American Institute of Certified Planners (AICP) Practice Exam

What is the chief importance of the Tennessee Valley Authority Act (1937)?

1. It set in place an agency to stop flooding.

2. It created an agency to oversee the generation of electric power.

3. It is the earliest example of federal legislation in the US for planning in its modern sense.

4. A and B.

The correct answer is: It is the earliest example of federal legislation in the US for planning in its modern sense.

The chief importance of the Tennessee Valley Authority Act of 1937 lies in its role as one of the earliest examples of comprehensive federal planning in the United States. This act established the Tennessee Valley Authority (TVA), which not only aimed to address issues of flood control and the generation of electricity but also represented a significant shift in the federal government’s approach to regional development. The TVA was tasked with improving the economic conditions of the Tennessee Valley, a region that had suffered from poverty and underdevelopment. The act provided a framework for integrated planning that encompassed multiple sectors, including agriculture, labor, and natural resource management, thus laying the groundwork for modern planning practices. While flood control and power generation were important elements of the TVA, the act's primary significance is its contribution to a broader vision of federal involvement in regional development and planning. This comprehensive approach marked a new era in how the federal government approached economic and social challenges, which is why it is seen as pivotal in the evolution of planning as a discipline.