Executive Summary
The LIFT Program is part of the social welfare initiatives in Wales. Poverty alleviation is a problem that affects most governments. In this regard, the Welsh government has prioritized a policy meant to tackle poverty in the region. Towards this end, the report outlined the specifics around the LIFT program. The report outlined the locations in which the program has been implemented in Wales. The information contained in this report will help develop a model for a similar initiative.
The report was developed based on the blueprint of the Welsh government which addresses three main points. The prevention of poverty, creation of employment, and reducing the effects that result from poverty are the three main objectives of the Welsh Government. Poverty is common in households where individuals are unemployed. Estimates from various government agencies find that Wales has the highest unemployment rates in the United Kingdom. The report evaluates how the LIFT program has enabled Wales to tackle the poverty levels.
The report is divided into five sections. The first section evaluates the client’s claim. In this section, the specific objectives of the report are illustrated. The second section outlines the supporting theory. Herein, the report expounds on the objectives mentioned in the client claim. A Gantt chart is also included in this report. The fourth section evaluates the contribution made by the relevant stakeholders. Finally, a reflection of the program is illustrated in the fifth section.
Client Aim and Objectives
Client Aim
Documents from the local authority offices reveal that the LIFT is part of the social welfare initiatives undertaken by the Welsh Government. The undertaking is aimed at combating the high rates of poverty and unemployment in Wales. According to Asenova and Beck (2003, p. 195), the program is expected to provide training and employment opportunities to an estimated 5000 people by the end of 2017. The program is only restricted to homes where all members of the family are unemployed.
The individuals involved in the program are those who have been unemployed for more than six months. Unemployment in Wales also arises in cases where individuals do not have the necessary training (Baker & Owsen 2002, p. 783). Another factor that contributes to the high unemployment rates in Wales is the presence of vulnerable groups of people. Such groups face the greatest barriers to access to employment opportunities. For instance, young parents, the disabled, and those with a poor employment record find difficulties in securing employment. In this regard, individuals from households where such a phenomenon is common are unlikely to secure employment. The LIFT program was designed to address the group of people who face the greatest barriers to accessing employment opportunities.
The LIFT program is uniquely designed to provide the specifics of developing and replicating a similar concept in a different locality. To this end, the report evaluates how the program was established and the impact so far. To this end, the evaluation examines the respective locations in which the LIFT program was initiated in Wales. Balmer (2008, p. 880) refers to the locations as the ‘cluster areas’. There are a total of nine cluster areas in Wales where the program was implemented. The following is an overview of the 9 Cluster areas
Cluster areas
The following areas are the regions in Wales where the LIFT program was carried out:
- Afan Cluster –Neath Port Talbot.
- Mon Cluster – Isle of Anglesey.
- Taf Cluster – Rhonnda Cynon Taf.
- Carmarthenshire Cluster – Carmarthenshire.
- Tredegar and Ebbw Fawr Clusters – Blaenau Gwent.
- Swansea North West Cluster – Swansea.
- Cardiff East Cluster – Cardiff.
- Caerphilly Basin Cluster – Caerphilly.
Under the LIFT program, the cluster areas are required to have ’employment brokers’ whose role will be the identification of the eligible individuals. According to Alvesson (2002, p. 34), the employment brokers are tasked with the responsibility of establishing the respective reasons as to why an individual is unemployed. Once the reasons for unemployment are established, the employment brokers are required to establish avenues through which such barriers can be overcome.
The lift model is applied, uniformly, across all the clusters mentioned above. Adler (2002, p. 56) posits that a simultaneous execution of the program’s objective is essential in evaluating the benefits of this system. In his regard, the concept allows participants to experience a rapid change in employment status. The program carries out an intensive support mechanism for all the households identified in the respective clusters.
Social development programs realize their objective once the relevant checks and balances are established. According to Ball, Healey, and Kulg (2000, p. 96), the brokers are required to interact with the individuals selected in this program up to such a time that employment is secured. To this end, the brokers will ensure that the training provides the unemployed individuals with the necessary skills for employment.
