourth, large quantities of fish for local consumption would be available to the rapidly increasing population and this would contribute to the increased food health of the young population by the high protein value of fish. Fifth, some Bds. $5 million would be injected into the local economy annually.

The financing of the project was analyzed and evaluated. The financial requirements for establishing the enterprise would be Bds. $6.8 million including Bds. $6.5 million for the purchase of 20 trawlers and 1 carrier vessel, and a further Bds. $250,000 representing net working capital. The project would lease existing building and processing facilities from the B.M.C, at a rental of Bds. $48,000 per annum. The I.S.F.L. entered a contract with a Florida-based international company for the supply of 21 fibre glass refrigerated trawlers and had already made an initial deposit of Bds. $20,000. One of the Bridgetown banks agreed to extend credit facilities to the tune of Bds. $6.5 million for the.purchase of trawlers. The loans would be repayable over a five-year period.

A detailed study undertaken by the management of the I.S.F.L. on the basis of the acquisition of 2 1 boats over a two-year period suggested that trading surplus for the first three years of operation would be Bds. $160,000, $1 million and $1.3 million respectively. It was analyzed that the rate of profitability would be greater in view of the fact that the 21 vessels would be required over a one-year period. The contacts the project had established indicated that the necessary technical, management and marketing expertise would be available to the project. Available evidence indicated that the project was capable of meeting its financial commitments.

Further indication of analysis and evaluation is available. The Incentives Committee and the I.D.C. at their respective meetings on November 14 and 20, 1972 noted that the project was a very desirable one and that it met the usual requirements for approved enterprise status; but both doubted whether the I.S.F.L. qualified as a "manufacturer."

Then the Project Officer (P.O.) of the I.D.C. on November 22, 1972 advised the Permanent Secretary (P.S.) of the Ministry of Trade, Industry and Commerce (M.T.I.C.) to declare the products i.e. shrimp and fish food, fish and bone meal, and salted fish, as approved products for the purpose of the Industrial Incentives Act, 1963, and that the project I.S.F.L. as an approved project under the said Act. However, it was found difficult to qualify the production processes of the project as "manufacture"; a final decision in this regard rested with the Attorney General's Department. However, in making the recommendation, the I.D.C. analyzed the various manufacturing processes in which the project was engaged:

- shrimp would be washed, chemically treated, graded, deveined and packaged in preparation for freezing;

- fish and offal would be ground, pressure cooked and dehydrated for the manufacture of fish meal; and

- fish would be cleaned, treated, cured and salted for the manufacture of salted fish.



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In addition, a Bridgetown-based chartered accounting firm made financial projections for the I.S.F.L. Financial projections were made for operations accounts, voyages, revenue, vessel acquisition, lease charges, fuel and lubrication oil, fishing gear, repairs reserve and crew settlement, vessel insurance, technical salaries and wage, fishing rights, utilities, clothing consumables, anti-bacteria compound and cleaner, labour and technical salaries, trucking and plant repairs, managerial and clerical salaries, management fee, warehouse and office rental, utilities and professional services. The accounting firm also prepared forecasts of estimated operating revenues and expenditures for each of the first three years of operation of the I.S.F.L., together with a cash flow statement for the first year only.

4. Approval: Every project proposed needs to be approved by the competent authority(ies) before it can be implemented. Approval may have to be obtained from several agencies, such as an executive department, a planning agency, budget authorities, the cabinet, and/or legislature. Approach may have to be obtained for different phases of a project in connection with different overall processes of administration. Also, the legal, financial, technical and administrative aspects of a project may have to be approved. As development projects frequently involve investment of capital, allocation of foreign exchange and use of scarce resources, organizations concerned with these questions also have to give their approval.

In a memorandum dated September 29, 1972 to the M.D. of the project, the G.M., B.M.C. sought approval of the Cabinet before drawing up and signing the formal contract of the I.S.F.L. However, the CM. did not foresee any major obstacle in this regard.

The Incentives Committee at its meeting held on January 16, 1973 reported that the Attorney General of Barbados had ruled that the operations of the project I.S.F.L. would qualify as "manufacture."

The P.S., M.T.I.C. informed the G.M., I.D.C. on February 10, 1973 that the Ministry had by Order entitled "The Industrial Incentives (Approved Products) (Packaged Shrimps and Fish; Fish and Bone Meal; and Salted Fish) Order, 1973 declared Packaged Shrimps and Fish, Fish and Bone Meal, and Salted Fish approved products. The Order was published in the Barbados Official Gazette (Government of Barbados, Official Gazette, January 1, S.I. 1973 No. 11, Bridgetown).

