The Basis for Sound Industrial Development

In planning for economic development , a country needs to arrive at

realistic targets of total government and private investment during the
coming five years or so , and a rough evaluation how the total should be
distributed to get maximum results . This is not just a matter of comparing
the value of investments in agriculture and industry with the value of
, education , transportation , power , highways , and

all
investments in health
Nor only one comparing capital invest

of
the other areas the problem
is
.

ments one field with capital investments another requires weigh

It
in

in

a
.
ing capital ype expenditures with the current type
of

of

of
the value
expenditures for administration -t education health defense police services
,

,
and the day day operation of ofother public services this process there

In
to
-
-

.
no

or

are formulas even rules thumb guide the planners Necessarily

to

.
setting very approximate targets opinions

on
of

of
matter the basis
it
is
a

thorough economic analysis

on

which are founded and distorted little

as
by
as

possible conflicting noneconomic interests The goals

of
investment
for the economy whole represent composite what the government .
of
as
a

a
. be

private
do

intends and expects and what

it
able itself believes
to

to

,
do

will foreign capital

of
investors can and both the amounts
In

cases

during
be

be

which can expected the period must taken into account

.
any

the
arriving
of

general the future size and place

of
indus
In

at

idea
of

trial sector the total development the economy some broad conclu
be in

concerning the amount industrial development

of

sions must reached

be

which should possible and economically sound considering the avail

, ,

raw
ability capital foreign management
, of

exchange industrial skills

,

materials and potential local and foreign markets This time for care
is
a
.

ful weighing the country cost advantages and disadvantages regard

of

in
's

possible major areas industrial development danger

of

The great
to

is
.

for

that overoptimism may result the belief that the scope practical
in

industrial development much greater really especially the

is

than
in
is

it

early days the economic development program The common tendency

of

put too much money into industrial projects

to

at

elaborate stage when

is

a
be

the investment would much more valuable industrial development

if
to

moderni
as

were put into such fields education transportation and the

,

,
it

public administration
of

zation
.

concerned with industrial development

of

This book not because

,
is

be

of

any belief that industry should major area

or

the first investment

restm for
most countries but kind development which
of

because has sound

is
it
,