Each cluster area is designated as a unique intervention package. Barnado’s (2012, p. 44) points out that the Welsh government plays an integral role in the development of these packages by coming up with the appropriate training. The main areas of interest include health services and social care. To this end, the Welsh government through the employment brokers will ensure that the unemployed individuals meet the employment demands sought after by the government.
The benefits of the LIFT program are clear. However, there is a need to carry out a study to evaluate how the concept has performed in cluster areas. Bechet (2011, p. 209) recommends a similar study to ensure that positive results are obtained when the project is implemented elsewhere. To this end, the report aims to evaluate the project based on the following key aspects:
- The project’s ability to reduce unemployment
- The project’s ability to develop skills relevant to the employment market
- The evaluation of the project’s economic impact
- The benefits of the project concerning social welfare development.
8 Objectives
As previously stated, the current report seeks to evaluate how the LIFT program was established. To this end, the report evaluates the program’s impact in the cluster areas. Barnett (2007, p. 795), advocates for the development of specific objectives. Specific objectives will help to ensure that the evaluation, envisaged, covers multiple facets of the project. The necessary tools for that evaluation are illustrated in the following specific objectives.
Objective 1: Extent of unemployment
The only way in which the unemployment problem in the UK can be evaluated is through an analysis of the problem from a geographical perspective. In this regard, a stakeholder analysis is outlined. According to Bennett and Howlett (2004, p. 276), the stakeholders in the labor industry include the government, employers, and potential employees. To this end, the extent of unemployment is discussed from the perspective of the various stakeholders. The reasons for unemployment are outlined.
Objective 1 also evaluates the Wels employment market. According to Brewer, Browne, Joyce, and Sibieta (2010, p. 22), employment opportunities present themselves depending on the job demands in a given market. To this end, a market analysis outlines the job potentials in Wales. The extent of this analysis illustrates issues like employment demands and possible areas of growth. The analysis lays the foundation for the necessary tasks for the employment brokers.
Objective 2: Economic impact
Social welfare initiatives have a direct impact on the economy of a given area. The study by Chemla (2005, p. 376) evaluates the effects of unemployment on the economy. According to Carter (2006, p. 1145), rising cases of unemployment pose a threat to the growth of an economy. However, the activities envisioned in the LIFT program require budgetary allocations. To this end, an evaluation of the economic impact of this program will be crucial in establishing whether it can be replicated in other jurisdictions. In light of this, the economic impact is evaluated from the perspective of an Economic Cost-Benefit Analysis. An Input-output analysis will also help contribute to evaluating the economic impact of the LIFT program.
Objective 3: Employment opportunities in Wales
The LIFT program, as previously mentioned, is meant to solve the high unemployment rate in Wales. In this regard, the report will use the 3rd objective in outlining the various employment opportunities in Wales. For instance, the Welsh government intends to develop healthcare systems in the region. To this end, the role of employment brokers will be evaluated on how they succeed in meeting the employment demands sought after by the Welsh government.
The rationale for the Methodology
Reports and other research initiatives have certain expectations even as they formulate their specific objectives. Buysse and Verbeke (2003, p. 455) reiterate the need for specific objectives for such a report. Campbell, Moore, and Shrives (2006, p. 97) argue that multiple objectives help to address the problems in a comprehensive and timely manner. To this end, the report will rely on secondary data obtained from a desk search. The credibility of this report is supported by the fact that the sources used are those published from the year 2000.
Supporting Theory
Overview
The evaluation of a given project requires comparison with information from the existing literature on the subject. In light of this, the relevant academic concepts of poverty alleviation are discussed. Chatterjee and Bergh (2003, p. 88) argue that supporting theories help to develop an ideal model for a given project. In this regard, the shortcomings of the project are identified from opinions held by authorities in the field. This section of the report expounds on the objectives of the study outlined in the previous sections. The report adopts the A3 Map that has already been prepared.