The P.S., M.T.I.C. informed the Secretary, I.S.F.L. on April 17, 1973 that the Ministry had by Order entitled "Declaration of Approved Enterprise (International Sea Foods Limited) Order, 1973 declared the I.S.F.L. an approved enterprise under the Industrial Incentives Act, 1973 in respect of the manufacture of the products (shrimp and fish food, fish and bone meal, and salted fish) and with 3 production date of March 1, 1973. The Order was published in the Official Gazette (Government of Barbados, Official Gazette, April 2, 1973, S.I. 1973 No. 46).

5. Implementation: Implementation of a development project involves developing a detailed plan of organization and administration, including scheduling, budgeting, staffing, continuous evaluation, reporting, planning for contingencies, and the final transaction stage. Most of the problems encountered in the implementation of a project can be frequently traced back to the loopholes of these initial phases. The investigation of delays



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in a number of cases has consistently pointed to the lack of a detailed and realistic breakdown of the activities needed to implement the project, the assignment of realistic lead time, and the identification of the critical path involved in implementing the projects. The developing world, for instance, is only very recently stressing critical time and float time in its development projects.

Implementative analysis is the blueprint for the management of a project. It involves breaking up the project in terms of activities and functions to be performed, studying the interrelationships among them, bringing out the causality of each activity and func- tion, and fixing a time-schedule for each, to complete the project by the target date.

The I.S.F.L. was incorporated under the Companies Act, 1910 as a limited company on August 11, 1972 by the Registrar of Companies of the Government of Barbados with its main office in Bridgetown. The project had placed orders for the first 10 trawlers which were due to arrive from January through July, 1973. Arrangements were made with a Florida-based company to sign eleven more contracts so as to obtain trawlers. Time period for delivery of the trawlers was fixed from August through December, 1973. Other related decisions on financial management regarding the project were reached too.

The President of the Florida-based company informed the M.D., I.S.F.L. on August 16, 1972 of quotation and contracts of the fibreglass trawlers. The Vice-President for Sales of the company thanked the M.D., I.S.F.L. on August 24, 1972 for the transfer in the amount of U.S. $20,000 representing down payments on 8 trawlers. The Vice- President made request to sign new contracts for additional 10 trawlers and a deposit of U.S. $27,500.

On September 11 and 15, 1972 notices on the Industrial Incentives Act, 1963 were published in the Advocate News. The P.O., I.D.C. sent publication material concerning the project on October 9, 1972 to the Advertisement Manager of the Bridgetown-based Advocate News for publication on October 1 1 and 15, 1972. The P.O. also placed a notice on October 9, 1972 in the Official Gazette for publication on October 12, 1972. The P.O. mailed copies of letters and advertisements sent to the Advocate News and Official Gazette to the P.S., M.T.I.C.

The I.S.F.L. made intense negotiation with the Governments of Barbados and Brazil. The project management was acutely aware of the problems and predicaments faced by its two predecessors, especially in terms of fishing rights on international water. As a consequence of hard negotiations, the project was able to secure a government-to-government permit, and then the I.S.F.L. could fish near the Brazilian waters with the permit. This was a remarkable implementative success.

It needs to be mentioned, however, that the I.S.F.L. did not adapt such techinques as CPA or PERT during the implementative phase.

6. Reporting and Feedback: Reporting and feedback are integral phases of a development project. Feedback is required to ensure corrective action in the process of implementation. Flow of communications throughout the organization provides the basis for management decisions and operational activities. Reports are needed to enforce accountability of different levels for both assets and performance. An effective reporting system



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includes the following: it generates information that is available in time and is designed to be readily usable for decision-making; it establishes both financial and performance accountability; it provides each level of authority with the information it needs; and it facilitates multipurpose use.

In a memorandum dated 23rd September, 1972, the G.M., B.M.C. furnished to the P.S., M.T.I.C. data regarding authorized share capital of the project, working capital, and financial background of project initiators.

The G.M., B.M.C. in a memorandum dated September 29, 1972 informed the I.S.F.L. of the recommendations made by the B.M.C. Board. An agreement was reached to the effect that the B.M.C, would pay $25,000 for 10% of the equity of the I.S.F.L., and that the 10% which was allocated to government by the I.S.F.L. would be vested in the B.M.C.

