It has been said that each economy has its own economic
structure and problems. To the extent that this is true,
generalizations on the economic structure and characteristics
of less developed but developing countries seeking economic
growth will lead us astray.
In this study
however, we will only focus attention on the statement of investment
criteria. This is because the selection of an investment project,
programme or a plan involves decisions both of non -economic and
economic character. Although we cannot ignore the decisive
effects of the former group of decisions, in this study we will
only concentrate on the economic considerations.
Among the most important decisions which have to be made when
preparing a development plan are those concerning the size of the
investment programme, the distribution of investment between the
public and the private sector, the allocation of investment among
the various sectors of the economy and within each sector, the
location of industries and the technical form of investment.
In brief, given the capital available (including foreign exchange),
the object of this study is to explore the degree to which economic
theory can be of help to the development planner faced with the
problem of investment choices.
Firstly, a theoretical study is made to cover some of the
main investment rules and priority systems that have found their
way into the literature of development planning. Our discussion
of the subject lies into two parts. While part one of this study
critically examines the;uarterly Journal of Economics investment
criteria discussion, part two is devoted for the discussion of some
of the priority systems thus far developed by National Planning
Secondly, in the light of what have been discussed in the
first two parts of this study, in part three we will critically
examine the U.Î.R. recent practice in development planning with
special reference to the question of investment priorities.