Stakeholder and Market Analysis
Stakeholder analysis
The primary objective of reports of this nature is the identification of the stakeholders concerning a given problem. According to Chinyio and Akintoye (2008, p. 592), projects of this nature elicit various interests from the stakeholders identified. The nature of the project informs the interests of the stakeholders. At times, they are positive. However, in some cases, they are negative. Stakeholders determine the interest and expectation of a project. Considering the multiplicity of stakeholders it is impossible to meet all their demands. Consequently, reports of this nature are expected to develop models that provide a middle ground in which all the stakeholders’ interests are met.
As previously mentioned, the stakeholders of the unemployment and poverty matrix in Wales include employers, government authorities, and potential employees. The best avenue for analyzing the stakeholders is through evaluating the unemployment and poverty indices in the region. McCulloh (2006, p. 580) reiterates the sentiments that Wales has one of the highest rates of unemployment in the United Kingdom.
The unemployed
The economic downfall in Europe had a ripple effect on several countries like the United Kingdom. According to Harrison (2001, p. 17), unemployment figures in the UK stood at around 9% in the year 2009. The study by Foster (2003, p. 13) refers to the high unemployment figures in the UK and adds that Wales has the highest percentage of unemployed people per household. The number of unemployed people in Wales in the year 2010 stood at approximately 7% (Foster 2003, p. 55). Improvements in the economy have resulted in a corresponding decrease in the unemployment rates.
In Wales, there are several households where all the members are unemployed. Edmunds and Wollenberg (2001, p. 232) evaluated the poverty index in Wales. According to Edmunds and Wollenberg (2001, p. 232), households without a tangible source of income contribute towards the surging levels of poverty. Before the economic downturn of 2009, Wales recorded high employment figures in both permanent and temporary jobs. Besides, initiatives like the LIFT program have helped reduce the unemployment figures.
Unemployment in Wales is brought about by the lack of necessary skills among the eligible workforce. In this regard, Hambrick (2007, p. 1347) recommends the use of training initiatives by the government. Such a move helps to encourage a skill-based local economy. Skill development allows the unemployed to tackle the diverse demands of the job market. In this regard, the employment brokers in the cluster areas were tasked with the responsibility of ensuring that the unemployed populace receives the necessary skills for developing an effective workforce.
The Welsh government
Governments are custodians of people’s interests. In this regard, the unemployment crisis in Wales introduces the angle that the government should be perceived as the major stakeholder. According to Lee and Holoviak (2006, p. 806), job security is the prerogative of a given government. The government plays a crucial role in creating employment opportunities. In this regard, the government of Wales is required to come up with various programs that require the involvement of the citizens.
When it comes to tackling unemployment governments are required to come up with policies that will involve eligible workers to solve certain issues. For instance, the healthcare system in Wales is in a deplorable condition (Neil 2010, p. 282). To this end, the government can come up with new policies that will be used to create employment opportunities. At the same time, the policies will be used to provide solutions to government initiatives. Creating employment initiatives in the public sector require corresponding training to ensure that the programs are properly executed.
Based on the LIFT program, the employment brokers will train the population on the necessary healthcare management techniques. Dyer and Nobeoka (2000, p.2000, p. 346) point out that during an economic downturn, governments should come up with initiatives that will encourage jobs with skills that can easily be acquired.
Employers
The economy of Wales thrives due to the presence of different industries. Manufacturing and service industries are common in Wales. According to Slingsby (2004, p. 60), the employers in the region require employees with the relevant skillset. Unfortunately, the economic downturn led to a mass exodus from the cities in Wales. Most of the residents preferred to seek greener pastures elsewhere in the UK. In this regard, Wales requires a comprehensive labor audit to establish the job skills required to advance the economy.
Market analysis
Objective 1 sheds light on the size and dynamics of the Welsh job market. To this end, the potential employment market is outlined. Under such circumstances, Wu and Wu (2012, p. 3765) recommend the use of comprehensive market analysis. According to Wall (2007, p. 22), a market analysis outlines the geographical area covered by a given problem. The market analysis makes use of both bottom-up and top-down approaches.
The top-down market analysis is also referred to as the chain ratio method. According to Timmins (2007, p. 2), the top-down method evaluates the market from the holistic elements it contains. For instance, the evaluation of the Welsh market requires an estimation of the demographics in the area alongside indicators like disposable income. The efficacy of the top-down approach depends on the use of government and industry-based data. In this regard, the analysis is best carried out using desktop research, which applies secondary sources of information regarding the subject.
