Recent developments in the methodology of social cost -benefit
analysis (SCBA) have centred on the use of weights to revalue the income
flows created by projects. These developments reflect the increased
concern expressed by many governments in the less developed countries
(LDCs) about the problems of the lowest income groups, and are an
attempt to show how the objective of greater equity in income
distribution can be incorporated, in addition to other more conventional
objectives, in the appraisal of projects. 1ltis paper discusses the use
of income weights in the light of the results of a more detailed study
on SCBA in Pakistan by the author [I]. The paper is divided into three
sections: the first analyses the different ways in which a weighting
system can be incorporated into the appraisal of projects; the second
discusses the problem of obtaining values for these weights and suggests
a relatively simple approach which can be applied in Pakistan; and,
finally, the third section discusses the practical significance of such
procedures for decision -taking in the LDCs.