for

conomy Development 15
The Basis Sound Industrial

than
-

The Characteristics Projects

of
eality
Sound
.
any

be be
Sound industrial projects for developing region not only need

to
a
have technically and economically sound that obvious they should also

is
—

—
able produce early profits for both the investor and the economy They
to

Foods

.
of
the long term
fit
mits should also in with economic trends and needs the

-
but growing economy
.
om One extremely important characteristic usually sets such projects apart
many the doubtful

or
worthless industrial ventures they have
of

that from

:
or
market either home abroad which ready take the product
at

to
Loes

if
,

is
a

of
ich meets reasonable standards quality and price The importance the
it

of

.
m be overemphasized
of

readiness market cannot means that new

It
a

a
.
of
venture which will have enough troubles technical managerial and
,

,
ise

up
training nature will not have the added difficulty building

of
en market
,

a
list

n nothing As imports reveals markets for

of

from the great number

,

a
.

products already any underdeveloped country

of

manufactured exist
in

.
for
Industrialization should first address itself making goods this ready
to

n
of
the expensive and hazardous
to

market not creating demand

—

task

a
product sup
or
to

for inject life into market that too small

to
new
is
a

port the proposed industry Despite the obvious importance

of
market
a
.

project surprising number applications submitted for outside

of

for every
, a

financing market justification that this constitutes the

on
so

are weak
major for their rejection
reason
.

second major characteristic good industrial projects

of

that under
,
is
A

normal conditions they have prospective advantage production costs

,

in
a

project plans
or

compared foreign domestic competitors export

to

to
If
.
a

product obviously production lus

at

must have favorable

its

as

least
,

it

-p

delivery cost competitors will not

be
its

or
as

able enter the field

to
,

it

successfully project which plans compete with foreign goods the

in
to
A
.

too

cost advantage going

to

domestic market needs unless exist

,

is
it
a

If of

behind the protective shelter long inability

its

term tariff which hides

a

plight the project probably

its
to

face the economic world this

,
is

is
.

unsound from the viewpoint

of

the economy new project entering

A
.

be

competition with existing domestic enterprises

of at

to

must least able

produce competitors
of

which are not out

its

line with
at

costs those
.are

What gives project production cost advantages Sometimes costs

a