The bottom-up approach determines the size of a market based on the projections obtained from the individual clusters. In this regard, the LIFT program makes use of the Bottom-Up approach depending to obtain estimates on the unemployment figures in the 8 cluster areas outlined in this report. Even though it is a time-consuming endeavor; the bottom-up approach is much more accurate compared to the previous concept (United Nations 2009, p. 73). The bottom-up approach is particularly ideal in areas where the target group is scattered.
The bottom-up approach was critical in enhancing the Welsh government’s new policies on social work and healthcare. In the opinion of Fitch and Price (2002, p. 48), the bottom-up approach of market analysis requires the use of interviews and surveys. The raw data is crucial with regards to the determination of the actual size of a given geographical area. In this regard, the two approaches are essential since they cover almost all the desired areas of the study. The quality of such a study is improved when the two approaches are used.
Developing estimates of market size is not a simple affair. According to Arora and Puranik (2004, p. 94), the use of surveys in a market analysis poses a danger to the accuracy of the estimated size of the market. Surveys can bring about an overstatement of the figures. A study by Aaltonen, Kujala, and Oijala (2008, p. 510) found that unemployment issues are multifaceted. To this end, there emerges a difficulty in evaluating the market size given the highest levels of accuracy which are demanded.
The use of the two models is not unique. For instance, Aaltonen et al. (2008, p. 510) made use of a similar approach in their study. Aaltonen et al. (2008, p. 511) made use of the bottom-up approach in the assessment of the tourism market size in Thailand. The approach proved to be quite beneficial concerning the study. The bottom-up approach was able to establish the market size through the use of surveys with select focus groups.
The current report is cognizant of the element of time required to deliver the project. In this regard, the report proposes the use of a top-down approach. As previously mentioned, a top-down approach is faster than the other approach. To this effect, the secondary sources of data will play a huge role in helping the researcher evaluate the Wales market based on the selected approach.
Economic cost-benefit and input-output analyses
Economic cost-benefit analysis
The LIFT program is involved in the development of employment opportunities. To this effect, the economic impacts of the initiatives require a close evaluation of the cost-benefit analysis. According to Achterkamp and Vos (2008, p. 750), the evaluation of the economic impact of activity requires the stakeholders to carry out the relevant cost-benefit analysis. In this regard, an economic cost-benefit analysis of the LIFT program comes in handy.
As already mentioned in this report, the economic analysis makes use of both the cost-benefit and economic cost-benefit analyses. In the opinion of Achterkamp and Vos (2008, p. 750), the cost-benefit analysis is more generalist in its approach. The economic cost-benefit analysis is specific to the financial benefits associated with e given program. In this regard, the economic cost-benefit analysis is essential in establishing the fiscal attributes of the LIFT program concerning the Welsh community.
Of the two cost-benefit analyses, the economic one is found to be more effective. According to Bennett and Howlett (2004, p. 276), the economic cost-benefit analysis brings into focus elements like the Net Present Value (NPV). In the opinion of Achterkamp and Vos (2008, p. 750), the NPV is an important indicator in such cases. The NPV helps to evaluate the financial feasibility of a given project. To this effect, the respective initiatives covered by the LIFT Program are evaluated based on the monetary value to the Welsh economy for the overall cost of the project.
The application of the NPV is ill-advised, especially in cases where the feasibility of a project s to be identified. To this end, Acquire, Gand, and Szpirglas (2008, p. 101) recommend the use of a sensitivity analysis. According to Acquire et al. (2008, p. 101), a sensitivity analysis evaluates how a given project can cope with the constant changes to the environment. Adler (2002, p. 33) argues that sensitivity analysis is important in identifying the potential areas that would bring about financial risks.
The proposed study makes use of economic cost-benefit analysis since it has succeeded in various areas. For instance, a study by Acquire et al. (2008, p. 101) made use of the economic cost-benefit analysis to evaluate the benefits of community centers on the local economy of Australia. The study was able to identify the fiscal value of the project. The economic cost-benefit analysis does not make use of forecasts. The technique relies on accurate financial data.
