Linda Fa’u (S11125404)
Reality Check Writing #4
A Social Cost Benefit Analysis (SCBA) is the process for evaluating the merits of a project that
has a broad impact on the society, and as such, is usually carried out by the government. Social
cost benefit analysis favors and cater for the needs of every member of society by incorporating
all the necessary control over market failures. In terms of a project, this approach is the very
essence for economic and social viability especially for public expenditure project. As such, social
cost benefit analysis is the best tool to be used if the Fiji government will extend its Nausori
International Airport. In this writing, I will discuss threefold reasons why social cost benefit
analysis is a vital tool for the feasible of this project in terms of benefits redistribution, externalities
and merit wants (Chawla, 1987).
As an aid to planning and appraisal tool, social cost benefit analysis provides a concerned for
redistribution of benefit. A private firm would not bother to share the benefits among various
groups in the society such as the poor and rich. Government interventions (SCBA) is therefore
needed to justify overall good or bad of a project for the whole nation. By considering the practical
example of upgrading the Nausori airport which had been a major issue of the government in recent
