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By S. Crooke

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Liabilities) that is available. 5 : 1, sometimes more. The smaller the amount of working capital, the greater the debt burden that the project must carry, and the greater the danger that the project will fai!. 73 A third important aspect involves the estimation of potential sa1es revenues. This is perhaps the single most important element in determining the feasibility of any project. An appropriate level of demand for the product must exist if the project is to be successful. Hence three basic questions have to be answered: (1) wh at is the size of the existing market?

98 In any case, the project has to be implemented in some form or other and various administrative arrangements are possible, each with its own set of advantages and disadvantages. Whatever the form, personnel must be recruited, construction schedules arranged, and supplies and equipment procured. Problems frequently encountered here center around obtaining the requisite resources, the inability or unwillingness of governments to carry out their commitments, inadequate coordination, conflict between indigenous staff and foreign experts, and bureaucratic difficulties such as corruption and the autonomy of various units (customs officials have been known to delay the import of materials for months despite the pleas of other administrators).

The project gathers its own momentum, bureaucratic and political, and later inputs of qualitative or quantitative considerations become mere 'cosmetics' unrelated to the basic 'reality' of the project and designed to mislead the decision-makers ... This is one of the reasons for the commonly observed characteristics, namely the differences between real and formal project preparation. 98 In any case, the project has to be implemented in some form or other and various administrative arrangements are possible, each with its own set of advantages and disadvantages.

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