As previously mentioned, economic cost-benefit analysis requires the use of accurate figures. To this end, the secondary data used for the envisioned analysis must reflect the spirit of credibility sought after in such a process. A desk-based research plan will come in handy for the economic analysis of the project.
The economic analysis proposed has its own set of flaws. The study carried out by Adler (2002, p. 33) points out that the economic cost-benefit analysis makes it difficult to evaluate elements like the income and expenses concerning the normal operations of businesses in an area. Economic indicators like employment and job growth are difficult to measure accurately. Employment is an important economic indicator. To this end, the employment figures will only be an estimate. In this regard, the figures meant to illustrate the employment positions are outlined but their accuracy cannot be guaranteed.
There is enough criticism for the use of economic cost-benefit analysis. According to Adler (2002, p. 33), such an analysis is unable to cater for the equal distribution of the economic benefits of a project to a given area. The implication is that a project might have some beneficial components to an economy. However, when thoroughly evaluated the project might not satisfy all the geographical areas represented in the project.
Input-Output (IO) Analysis
Studies carried out to evaluate the economic impact of a project relies on the IO analysis. The economic impact of a project determines its viability in the future. According to Adler (2002, p. 33), IO analysis is required to evaluate the interdependencies between different areas of a given area. For the current project, the IO helps to evaluate the impact of new job opportunities in a given area. IO analysis is used to put “hard numbers” concerning a given project.
It is noted that IO analyses are used to explain how the outputs of one industry sector can affect the inputs of another sector. Besides, IO analysis relies on “multipliers” which are used to provide a rough estimate of how money flows from one sector to another, adding to the transparency of the process.
As already mentioned, the economy of Wales thrives due to the presence of different industries. The IO analysis evaluates how the industries relate to one another. According to Chemla (2005, p. 376), the employers in the region require employees with the relevant skillset. Unfortunately, the economic downturn led to a mass exodus from the cities in Wales. Most of the residents preferred to seek greener pastures elsewhere in the UK. In this regard, Wales requires a comprehensive labor audit to establish the job skills required to advance the economy.
Gantt Chart
Gant Chart Methodology
Gantt charts are the most commonly used project management tools. According to Chemla (2005, p. 376), project managers prefer the use of Gantt Charts since they outline how project activities flow over a given period. The current project bid makes use of the Gantt chart methodology to illustrate the range of activities required for the study. According to Dyer and Nobeoka (2000, p. 346), Gantt charts are used to outline how the activities, mentioned, are interconnected and flow together over the period identified. Gant charts allow a project to focus on its core objectives in conjunction with their dependencies with one another. The chart brings out a justification for the time allocated to each activity and objective.
Information from the Gantt chart outlines how the activities of the LIFT program are outlined in different sections. According to Chemla (2005, p. 376), the information contained in a Gantt Chart is essential in addressing the objectives set by a client. Dyer and Nobeoka (2000, p. 346) recommend the use of this method since it outlines the necessary tool to use alongside a certain objective. The Gantt methodology is easy to use and is ideal when it comes to the evaluation of the progress of a given project.
The Gantt chart is structured in a way that the specific objectives of a project are clearly outlined. For instance, the Gantt chart illustrated above outlines all the activities required of a project. The activities are clearly outlined to ensure that they are addressed sequentially. Dyer and Nobeoka (2000, p. 346) point out that the activities set out in a Gantt chart can be viewed as the milestones of a given project. For instance, after the first meeting with a client, the primary objective is considered as completed. Consequently, a second meeting will take place to ensure that the client gets the necessary feedback. The second objective can then be attended to. The sequential nature of a Gantt chart guarantees client satisfaction. The chart also encourages constant communication between the analyst and the client right until such a time that the project is completed.
