Some Problems of Estimating Capital Formation, With Special References to African Countries

Abstract

It may be said that any economic development plan is "basically concerned with the allocation of increased capital expenditures and the analysis of their probable economic effects. Partial plans usually limit themselves to projects for increased capital outlays in specific fields and their success is measured in relation to the extent to which it has actually been possible to realize the planned capital expenditure. Global plans are more sophisticated and determine general goals for the development of the economy as a whole as well as for specific sectors and then set about finding the conditions and requirements necessary to reach these goals. One of the most basic conditions for the success of such plans is also that the implied capital formation-expenditures can be met.