Table 2. Summary of the National Economic Development Principles
Source: Water Resources Council. 1983. Economic and Environmental Principles and Guidelines for Water and Related Land Resources Implementation Studies. Government Print Office, Washington, DC.

NED Objectives
  • NED principles utilized by the federal government to assess economic values of all water resource projects.
  • NED principles assist in making project scope and implementation decisions.
  • NED principles used to determine the total net benefits of all phases of a project.
  • From this information, the NED plan is formulated and net benefits are maximized.
NED Procedures
  • Plans developed in accordance with ER 1105-2-100 (Section 6-1) by adopting the procedures and policies of the Water Resource Council's (WRC) Economic and Environmental Principles and Guidelines for Water and Related Land Resources Implementation Studies, Chapter II – National Economic Development (NED) Benefit Evaluation Procedures (March 10, 1983).
NED Definition
  • Defined as the increase in the net value of the national output of goods and services, expressed in monetary units.
  • Formal Definition: "Contributions to NED are the direct net benefits that accrue in the planning area and the rest of the nation. Contributions to NED include increases in the net value of those goods and services that are marketed, and also those that may not be marketed."(Economic and Environmental Principles and Guidelines for Water and Related Land Resources Implementation Studies, p. 1, March 1983).
NED Applicability
  • National economic development (NED) U.S. Army Corps of Engineers projects produce outputs which benefit the nation, but these projects also expend the nation's resources.
Use of NED Principle
  • Used to determine which utilization of the nation's resources will produce the greatest benefits to the nation.
  • NED principle is a matter of law, policy, and interpretation rather than one of economic fact or theory.
The Water Resource Council (WRC) NED Alternatives Requirements
  • Various alternative plans are to be formulated in a systematic manner to ensure that all reasonable alternatives are evaluated, including:
    • A plan that reasonably maximizes net national economic development benefits, consistent with the federal objective, is to be formulated. This is to defined as the NED plan.
    • Other plans which reduce net NED benefits in order to further address other federal, state, local, and international concerns not fully addressed by the NED plan should also be formulated.
    • Plans may be formulated which require changes in existing statutes, administrative regulations, and established common law; such required changes are to be identified.
    • Each alternative plan is to be formulated in consideration of our criteria: completeness, effectiveness, efficiency, and acceptability. Appropriate mitigation of adverse effects is to be an integral part of each alternative plan.
    • Existing water and related resources plans, such as State water resources plans, are to be considered as alternative plans if within the scope of the planning effort.
Results of NED Application
  • Identification of alternative plans that could be recommended or selected.
  • Culmination of the planning process is the selection of the recommended plan or the decision to take no action.
  • Under the NED principle, the best plan is the one that maximizes net benefits.