The P.O., I.D.C. on October 11, 1972 solicited from the project-financing bank data on the financial ability of the major director of the project. On October 19, 1972, the manager of the bank certified the financial standing of the director and reported on his business involvement and interest in other sectors of the economy and well- established contacts and relations with executives of several business firms. The bank further advised that the credit facilities to the I.S.F.L. had already been approved by the head office of the bank for the financing of 21 new refrigerated shrimp trawlers over a 5-year period.

The P.O., I.D.C. on October 27, 1972 intimated to the P.S., M.T.I.C. that the M.D., I.S.F.L. had submitted an application for approved enterprise status under the Industrial Incentives Act, 1963. The P.O. asked if the Ministry would confirm government's inten- tion to participate in the project and also what form of participation it might be.

The G.M., B.M.C. informed the I.D.C. on January 22, 1973 that the Attorney General had ruled that the process of products, viz.v shrimp and fish food, fish and bone meal, and salted fish had qualified as manufactured under the Industrial Incentives Act, 1963.

The P.S., M.T.I.C. in a memorandum to the I.S.F.L. on 21st February, 1973 acknow- ledged receipt of a copy of the Certificate of Incorporation of the project. The P.S. solicited information on the likelihood of the new production data.

The Secretary of the I.S.F.L. informed the P.S., M.T.I.C. on February 26, 1973 that the new production date of the project was scheduled for March 1, 1973.

The I.S.F.L. requested on January 22, 1974 the P.S., M.T.I.C. to consider for changing the official production- date of the project to July 1, 1973. Approval for making the change was sought at the earliest.

The Incentives Committee was informed of the project's request for a change in production date from March 1, 1973 to July 1, 1973. The Committee complied with the request (Incentives Committee Meeting Minutes, 1974).

The I.S.F.L. requested the I.D.C. for a change of its production date from March 1, 1973 to July 1, 1973 (I.D.C. Meeting Minutes, 1974).

The P.O. advised the M.T.I.C. on May 14, 1974 to amend S.I. 1973 No. 46 by which the I.S.F.L. was granted approved status in order to reflect a new production date of July 1, 1973. The Secretary of the I.S.F.L. asked the P.S., M.T.I.C. on May 20, 1974 to



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expedite the decision on request for changing the official production date from March 1, 1973 to July 1,1973.

The P.S., M.T.I.C. on 20th June, 1974 informed the Secretary, I.S.F.L., G.M., I.D.C., Comptroller of Customs, and Commissioner of Inland Revenue that the M.T.I.C. had amended S.I. 1973 No. 46 thereby reflecting a change in the project's production date to July 1 , 1973. A copy of the Amendment Order published in the Official Gazette dated 3rd June, 1974 as S.I. 1974 No. 139 was enclosed for recording, reporting and feedback purposes.

7. Transition to Normal Administration: Certain projects, mostly in the industrial and resources development field, especially those taking the form of public enterprises, may retain their status as separate organizations. For others, once a project has been completed, it has to be integrated into the ordinary administrative system. In both cases the transition from project-making stage to that of normal operation entails significant modifications and calls for special consideration. Yet advance arrangements for a smooth changeover are frequently neglected in practice. The transition cannot take place spontaneously and has to be planned in advance and systematically. The transition phase involves organizational and procedural modification, reallocation of personnel, disposal of surplus assets, design- ing and installation of operating systems, provision of maintenance services, and removal of operational retardants and blockages.

The I.S.F.L. is a development project, in the field of physical resources development. But with the completion of the project, it had neither structurally taken the form of public development corporation nor had it been integrated into the normal administrative system. Now it is a project in the joint sector where management is strictly non-governmental, and the initiative, financing and planning of the project had come from entrepreneurs, but the government had participated in the project through the I.D.C. and B.M.C. as a sponsor and facilitator. Hence, the need to make a smooth changeover from the project status to routine administration did not arise in the case of the I.S.F.L. except for that with the completion of the project, the project executives became more involved in routine and managerial aspects of operation rather than in its development aspects.