The objectives identified in a Gantt chart are realized based on a set of activities. According to Chemla (2005, p. 377), the objectives have several dependent activities. In this regard, the specific objectives are realized once the set of activities identified are addressed. Gantt methodology requires an objective to have several activities to ensure that the process is less fluid. The rigidity sought after ensures that the project is completed promptly. The rigidity is crucial in meeting the required deadlines.
The structure of a Gantt chart is reinforced further through the careful placement of dependency lines throughout the timeline. The dependency lines are essential in highlighting the timelines for each project. According to Dyer and Nobeoka (2000, p. 346), clear demarcation of the timelines helps to ensure that a project is completed in the quickest time possible.
From the Gantt chart, it is clear that the entire project is estimated to take 6 months. In this regard, all the activities are apportioned the requisite timelines (Dyer and Nobeoka 2000, p. 346). The activities are scheduled in such a way that there is time left to give feedback to the stakeholders. Extensive research is necessary to ensure that the activities outlined are met within the timelines set out.
Contribution
Overview
The Frameworks and expository instruments exhibited above are taking into account the most noteworthy quality results and giving the best esteem to the customer. The Gantt diagram above demonstrates the pertinent exercises that must be contended to fulfill the conditions for the picked models and structures for this study. In this regard, the models are adapted from an examination of the key writing and contextual analyses. This segment will guarantee that the method of reasoning behind this proposed structure is perfect for boosting this present venture’s prosperity alongside partner desires. Like the supporting hypothesis area, it’s simpler to clear up the basis for utilizing these particular devices and models by analyzing them objectively by the target.
Stakeholder Analysis
The evaluation of the LIFT program is incomplete without referring to the stakeholders. According to Harrison (2001, p. 14), the acknowledgment of stakeholders is crucial especially when it comes to evaluating the players in a given industry. Hambrick (2007, p. 1347) argues that stakeholder analysis helps to establish the necessary individuals who can be used to provide the necessary raw data for a study. According to Harrison (2001, p. 14), the first phase of any exploration task entails distinguishing and mapping out the various aspects of relevant stakeholders. A stakeholder analysis allows for the evaluation of the required elements of a given project.
Stakeholder analysis requires some element of research. In this regard, face-to-face meetings are essential when it comes to evaluating specific stakeholders. For instance, the primary stakeholders in the LIFT program are unemployed. As previously mentioned, the high rate of unemployment was brought about by the economic downfall in Europe. Chemla (2005, p. 371) points out that unemployment figures in the UK stood at around 9% in the year 2009. In this regard, the study by Neil (2010, p. 283) was essential in evaluating the high unemployment figures in the UK. Neil (2010, p. 283) adds that Wales has the highest percentage of unemployed people per household. To this end, stakeholder analysis requires input from existing studies around the subject. An evaluation of the stakeholder analysis has brought about Improvements since the necessary measures have been put in place to bring about a lasting solution to the problem
As previously mentioned, Wales is characterized by a high number of households where all the members are unemployed. An evaluation of the unemployment figures brings about issues to do with poverty levels. According to Neil (2010, p. 283), households without a tangible source of income contribute towards the surging levels of poverty. Before the economic downturn of 2009, Wales recorded high employment figures in both permanent and temporary jobs. However, initiatives like the LIFT program have helped reduce the unemployment figures.
Unemployment in Wales is brought about by the lack of necessary skills among the eligible workforce. In this regard, training initiatives are essential in developing a skill-based economy. Skill development allows the unemployed to tackle the diverse demands of the job market. Under the LIFT program, the employment brokers in the cluster areas are tasked with the responsibility of ensuring that the unemployed populace receives the necessary skills for developing an effective workforce.
Market Analysis
As previously mentioned there are two main practices involved in the market analysis. Studies of this nature make use of the Top-Down and Bottom-Up Approaches. A study to evaluate the LIFT program would best be realized through such an approach. According to (Slingsby 2004, p. 59), the bottom-up and top-down have been employed in initiatives of a similar nature to this project. Scholars advocate for the combined use of both approaches. However, the current report bid is constricted with time and will evaluate the market using the top-down analysis.
