What is the significance of social cost-benefit analysis in appraisal of public projects in developing countries?

Social cost-benefit analysis (SCBA) is crucial for appraising public projects in developing countries as it helps evaluate the overall economic, social, and environmental impacts of projects beyond mere financial returns. By incorporating non-market values, such as improved health or environmental sustainability, SCBA ensures that projects align with broader societal goals and priorities. This approach aids policymakers in making informed decisions that maximize social welfare and resource allocation, ultimately fostering sustainable development. Additionally, it enhances transparency and accountability in the use of public funds.