8. Evaluation of Results: Evaluation of results achieved in a project is required in order to benefit fully from the experience. For instance, empirical researchers in certain nations have revealed a uniform pattern of overestimation and underestimation in post- implementation costs and benefits, as compared with the pre-implementation estimates. Research findings indicate a tendency to overestimate the contribution to export proceeds and the saving attendant upon import substitution, tendency to underestimate the foreign exchange requirements, and tendency to underestimate indirect import requirements (United Nations, 1971). In terms of evaluation of results, overestimation - underestimation need to be well adjusted. These findings need to be evaluated properly in course of future project planning. Such an evaluation of project-making experience is important for many developing nations.

With the completion of the project, the I.S.F.L. made an employment breakdown, which is as follows:



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Stores and handling (pierhead) 50 persons Ship crew 80 persons Refrigeration plant 20 persons Washing and sorting equipment 25 persons Cleaning and packing 25 persons

Total 200 persons

The number of persons employed in washing, sorting, cleaning and packaging increases to 150 at peak production, making a normal labour force of 300 persons.

The M.D. of the I.S.F.L. intimated to the G.M., I.D.C. on April 25, 1974 that the first full year of operations had concluded. The Annual Report of the I.S.F.L. (Annual Report, 1973) mentioned briefly the problems and difficulties encountered during the first year of operation. The Financial Statements of the project for the year ending on 31st December, 1973 pointed out the financial aspects of the project. The Report stated that for the period 1972-73, the net income amount was Bds. $279,519. The project had experienced some delay in the deliveries of the trawlers and this obviously had an adverse effect on the project's revenue. The I.S.F.L. was a major user of fuel and during the second half of 1973, it bore the effect of a price increase of approximately 200% (Annual Report, 1973). The Annual Report produced balance sheet, statement of income and retained earnings, source and use of funds, and notes to financial statements.

At present, the project's operations are restricted because government has only manag- ed to negotiate 10 licences to operate in Brazilian waters whereas the project has 22 boats.

There appears to be considerable room for improvement in the efficiency at the processing plant of the I.S.F.L. It appears as if the employees were operating without proper direction and guidance.

Administrative Aspects Of A Development Project

Administrative aspects of the I.S.F.L. are dispersed throughout the eight phases, i.e. from conception through evaluation of results. At the conception stage, development- administrative orientation became manifest when the entrepreneurs in collaboration with the I.D.C. and B.M.C, initiated to fill up the vacuum in large-scale, commercial, and mechanized fishing industry and attempted to manipulate the island's given resources to contribute to the economy of the nation. At the formulation stage, administration embraced such aspects of the project as top management composition, market survey, investment data-preparation, and production data-preparation. At the phase of analysis and evaluation, administration encompassed identifying the proposed project's benefit areas, analyzing the financing of the undertaking, and ascertaining the production processes of the project. At the approval phase, the I.S.F.L. had to secure the consent of the nation's top policy-makers and decision-makers and obtain proper legislative sanction.

At the implementative level, formal registration of the project, signing contracts, placing orders for trawlers and equipments, transacting finances, maintaining administrative communication, and arranging government-to-government negotiation took place.



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Reporting and feedback were administratively concerned with such things as furnishing various financial data, credit facilities, legal decision-making, and decision-making on production date. When the project was completed, regular and routine administrative operation became dominant. Finally, when the project's evaluative phase was reached, various administrative functions were carried out, namely, financial management in terms of net income, expected income loss, price increase, balance sheet, etc., appraisal of operational difficulties, and employment breakdown.

The administrative aspects can be visually represented. First, the work breakdown structure of the project, Figure 2.

The project has been segmented into various components of men, materials and resources. Such a structural segmentation helps visualize and monitor a development project better.

Second, from our analysis of the phases above, we can draw a work-flow chart, Figure 3.

The chart exhibits various sequences or flow of work between the initial work and terminal work. These flows vary in total time. Such a chart helps better to understand the dynamics of a development project planning and executing.

Now, a few more administrative aspects of the I.S.F.L. The top management of the project looks like this: 1 chairman/managing director, 1 general manager, 1 seafood consultant, 1 chief plant engineer, 1 dock manager, 1 plant manager, 1 marine engineer, and 1 refrigerator/electrical engineer. A senior official of the I.S.F.L. (Interview, 1974) regards the accounts officer, radio technicians, and trawler captains as important part of the top management for the continued success of the project. Personnel breakdown and salary description of the project are as follows in Table II.

