4 MULTIPLE PURPOSE RIVER DEVELOPMENT 



There is then a need to spell out quite clearly, as a separate 

 question, the efficiency considerations involved in the development 

 of river basins. In attempting this, we recognize that wherever 

 there is a possibility of governmental intervention to achieve 

 efficiency objectives, or failure to exercise governmental preroga- 

 tives in achieving such objectives,, there will also be different 

 income distributive consequences, depending upon which course of 

 action has been adopted. Economic analysis can describe the prob- 

 able income redistributive consequences of each alternative, but it 

 is not equipped to demonstrate objectively which alternative is 

 preferable. Rather, the task of economic analysis is to demonstrate 

 which course of action is the more efficient or economic. These are 

 the two responsibilities which we are willing to assume in this 

 study of multiple purpose river development. 



To restate: We will attempt, first, to demonstrate which among 

 several alternatives for development, in any particular case, is the 

 more efficient, that is, which will contribute the most to national 

 income and product. We then will compare the income redistribu- 

 tive consequences of alternatives in a particular situation. In 

 neither instance will we be equipped, as economic analysts, to judge 

 which is the "best" alternative from a "public" standpoint. While 

 our discipline equips us for expertise in tne analysis of economic 

 problems, it does not provide us with any expertise in making 

 value judgments or prescribing ethical values. 



Characteristics of River Basin Dexielopment Programs 



The development of water resources has involved a combination 

 of efforts by both public and private enterprise. It is thus tradi- 

 tionally distinguished from the bulk of economic activities in a 

 free enterprise economy. An understanding of the reasons for the 

 mixture of private and public activity in the development of our 

 rivers is a necessary forerunner to a critical examination of the 

 ways by which such development can be undertaken. A variety of 

 approaches has been used and, more recently, proposed in response 

 to different and changing conditions. And in understanding what 

 combination of circimistances characterize river basin development, 

 a more dispassionate attitude, or even a more inventive approach, 

 may commend itself for meeting the essential problems involved. 



