SMALLSCALE INDUSTRIES

closed

The project consists of a two-year slice of a Government program to assist small and labor intensive industries through technical, managerial, and financial assistance. Objectives of the program are, for the short term, to create employment at low cost and to improve the balance of payments, and for the long term, to foster opportunities for entrepreneurship, stimulate a better integration of the manufacturing sector and develop the industrial base in less developed regions of the country. The lending component of the project is expected to provide assistance to over 200 firms. At least 5,000 jobs would be created directly at an average cost of about $8,000 per job, or about one third of the average cost per job created in the manufacturing sector during the Third Plan (1973-1977). The main project risk would result from the novelty of the technical and financial assistance schemes and the need to coordinate activities of many participating institutions, and close supervision will be required during the startup of the project.