The table does not provide for directors' fees and remuneration. Projected figures for year 3 have been computed on the same basis as year 1 and need to be considerably higher due to inflation. The latest employment breakdown is as follows:

Plant 130 persons Boats 80 persons Office, maintenance and casual 25 persons

TOTAL 235 persons

Source: Interview (1974)

The training of personnel takes place mostly at the level of in-service training. The personnel records of the captains and crew have been kept up-to-date. Some of the workers are very experienced in their line of work. The top management carefully recruited some of the project personnel. The management makes sure that the employees work hard and sincerely for the project. Most of the captains and crews are currently Barbad- ians. Many of them have worked before in the shrimping industry.



87

TABLE 2

PERSONNEL AND SALARY BREAKDOWN

(a) (b) Initially or at present At end of development stages

Year 1 Year 3 Personnel No. Annual salaries/ No. Annual salaries/

wages wages

Managerial 5 82,000 5 82,000 and

Technical 10 12

Skilled 25 ) 25 )

Semi-skilled o .i««,, 63 ¿i i $1,225,000 63 „ ) $1,225,000 Semi-skilled o .i««,, 63 ¿i

) 63 „

)

Unskilled 14 33,000 21 58,000

Clerical 4 51,600 4 51,000 and others * 10,000 0 31,000

TOTAL 121 $1,401,000 130 $1,447,000

* 170 Man Weeks 0 520 Man Weeks Casual Labour Casual Labour for Plant for Plant



88

Barbados being a small country, it is quite difficult for the I.S.F.L. to recruit technical and managerial personnel. Technical people are especially hard to come by and they are normally sent to the United States for training for three weeks. When an employ- ee is selected for overseas training, such factors as educational background, substantive knowledge and job experience in the related field are looked into. The I.S.F.L. also runs an internship programme which is for the duration of one year. The management assures the internees of providing jobs in the project at the end of the internship.

Each trawler team needs to complete a regular quota of its catch. If a team makes more than regular quota, it is given a bonus. If this continues, yearly bonuses are given by the management. The employees have been given three increases within the last two years. The project had started relatively smaller and modest, and the employees feel that they would grow with the project.

Captains recruit their own crew. The captains pay their crew on a share basis. This facilitates accounting and encourages increased responsibility. In terms of delegation of responsibility, the dock manager, for instance, delegates responsibility to the workers below him.

A senior official of the I.S.F.L. (Interview, 1974) observed that administration of a development project like shrimping and fishing was different from that of a regular government agency. Administrative tasks would have been much more systematic and processual, he stated, if the government had provided more efficiently for these pre- requisites: guaranteeing the loan,- favourable legislation, duty-free import of necessary equipment, tax incentives (pioneer status), negotiation with overseas governments for permits for fishing rights, etc.

Finally, we recapitulate the administrative steps of the I.S.F.L. - conceiving and starting the project; - approaching the bank for financing; - approaching the government for sponsoring, legislative sanction, cabinet

approval, etc.; - consulting with seafood consultant for technical advice and feasibility; - consulting with accountants and auditors on financing feasibility study on

the project; - getting the trawlers from the U.S.-based company; and - marketing of the shrimp through letters of credit and National Shrimp

Processors.

CONCLUSION

We conclude that the administration of development is in more ways than one the administration of development programmes and projects in the developing world. In fact, our understanding of development administration is far more thorough and mature when we come to grasp the dynamics of a development project. We further observe that improvement in project administration not only reinforces development but also makes a significant contribution to the process of national development.

JAMAL KHAN



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REFERENCES

1. Government of Barbados (1973) Official Gazette, S.I. 1973 No. 11, January 1. Bridgetown: Government Printing Office.

2. (1973) Official Gazette, S.I. 1973 No. 46, April 2. Bridgetown: Government Printing Office.

3. Incentives Committee (1974) Meeting Minutes. Bridgetown. 4. Industrial Development Corporation (1972) I.D.C. Files. Bridgetown. 5. (1974) Meeting Minutes. Bridgetown. 6. International Sea Foods Limited (1973) Annual Report 1973. Bridgetown. 7. Interview (1974) with a Senior Official of the I.S.F.L. Bridgetown.

8. Riggs, Fred W. (ed.) (1971) Frontiers of Development Administration. Durham, N.C.: Duke University Press.

9. United Nations (1969) Administrative Aspects of Planning. New York: United Nations.

10. (1971) Administration of Development Programmes and Projects: Some Major Issues. New York: United Nations.



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