As previously mentioned, the Top-down market analysis is also referred to as the chain ratio method. In the opinion of Neil (2010, p. 283), the top-down method evaluates the market based on its constituent elements. In this regard, the evaluation of the Welsh market requires information like the demographics and potential household incomes. To this end, an extensive literature review will come in handy. The efficacy of the Top-down approach depends on the use of credible secondary data. In this regard, the analysis is best carried out courtesy of desktop research of secondary sources that describe the existing information on the LIFT program.
The ideal market analysis will take into account the following information:
- the total population of Wales
- Number of homes where all members are unemployed
- Unemployment records from the government
- number of jobs available
- Potential income to be generated
Cost-Benefit Analysis
The objective of the proposed study is the evaluation of the effectiveness of the LIFT program in Wales. The cost benefit analysis is in line with the demands sought after in the client’s claim. The financial and monetary impact of the LIFT program allows the stakeholders to develop the necessary understanding of the relevance of this project. As previously mentioned, the economic cost-based analysis would be ideal for the proposed study (Neil 2010, p. 283).
The economic cost-based analysis allows analysts to evaluate the actual value of a project about the economy of a given area. As previously mentioned the economic cost-benefit analysis brings into focus elements like the Net Present Value (NPV). According to Neil (2010, p. 283), NPV is an important indicator in such cases. The NPV helps to evaluate the financial feasibility of a given project. To this effect, the respective initiatives covered by the LIFT program are evaluated based on the monetary value to the Welsh economy for the overall cost of the project.
The application of the NPV is ill-advised, especially in cases where the feasibility of a project s to be identified. Lee and Holoviak (2006, p. 807) recommend the use of a sensitivity analysis. According to Timmins (2007, p. 2), a sensitivity analysis evaluates how a given project can cope with the constant changes to the environment. Timmins (2007, p. 2) argues that sensitivity analysis is important in identifying the potential areas that would bring about financial risks. For instance, the use of employment brokers is on a high rise if the persons being trained do not develop the need for employment.
An accurate analysis of the NVP requires extensive research. In this regard, the literature review becomes necessary. A comprehensive literature review allows for the identification of the weak links in the project. According to Timmins (2007, p. 2), sensitivity analyses are one avenue through which a project can be improved upon. Once the weak links are identified, information from the literature review allows the identification of solutions that can help improve the weak areas of a project.
Input-Output Analysis
The economic impact of a project is best realized through the Input-Output analysis. The analysis supplements the efforts made by the market analysis. According to (Wall 2007, p. 23), there are certain aspects of a project that cannot be addressed by the economic cost-benefit analysis. In this regard, the input-output analysis helps to fill in the missing links. For instance, the study by Wall (2007, p. 23) used this type of analysis to evaluate the relationship between the various industries in an economy.
The input-output analysis is mostly used to evaluate the cash flow concerning a given project. According to Wall (2007, p. 23), such an analysis outlines the cash flow of a given project and how it relates to the local economy. In light of this, the input-output analysis will be crucial in evaluating how the budgetary allocations of a project are realizing the set-out objectives.
Reflection
Poverty alleviation is one of the millennium development goals set out by the United Nation. In this regard, the Welsh government needs to be commended for the role played towards alleviating poverty. The operating principle of the LIFT program was to ensure that all the households in Wales are guaranteed a solution to the harsh economic situation due to unemployment (McCulloh 2006, p. 580). However, an extensive study is called to evaluate the performance of this project. The study is meant to outline whether the LIFT program is effective.
As previously mentioned the blueprint of the Welsh government addresses three main points. The prevention of poverty, creation of employment, and reducing the effects that result from poverty are the three main objectives of the Welsh Government. In the opinion of McCulloh (2006, p. 580), poverty is common in households where individuals are unemployed. Estimates from various government agencies find that Wales has the highest unemployment rates in the United Kingdom.
The LIFT program intends to reduce the effects of poverty by developing employment opportunities. In light of this, the proposed study is required to evaluate the fiscal and social benefits of this program. McCulloh (2006, p. 580) points out that such programs need to be replicated in other settings. Such a move helps to develop stronger avenues of resolving social welfare-related problems.
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Appendix 1: A3 Map
